Set up a business in Mexico and operate it from the USA

Business in Mexico

Mexico in recent years has evolved as one of the hottest countries to start up a business. Mexico has proved its mettle after the economic crises of 2008. The economy has emerged stronger and experts foresee an upward trend in the years to come. Mexico has been more open towards foreign investment and encouraging businessmen and companies to invest in Mexico. Due to its close proximity to The United States, Mexico is seen as a natural expansion for businessmen and companies based in the USA. The Mexico business directory is full of companies that are owned by US nationals.


Why Invest in Mexico?

Mexico is a bustling place with diverse cultures and a vibrant culture. The exchange rate in Mexico currently stands at 1 USD to 20.73 Mexican Peso. This works well for US investors looking to set up a business in Mexico. Setting up a business in Mexico means a lesser capital requirement for US nationals. Mexico on its part is not completely alien to US products and services. There is already a ready market for US based products. Mexico is one of the few countries in the world that allows 100% ownership of businesses by US nationals. It is easy to set up a business in Mexico and have it operated from the USA itself.

There are already many companies or businesses that are founded, managed and owned by US nationals. The Mexico company database can give a list of American companies in Mexico that have thrived on Mexican shores.

The strong Mexican economy has raised the purchasing power of the Mexicans. This means that there is a huge consumer base waiting to lap up good and innovative products. Also, Mexico has quite a large population of internet and phone users. This also paves the way for setting up online retail or wholesale company. You can even partner with Mexican companies to showcase your products and wares. Mexico allows you to start a limited liability company for $3000 pesos and $ 50000 pesos for a corporation. For entrepreneurs looking to expand their base from US shores, Mexico remains the lowest risk investment they can dip their feet into.

The government has finally realized the potential of foreign investments and has made the legal process of the set up a bit easier. Earlier businessmen would be wary of the red tape, corruption and administrative inefficiency and decide against investing in Mexico. Today a number of information about setting up a business for US nationals is available on the internet. You can also get contact details of the authorities if your search for the respective government Mexico email list.

How to set up a business in Mexico?

Business Idea: As is the case with any business startup, you need to research or stumble upon a business idea that will work in Mexico. Be thorough in your research as sometimes we tend to be overconfident regarding our business ideas. Although a majority of ideas that work in the USA have a high chance of working in Mexico too, do not take unnecessary risks. Analyze the market conditions, demand for the product/service and the spending capacity of the local residents. These factors will also determine how much you should ideally invest. The city, office location and the nature of business will determine your return on investment. It is generally difficult to find a foolproof idea, however, there are lots of options that will actually work if implemented correctly.

Mexico Place

Registering and Legal formalities: The North American Free Trade Agreement between the two countries means fewer restrictions on you for starting your business. You only need to check for industries where this restriction applies. Certain industries have still not opened for foreign investment and you simply can not invest in those. You can register your company name and obtain permits from the concerned authorities in Mexico. It makes sense to hire a legal representative for your paperwork especially if you are looking at operating your business from the USA with maybe occasional visits to Mexico.

The legal firm can help with all the paperwork and get your work done faster without you having to make frequent trips to Mexico. However, you need to be sure about which legal firm you are hiring. A bit of research on the legal firm is advisable. You can go through the databases available for a list of companies in Mexico that specialize in business set up. Look for the department that takes care of US nationals, so that there is no confusion later.

Managing the business-

One of the biggest advantages of starting a business in Mexico is that you need not be physically present at all times. Of course, it largely depends on the nature of your business and the industry you choose, but for small-time investors, they can manage most of it from the USA itself.

  1. Legal Firm: As advised earlier, a legal firm should be able to take care of the majority of your headache. They will keep you apprised of any new law or amendment that affects your business. This way you do not have to run back and forth for every small thing. You can get a gist of the situation and take your decisions accordingly.
  2. Accounting Partner: An accounting partner is equally important. There will be salaries, taxes, and pensions that you need to pay. Once you have an accounting firm in place that can take care of your financial aspects. They will disburse the salaries, maintain books of accounts and also file taxes on your behalf.

Accounting and Legal aspect are the two major areas of concern for business owners especially when they are not physically present. With that sorted, you can simply tie up with other logistics as per your need and make sure that your business is running smoothly. However, you may have to visit Mexico maybe once or twice a year but then booking flight tickets is fairly easy.

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