Mexico Business Registration Guide 2026

RFC Registration (Registro Federal de Contribuyentes)

The RFC is the tax identification number for all businesses and individuals in Mexico. To obtain an RFC for a new business, the legal representative must apply through the SAT portal (portal de SAT) or in person at a SAT office. Required documents include the notarized incorporation deed (escritura constitutiva), proof of address (comprobante de domicilio), identification of the legal representative, power of attorney, and CURP of the legal representative. The RFC is issued immediately through the online system for most entity types. Businesses must also register their tax address (domicilio fiscal), tax regime (régimen fiscal), and economic activities (actividades económicas) with the SAT.

Business Entity Types

Sociedad Anónima (SA)

The SA is the most common corporate form, used by medium to large enterprises. It requires a minimum of two shareholders and a minimum capital of MXN 50,000 (no minimum paid-in requirement in practice for most incorporations). Shares must be subscribed by at least two shareholders and are freely transferable (unless restricted by the bylaws). The SA must have a board of directors (consejo de administración) and a statutory auditor (comisario). Liability is limited to the shareholders' capital contributions. The SA is subject to the general corporate tax rate of 30% ISR.

Sociedad de Responsabilidad Limitada (S de RL)

The S de RL is similar to an LLC and is better suited for smaller businesses with fewer than 50 partners (socios). Interests (partes sociales) are not freely transferable — transfer requires approval of the majority of partners. No board of directors is required; management is typically through a general manager (gerente general). The S de RL is also subject to the general corporate tax rate of 30% ISR. It offers limited liability and simpler governance than the SA.

Sociedad por Acciones Simplificada (SAS)

The SAS is a simplified corporation created by the 2014 Fintech and Entrepreneurship Law. It is designed for sole entrepreneurs (one shareholder) and small businesses. The SAS can be incorporated entirely online through the SAT portal with no notary fees (using the SAS platform — sociedad.sat.gob.mx). Key features include: no minimum capital requirement, no board of directors required, shareholders may be individuals only, and annual revenue capped at MXN 5 million (increased in some years). The SAS offers limited liability and simplified compliance.

RESICO Simplified Regime (Régimen Simplificado de Confianza)

The RESICO regime, introduced in 2022, is a simplified tax regime for individuals and small businesses with annual revenue up to MXN 35 million. It replaces the old RIF (Incorporation Regime). RESICO offers significantly reduced ISR rates on actual revenue (not profits):

• 1.00% on annual revenue up to MXN 25 million
• 1.10% on annual revenue from MXN 25 million to MXN 35 million
• 2.50% maximum rate under certain conditions

RESICO eliminates most deductions since the tax is on gross revenue. Participants must issue CFDI electronic invoices for all transactions and file monthly returns. RESICO is available to both individuals (personas físicas) with business activities and legal entities (SA, S de RL, SAS) that qualify. VAT is still payable separately at 16% (or 0% for exports). RESICO taxpayers cannot deduct ISR or VAT.

CFDI Electronic Invoicing

All businesses in Mexico must issue electronic invoices (CFDI — Comprobante Fiscal Digital por Internet) for every transaction. The CFDI is generated through an SAT-authorized PAC (Proveedor Autorizado de Certificación). Each invoice includes the issuer's RFC, the receiver's RFC, a unique folio number, a digital stamp (sello digital), the amount, IVA breakdown, and the applicable tax regime. CFDI must be submitted to the SAT in real time. Failure to issue CFDI can result in fines, loss of deductions, and tax assessments. There are specific CFDI types for income (ingresos), payroll (nómina), payments (pagos), and retentions (retenciones).

Ongoing Compliance

After registration, businesses must comply with monthly and annual obligations: monthly provisional ISR payments (declaraciones provisionales), monthly VAT (IVA) declarations, annual ISR and VAT returns (declaración anual), DIOT (Declaración Informativa de Operaciones con Terceros) for supplier transactions, CFDI issuance, and accounting records (contabilidad electrónica) submitted to the SAT monthly. Businesses must also maintain a tax mailbox (Buzón Tributario) and respond to SAT notifications within the required timeframe.

FAQs

How long does it take to register a company in Mexico?

An SAS can be registered online in 1–3 days. An SA or S de RL requires a notary and typically takes 2–4 weeks.

Can a foreigner own 100% of a Mexican company?

Yes, except for restricted activities (oil & gas, telecommunications, certain professional services) where foreign ownership may be limited or require approval from the Foreign Investment Commission.

Do I need a Mexican bank account to register a company?

Yes, a Mexican corporate bank account is required for the initial capital contribution and ongoing operations. Many banks require the RFC and incorporation deed to open an account.

Disclaimer

This guide provides general information about business registration in Mexico for 2026. Tax laws, filing requirements, and registration procedures may change. The information is based on published SAT and notary data. Always consult with a qualified Mexican attorney (notario) and tax advisor for advice specific to your situation. InvestmentKit does not provide legal or tax advice.