05 Apr What do you need to open a business in Mexico?
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According to IFC data in its report “Doing Business 2019”, Mexico ranks 94th in the ranking of countries that have the greatest facility to open a business. Among the aspects that are evaluated are permits, licenses and inscriptions that together allow this business to be formal and contribute to the growth of the country’s economy.
Next, we will share with you the paperwork that is needed so that a business can operate in a formal manner and achieve your undertaking of the next step.
# 1 Obtain the land use permit
The use of land is an opinion that must be processed to justify before the authority the actions or activities that are carried out on a given territory. For businesses, the type of land use that specifically supports the operations carried out within must be managed. For example, they exist for laundries, cafeterias or party halls.
To obtain it you must go to the municipal dependency, the cost can be of approximately $ 800 pesos and your permit can be ready within the next 5 business days. It is worth mentioning that each state establishes its own requirements according to the zone and type of permit.
# 2 Opening notice of establishment
Specifically for businesses dedicated to commercial activities of buying and selling goods or services, it is necessary to present an opening notice. Since additional to having a permit to carry out your activities, it is mandatory that you inform the authorities that you have started. The procedure is free in most states of the country and can even be done online. Once you get this notice, you must place it in a visible place of your establishment.
# 3 Operating license
Another particular case is the operating license. This should be processed by all those restaurants, hotels, bars or canteens that offer the sale of alcohol for consumption. Within the procedure there are two classifications, the type “A” is for restaurants or hotels, while the type “B” is applied to bars, canteens and discos. The cost per procedure can be from $ 6,000 pesos to $ 12,000 pesos and must be renewed every three years.
# 4 License for outside ad
The license for external advertisement, you only have to process it if you want that outside of your establishment one is found. The cost and term depend on the size of the poster or advertisement. Similarly, this is processed in the municipal offices and may have certain limitations with respect to its structure and the message it communicates. That is, if they are illuminated or contain figures, images or words that damage morals.
# 5 Registration in the Federal Taxpayers Registry
As a last but not least requirement, there is registration before the Tax Administration System. Here you must choose the regime that corresponds to your commercial activity. Whether you choose to register as a legal entity or a natural person with business activity, you will be granted obligations that you must fulfill before the tax authority. The process is very agile and you can do it online or directly at the nearest offices.
As you can see the procedures you need to open a formal business in Mexico, they are very basic and easy to perform. If you get all, you can make your venture more likely to succeed.