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Being the second-largest economy in Latin America and the 15th in the world, Mexico has become a desirable destination for entrepreneurs and investors interested in expanding into Latin America.

The existing macroeconomic conditions and its strategic location have made Mexico a great place to start a business. And thanks to its large and growing economy, pro-investment attitude, and competitive labor pool, several foreign investors and entrepreneurs seek to register a business in Mexico

But Mexico’s legal system is particularly bureaucratic and the registration of a new company comes with some hurdles so investors and entrepreneurs often choose an alternative which is buying a Mexican ready-made company – one of the fastest ways to start a business in Mexico

What is a ready-made company in Mexico? 

A Mexico ready-made company, which is more known as a shelf company, is a company or corporation that has had no activity. 

It was developed and left with no activity or “put on the shelf,” hence its name. The ready-made company can then be sold to someone who wishes to start a company in Mexico without going through all the processes of creating a new one. 

The ready-made company in Mexico has been incorporated according to Mexican corporate laws and standards but has not been used for trading or any type of business activity. 

Pros of ready-made companies in Mexico 

  • The company is already registered: a Mexico ready-made company is already established, with no history, with a lifetime debts-free guarantee, and can be purchased immediately and within 24 hours from the receipt of the order, buyers can start running a business with the new company. 
  • Easier to obtain bank loans: shelf companies make it easier to acquire bank loans for investments as they give the idea of longevity and will look like a credible investment to banks. Also, the owner won’t have to deal with the administrative hassle of getting the tax I.D. and opening a bank account for it. 
  • It’s an aged corporation: the fact that the company has been “left on the shelf” and has aged means that the legal entity has no bad debts and no poor credit history. 

A ready-made company is established exclusively for its sale and allows buyers to save time and money otherwise spent when establishing and registering a new company. 

Note that investors/buyers are advised to be careful when purchasing Mexican legal entities and, must perform company due diligence to confirm that the company is indeed debt-free and has had no business history. It is best to let experts do a legal review. Your Damalion expert can help in this aspect. 

Buying a shelf company in Mexico 

To buy a ready-made company in Mexico, entrepreneurs need to follow a few steps and conduct a verification before obtaining the legal entity. 

This process essentially involves buying the equity stock from the current owners. To do this, buyers will sign a purchase/sale agreement. And once this is done, the current owners will transfer corporate control to the buyer by celebrating a shareholders’ meeting and announcing him/her are the new owner. Other process includes changing of name and address, changing of company’s purpose, and substitution of Board of Directors. 

Entrepreneurs looking to buy a shelf company in Mexico will find several options when ready to make the purchase. This is where your Damalion expert comes in, we will guide you through the entire process of purchasing a ready-made company in Mexico and make the process hassle-free for you. 

If you are interested in buying a ready-made company in Mexico, let’s go ahead and contact your Damalion expert now