Regulations to sell in Mexico by Industry

As a merchant, selling your products in a foreign country poses questions and challenges but having concise information can ease the process of making businesses in Mexico.

The first thing to consider is the difference between all business entities that exist in Mexico, these are: “Sociedad anónima” or corporation, “Sociedad anónima de capital variable” or corporation with variable capital, “Sociedad de responsabilidad limitada” or limited liability partnership, and “Asociación civil” or civil association.

You may register your operation as any of these business entities, but there are alternatives such as joint ventures, many US companies that sell in Mexico choose this option that implies having a Mexican partner, the advisable thing is to draft a strong written agreement with them.

If your business is a franchise, it is important to know that they are regulated by Article 142 of the Industrial Property Law and article 65 of its regulations which means that every agreement must be registered before the Mexican Institute of Industrial property to be effective.

There are ongoing investments in IT infrastructure, so e-commerce is a promising industry, especially because there are 45 million internet users in Mexico and most of them are under 35 while half of them live in major cities like Mexico City, Guadalajara, and Monterrey.

When doing business in Mexico, due diligence is highly advised for US companies selling in Mexico. Law firms in major cities provide consulting services and the local chambers of commerce and associations can give economic reports for specific firms.

About the language to make business in Mexico, it is recommended to conduct sales communications and draft all literature in Spanish, also, it is encouraged to make local partnerships and hirings.

Sales and distribution channels in Mexico benefit from a modern highway system, a lot of intermodal ports and it is constantly working to further modernize its transport infrastructure, so the future looks promising in the transportation-logistics sector.

Doing business in Mexico is a great opportunity to expand your operations, the area offers a cost-effective market entry opportunity for many companies needing proximity and access to Mexican labor and the US consumer market.

Learn more about 3PL Logistics services in Mexico here.