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Company Formation in Mexico

Register a Business in Mexico

Formation Timeline

5-10 business days

Tax ID

RFC

Local Director

Not Required

Market Overview

Mexico has emerged as one of Latin America's most attractive markets for foreign investment, particularly for companies seeking nearshoring opportunities close to the United States. With strong manufacturing capabilities, a growing consumer base of 128 million people, and membership in major trade agreements (USMCA, CPTPP), Mexico offers strategic access to North American and global markets.

Legal Entity Types

Sociedad de Responsabilidad Limitada (S. de R.L.)

Limited liability company, commonly used by small to mid-sized foreign businesses

Sociedad An贸nima (S.A. de C.V.)

Stock corporation, preferred for larger operations and companies requiring flexible capital structures

Branch Office

Direct extension of a foreign entity, used when maintaining a formal subsidiary is unnecessary

Tax Registration

RFC

The RFC (Registro Federal de Contribuyentes) is Mexico's federal tax ID, issued by SAT (Servicio de Administraci贸n Tributaria). It is required for all tax filings, invoicing, payroll, and business transactions in Mexico.

Key Authorities

SAT (Servicio de Administraci贸n Tributaria)

Federal tax authority overseeing RFC registration, tax compliance, and electronic invoicing (CFDI)

Ongoing Compliance Requirements

Monthly tax filings (VAT, income tax, payroll taxes)

Electronic invoicing (CFDI) using SAT-approved systems

Annual tax returns and statutory filings

Monthly accounting records and reporting

Local Director Requirement

Mexico does not require a local director or legal representative for most corporate structures. Foreign shareholders and directors can manage the entity remotely, though having a local registered address is mandatory.

Frequently Asked Questions

How long does company formation take in Mexico?

Company formation in Mexico typically takes 5-10 business days, including notarization of incorporation documents, public registry filing, and RFC registration with SAT.

Do I need a Mexican national as a director or shareholder?

No, Mexico does not require local directors or shareholders. Foreign individuals and entities can fully own and control a Mexican company.

What is CFDI and why is it important?

CFDI (Comprobante Fiscal Digital por Internet) is Mexico's mandatory electronic invoicing system. All invoices must be issued digitally through SAT-approved systems and submitted to SAT in real time.

What are the main ongoing tax obligations in Mexico?

Mexican entities must file monthly VAT and income tax declarations, maintain monthly accounting records, comply with electronic invoicing requirements, and submit annual tax returns to SAT.

Ready to expand into Mexico?

NavviPal handles company formation, compliance, accounting, and tax obligations so you can focus on building your business.