Establishing Operations in Mexico: A Guide for Foreign Businesses

With the rise of nearshoring, Mexico has become an attractive destination for foreign companies, especially those from Asia, looking to establish operations close to their primary markets in North America. To set up in Mexico, these companies must meet certain requirements and consider various strategic factors.

According to Arturo Pastrana, General Director of Professional Services Integral Consulting, experts in nearshoring, the steps for any foreign company to establish itself in Mexico are as follows:

1. Establish contact with local and federal governments to leverage available fiscal and administrative incentives.
2. Conduct a feasibility analysis of the fiscal and legal viability of the company’s sector in the desired geographic area.
3. Legalize the company or establish a new legal entity in Mexico.
4. Set up a Fiscal Address.
5. Obtain the company’s Tax Registration (RFC); Local Employer Registration with the Mexican Social Security Institute (IMSS), and with the Ministry of Economy.
6. Establish Legal Compliance to meet all local, state, and federal requirements in areas such as labor, civil, fiscal, and administrative, which includes: a. Taxes b. Civil liability c. Workforce d. Local and state licenses e. Trademark or patent registration and civil protection
7. Establish Fiscal Compliance to develop a tailored fiscal strategy, ensuring efficient and effective compliance with all local, state, and federal tax requirements, thereby reducing the risk of non-compliance in the short, medium, and long term.

Asian companies, particularly those in the technology and manufacturing sectors, have started to establish operations in Mexico. Samsung and Toyota are examples of companies that have leveraged nearshoring to optimize their supply chains and reduce costs.

For a foreign company, especially an Asian one, to set up in Mexico, it is crucial to meet legal requirements, capitalize on nearshoring benefits, and consider cultural and operational aspects. Mexico presents a strategic option for expanding operations and efficiently accessing North American markets.

MORE INFORMATION: Email: contacto@integralconsulting.com.mx Web: https://www.integralconsulting.com.mx/ Phone: +52 55 5919 1407 WhatsApp: +52 554 887 1479