Setting up a business in Mexico


Mexico is very conducive to business and investment for various reasons. Find out more in this article.

Mexico is one of the world's 10 most visited destinations due to the numerous opportunities which are available there. On one hand, Mexico City, the capital city, has a large number of young but qualified, dynamic and competent professionals seeking job perspectives, though not well paid. On the other hand, thanks to its tourism aspect, the country offers various business opportunities to investors and entrepreneurs. In fact, Mexico has a business friendly climate along with special schemes set up by local authorities in order to encourage the setting up of businesses with an opening on US, Canadian and South American markets.

The country also has numerous natural resources, as well as mines, which greatly facilitate the development of industrial activities.

Foreign direct investment

According to the United Nations Conference on Trade and Development 2013 report on global investment, Mexico is the world's 5th most investment conducive country which is open to the South American and Caribbean markets. Moreover, the Yucatan province is very steady to the reception of foreign direct investment (FDI), mainly coming from the United States and Spain. Mexico City, as well as cities bordering the US are also very receptive to foreign investment.

The most active sectors are financial services, automotive, electronics, energy, etc. In 2013, Mexico has received some 14,362 million dollars in terms of FDI.


Foreigners wishing to set up a business in Mexico have to follow the following procedures:

  • You have to submit your company's name and project file on the Tu Empresa website.
  • You will have to notarize your company's constitution with a public notary before registering it to the Federal Taxpayers Register and to the Public Registry of Commerce. Fees applied vary between 5,000 and 11,000 pesos. Procedures have to be validated by a notary.
  • Your company and its employees have to be registered with the Social Security service and with the « Secretaría de Finanzas del Gobierno del Distrito Federal » for income tax. Documents to be produced are your company's registration code and postal code.
  • You also have to inform the Mexican government on the opening of a commercial company. Procedures can be completed online.
  • Finally, you are required to register your company with the ''Sistema de Información Empresarial Mexicano'' (SIEM). You company will consequently be linked with the corresponding chamber. Fees vary between 100 and 670 pesos according to the company's number of employees and activities.

Count an average of six days for the completion of related procedures.

Types of companies

There are four different types of companies in Mexico:

  • the limited liability company
  • the partnership company
  • the limited company with variable capital and
  • the limited company.

The limited liability company consists of 2 to 50 shareholders. It requires a minimum capital of 3,000 pesos. Each shareholder has to contribute at least 50% to the company's constitution. However, responsibilities are limited according to their contribution.

The partnership company consists of a minimum of two shareholders with limited liabilities. One of the two shareholders will be the company's director. There is no minimum capital requirement.

The limited company with variable capital and the limited company consists of at least two shareholders, including a manager or trustee. There is neither a limit as to the number of shareholders nor a minimum capital requirement. Moreover, liability is limited to the shareholders' contribution.

Labor market

You are advised to inquire on the Mexican labor market if you intend to hire employees. Hence, note that a legal working week consists of 48 hours, that is 8 hours daily. As for night shifts, workers are authorized to work between 10 pm and 6 am the next day.

Workers are also entitled to 3 additional working hours thrice a week. Note that odd hours, whether during the day or at night, are paid double. If employees are made to work on weekend, they will be eligible to an additional 25% on their daily wages.

Workers are eligible to six paid holidays after having worked for a whole year, without interruption.

Two additional days apply every year to a maximum of 12 holidays per year.

Retirement age has been fixed at 65 years. Less than 18 years old children are authorized to work under certain conditions. 14 to 16 years old children are not allowed to work for more than six hours daily. They are not entitled to odds hours and cannot work on public holidays.

Employers are also required to pay 2% of the employee's salary to social contributions.

 Useful links:

Sistema de Información Empresarial Mexicano – information for entrepreneurs
Tuempresa - Help to entrepreneurs
Mexican business and commercial legislations
Mexican Social Security Institute
Mexican Employers Confederation
Mexican Syndicates

We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
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Member since 01 June 2008
Small earth, Mauritius
1 Comment
2 years ago

Does anyone know how the local ranchers would feel about a Canadian woman buying ranchland in Jalisco?


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