Set up a Branch in Mexico

Updated on Tuesday 10th October 2017

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The branch is one of the means of establishing a business in Mexico used by foreign corporations. It is essentially the Mexican counterpart of the parent company abroad and it engages in the same business activities as the foreign corporation it represents.

Branch offices are the preferred solution in some business sectors, such as banking and insurance. Investors who want to set up a branch in Mexico can benefit from the services offered by our Mexico company formation agents.

The characteristics of the branch in Mexico

The branch can be a convenient manner of establishing the presence of a foreign company on the Mexican market because it allows the foreign company to have full control over its operations in Mexico.

A branch’s scope of activity is not as broad as that of a corporation: it may not own real estate and the foreign company abroad is fully liable for the debts and obligations of its Mexican branch

The branch is subject to the same taxation as a Mexican corporation for the income it derives from the country, however, it has lower requirements for accounting and annual filing than locally registered corporations. 

Our Mexico company registration agents can give you further information on branch taxation and how the double tax treaties can influence the overall branch taxation.

Branch set up in Mexico

Foreign companies that wish to set up a branch in Mexico must obtain an approval from the Ministry of Economy. A set of documents are needed for registration, including the translated Articles of Association and company registration certificate belonging to the parent company. One of our agents who specialize in setting up a company in Mexico can assist you during this process and can help you prepare all of the needed registration documents. 

While the branch does not offer limited liability, foreign companies can prefer to set up this business form over other types of companies.

You can contact our Mexico company formation agents for more information on how to open a branch or any other legal business structure in Mexico.