Starting a Business in Mexico

This table summarizes the procedures and costs associated with setting up a business in Mexico.

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Legal Form: Sociedad Anónima (S.A.) - Corporation
City: Mexico City

	Procedure	Time to complete:	Cost to complete:
1	Obtain the authorization of using the company name from the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores)	2 days	MXN 705
2	Sign the deed of incorporation before a notary public and obtain tax registration number	2 days	MXN 10500
3	Register the deed in the Public Register of Commerce	3 days	MXN 1520
*4	Register at the Ministry of Finance and Credit,Secretaría de Hacienda y Crédito Público, to obtain the tax ID number : Registro Federal de Contribuyentes "RFC"	2-7 days (appointment) and same day (the Tax number ) simultaneous with procedure 3	no charge
5	Register with the Mexican Social Security Institute (IMSS)	2-5 days	no charge
6	Register with the local tax administration (Secretaría de Finanzas del Gobierno del Distrito Federal) for payroll tax	1 day	no charge
7	Notice of opening a mercantile establishment before local government (Delegación)	1 day	no charge
8	Register with the National Business Information Registry (Sistema de Information Empresarial, SIEM)	1 day	The costs can vary from MXN $100 to MXN $670

* Takes place simultaneously with another procedure.

Procedure 1.: Obtain the authorization of using the company name from the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores)
Time to complete:: 2 days
Cost to complete:: MXN 705
Name of Agency:
Comment:

Procedure 2.: Sign the deed of incorporation before a notary public and obtain tax registration number
Time to complete:: 2 days
Cost to complete:: MXN 10500
Name of Agency:
Comment:: If the notary public drafts or provides expert advice on the company bylaws, notary fees are generally high, from MXN 5,000 to MXN 11,000. The company charter and bylaws must be drafted before appearing before a notary public. The signing of the deed takes only a day; however, the notary may take 1–2 days to deliver the deed of incorporation.

Certain notaries in Mexico City have signed an agreement with the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público) (through the Sistema de Administración Tributaria, SAT) to grant the tax registration number. The notary who issues the tax registration number must also issue the deed of incorporation. The program requires specific software, equipment, and stationary which is not common practise.

Procedure 4.: Register at the Ministry of Finance and Credit,Secretaría de Hacienda y Crédito Público, to obtain the tax ID number : Registro Federal de Contribuyentes "RFC"
Time to complete:: 2-7 days (appointment) and same day (the Tax number ) simultaneous with procedure 3
Cost to complete:: no charge
Name of Agency:
Comment:: The company must obtain a tax ID number (Registro Federal de Contribuyentes "RFC") at the Ministry of Finance and Credit, Secretaría de Hacienda y Crédito Público. An appointment, has to be done to obtain the tax ID number, which is granted 7 days after. The same day is possible to obtain a password called CIEC, to file tax procedures on a website.
The authority of certain notaries in Mexico City to issue tax registration numbers was reinstated. This tool facilitates setting up a company since two very important procedures (granting of the incorporation deed and obtaining federal tax registration number) may be done with the same notary public on a simultaneous basis, however is not implemented across all notaries for the moment.
Therefore, it takes 7 days to get the appointment and you can get the tax number the same day. Moreover, this procedure is simultaneous with procedure the registration process.

Procedure 5.: Register with the Mexican Social Security Institute (IMSS)
Time to complete:: 2-5 days
Cost to complete:: no charge
Name of Agency:
Comment:: The company must register with the Mexican Social Security Institute (IMSS) and the National Workers’ Housing Fund Institute (INFONAVIT) and open individual retirement savings accounts for employees. The registration is conducted before the IMSS delegation (delegación) in the company’s jurisdiction. On average, the delegations take 2–5 days but some take a week or longer.

Procedure 6.: Register with the local tax administration (Secretaría de Finanzas del Gobierno del Distrito Federal) for payroll tax
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:
Comment:: The company must register with the local tax administration after registering with the IMSS. The local office can be found at www.finanzas.df.gob.mx. The tax registration number and the company’s postal code are required to register.

Procedure 7.: Notice of opening a mercantile establishment before local government (Delegación)
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:
Comment:: The notice has to be given after receiving the tax registration number. Since February 2004, notice can be given via the Internet (through SAEM www.apertura.df.gob.mx)

Procedure 8.: Register with the National Business Information Registry (Sistema de Information Empresarial, SIEM)
Time to complete:: 1 day
Cost to complete:: The costs can vary from MXN $100 to MXN $670
Name of Agency:
Comment:: Mandatory registration with the National Business Information Registry (Sistema de Information Empresarial, SIEM) has been in effect since January 1997. The company will be registered with the specific chamber corresponding to its corporate purpose or activities. The cost varies with the number of employees and the company’s activities as shown below.

Fees for industry related activities (maximum fees)
-6 or more employees $ 670
-3 to 5 employees $ 350
-Up to 2 employees $ 150

Fees for commercial and services related activities (maximum fees)
-4 or more employees $ 640
-3 o less employees $ 300
-Up to 2 employees $ 100

The costs can vary from MXN $100 to MXN $670