Set up a company in Mexico as a foreign founder: cost, time and ownership
The usual company type for a foreign founder in Mexico is the S.A. de C.V. Foreign ownership: Foreign investment may hold any proportion of a Mexican company's capital (so up to 100%), except where the Foreign Investment Law says otherwise: some strategic areas are reserved to the State, some activities to Mexicans, and others carry percentage caps. Minimum capital: No fixed statutory amount: the articles must set a minimum capital that is fully subscribed, and at least 20% of each cash-paid share must be paid in.
The S.A. de C.V. in Mexico, from the official pages
| What | Detail | Source |
|---|---|---|
| Vehicle | An S.A. needs at least two shareholders, each subscribing at least one share | ordenjuridico.gob.mx |
| Foreign ownership | "Foreign investment may participate in any proportion in the share capital of Mexican companies ... except as provided in this Law" (Foreign Investment Law art. 4) | ordenjuridico.gob.mx |
| Sector limits | Article 6 lists activities reserved exclusively to Mexicans or Mexican companies with a foreigner-exclusion clause (article 5 reserves strategic areas to the State; article 7 sets percentage caps) | ordenjuridico.gob.mx |
| Minimum share capital | No fixed amount in law: "the articles must set the minimum share capital and it must be fully subscribed" | ordenjuridico.gob.mx |
| Paid-in capital | "At least 20% of the value of each share payable in cash must be paid in" | ordenjuridico.gob.mx |
| Formation before a notary | "The sociedad anónima may be formed by appearing before a public notary or attestor (fedatario público)" | ordenjuridico.gob.mx |
| Online alternative (SAS) | The simplified SAS is formed online through the Secretaría de Economía system, but all shareholders need a valid advanced electronic signature certificate | ordenjuridico.gob.mx |
| Registered address | The articles of incorporation must state the company's domicile | ordenjuridico.gob.mx |
| Corporate income tax | "Legal entities must calculate income tax by applying the 30% rate to the tax result for the year" (Income Tax Law art. 9) | ordenjuridico.gob.mx |
| Annual compliance | File the annual income tax return within three months after the tax year ends | ordenjuridico.gob.mx |
Questions founders ask about Mexico
- Can a foreigner own 100% of a company in Mexico?
- Foreign investment may hold any proportion of a Mexican company's capital (so up to 100%), except where the Foreign Investment Law says otherwise: some strategic areas are reserved to the State, some activities to Mexicans, and others carry percentage caps.
- What is the minimum capital for a company in Mexico?
- No fixed statutory amount: the articles must set a minimum capital that is fully subscribed, and at least 20% of each cash-paid share must be paid in.
- Do I need a local director in Mexico?
- No Mexican-resident director requirement appears in the General Law of Commercial Companies sections read.
- Can I register a company in Mexico from abroad?
- An S.A. is formed by appearing before a notary or corredor público, not online. The online SAS route at the Secretaría de Economía requires every shareholder to hold a valid Mexican advanced electronic signature (e.firma).
- What is the corporate tax rate in Mexico?
- 30% income tax (ISR) on a company's taxable result for the year.
Other countries
Australia · Colombia · Cyprus · Estonia · Georgia · Hong Kong · Indonesia · Ireland · Malaysia · Malta · Netherlands · Philippines · Portugal · Singapore · Spain · Thailand · United Arab Emirates · United Kingdom · Vietnam
To weigh the choice, read where to incorporate as a remote founder.
- Company type
- sociedad anónima (S.A., usually S.A. de C.V.), formed before a notary or corredor público
- Foreign ownership
- Foreign investment may hold any proportion of a Mexican company's capital (so up to 100%), except where the Foreign Investment Law says otherwise: some strategic areas are reserved to the State, some activities to Mexicans, and others carry percentage caps
- Minimum capital
- No fixed statutory amount: the articles must set a minimum capital that is fully subscribed, and at least 20% of each cash-paid share must be paid in
- Local director
- No Mexican-resident director requirement appears in the General Law of Commercial Companies sections read
- Register from abroad
- An S.A. is formed by appearing before a notary or corredor público, not online. The online SAS route at the Secretaría de Economía requires every shareholder to hold a valid Mexican advanced electronic signature (e.firma)
- Corporate tax
- 30% income tax (ISR) on a company's taxable result for the year
- Official page
- ordenjuridico.gob.mx
- Checked
Fees, capital rules and timings change. Check ordenjuridico.gob.mx before you register, and get a written quote from any agent you use. Spotted something out of date? Tell us in the members' chat.