How to Start a Business in Mexico

Entity types, registration steps, costs, and first-year compliance — everything you need to launch legally.

Choosing the Right Entity Type

Mexico offers several corporate structures. The right choice depends on your size, number of partners, and capital needs:

• SAS (Sociedad por Acciones Simplificada): Fast, digital formation (1–3 days), low cost, no notary required, limited to MXN 5M in annual revenue. Ideal for startups and solo founders.
• S. de R.L. de C.V. (Limited Liability): Flexible structure, common for foreign joint ventures. Minimum 2 partners, no minimum capital requirement. Requires notary.
• S.A. de C.V. (Corporation): Standard Mexican corporation, minimum MXN 50,000 capital, no partner limit. Most common for medium to large businesses. Requires notary.
• Branch of a Foreign Company: For multinationals operating in Mexico. Liability stays with the parent company. Requires RNIE registration and SAT compliance.

Step-by-Step Registration Process

1. Choose your entity type and reserve your corporate name with the Secretaría de Economía.
2. Draft and notarize articles of incorporation (escritura constitutiva) — required for S.A. and S. de R.L., not for SAS.
3. Register with SAT to obtain your RFC and set up your fiscal address.
4. Register with IMSS (social security) if you plan to hire employees.
5. Open a corporate bank account (requires RFC and corporate documents).
6. Set up your accounting and invoicing system (CFDI-compliant).
7. Issue your first CFDI invoice and begin monthly filings.

Costs and Timeline

• SAS: 1–3 business days. Minimal cost (no notary fees). SAT registration free.
• S.A. de C.V. / S. de R.L.: 2–4 weeks. Notary fees typically MXN 15,000–30,000+. SAT registration free.
• RFC registration: Free, 1–5 business days once documents are complete.

Foreign Ownership Rules

Foreigners can own 100% of most types of Mexican businesses with no restrictions. Some sectors have foreign ownership limits under the Foreign Investment Law: energy, media, aviation, and certain financial services. Foreign investment must be registered with the RNIE (National Registry of Foreign Investment) within 40 business days of incorporation.

Tip: Opening a Mexican bank account as a foreigner requires a valid RFC, corporate documents, and sometimes a face-to-face interview. Allow extra time for this step.

First-Year Compliance Checklist

• Monthly SAT filings (ISR and IVA) by the 17th of each month
• IMSS payroll declarations if you have employees
• CFDI invoice issuance for every sale or service
• Annual financial statements
• Corporate books maintenance (libro de actas, socios, acciones)
• RNIE annual report if foreign-owned

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