Opening a Bank Account
Harris Gomez Group is proud to provide the four part series on the practical aspects of setting up in Mexico.
Click on the link for:
Part 1 ¨Choosing the Appropriate Corporate Structure¨
Part 2 ¨Thinking Of Entering Mexico – The Steps To Incorporating A Mexican Entity¨
Once a company is incorporated, opening a bank account is the next logical step. For most new companies entering Mexico, the one thing that is taken for granted is the ease of opening a bank account. In Australia, Canada or the UK, you can set up an account with one visit to the bank. These countries make it incredibly easy to set up an account at the majority of banking institutions.
You will learn quickly that this is not the case in Latin America. Having a bank account is a privilege and not a right as most foreigners are accustomed to.
Mexican banks are conservative and prefer to play it safe when in doubt about the credit worthiness of client. Especially when foreign without residency in Mexico and unknown legal entities are concerned. This is especially problematic for foreigners, as often the partners in the new company have no credit history of their own inside the country and the new company has very little capital or assets.
With that being said, most legal firms have relationships with the banks and understand the procedures involved. They can help minimise costs and streamline the process.
Remember, even with established relationships, the process to open an account can take 3 – 4 weeks and can only be started once your entity has a tax number.
The bank will request the following documents and information:
- Public Deed through which the company was incorporated and through which powers of attorney were granted in favour of the legal representatives of the company;
- Evidence of the recordation before the Public Registry of Commerce of the Public Deed referred above (or a certificate issued by the Mexican Public Notary evidencing that said Public Deed is in process of recordation);
- Copy of the Tax ID Certificate of the company (Cédula de Identificación Fiscal);
- Copy of a document evidencing the domicile of the company and the persons authorised to sign in the bank accounts (service bills);
- Copy of the official IDs of the people that will be authorised to sign in the bank accounts of the company; and
- Official formats to be provided by the bank duly signed by the above-mentioned persons.
Practical Points:
- We recommend appointing a person who is located in Mexico as the legal representatives of the company in order to avoid problems when executing documents before the credit institution.
- Please note that all the above information regarding bank accounts may vary depending on the particular credit institution with which the company decides to open its bank accounts.
Next week we will be providing information on reforms that have been made to various sectors of the Mexican economy that may provide opportunities to Australian companies looking into expand.
About Harris Gomez Group:
Harris Gómez Group is an Australian-Latin American legal and business advisory firm. In 2001, HGG was the first Australian law firm to have a local office in Latin America. The firm specialises in Common Law and Latin American cross-border issues in areas such as Mining and Energy, Corporate, Mergers and Acquisitions, Tax, Intellectual Property and Business Enterprises. With over 21 years of experience immersed in the respective legal and business cultures of Australia and Latin America, we create a seamless bridge between the two regions and have become an essential partner to many multinational enterprises.
If you need assistance with expanding your operations into Mexico or have an existing business, do not hesitate to contact us at hello@hgomezgroup.com
