User Experience: Process and Time for Setting up a Mexican Factory

Setting up a factory in Mexico involves multiple steps, and the entire process time varies depending on the type of enterprise, industry requirements, and required approval documents. The following is the main process and approximate timeline for establishing a factory in Mexico:

1. Market and location selection
Process: Choosing the appropriate city and industrial area is the first step in setting up a factory. The main manufacturing centers in Mexico include Monterrey, Guadalajara, and Mexico City.
Time: This stage is relatively flexible and may take several weeks to months depending on the needs of the enterprise.
2. Registering a company and establishing a legal representative
Process: Before setting up a factory in Mexico, the enterprise must complete company registration with the Mexican Tax Agency (SAT) and designate a legal representative. In addition, it is necessary to apply for a business license (RFC) and company bylaws.
Required materials:
corporate name
Legal representative information
Company Articles of Association
Shareholders and Capital Structure of the Company
Time: Registering a company usually takes 2 to 4 weeks.
3. Factory site selection and leasing
Process: Once the company registration is completed, the next step is to select the factory location, sign a lease agreement, or purchase land. The Mexican government provides preferential policies for manufacturing enterprises, and many places offer tax breaks and investment incentives.
Time: Factory site selection and leasing usually take 1 to 2 months, depending on the difficulty of site selection and government approval.
4. Labor and Social Security Registration
Process: According to Mexican labor laws, companies are required to provide social security and health insurance for their employees. All employees are required to register under the Social Security System (IMSS).
Required materials: Enterprise registration number, employee personal information, etc.
Time: This step usually takes 1 to 2 weeks.
5. Tax registration and license application
Process: After the factory is established, the enterprise needs to register with the tax bureau and apply for a tax code (RFC). In addition, if the factory is involved in certain specific industries (such as chemicals, food production, etc.), it may need to apply for an industry license or environmental permit.
Time: Tax registration usually takes 1 to 2 weeks, while certain specific licenses may take longer, typically 1 to 3 months, depending on the industry involved.
6. Environmental and safety compliance checks
Process: According to Mexico's environmental protection regulations, the factory needs to conduct an environmental impact assessment. Some industries may still need to comply with safety and health regulations, especially in industrial production sites.
Required materials:
Environmental Impact Assessment Report
Safety Production Plan
Time: This process usually takes 2 to 3 months, depending on specific industry and environmental requirements.
7. Infrastructure construction and equipment installation
Process: Once all permits and approvals are obtained, the enterprise can begin the construction of the factory or the installation of equipment. This includes factory construction, installation of factory facilities, and commissioning of production equipment.
Time: The construction and equipment installation usually take 3 to 6 months, depending on the size and complexity of the factory.
8. Start production and operation
Process: After the factory construction is completed and passes the inspection, the enterprise can start production and operation.
Time: Usually, after the factory construction is completed, the enterprise can start production within 1 to 2 months.
Overall time estimation
Total time: It usually takes 6 months to 1 year from company registration to factory operation. This time period will be affected by factors such as site selection, government approval, and industry type. If the enterprise has already established a business in Mexico or accelerated the process through agency services, the time may be shortened.
Ways to simplify processes
Agency services: Many foreign-funded enterprises choose to simplify their processes through professional agency companies, which can help accelerate registration, license application, tax and social security registration, and other procedures.
Regional investment incentives: Some specific regions in Mexico, such as border areas, industrial parks, etc., offer tax and other investment incentives, and choosing these regions may simplify certain approval processes.
By understanding the above process and timeline, companies can better plan their strategy for setting up factories in Mexico, ensuring smooth and rapid entry into the market.