Despite a concerning recent stagnation, Mexico continues to close in on the top ten largest economies on the planet over the last few years. Fortunately, better times are on the horizon. For 2026, the Economic Commission for Latin America and the Caribbean (CEPAL in Spanish) estimates that GDP will grow by around 1.3%. Foreign inves ment is one of the main engines of this macroeconomic recovery. 

Planning and arrival in Mexico 

Changes in the dynamics and timing of internationalization processes have made it increasingly clear that clients want simple, fast, and efficient solutions that leave them ready to transact locally. The set-up of a new entity in the Aztec country can no longer take months and countless technical calls and emails. On the contrary, there is now a search for a simple service package that, more than legal, has truly become a paralegal offering. 

In other words, direct foreign investment landing in Mexico seeks to incorporate its local entity quickly while being full compliant. Therefore, in Mexico, the company incorporation service must be offered as a commodity whose process can be easily broken down into the following elements or stages: 

1. Power of attorney signed abroad by the representative of the future shareholder. This power of attorney must be signed at a notary abroad and then apostilled. 
2. Selecting and obtaining authorization for the name of the new company from the Ministry of Economy. 
3. Drafting, signing, and execution of the bylaws of the new company. 
4. Registering the new company with the Public Registry of Commerce (RPC, in Spanish). 
5. Obtaining the Tax Registration Number (RFC) for the new company from the tax authorities (SAT). 
6. Obtaining a “Tax Address” before the SAT. 
7. Opening and activation of bank accounts. 
8. Registration in the National Registry of Foreign Investments (RNIE). 

Relevant considerations about Mexico 

The international expansion of a multinational group is an arduous and well-structured process, even more so in a territory like Mexico. Therefore, before deciding on an incorporation of a company into said country, it is advisable to be informed about its peculiarities. These are some characteristics of the Mexican economy: 

• It is necessary to identify the specific type of Company that best aligns with the line of business and projections in the country, among other factors. The main options are: Sociedades Anónimas (known as S.A. or C-Corp); Sociedades Anónimas Promotoras de Inversión (S.A.P.I.); Sociedades de Responsabilidad Limitada (S. de R.L. or LLC); and Sociedades por Acciones Simplificadas (SAS or Single-Member LLC). 

• Regardless of the selected corporate vehicle, one can choose between fixed capital and variable capital, which can be increased gradually. 

• It is required to analyze if the name of the new company is not already registered/legally protected by applicable intellectual property regulations. 

• The company must be able to identify and provide proof of the UBO (Ultimate Beneficial Owner) of the new entity. 

• Obtaining the RFC can only be processed by a Mexican citizen or a foreigner with a domicile or residence in the country. 

• These administrators can be foreign citizens. However, the granting of limited and special powers of representation in favor of Mexican citizens or resident foreigners is strongly recommended. 

• At least one legal representative must be a Mexican citizen or a resident foreigner. 

• Every new company must have a tax domicile registered with the Tax Authority. While this can be real/commercial or virtual, the first option is recommended as it facilitates validation processes for activating invoicing. 

• A paralegal incorporation service should not exceed six weeks. 

Conclusions 

Therefore, it is recommended to hire Corporate Secretarial (CoSec) paralegal services to guarantee the entity’s compliance with its partners, public bodies, and other stakeholders. 

Auxadi provides corporate legal services through Afiens by Auxadi, ranked as Band 1 by Chambers & Partners in the ALSP Spain ranking, which features seasoned experts in company incorporation across various jurisdictions. If you are interested in expanding your business in Mexico, you can contact us to help you with your international expansion.

At Auxadi, we offer comprehensive services in accounting, tax, payroll, transfer pricing and corporate legal services to multinationals and funds. With experience since 1979 and a presence in over 50 countries, including 26 proprietary subsidiaries, our advanced technological platform and proven methodology enable us to guarantee efficient management in compliance with local regulations. 

Author:

Allan Barnett Schulder Covarrubias

Regional Director Cono Sur – CL