Doing Business México 2020 MEX | Page 8

Doing Business 2020 Mexico Details – Starting a Business in Mexico City – Procedure, Time and Cost No. 1 Procedures Obtain the authorization of using the company name online Agency : Ministry of Economy (Secretaría de Economia) The company name can be reserved directly by the public notary through the following online platform: https://mua.economia.gob.mx/mua-web/muaHome. In the website, it must be indicated the following information: name, type of company and the notary public with whom the constitution will be formalized. Once all the information is provided, the notary must sign the request with the electronic signature (e.firma). Time to Complete Associated Costs 2 days no charge 2 days on average MXN 10,500 (notary fees) The Ministry of Economy will first check its availability and then proceed if it complies with the legal framework. The authorization is issued via email within the 2 next days and it is valid for 180 days. Once the companie's incorporation deed is made, the Notary Public will notify the Ministry of Economy of the using of the authorized company name. 2 Notary prepares the deed and parties sign it at the notary public Agency : Public Notary The company’s deed of incorporation must be prepared by a notary. Upon receipt of the authorization regarding the company name, the notary proceeds to notify of the use of the corporate name and draft the articles of incorporation in order to be duly signed by the partners. + MXN 18,407 (registration fees) The founding partners must provide their general personal information (official identifications, Tax IDs) and a statement for the start-up capital, which is normally transferred to the new company's management board. A bank account can be opened once the company has been incorporated. It usually takes the notary 2-3 days for the notary to review the documents and process the final incorporation deed for execution by the relevant parties. 3 File the deed of incorporation with the Public Registry of Commerce Agency : Public Registry of Commerce In order to publicize the act of incorporation, companies registered must file the deed of incorporation with the Public Registry of commerce. Half a day (online Included in procedure 2 procedure) The notary public is in charge of making the registration of the articles of incorporation at the Public Registry of Commerce whether in person or through remote electronic means. The following documents are required: (i) a duly notarized articles of incorporation (+ a copy) and (ii) a document certifying age above 18 years old. Once the fees are paid the information is uploaded into the Siger system (https://rpc.economia.gob.mx/siger2/xhtml/login/login.xhtml) the pre-coded forms are filled out with information included in the articles of incorporation, then they are sent to the Public Registry of Commerce and enrollment takes place immediately. Since December 15, 2018, the amended Law of Mercantile Corporations introduces the requirement to electronically notify any changes in the shareholders structure. At the incorporation moment, the initial shareholder structure is provided in the public deed at the Public Registry of Commerce. After incorporation, any share transfer should be electronically notified to the Ministry of Economy through the electronic system. 4 Obtain a Tax Registry Number (RFC) with the Tax Authorities (Sistema de Administración Tributaria - SAT) Agency : Tax Authorities (Sistema de Administración Tributaria - SAT) The company must obtain a Tax ID number (Registro Federal de Contribuyentes - "RFC") from the Tax Authorities. Notaries are able do obtain it at the following web page: https://www.siat.sat.gob.mx/PTSC/. He/she submits the information on the company and retrieves the RFC and the Tax Identification Card in pdf format. Half a day (online no charge procedure) , 2 days if done by the entrepreneur The entrepreneur can also obtain the RFC but needs to go in person to the service center to obtain an electronic signature. Page 8