Expand to Mexico: How Canadian Companies Can Open a Branch and Strengthen Their North American Presence

Why Canadian Businesses Look to Mexico

Canada and Mexico share a strong partnership under the USMCA. For Canadian businesses, a branch in Mexico is more than a southern expansion — it’s a chance to reinforce their presence across North America while gaining access to Latin America’s growing markets.

What Is a Branch?

The Foreign Investment Law (Article 15) allows Canadian companies to establish branches in Mexico with Ministry of Economy approval. A branch is an extension of your Canadian company, not a new entity.

Advantages:

• Simple, fast setup.

• Full control from Canada.

• Responsibility remains with the Canadian parent.

Requirements

1. Ministry of Economy authorization.

2. Canadian corporate documents (apostilled + translated).

3. Registration in the Public Registry of Commerce.

4. RFC with SAT for tax purposes.

5. Extra registrations for labor, import/export, or regulated industries.

Branch vs. Subsidiary

• Branch: Faster entry, best for testing the market.

• Subsidiary: Independent Mexican entity, limits liability, suitable for large-scale projects.

Benefits for Canadian Companies

• Access to 130M Mexican consumers.

• USMCA benefits for trilateral trade (U.S. + Canada).

• Platform for Latin American growth.

• Competitive workforce and operational costs.

Conclusion

For Canadian businesses, Mexico is both a gateway and a growth engine.

👉 At UPLAW Abogados, we specialize in helping Canadian companies establish branches in Mexico. From legal filings to tax setup, we make expansion simple and secure. Contact us at contacto@uplaw.com.mx or www.uplaw.com.mx. Learn more here: https://www.uplaw.com.mx/post/how-to-open-a-foreign-company-branch-in-mexico-the-ultimate-guide-to-expanding-your-business