Company Formation in Mexico

Company formation in Mexico typically takes 8-12 weeks. The process involves notarization by a Mexican Notario Público, registration with the Public Registry of Commerce (Registro Público de Comercio), and RFC registration with SAT (Servicio de Administración Tributaria). Corporate bank account opening is often the slowest step and can extend the timeline further. NavviPal manages the full process end-to-end.

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

Both are limited-liability vehicles open to 100% foreign ownership, and the choice usually comes down to structure rather than liability protection. The S.A. de C.V. (Sociedad Anónima de Capital Variable) is a variable-capital stock corporation requiring at least two shareholders, with capital divided into shares that can change without amending the bylaws; it is the structure most foreign-owned subsidiaries use, particularly where future equity financing or share transfers are likely. The S. de R.L. (Sociedad de Responsabilidad Limitada) has ownership organized through partes sociales (quotas) rather than shares, and is more commonly used by smaller or single-purpose foreign subsidiaries with a simpler ownership structure. Both require the same core formation steps: notarization, Public Registry filing, and RFC registration.

Company formation in Mexico typically ranges from $2,000 to $6,000 USD for the core one-time process, notarization, public registry filing, RFC/RNIE filing assistance, and apostille. Registered address ($540–$1,632/year) and monthly accounting ($300–$2,000/month) are separate recurring costs. See the full cost breakdown for a detailed, component-by-component estimate.

PTU (Participación de los Trabajadores en las Utilidades) is a mandatory annual profit-sharing obligation under the Ley Federal del Trabajo. Ten percent of a company's taxable profit must be distributed among employees, split according to days worked and salary earned during the year, with payment due by May 30. Profit-sharing is exempt up to 15 UMAs per employee. PTU applies regardless of whether the company issues dividends, so it is a real annual budgeting item, not an optional bonus, for any foreign employer with a profitable Mexican subsidiary.

Mexican entities must file monthly IVA (VAT) and ISR (income tax) declarations, issue all invoices via CFDI (Mexico's mandatory electronic invoicing system), submit annual ISR returns by March 31, maintain monthly accounting records, and file payroll taxes and IMSS/INFONAVIT contributions if employing staff.

Core requirements include: articles of incorporation notarized before a Mexican Notario Público, apostilled copies of foreign shareholder identification documents, proof of a registered address in Mexico, and RFC application documents for SAT. If hiring employees, IMSS registration documents are also required.