I
Mexico

Mexico

Company Formation in Mexico

United Mexican States — Secretariat of Economy (SE)

Formation Time
2–4 weeks
Min. Capital
MXN 50,000 (SA de CV)
Corporate Tax
30%
Foreign Ownership
100%

Overview

Mexico is Latin America's second-largest economy and the premier nearshoring destination in the world. As global corporations diversify supply chains away from Asia, Mexico has become the primary beneficiary due to its shared 3,145-kilometer border with the United States, CUSMA/USMCA tariff-free trade framework, competitive industrial labor, and 14 free trade agreements covering over 50 nations. The Mexican corporate tax rate is 30%, which can be substantially optimized through the IMMEX (Maquiladora) program for manufacturing and re-export. The most common commercial vehicles are the S.A. de C.V. (Sociedad Anónima de Capital Variable) and the S. de R.L. de C.V. (Sociedad de Responsabilidad Limitada de Capital Variable — highly favored by US parent companies for US pass-through tax classification). Formation requires execution before a Mexican Notary Public (Notario Público) and registration with the Public Registry of Commerce (RPC). Mexico permits 100% foreign ownership across the vast majority of commercial sectors.

#1 global nearshoring destination
CUSMA/USMCA tariff-free trade
IMMEX export tax deferral
S de RL US pass-through
Monterrey & Guadalajara hubs

Why Choose Mexico

1

World's #1 nearshoring destination — direct land border access to the US consumer market

2

Duty-free North American market access under CUSMA/USMCA (NAFTA 2.0)

3

IMMEX / Maquiladora program — deferral or exemption of import taxes and VAT on export inputs

4

S de RL de CV entity allows US pass-through flow-through tax classification

5

Extensive global treaty network with 60+ bilateral Double Taxation Agreements

6

Deep automotive, aerospace, electronics, medical device, and software clusters (Monterrey, Guadalajara)

7

100% foreign ownership permitted in almost all commercial activities

8

Strong demographic dividend with 130 million residents and young technical workforce

Business Entity Types

EntityOwnershipDirectorsCapitalTaxBest For
S.A. de C.V.100%1 (Sole Administrator or Board of Directors)MXN 50,00030% corporate income tax; 10% dividend withholding for non-residentsCommercial trading, large-scale industrial manufacturing, multi-investor operations
S. de R.L. de C.V.100%1 managerMXN 3,00030% Mexican corporate tax; eligible for US check-the-box pass-through electionUS subsidiaries, consulting, technology services, joint ventures

Step-by-Step Formation Process

1

Secretariat of Economy Name Authorization

2–3 days

Obtain permit to use corporate name from Secretaría de Economía (MUA).

2

Notarial Deed Execution

1–2 weeks

Draft and execute public deed of incorporation before a Mexican Notario Público.

3

Public Registry (RPC) Filing

1–2 weeks

Register the notarial deed in the Public Registry of Commerce.

4

SAT Tax Registration (RFC & e.firma)

1–2 weeks

Register with the Tax Administration Service (SAT) to obtain corporate RFC and digital signature (e.firma).

5

Corporate Commercial Banking

2–4 weeks

Open Mexican Peso and USD corporate bank accounts with commercial institutions.

Costs & Fees

Government / License FeeMXN 2,000 – 8,000
Our Service FeeUSD 3,000 – 8,000
Annual RenewalUSD 2,000 – 5,000

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Mexico has a well-capitalized commercial banking market dominated by BBVA Mexico, Santander, Banorte, and Citibanamex. Corporate account opening requires an active RFC and legal representative.

Account Opening Time
2–4 weeks
Multi-Currency
Yes — multiple currencies supported

Recommended Banks

BBVA Mexico (largest bank in Mexico)Santander MexicoBanorte (major domestic Mexican bank)CitibanamexHSBC Mexico

Tax Overview

Corporate Tax
30% corporate income tax (CIT)
Personal Income Tax
1.92%–35% progressive personal income tax
VAT / Sales Tax
16% IVA (0% on northern border zone for qualifying activities)
Capital Gains Tax
Taxed as ordinary income at 30%
Withholding Tax
10% on dividends paid to non-residents (subject to treaty reductions)
Double Tax Treaties
60 countries

Mexico's IMMEX (Maquiladora) program allows temporary duty-free and VAT-exempt importation of raw materials and machinery used in the production of export goods.

Frequently Asked Questions

Why is nearshoring driving record investment into Mexico?
Nearshoring allows multinational corporations to locate manufacturing close to the US consumer market, cutting ocean transit times from 35 days (from China) to just 24–48 hours by truck. Combined with USMCA tariff exemptions and competitive labor costs, Monterrey, Tijuana, and Guadalajara are experiencing unprecedented industrial growth.
What is the difference between an S.A. de C.V. and an S. de R.L. de C.V.?
An S.A. de C.V. is a variable capital corporation that issues shares, requires at least two shareholders, and is governed by a Board of Directors or Sole Administrator. An S. de R.L. de C.V. is an LLC-equivalent that issues partnership quotas. Crucially for US founders, an S. de R.L. de C.V. is eligible for US check-the-box flow-through tax classification, making it the preferred vehicle for US corporate subsidiaries.
Do I need a Mexican resident director to form a company?
While directors do not legally have to be Mexican residents, Mexican tax law requires every entity to appoint an official 'Legal Representative' (Apoderado Legal) who holds an active Mexican tax ID (RFC) and resides in Mexico to interact with the tax administration (SAT) and open bank accounts. Incorp International provides professional corporate legal representative services.
What is the IMMEX / Maquiladora program?
IMMEX is a special customs and tax regime for export manufacturing. It allows foreign manufacturers to import raw materials, components, and production equipment into Mexico without paying import duties or the 16% VAT, provided the finished products are exported within authorized timeframes.
How long does it take to incorporate in Mexico?
Incorporating in Mexico typically takes 3 to 5 weeks. Key milestones include name clearance with the Ministry of Economy (2–3 days), deed drafting and notarization (1–2 weeks), Public Registry of Commerce filing (1–2 weeks), and SAT tax registration to obtain the RFC and digital signature (1–2 weeks).
Can a foreign national own 100% of a Mexican company?
Yes. Under Mexico's Foreign Investment Law (Ley de Inversión Extranjera), foreign investors can own up to 100% of the capital stock in the vast majority of commercial, industrial, and service activities.