The website “Expats in Mexico” published the article “How to Become an Expat Entrepreneur in Mexico.” In this article, Emilio Arteaga, DMB director, was quoted about the main challenges that entrepreneurs and businesses face in Mexico.
During the interview, Mr. Arteaga commented about the importance of legal advice and tax matters. These issues are not only present for Expats that seek to be entrepreneurs, but also for global companies as foreign investors in Mexico.
Expats, as individuals, who seek to become entrepreneurs in Mexico will require a valid “visa” or migration status. This aspect is key to starting a legal or formal business, but also to have serious clients.
In addition, the entrepreneur has to analyze and select the most convenient legal structure for his business. Should he/she act as an individual? Should he/she have a sole-proprietorship company? Should he/she seek for partners to incorporate a traditional company or an SAPI?
In the article, Emilio Arteaga was quoted saying the following advice:
In Creating a Company and the Tax in Mexico Guides, Doing Business Mexico explains the importance of having a Tax ID and a digital tax signature. On another note, Emilio Arteaga also recognized that it is a must for entrepreneurs to have an accountant who can guide the expat through “daily tax operations, such as issuing electronic invoices and filing tax returns.”
As noted in his final remarks, tax in Mexico is complicated. Failing to comply, entrepreneurs may face serious legal consequences before Mexican Tax Authorities.