If you are looking to start a business in Mexico, to take advantage of the second-largest economy in Latin America, you might want to consider several things before starting business here.
Mexico’s economic growth over recent years has seen a corresponding rise in prosperity in the country, with gross national income (GNI) reaching $9,480 per capita in 2019. Despite fluctuations in foreign direct investment (FDI) over recent years, an impressive $29.35 billion of FDI inflows were registered that same year.
With a population of roghly 128 million people and a gross domestic product (GDP) that hit $1.27 trillion in 2019 (all figures in USD), Mexico represents a major market with a wealth of opportunities that are particularly popular among investors due to its close proximity to the United States.
Mexico is a major trade hub, being the 17th-largest exporter in the world, and the country is a host of free trade agreements (FTAs) in place with countries and regional associations in the Americas, Asia, and Europe. That includes the US-Mexico-Canada Agreement (USMCA), providing preferential access to the largest and ninth-largest economies in the world, as well as the Pacific Alliance — an economic integration that recently celebrated its tenth anniversary and also includes Chile, Colombia, and Peru.
Before starting business in Mexico, you should read on to get to know the things to look out for. Or go ahead and reach out to us know.
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Advice For Foreigners Looking to Start a Business in Mexico
Before you go rushing in, be aware that challenges can arise when doing business in Mexico, especially as a foreigner. There are a few things you should take into consideration:
- Ask around: One source of information is not enough; it’s always best to get a second opinion. Procedures and processes can vary and not everyone is aware of the latest requirements.
- Get well acquainted with your accountant: As a foreigner doing business in Mexico, you will have plenty of paperwork and administrative procedures to follow, especially as regulations change from year to year. It is important to find a trustworthy accountant to help you along the way.
- Patience is a virtue: Like in many Latin American countries, time is relative. Two days might turn into a week, a week into a month, and so on and so forth. It’s important to be patient and follow up closely with the people you have set deadlines with.
- Play by the rules: Regulations change frequently. Although nationals may get away with certain things, as a foreigner, it’s advisable to play by the books. This reinforces the idea of having a good accountant who can assist you with the tricky legal landscape of starting and running a business in Mexico.
- Establish good relationships. A good business is built on solid relationships. To do this, it is important to establish trust and get to know your vendors as well as clients. Take the time to go out to lunch, share personal information, and accept invitations to social gatherings with potential business partners. Mexicans do business with their friends and people they trust.
Before starting a business in Mexico you should consider working with Biz Latin Hub
Before starting a business in Mexico you should consider working with Biz Latin Hub. Because our team of company formation agents is equipped to help you to start a business in Mexico in the shortest time possible, while at the same time remain in good standing with the local authorities. With our full portfolio of back-office support offerings, including legal, accounting, and HR services, we can be your single point of contact to support your market entry and ongoing operations in Mexico, as well as the other 15 countries in Latin America and the Caribbean where we are present.
Contact us now to discuss your commercial options.
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