American Businesses Connecting with Companies in Mexico

Mexico’s appeal as a business destination for American companies comes from several areas. The country’s proximity to the United States, the southern border, is one of the most obvious factors that is appealing to American companies doing business in Mexico. However, it also has favorable trade agreements, including the United State-Mexico-Canada Agreement (USMCA).

The USMCA is a free trade agreement between Mexico, Canada, and the United States. A portion of the agreement is specifically focused on small businesses, giving business owners perks like reduced costs to start up and operate a business as well as a decrease in government regulations that are often a barrier for business owners. It also protects intellectual property and encourages business growth on a global level.

The cost effective labor market is another boon for business owners. The wages are very low, especially in sectors like manufacturing. But the workforce is skilled and efficient.

Key industries in Mexico include manufacturing, technology, automotive, and agriculture. Medical devices, apparel and textiles, and aerospace are also very important industries in the country. These industries are all contributing significantly to the Mexican economy, making the country a prime destination for U.S. companies looking to expand internationally.

Establishing a business in Mexico is very similar to establishing one in the US although there are a few differences. It is helpful to first have some working understanding of the language. That will go a long way in helping you navigate the process. Choosing a business structure is one of the first things you should do. The legal types of business in Mexico are similar to US business types. For instance, the. Sociedad de Responsabilidad Limitada (S. de R.L.) is much like the United States’ LLC. Take your time to research what is available and line it up with your business needs. Next, select a name for your business. In Mexico, you will need to appoint a legal representative if you are a foreigner. This representative does not have to be a citizen of Mexico, but they do need to understand the process so they can help you. Get all of your incorporation documents notarized. This includes all associated legal documents like the bylaws for your company. File the registration documents for your company with the Public Registry of Commerce. Apply for a tax ID number as well and open a local bank account for your business. You can also begin hiring local talent to get your business going.

Advantages of Doing Business in Mexico

There are benefits as well as some drawbacks that come with doing business in Mexico.

• Supportive and beneficial trade agreements that encourage foreign business
• Access to skilled labor
• Competitive costs from labor to land
• Proximity to the United States for easy access

Key Business Hubs in Mexico: A City-by-City Overview

Each of Mexico’s cities offers its own benefits and business perks. The country’s key hubs include:

Mexico City – finance and tech hub

• Mexico City is the largest city in the country and is its capital. It also boasts the largest population in North America. The city’s infrastructure has robust public transportation, and it is served by two airports. The city serves as a major gateway for businesses looking to expand in Latin America.

Monterrey – manufacturing and logistics hub

• Monterrey is the capital of the Mexican state Nuevo Leon. It is also the largest city in that state. Monterrey has been named one of Mexico’s most livable cities. There are quite a few high-profile international corporations that are based there.

Guadalajara – tech and innovation hub

• Guadalajara is the capital of the Mexican state of Jalisco. It is also the municipality with the densest population in Jalisco. Guadalajara is rich in Mexican culture and is a tourist hot spot. 

Each of these Mexican cities has its own gems to offer. The key is finding the right fit.

Success Stories: American Companies Thriving in Mexico

There are a number of big name corporations that have chosen to set up in Mexico and are succeeding in the Mexican market – many with the help of ConnectAmericas.

Ford Motor Company, BMW, Mazda, as well as IBM, and Intel are all based in Mexico. General Motors is another major corporation that has found success in Mexico, benefiting from the country's favorable business environment. These were already highly successful companies, but they are doing even better on Mexican soil. These companies and so many more are utilizing all that Mexico has to offer.

Companies that have used ConnectAmericas to help them with their business endeavors report that by using the robust database system they tapped into benefits and valuable tools that allowed them to make their businesses a success.

These tools help business owners find partnerships and learn about regulatory and cultural differences. This helps the business stay afloat and even thrive and grow.

Resources for U.S. Companies Entering the Mexican Market

If you are thinking about starting a business and entering the Mexican market. Then you need ConnectAmericas. Our database will connect you with the resources that you need in order to be successful.

We offer a wide variety of tools, including business matchmaking, and resources. Our database can help you get the answers you need and connect you with people who not only can help you but want to help you.

All you have to do is sign up and get started. Our platform will also point you in the direction of key trade organizations and chambers of commerce that themselves support business.

Building Strong Business Relationships in Mexico

ConnectAmericas offers a very high potential for success. We can help you get started with your strategic planning, which is absolutely integral to the success of your company.

Mexico is not only a lovely country, it is a business powerhouse. If you are entering into one of the country’s local markets, just make sure that you understand the local nuances both personally and from a business standpoint.

Knowing the language is a very significant step in creating a successful business. Language barriers can lead to misunderstandings which can lead to the breakdown of communications and then the relationship. In business, you need solid relationships to survive. This is especially true when you are building a business outside of the United States.

ConnectAmericas can provide you with essential resources and connections that you need to support your business. It doesn’t matter if you have a new business or you’ve been around for a while, we have tools that can help you.

Expand Your Business in Mexico Today

If you are ready to enter the Mexican market, let us help. Take a look at the ConnectAmericas website. Check out our impressive database and our massive library of business resources.

We give you the ability to connect businesses with partners, tools, and market insights. If you want to give your business a healthy start, put us to work for you. We’ll help you get what you need.

So, go ahead, explore ConnectAmericas’ resources and take this next step toward launching or expanding your business in Mexico, sign up for ConnectAmericas today.

FAQ

What industries are most profitable for U.S. companies in Mexico?

The industries most profitable for US companies in Mexico are:

• Finance
• Tech
• Manufacturing
• Logistics
• Innovation

How do I navigate Mexican tax laws as a foreign business owner?

You can navigate the Mexican tax laws by hiring a professional in that area. Additionally, it's crucial to understand the importance of tax management in ensuring compliance with local tax requirements and avoiding potential issues down the road.

How does the USMCA trade agreement benefit American businesses in Mexico?

The free trade agreement between Mexico, Canada, and the United States, USMCA, makes it less expensive to operate and start up a business. It also reduces government regulations for business, thus reducing some common barriers. It also provides protection for intellectual property and encourages global business growth.

What are the most common cities in Mexico for starting a business?

The most common Mexico sites for starting a business are:

• Mexico City – finance and tech hub
• Monterrey – manufacturing and logistics hub
• Guadalajara – tech and innovation hub