Setting Up a Business in Mexico
Before setting up a company in Mexico, business owners should be well-versed in the local laws and regulations so that no legal complications arise. According to World Bank Data, the Gross Domestic Product (GDP) in Mexico was worth about $ 1,200 billion USD in 2019. Aside from being above the regional average of economic status, there are many reasons why Mexico is a prime choice to expand your operations. Mexico is home to a pro-business environment and an economy that is slowly growing. Keep reading as we break down why, when, and how new businesses should set up in Mexico.
Why Set Up Business in Mexico
Mexico has a unique culture and business environment. In Mexico, there are 4.2 million small and medium-sized enterprises (SMEs) that generates 52% of Mexico’s GDP, according to the National Institute of Statistics and Geography.
Mexico is also the twelfth largest exporter in the world. Forty-six countries hold free trade agreements with Mexico, more than any other country in the world. Exported goods take up a bigger majority of Mexico’s economy than any other country its size. Mexico’s top export is manufactured products, but it also exports silver, fruits, vegetables, coffee, and cotton.
With so much international interaction, building a global presence in Mexico is not a difficult milestone for a small business to achieve. Not only will your business have demand for your service or products inside the country but there is potential for demand to grow beyond Mexico’s borders and into USA or Latin America.
When to Set Up Business in Mexico
Fun fact: In Mexico there is a well-known phrase, “ahorita”. This translates to “right now” or “at this time”. However, the culture has deformed the meaning and can mean anything from five minutes or five days. This phrase has much to do with the culture in Mexico and means that people may arrive late to an appointment or work due to cultural influences. It is important to set strict deadlines and time frames for business so that operations are not delayed.
Mexico’s economy continues to grow despite its change in the presidency and the impact that the American economy has on the country. The country’s economy has been growing at an average of 2% annually since 2013. Small business owners should take advantage of this trend and expand their business efforts to Mexico while the economy is still progressing.
How to Set Up Business in Mexico
If your business looking to expand their business efforts in Mexico, NNRoad can pave the way to company formation. Our trusted experts can ensure that your company is in compliance with local rules and keep your mind at ease.
Mexico’s three most common entities are categorized as such:
- Simplified Shares Company (SAS)
- Limited Liability Company (LLC)
- Stock Corporation
To see a breakdown of each of these entities, click here.
Start your company in Mexico in just four simple steps:
- Submit Inquiry: Fill-in this form and briefly explain your intended business activity in Mexico.
- Wait for Response within 24 Hrs: Our local attorneys will analyze your case and provide you with a feasibility study and quote.
- Documents Collection: Once you send us all required documentation, our legal team will verify them and approve the project.
- Service Agreement: The last step will be to sign the service contract and confirm the payment.
NNRoad guides firms to reach their international business goals and make market entry as seamless possible. If Mexico is the market you have set your eyes on, contact NNRoad today so we can get you there.