How to start a business in Mexico: an expert explains
Many foreigners choose Mexico as a place of establishing a business. There are restrictions on the percentage of foreign investment, although there are some businesses that exclude foreigners, and foreigners start a business in the country.
We spoke to the lawyer of Charlin Gomez Govarupias Act, co -founder of online law firm LecopAsk her about the first steps to take anyone who wants to start a business in Mexico. Here are all the basics you need to know how to prepare, from registering your brand, using the type of legal company and how to register in the tax authority.
However, make sure you have a suitable immigration status in Mexico. In general, foreigners with temporary residency visa are allowed to work in a permanent residency visa Mexico.
Recording your brand
Registration of trading stamp provides you with the right to use it exclusively nationwide for your registered products or services. Most importantly, this protects your brand from unauthorized use by others.
Unlike the United States, you do not need to prove the pre -use app to register – what you need is only the original name or brand design.
“You can apply for a trademark record even if you have not used it before. It is recommended to do so everywhere,” says Gomez.
It is not illegal to run a business without a trademark, and without it, there is a risk of being prosecuted by using a brand registered brand with your same name.
Gomez warned, “If someone else has already turned that the trade or a similar record is recorded, the person may take you to court and the fine may go up to 40 percent of your income.”
The trademark registration process can be completed online through the Mexican Intellectual Property Institute (IMPI). Comes recommends hiring a special lawyer to assist the application process, which includes classification of trademark, making a similar brand to ensure that no one registered a similar brand and monitor Impi’s response.
In some cases, IMPI may require additional information before the application is approved. But once it is provided, the trademark is valid for 10 years, after which it can be updated.
“The good news is that you don’t need a residency settlement. You don’t have to be physically physically in Mexico to record it,” Gomez said.
Deciding whether to act as the sole owner or as an integrated institution
There are more than one option to open a business as a foreigner in Mexico. Investors can combine or operate a company Natural person with business activity (Only owner).
“Various features should be evaluated to determine the best alternative,” says Charlin Gomez, which includes the main considerations of how to connect with business partners and the risk of business. Both options have their advantages and disadvantages, and it is important to understand which option is right for you and your business.
To act as the sole owner is unlimited responsibility and is personally responsible for all the debts and obligations of the business. However, this path provides benefits such as tax deductions, high flexibility and low bureaucracy when starting business.
On the contrary, connecting a company provides a limited responsibility security, which means that your personal assets are separate from the company’s assets, protecting you in the event of a debt or case.
Gomez recommends that there is no response-no response, and the advice of a corporate lawyer and the tax lawyer in Mexico will help make the best decision.
Registration with SAT
Whether any business is legally operated in Mexico, it is mandatory to register in the Tax Administration Service (SAT), even if it is conducted by a natural person or integrated company. This process provides the number in the Federal Taxpayer Registry (RFC), which is essential to pay taxes, offerings, and access to a wide range of business services.
“Nowadays, it is necessary to register in SAT in other business activities, to participate in trade, to provide invoice, open the bank account, to access the credit, and to participate in tenders.”
When registering, you need to choose the tax rules of filing your taxes. In addition, you need to get your password and electronic signature to access the digital services offered by SAT.
Although some steps to register can be done online, some other steps require a person to visit the SAT offices.
“For example, you need a feeling to deliver invalidlics, and you have to go in person because you take your biometrics,” Gomez explained that adding a tax lawyer can advise businesses in this important process.
Failure to register with SAT can lead to serious consequences, including fines, fines, business closure and legal issues relating to tax evasion and fraud.
According to Gabriel A Mexican lawyer became a full -time writer. He was born and raised in Quadalajara and covers business, culture, lifestyle and journey daily for Mexico News. You can follow her lifestyle blog Tunas Y Palmaras.
