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How German Companies Can Open a Branch in Mexico: Your Strategic Entry into the Americas

Why Mexico Matters for German Industry

Mexico is one of Germany’s strongest partners outside Europe, especially in the automotive, manufacturing, and technology sectors. By opening a branch in Mexico, German companies gain access to a booming domestic market, privileged entry into the U.S. and Canada under USMCA, and connections to Latin America.


People pointing at a map.

What Is a Branch in Mexico?


Per Article 15 of the Foreign Investment Law, a branch is not a new company — it is your German entity extended into Mexico, operating under the same corporate name and rules.


Key Points:


  • Agility: Faster than forming a Mexican corporation.

  • Responsibility: The German parent company is liable for branch obligations.


Requirements


  1. Authorization from Mexico’s Ministry of Economy.

  2. Apostilled and translated German corporate documents.

  3. Notarial registration in the Public Registry of Commerce.

  4. Tax registration (RFC) with SAT.

  5. Additional steps: labor (IMSS), trade (Importer Registry), or sector-specific licenses.


Branch vs. Subsidiary


  • Branch: Best for fast entry, maintains full German control.

  • Subsidiary: Independent Mexican entity, reduces liability, suitable for long-term projects.


Benefits for German Companies


  • Immediate access to Mexican, U.S., Canadian, and Latin American markets.

  • Strategic trade platform thanks to Mexico’s extensive FTAs.

  • Strong German-Mexican industrial cooperation.

  • Skilled workforce in engineering and manufacturing.


Conclusion

Mexico is more than an emerging market for German businesses — it’s a gateway to the Americas.


👉 With UPLAW Abogados, German companies can establish branches in Mexico smoothly and securely. From government approvals to tax and labor compliance, we handle everything so you can focus on growth. Contact us at contacto@uplaw.com.mx or visit 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

 
 
 

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