How to Open a Branch of a U.S. Company in Mexico: The Gateway to North America and Latin America

Why Mexico Is the Next Step for U.S. Companies

For American businesses, expanding into Mexico is not just about proximity — it’s about strategy. Mexico offers access to more than 130 million consumers, preferential trade benefits under the USMCA (T-MEC), and a cost-efficient environment for operations. A branch in Mexico allows U.S. companies to test the market quickly while keeping full control from the United States.

What Is a Branch of a Foreign Company in Mexico?

Under Article 15 of the Foreign Investment Law (Ley de Inversión Extranjera), U.S. companies can establish branches, agencies, or representative offices in Mexico with authorization from the Ministry of Economy. A branch is not a new Mexican company; it’s an extension of your U.S. business, operating under the same name and structure.

This means:

• Agility: No need to incorporate a new entity.

• Responsibility: Your U.S. company is directly liable for the branch’s obligations in Mexico.

Key Requirements

1. Authorization from the Ministry of Economy (Articles 15 and 17 LIE).

2. Corporate Documentation: bylaws, certificate of legal existence, and power of attorney (apostilled + translated into Spanish).

3. Registration in the Public Registry of Commerce.

4. Tax Registration (RFC) before SAT to issue invoices and pay taxes.

5. Additional Registrations: IMSS (for employees), Importer Registry (if trading), and sector-specific permits.

Branch vs. Subsidiary

• Branch: Faster setup, full control, no separate legal personality.

• Subsidiary: Mexican corporation (S.A. or S. de R.L.), independent, limits liability.

👉 For most U.S. companies looking to test the market, a branch is the fastest and simplest path.

Strategic Advantages

• Direct access to Mexico + USMCA benefits with Canada.

• Gateway to Latin America and Europe via Mexico’s 50+ free trade agreements.

• Highly skilled workforce at competitive costs.

• Legal certainty under Mexico’s Foreign Investment Law.

Conclusion

Opening a branch in Mexico is more than a move south — it’s the bridge to North America, Latin America, and Europe. For U.S. companies, it’s the smart way to expand internationally while keeping operations efficient and under direct control.

👉 At UPLAW Abogados, we help U.S. companies establish branches in Mexico step by step: from securing government authorizations to handling tax and labor registrations. Contact us at contacto@uplaw.com.mx or visit www.uplaw.com.mx to start your expansion today. 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