Starting a Business in Rocky Point

Self-employed foreigners in Rocky Point, Puerto Penasco, Mexico, often work in IT or knowledge-based careers such as teaching, computer programming, Web design, translations, photography or specialized markets. To work in these areas with other Mexican businesses, you do not need to create a limited liability corporation (LLC) but can instead register as a sole-proprietor micro business. Other types of businesses will require you to register as LLC or limited partnership, however—especially if you plan to open a tour agency, real estate office, hotel, spa, bed-and-breakfast or other type of brick-and-mortar business.

Sole Proprietorship (Persona Fisica)

1. Contract the services of a reliable Mexican accountant (ask other foreigners living in Rocky Point to recommend one, for example). All businesses in Mexico have to use an accountant to register and pay quarterly taxes. Accountant services are relatively inexpensive in Mexico compared with their U.S. counterparts.
2. Ask the accountant to register you at the federal and county tax offices as a sole-proprietorship business. Such registrations involve relatively simple paperwork; if you understand enough of the language, go to the tax office (acienda y Credito Publico) and register yourself. However, the frustrations of wading through Mexican bureaucracy may make it worth your while to pay the approximate $50 to $100 monthly accountant fee.
3. Take your registration papers and tax registration number to an authorized government printing business to have payment receipts made. Give these receipts to clients whenever they pay you for services tendered.
4. Keep track of your expenses and receipts, and give these to your accountant on a monthly basis so she can present your quarterly tax declaration.

Limited Corporation or Partnership

1. Contract the services of a good Mexican attorney in Rocky Point, Puerto Penasco, Mexico (again, ask other foreigners to recommend a good attorney). Consult with your attorney as to the best way to register the business.
2. Draw up the incorporation papers with your attorney’s help for the business registration, and get authorization from the Ministry of Foreign Affairs for a foreign-owned business.
3. Deliver the incorporation papers to the notary public. Unlike an American notary public, the Mexican counterpart is a specialized attorney authorized by the state government to verify legal contracts in his state. The notary (“notario” in Spanish) will authorize and certify the corporate documentation. The process takes approximately 30 days to complete. In most cases, notaries with offices equipped with the appropriate software can also give you your tax registration number.
4. Contract the services of a Mexican accountant (ask other foreign business owners in Puerto Penasco to recommend someone). An accountant’s relatively low fees can help you avoid much of the Mexican bureaucracy runaround. Bring your incorporation documents to the accountant so she can register at the Ministry of Finance and Credit (Secretaria de Hacienda y Credito Publico) if the notary did not obtain the tax registration number for you. Otherwise, give a copy of the tax registration number to the accountant so he can file your quarterly tax information.
5. Ask your accountant to register the business and number of employees at the Mexican Social Security Institute so the employees have health insurance coverage; this process will also register them with the National Workers Housing Fund Institute.

References

• Mexonline: Business in Mexico
• Doing Business: Starting a Business in Mexico

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