Services · Company formation

How to open a business in Mexico as a foreigner

Updated 29 September 2026

Zero minimum capital and 100% foreign ownership, yet without an in-person visit to the tax office the company cannot issue a single invoice. The law lets a foreigner hold any stake, but the tax e-signature is only issued in person, so you almost always need someone in Mexico. We cover company types, steps, fees, taxes and banking.

Is it worth opening a company in Mexico

Mexico asks for no minimum share capital and lets a foreigner own 100% of a company. Amendments made in 2011 to the LGSM (Ley General de Sociedades Mercantiles - General Law of Commercial Companies) removed the capital threshold, and the LIE (Ley de Inversión Extranjera - Foreign Investment Law) allows foreign capital in any proportion outside a short list of closed sectors.

Only the entry is cheap. Profits are taxed under ISR (Impuesto Sobre la Renta - income tax) at 30%, and when dividends go to a foreign owner the company withholds another 10%. Example calculation: from 100,000 pesos of profit, 70,000 remain after tax and 63,000 pesos reach the owner after dividend withholding. If the company has employees, the law gives them a further 10% of taxable profit.

The second hurdle is people. The company needs a legal representative with a Mexican tax number and an electronic signature, and that signature is collected in person at the SAT (Servicio de Administración Tributaria - Tax Administration Service). When the owner has no Mexican status, a local resident usually takes on this role.

A good fit for those selling into the Mexican market, moving production closer to the United States, or relocating to Mexico on a residence permit or a digital nomad visa. Not a fit for those seeking low tax on foreign income, since a resident company is taxed on worldwide profits, or for owners without a single trusted person in Mexico.

Which company to form in Mexico: S.A. de C.V., S. de R.L. de C.V. or S.A.S.

Two forms really work for a foreigner in Mexico, and they differ in how ownership works, not in tax. Both usually carry the suffix de C.V. (de Capital Variable - variable capital): under article 213 of the LGSM such a company can raise or cut capital without amending its bylaws.

The S.A.S. is nearly closed to non-residents: every shareholder needs a valid Mexican electronic signature (article 262 of the LGSM). Its income cap for 2026 is 7,678,849.94 pesos and is updated every January; a company that exceeds it and does not convert leaves its shareholders liable for its debts with all their assets.

An S.A. is run by a sole director (administrador único) or a board (consejo de administración) overseen by the examiner, an S. de R.L. by one or more managers (gerentes). Outsiders can hold these posts.

For US owners, American tax often decides the choice. The Mexican S.A. is on the list of entities that US tax rules always treat as corporations, while the S. de R.L. is not, so it can elect tax transparency.

Can a foreigner open a company in Mexico without residency

Yes, and they can own all of it: article 4 of the LIE lets foreign capital hold any share of a Mexican company. The law lists exceptions. Domestic land transport of passengers, tourists and cargo (courier services aside) is closed to foreigners, and in several sectors a stake above 49% needs approval from the National Foreign Investment Commission.

Article 15 of the LIE adds one formality: the bylaws must contain either a clause excluding foreigners or the agreement under article 27 of the Constitution, by which foreign members accept being treated as Mexicans regarding their shares and not seeking their governments' protection, on pain of losing the stake to the state. Notaries insert it as standard.

Not every founder has to travel: the bylaws can be signed by a proxy under a power of attorney notarised at home and apostilled. If a foreigner signs before a Mexican notary in person, article 65 of the Migration Law (Ley de Migración) requires proof of lawful stay in the country.

The electronic signature is what requires a visit, and without an RFC and e.firma the company can do nothing with the tax office. Under article 17-D of the CFF, a person proves their identity at the SAT personally, and through a proxy only where SAT rules expressly allow it. That is why the legal representative is most often a Mexican resident.

How to register a company in Mexico: steps and timeline

Getting from idea to a working company in Mexico usually takes 10 to 60 business days, that is, two weeks to three months. The bank account comes after registration and runs on its own clock.

Step 5 often becomes the bottleneck. Without a tax number and electronic signature the company cannot issue a single invoice, and the bank will not take it on. Book the in-person SAT appointment early.

Step 6 is easy to overlook: RNIE registration is mandatory for any company with a foreign member, and article 38 of the LIE sets a fine for missing the deadline.

How much it costs to open a company in Mexico

The state fee for entering a new company in the Mexico City commercial registry in 2026 is 2,505 pesos when the capital is small and up to 25,098 pesos for large amounts (article 196 of the city tax code, Código Fiscal de la Ciudad de México). Other states set their own tariffs. Most start-up money goes not to the state but to the notary and to preparing the founders' documents.

Example calculation: an S.A. de C.V. with capital of 50,000 pesos must pay in at least 10,000 pesos in cash at formation, that is 20%, and pay the Mexico City registry fee at the base rate. The terms for paying the rest of the capital go into the bylaws (article 91 of the LGSM). Accounting is mandatory in practice, with returns filed every month; we quote the cost of our support after reviewing the documents.

What taxes a company pays in Mexico

A Mexican company pays 30% on profits earned anywhere in the world; it counts as resident if managed and controlled from Mexico. The law knows no threshold below which a company can skip VAT: under article 1 of the VAT law (Ley del Impuesto al Valor Agregado), anyone selling goods or services in Mexico pays it.

