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Introduction - Softlanding in Mexico
Softlanding involves the legal, operational, financial, and administrative steps that a company must take when expanding abroad to ensure that its expansion and establishment in another country occur smoothly, mitigating all the risks inherent in such expansion.
At UPLAW Abogados | Attorneys-at-Law, we are a law firm in Mexico City specializing in corporate law and corporate governance, and we provide softlanding services. We can advise you, guide you, and answer your questions. Contact us. Don't forget to subscribe to our newsletter to get a discount.
Is your company ready to establish itself in Mexico?
Before starting operations in Mexico, it is necessary to analyze whether your organization understands and is aware of the regulations and requirements it must meet to avoid delays in its opening.
The experience and capabilities of UPLAW Abogados | Attorneys-at-Law, as well as the interdisciplinary team we comprise, support us in offering softlanding services in Mexico to foreign companies wishing to do business here.
With our guidance, you will successfully legally establish your company, establish the appropriate tax regime, register Mexican and expatriate employees, produce accounting records, ensure compliance with existing regulations, and maximize the benefits of international trade.
Legal Requirements
When a company decides to start operations in Mexico, prior and timely advice is essential for identifying and choosing the best available legal alternatives.
For a foreign company to enter the Mexican market, the following activities are necessary:
1. Legal and corporate analysis of investment characteristics for the development of a legal strategy.
2. Request for information related to the company's constitution.
3. Preparation of notarial powers necessary for the constitution of the company and to be granted abroad.
4. Management of the permission to use the name or corporate name with the Ministry of Economy.
5. Preparation of the company's bylaws.
6. Formalization of the public deed before a notary or public broker.
7. Obtaining the Federal Taxpayer Registry and Electronic Signature (FIEL) at the Tax Administration Service.
8. Opening and management of corporate books.
9. Registration of the company in the Public Registry of Commerce.
10. Registration of the company with the Mexican Social Security Institute.
11. Registration of the company in the National Registry of Foreign Investments.
Likewise, if the company requires it, all activities related to shareholders' annual corporate obligations, assemblies, granting and revocation of powers, submission of the annual economic report to the National Registry of Foreign Investments, among others, can be carried out.
Evaluation of Fiscal Impact
A foreign investor wishing to establish their business in Mexico must align their tax strategies with those of their global businesses. To do this, they must consider structuring and divestiture, planning the impact of new regulations, implementing cross-border tax strategies for mergers, splits, and acquisitions, and correctly applying the tax treaties of which Mexico is part.
Accounting, Payroll, and Tax Compliance
Once a company has been duly established in Mexico, the following tax obligations must be met:
1. Prepare accounting records and monthly financial statements, in Mexican pesos and in Spanish, in accordance with Mexican accounting rules.
2. Prepare monthly tax returns.
3. Submit monthly electronic files with Mexican accounting.
4. Obtain an employer registration.
5. Prepare official payrolls.
Expatriate Employees
Foreign companies wishing to establish themselves in Mexico and have expatriate personnel must address the tax implications that foreigners working in our country may face, as well as those of Mexicans who have migrated to another country.
These tax implications depend on the individual situation of each worker, determining whether tax residence (in Mexico or abroad), considering both national legislation and treaties to avoid double taxation.
Additionally, it must be determined whether the expatriate has investments in Mexico or abroad, to determine the tax treatment of their income (rentals, dividends, interest, gains from exchange rate variations, capital gains, corporate shares, etc.).
Foreign Trade
Knowing the available import and export schemes is a fundamental part of successfully starting operations in Mexico.
Before a company begins foreign trade operations, it is necessary to design the customs structure of its organization, considering deferment or tariff exemption programs and the different customs regimes compatible with its objectives.
Once established in Mexico, it is essential to register with the importer registry and specific sectoral registries to obtain the permits and regulations required for the import and export of goods.
Additionally, in Mexico, there are various fiscal and customs benefits, such as exemption or reduction of tariffs, credit to avoid payment of Value Added Tax, reduction of customs inspections, consolidation of operations, and no suspension of the importer registry.
Finally, before introducing goods to Mexico, the company must know their tariff classification, tariff rates, implications of importation, and, if applicable, the application of a free trade agreement or program that allows obtaining a preferential benefit.
At UPLAW Abogados | Attorneys-at-Law, we have the experience, knowledge, and human capital necessary to provide comprehensive and continuous advice regarding the activities for the establishment and operation of your company in Mexico. We can advise you, guide you, and answer all your questions.
Contact us. Don't forget to subscribe to our newsletter to get a discount.
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