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Travel in Latin America

How to Start a Small Business in Ensenada, Mexico
By:Jennifer Moore

Starting a business in Ensenada Mexico is much like starting a business in the United States except for a few rules that differ. Most foreigners either register as a corporation or as a Limited Liability Company because of the benefits of this type of registration.

Locate and speak with a good Mexican attorney. Ask other foreigners living in Ensenada to recommend an attorney. Consult with him as to the best business registration method for your Ensenada business.

Ask the attorney to help you get authorization from the Ministry of Foreign Affairs (Secretaria de Relaciones Exteriores) to register the business name and draw the incorporation papers for the business registration.

Take the incorporation papers to the notary public (notario) who is a state appointed attorney required to sign and authorize business incorporations. Expect this process to take approximately 30 days. Some notaries have the necessary software to obtain your tax registration number and will deliver it to you at this time.

Register at the Ministry of Finance and Credit (Secretaria de Hacienda y Credito Publico) if the notary cannot obtain your tax registration number. Present your incorporation documents and immigration documents to receive this number. Expect this process to take a day or two.

Register the business and number of employees with the Mexican Social Security Institute to make sure that all your employees have health insurance. At the same time you can register with the National Workers Housing Fund Institute.

Hire a Mexican accountant to keep track of your expenses and to help you file your quarterly tax form. To find a good Mexican accountant ask other foreign business owners in Ensenada who they recommend. Ensenada is small enough that everyone knows who they should work with and who they shouldn't. Ask your new accountant to review your documentation and to register with the local Ensenada tax administration (Secretaria de Finanzas del Gobierno de Ensenada, Baja California). This is the office where your report the business payroll tax.

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