Set Up a Subsidiary in Mexico

Updated on Friday 15th December 2017

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A subsidiary is a company which is owned or controlled by another company, named the parent or holding company. Mexico is the ideal place to set up a subsidiary because it is ranked the 11th largest economy in the world, having 77% of its population living in urban areas. In this article, our Mexico company formation consultants provide a few key details related to opening a subsidiary in this country.

How a subsidiary can be opened in Mexico

To open a subsidiary in Mexico, it is required to obtain an authorization from the local government first. Also, a fee in the value of around USD 100 has to be acquitted to the Mexican government.
In order to be issued this permission, a declaration must be filed with the Ministry of Economy. This declaration includes the incorporation documentation of the parent company legalized or dully apostilled by the Embassy or Consulate of Mexico in the foreign company's home country.
The above-mentioned declaration has to be translated by an officially certified translator.
Moreover, a letter addressed to the local government has to be made, which will be comprised of:
A written declaration which states that the parent company is incorporated in compliance with the legislation in its country of origin and that its by-laws are not against the public order;
An explanatory statement of the activities which the subsidiary will be undertaking;
The physical address for the commercial subsidiary activities.
Our company formation advisors in Mexico can offer more details on the registration procedure necessary to set up a subsidiary in this country. We also provide assistance to open any type of company in Mexico.

Types of subsidiaries in Mexico

In Mexico, there can be two types of subsidiaries:
A structure I type of subsidiary, named a basic foreign subsidiary: it is the simplest multinational corporate structure. It is generally utilized for exporting activities with only one facility or line of business. This type of structure enables the parent company to freely operate in the country and export goods in its own name and could facilitate procurement activities by decreasing the expenses for the export and distribution;
A structure II type of subsidiary, called a multilevel holding company structure. Our company registration representatives in Mexico can provide all the information related to this type of subsidiary in Mexico.
If you need to know more about subsidiaries in Mexico, or for assistance related to opening such a business structure in the country, please speak to our friendly Mexico company formation executives.