Buying a business out of state can be a difficult but buying a business out of country can be impossible for the uninitiated - even if the country is Mexico, which borders the U.S. Every state has its own trade law eccentricities and that goes double for business acquisitions out of country.

Businesses for sale in Mexico is an affiliate of American Business Brokers Network and together we will help you with the questions you may have in selling your gas station, convenience store or purchase that perfect business - small, mid size or large - that you have been looking for. American Business Broker Network agents know the workarounds for these snags and pay their own salaries with the money they save you - not to mention the hassles you avoid.

Here are some considerations:

The Mexican In-Bond (for mfg.) Program - What is a Maquiladora?

If you plan to manufacture a product for export from Mexico you should familiarize yourself with the word 'maquiladora'. A maquiladora is a Mexican Corporation which operates under a maquila program that entitles the company, first, to foreign investment participation in the capital -- and in management -- of up to 100% without need of any special authorization; second, it entitles the company to special customs treatment, allowing duty free temporary import of machinery, equipment, parts and materials, and administrative equipment such as computers, and communications devices, subject only to posting a bond guaranteeing that such goods will not remain in Mexico permanently.

Are there barriers to foreign ownership and leasing in Mexico?

There are two kinds of areas in Mexico where land ownership by foreign interests is prohibited: a 100 kilometer strip along the borders and a 50 kilometer strip along the coasts. In these areas, a foreign-owned maquiladora may acquire trust rights to real estate through creation of a trust, with a Mexican bank of its choice as trustee. The trust rights allow full use and enjoyment to the maquiladora as beneficiary of the trust. It may use, dispose of, encumber, and sell such rights, and it may receive any income earned from the property. Trusts have a duration of 30 years, renewable at the end of the period for another 30 years.

A word or two about title searches before ownership.

Many people in Mexico cannot afford a lawyer and transfer real estate without going through the proper channels. Maybe not the person YOU are dealing with but somewhere back in the chain of ownership there could be a hidden snag, waiting to make an appearance when you are riding the crest of success. In view of this it is unadvisable to purchase real estate for your business or home without running a careful title search on all parcels individually.

Will I be restricted in my choice of location?

Generally speaking, no. The only limitation for deciding on a Mexican location is that new facilities will not be permitted in the Mexico City, Guadalajara, or Monterrey urban areas, due to the congestion and industrial concentration already present. Some states may have restrictions relating to types of industries based on environmental concerns, but the general rule is that, excepting the three metropolitan areas mentioned, the location decision is entirely up to the company.

What about visas and income tax for alien employees?

In most cases the incoming employees will need non-immigrant visas known as FM-3's, good for six months and renewable as often as may be necessary. Visas of this type for foreign hourly wage employees can be obtained but must be shown that the employee is in truth temporary and is needed for a specific purpose such as training or supply of some technical service.

Foreign personnel in Mexico under an FM-3 visa are not subject to Mexican income tax if they do not spend 183 or more nights in Mexico during the year; otherwise, they must be registered with the Mexican Federal Taxpayer registry, and are entitled to social security and other Mexican labor benefits.

The ABB Network has native agents in Mexico : There is more to a foreign culture than language. For Mexican Americans desiring repatriation to Mexico as a business owner, the transfer of capital out of the US has been further complicated by the new patriot act.

 

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