Example calculation for a non-resident owner: 1,000,000 pesos of profit, 300,000 pesos of corporate tax, 700,000 pesos available for dividends, 70,000 pesos withheld. The owner receives 630,000 pesos, a total burden of 37%. The double tax treaty with Russia does not change this: its dividend rate is also 10%.

Discipline matters more than rates. Every invoice is issued as a CFDI (Comprobante Fiscal Digital por Internet - an electronic invoice the SAT sees straight away), accounting data goes to the SAT monthly, and tax notices arrive in the Buzón Tributario, the company's electronic tax mailbox. If the company misses its annual return or the SAT cannot find it at its tax address, the authority may temporarily block the certificate used to sign invoices (article 17-H Bis of the CFF). A full breakdown of rates is on the Mexico taxes page.

What reporting a company files and whether Mexico has a beneficial owner register

Mexico has no public register of beneficial owners, but hiding the owner is not an option. Under article 32-B Ter of the CFF, every company keeps accurate data on its ultimate owners (beneficiario controlador) as part of its accounting records and must hand it to the SAT within 15 business days when asked. The law treats as a beneficial owner, among others, anyone who directly or indirectly controls more than 15% of the votes. The SAT may share it with foreign tax authorities under treaties.

The annual calendar of a small company looks like this:

• Every month - corporate tax advances and the VAT return by the 17th of the following month, plus accounting data sent to the SAT.
• By 31 March - the annual corporate income tax return for the previous year.
• January to March - a list of foreign members without a Mexican RFC, with their addresses and tax IDs, for the SAT (article 27 of the CFF).
• April or May - annual renewal of the RNIE entry: companies whose names start with A to J file in April, K to Z in May (article 43 of the LIE regulations).
• By 30 April - the S.A. general shareholders' meeting, due within four months of the financial year end, and the financial year is the calendar year (article 181 of the LGSM). An S. de R.L. meets at least once a year.
• Each time quotas or shares are sold - an entry in the members' register and a notice in the Ministry of Economy's electronic system (articles 73 and 129 of the LGSM).

Since October 2023 the law expressly allows meetings by video link, so owners need not fly in for the annual minutes. The mandatory tax audit (dictamen fiscal) spares small businesses: in 2026 it applies from prior-year income of 2,013,710,870 pesos.

Bank account in Mexico and citizens of Russia and Belarus

A company account in Mexico is opened at a branch, not over a video call. BBVA México says so plainly for its Maestra PyME small business account: gather the documents and come in. Its list for a company:

• the deed of incorporation stamped by the commercial registry (for an S.A.S., the contract signed by the Ministry of Economy);
• a notarial power of attorney for representatives entitled to sign negotiable instruments;
• the company's tax status certificate (constancia de situación fiscal) and its e.firma certificate;
• proof of the tax and operating address no older than three months;
• ID of representatives and signatories: the list names the Mexican voter card INE (Instituto Nacional Electoral), so a foreigner should ask in advance what the bank accepts instead;
• a self-declaration of the account's real owners.

Until the company has an RFC and an e.firma, there is nothing to discuss with a bank. The decision and its timing rest with the bank, which will almost certainly want to meet the signatory. More on the business account in Mexico and personal account in Mexico pages.

Citizens of Russia and Belarus. Neither the foreign investment law nor the companies law sets restrictions by nationality. Mexico has not joined the economic sanctions against Russia: the then president Andrés Manuel López Obrador announced this on 1 March 2022. But banks screen clients under their own compliance rules, and a Russian or Belarusian passport usually means enhanced checks on the source of funds and business ties.

Mexico has a double tax treaty with Russia and none with Belarus. This makes no difference for dividends: the withholding rate is 10% either way. Russia, Belarus and Mexico are all Hague Convention parties, so founders' documents need an apostille, not consular legalisation; our translation and legalisation service can help.

What we do

• we choose the form and work out the tax burden in advance, and if Mexico does not suit you, we say so plainly;
• we obtain the name authorisation and draft bylaws with the mandatory clause on foreign members;
• we prepare powers of attorney, translations and apostilles for the founders;
• we arrange signing before the notary, entry in the commercial registry and RNIE registration within the 40-day deadline;
• we help with the registered address, finding premises that will pass a SAT check;
• we support the RFC and e.firma process and prepare the representative for the SAT visit;
• we bring in Murblz accounting and tax specialists for monthly returns, CFDI invoices, annual reporting and beneficial owner data;
• we assemble the compliance pack for the bank and support the account opening.

Legal representation - acting as the company's legal representative in Mexico, working with the notary, and representation before authorities and courts - is handled by Murblz specialists together with partners licensed locally.

If you plan to live in Mexico, see the Mexico residence permit, the digital nomad visa and the country overview on the Mexico: citizenship, residency, taxes page. To compare with Paraguay and its 10% corporate tax, see company registration in Paraguay, and for a US LLC, company registration in the USA. Other countries are in the company registration and company registration abroad sections.

See also

Business account · Personal account · Investment property · Country taxes · All country programs

FAQ