Monday, May 3, 2010

Doing Business in Mexico - The Best and Worst Places

So, you know you want to start a business in Mexico, but not sure where to set up?  Mexico has come a long way in terms of red tape for foreigners setting up a business.  I remember back in 2002 it took a friend of mine close to 5 months to get their corporation set up, but recently it took me less than a month!!!  The government is moving to more online processes, which is a wonderful thing, as it cuts down the time it takes to process permits, register corporations, etc.

According to Doing Business in Mexico, a report published by the World Bank group, Aguascalientes is the best state within Mexico to do business in.  The factors taken into consideration are ease of incorporating, access to credit, registering property, hiring/firing, and enforcing a contract.  Aguascalientes has lead Mexico in ease of doing business for years.  The state is located about 537 km northwest of Mexico City and has a population of around 1 million.

(Jim Cine Photo)

So, what's the most difficult state for doing business in Mexico according to the report?  You guessed it...Distrito Federal, aka Mexico City.  This is not surprising - the bigger cities usually have more red tape to cut through.  Doing business in the biggest city in the world can have it's challenges, but it can also have its advantages.  Mexico City is where most multinational corporations have their headquarters and if you can't find something in Mexico City, you probably can't find it anywhere else within Mexico.

No matter where you set up you will run into headaches that come with setting up a business in a foreign country, but don't let that stop you. 

1 comment:

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