When willing to invest in Mexico, we must know the regulations and rules to establish a business. As an investor, we place ourselves before the authority as Moral Persons. And what is it to be a moral person? What regulations do I have to comply with?
We will explain it below.
What is a Legal entity?
A “Legal entity” is a company that invests using its funds. There are many advantages to investing as a company, including the ability to access capital markets and obtain financing more easily. Additionally, companies can take advantage of tax deductions and other benefits unavailable to individuals. However, setting up a company in Mexico can be complex and expensive and requires adherence to various legal and tax formalities.
Legal Entities, the way to invest in Mexico
In Mexico, companies are known as “Legal entities”, meaning they are separate legal entities from their owners and can operate under their name. Corporations are a popular choice for entrepreneurs looking to protect their assets and limit their liability in the event of financial or legal problems.
However, there are specific rules and regulations that legal entities must comply with in Mexico. Here are some of the essential practices that companies should be aware of.
Legal entities must be legally constituted to operate in Mexico. That involves following the legal procedures and requirements for establishing a business, including drafting and filing legal documents such as articles of association and incorporation.
Registration with authorities
Once incorporated, the company must register with different rules, such as the Tax Administration Service (SAT) and the Ministry of Economy and Labor and Social Welfare.
Legal entities are subject to various tax obligations in Mexico, such as paying taxes and submitting periodic tax returns.
Companies must comply with labour laws in Mexico, such as the Federal Labor Law, which establishes requirements on hiring, social security, salary, and working hours.
In some sectors, such as finance or telecommunications, there are specific regulations that companies must comply with before they can operate. These regulations may include additional requirements regarding capital, licenses and authorizations.
If you have questions, feel free to let us know.
At ORBE, we have a team of specialists who will be in charge of helping you meet the requirements above to start a business in Mexico, guaranteeing peace of mind and the growth of your business.