Open a LLC in Mexico

Updated on Saturday 07th October 2017

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The limited liability company in Mexico is one of the most used business forms, both by foreign investors and local entrepreneurs. It can also be referred to as the LLC or the S.R.L., after its Spanish name. 

In order to open a limited liability company in Mexico, investors will need to go through a multi-step incorporation procedure, from obtaining the needed authorizations, to registering with the relevant Mexican authorities. 

Investors who need help opening a business in the country can request the services provided by our Mexico company registration agents.

The characteristics of the Mexican LLC

The limited liability company, or Sociedad de Responsabilidad Limitada, S.R.L., is a type of company in Mexico that offers a convenient degree of investor’s protection (liability limited to the amount invested) and had a low incorporation capital. It is founded by two or more shareholders and it can have up to 50 shareholders. 

The LLC is suited for small and medium-sized businesses and it offers a flexible organizational structure for investors. This type of company cannot offer its shares for public trading. The transferability of the shares and the management structure are agreed upon in the company’s Bylaws. 

Investors who are interested in setting up a company in Mexico can open an S.R.L. for all types of small and medium-sized businesses, for import and export businesses and even as a holding company. 

Limited liability company formation in Mexico

The Mexico company formation process is one that includes several steps and investors need to observe all of these, plus the conditions for company taxation and filing, once the company is running.

In order to open a company in Mexico, investors need to go through these following stages:
- obtain the name authorization from the Ministry of Economy;
- prepare the company deed with a notary public;
- register the deed with the Public Register of Commerce;
- receive the tax ID number and register with the local tax administration;
- register for social security purposes;
- notify the Government of having opened a mercantile establishment;
- register with the National Business Information Registry.

Special registration taxes or fees apply for some of these steps. One of our Mexico company registration agents can give you detailed information and help you during any one of these stages.

Contact us for more information and advice on how to open a company in Mexico.