Mexico

Legal form:

S.A., S. de R.L., S.R.L., S.C., S. en C.

Delivery:

4 weeks

Price: $

2000

Payment methods:

Requirements:

Document checklist:

Local legal address (Handled by B2B Hub)

1.Passport
2.Proof of Residence

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Inquiry

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Registrar

Organization name

Abbreviation

Country

Mexico

Phone

Listing

Open website

About

Mexico

Capital
Official languages
Population
Currency

ISO 4217

Mexico City

Spanish

126,577,691 (as of July 2020)

Mexican Peso

MXN

FAQ

Q: What is the process for company formation in Mexico?

A: The process for company formation in Mexico involves obtaining necessary licenses and permits, registering the company with the Mexican government, obtaining a tax identification number, and registering for social security contributions.

Q: What are the requirements for company formation in Mexico?

A: The requirements for company formation in Mexico include a minimum of two shareholders and one director, a registered office address in Mexico, and a minimum share capital of MXN $3,000 for a limited liability company.

Q: What types of companies can be formed in Mexico?

A: Companies that can be formed in Mexico include limited liability companies, public limited liability companies, partnerships, and sole proprietorships.

Q: How long does it take to form a company in Mexico?

A: The time it takes to form a company in Mexico varies and can take up to several weeks, depending on the complexity of the registration process.

Q: What are the tax implications for companies in Mexico?

A: Companies in Mexico are subject to a corporate income tax rate of 30%, as well as value-added tax (VAT) and other taxes and fees.

Q: What is the legal system in Mexico?

A: The legal system in Mexico is based on civil law.

Q: What is the currency used in Mexico?

A: The currency used in Mexico is the Mexican peso (MXN).

Q: Can foreign nationals own a company in Mexico?

A: Yes, foreign nationals can own a company in Mexico. However, there are certain restrictions on foreign ownership in certain industries, such as telecommunications and broadcasting.

Q: Are there any specific regulations for foreign-owned companies in Mexico?

A: Foreign-owned companies in Mexico are subject to the same regulations as domestically-owned companies.

Q: What are the benefits of forming a company in Mexico?

A: Some of the benefits of forming a company in Mexico include a large and growing consumer market, a strategic location between North and South America, a well-developed infrastructure, and a highly skilled workforce. Additionally, Mexico has a number of free trade agreements with other countries, making it an attractive location for businesses.

Economy

Mexico has seen a steady growth in its economy over the past few years. According to the World Bank, Mexico's GDP grew by 2.2% in 2019, and is projected to grow by 2.7% in 2020. This growth is largely driven by the country's strong manufacturing sector, which accounts for around one-third of the country's GDP. Mexico is also a major exporter of oil, with exports accounting for around 10% of the country's GDP. Additionally, Mexico has seen a surge in foreign direct investment, with FDI reaching a record high of $35.2 billion in 2019. This has helped to create jobs and boost economic growth. Overall, Mexico's economy is showing signs of steady growth, and is well-positioned to continue to grow in the future.

Taxation

Here is an overview of the taxation system in Mexico:

Corporate Taxation:

- Companies in Mexico are subject to a corporate income tax rate of 30% on their taxable income, with certain deductions and exemptions available.

- Corporate income tax returns must be filed annually, usually by the end of March following the end of the tax year.

- Corporate income tax payments are made in monthly installments, due on the 17th day of each month.

Personal Taxation:

- Residents of Mexico are subject to personal income tax on their worldwide income, while non-residents are taxed only on their Mexican-sourced income. The tax rates range from 1.92% to 35%, depending on the income level.

- Personal income tax returns must be filed annually, usually by the end of April following the end of the tax year.

- Personal income tax payments are made in monthly installments, due on the 17th day of each month.

Value Added Tax (VAT):

- The standard rate of VAT in Mexico is 16%, with reduced rates of 0% and 8% applicable to certain goods and services.

- VAT returns must be filed monthly, usually by the 17th day of the following month.

Tax Payment Process:

- Taxpayers in Mexico can make tax payments through various methods, including online payment systems, bank transfers, and at authorized payment locations.

- Taxpayers must file their tax returns and make their tax payments by the deadlines mentioned above.

- The Mexican tax authority, Servicio de Administración Tributaria (SAT), may conduct audits to ensure compliance with tax laws.

In summary, companies in Mexico are subject to a corporate income tax rate of 30%, while residents and non-residents are subject to personal income tax on their worldwide and Mexican-sourced income, respectively. VAT is imposed at a standard rate of 16%, with reduced rates for certain goods and services. Taxpayers must file their tax returns and make their tax payments by specific deadlines, and the SAT may conduct audits to ensure compliance with tax laws.

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