Foreigners starting a business in Mexico may find the process to be relatively simple, as the country has Foreign Investment Laws that are designed to protect and encourage outside investment. In addition, there are a number of free trade agreements in place that can provide preferential tariffs and other benefits. However, it is always advisable to seek the advice of a law firm with experience in doing business in Mexico, as there are a number of specific requirements that must be met.

However, Mexico provides a number of advantages for businesses, including lower wages for skilled workers and lower transportation costs. The country’s location also ensures faster production turnaround time, not to mention ease of communication, and similar time zones. As a result, doing business in Mexico may be just what your company needs to prosper.


Foreigners starting a business in Mexico can do so through a law firm that is experienced with the process of setting up businesses in the country. The North American Free Trade Agreement (T-MEC) between Mexico, Canada and the United States eliminates tariffs between the countries and has built in agreements and legal processes, with international rights for business investors. As a result, there are many benefits to doing business in Mexico.

The country is rich in natural resources, has a large population with a growing middle class, and is located in proximity to the United States, making it an attractive market for many businesses. In addition, the Mexican government has been working to improve the business environment in recent years by streamlining registration processes and providing incentives for foreign investment. As a result, there are numerous opportunities for businesses that are looking to expand into new markets.

Foreigners who wish to start a business in Mexico may do so by incorporating a company under Mexican law. Foreigners can own 100% of the shares of the company, and there is no requirement that Mexican nationals also be shareholders. Incorporating a company in Mexico is a relatively simple process, and there are numerous law firms that specialize in assisting foreign investors with the process.

Once the company is incorporated, the foreign owner may obtain all the necessary licenses and permits to operate the business in Mexico. The laws and regulations governing businesses in Mexico do not discriminate between foreign-owned and Mexican-owned companies, and the tax laws are also equally applied. As a result, starting a business in Mexico can be a very attractive option for foreign investors.

Foreigners starting a business in Mexico can be a lucrative initiative, but it is important to have a Mexican law firm to represent you and your company. A law firm like LawInCabo can provide important guidance through the process of setting up your business in Mexico.

They can advise you on Mexican labor law, Mexico’s tax laws, and all the red tape that goes along with doing business in Mexico. Having a Mexican law firm on your side will help you navigate the complex process of setting up a business in Mexico, and can ultimately save you time and money.

Foreigners starting a business in Mexico have different business entity options to choose from that are similar to the rest of North American including, Public Limited Company or Corporation (Sociedad Anonima (S.A.) which either have fixed or variable capital. This entity will have at least 2 board members and an unlimited amount of shareholders. This type of company is required to have an accounting firm that will ensure the proper management and legal aspects are taken care of.

Another option for businesses in Mexico is called a Civil Association, which has a limit on the number of shareholders it can have, but there is no limit to the amount of foreign ownership. Foreigners can also create a Joint-Stock Partnership where they would be able to offer securities to the public, but there are certain regulations that need to be followed in order for this to be done legally. 

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