SERVICES
Administrative and Environmental law
Inmigrations and Foreign investment
Consulting on state and Local filings
CONTACT US
Protect your investment in the business of your dreams.
It is a fact that Mexico offers big investment opportunities whether for foreign whether for nationals. However it is common these investments do not generate the benefits expected because the investors do not prevent certain "issues" and as a consequence of this their assets suffer losses or even the total loss of the investment.
If what you wish is to guarantee the return of your investment no matter what kind of business you have, you must protect 3 main areas:
- Operating Area.
- Administrative Area (Tax and Accountant).
- Legal Area.
OPERATING AREA. It means the object of the business, what the business will produce or sell. Regarding this we have the following mandatory questions:
Do you know something about the business you will invest?
Do you have the technical capacity to operate the business?
Have you ever studied the business market and your competitors?
Have you ever studied the risks of your business?
For example if you are doctor, lawyer, architect or engineer from a big company and your dream is set a big store of the best brand of ice creams in the Fifth Avenue in Playa del Carmen and you are going to be personally in charge of this store wearing Bermuda shorts and laughing with every client who ask one ice cream. You using your common sense must know something of the ice creams business, the margins, the business point of equilibrium, the competitors, etc.
It seems obvious but it is not for everyone. I can tell you so many stories of people opening the restaurant of their dreams totally excited but without any knowledge of the business. The reality is that with the first hurricane or crisis the business comes down because of the few knowledge of the business. A friend of mine who owns a restaurant says: "it is not just a matter of good seasoning that is just one ingredient, there is more missing..."
ADMINISTRATIVE AREA. There is not just a matter of having enough money for open a restaurant you have to understand that other factors will affect your business. Assuming you will have the administration of your business under control, Do you know the procedures and permits you need for open your business? Moreover, Do you know the taxes you will have to pay once you open your business?
The permits you must have are among others the state and municipal function license. Without these during an inspection you will be object of fines and closures. The land use license and the garbage payment are some documents you must obtain as soon as you initiate operations.
The taxes were created in order to maintain a nation and they should be paid according the Tax Laws. Every business in Mexico must take care the following taxes and expenses:
Tax Over the Rent (ISR).
Added Value Tax (IVA).
Entrepreneurial Unique Rate Tax (IETU).
Tax Over Salary.
Tax Over Payroll.
Lodging Tax (For Hotels).
Cash Deposits Tax.
Retentions.
If you have employees you should review the Social Security Law and the Infonavit Law.
LEGAL AREA. Legal consultancy will be extremely important to prevent risks for your business. Since the beginning your business should follow the law and be protected against risks. Lawyer specialists in these matters are known as "Corporative Lawyers" and our job is help to the proper initiate and growth of the business providing legal security to the investment. Among the services a corporative lawyer can provide are:
- Help to set the business and determine the kind of legal entity and the best tax regime for the business (incorporated company, civil company, etc.).
- Guarantee the acquisition of properties.
- Review the supplier contracts you will sign.
- Design promissory notes and other documents which guarantee the credits you will provide to your clients.
- Draft the minutes of assembly meetings of the society.
- Taking care of any risk such as frauds or lawsuits, etc.
For the aforementioned study and inform yourself as much as you can regarding your future business, hire a specialist and use your common sense to set the business of your dreams.
Fidel Ivan Rios Perez del Valle. Founder Partner of IVH Abogados Firm, Legal Degree from Universidad Autónoma de Yucatán; Master in Corporative Law from Universidad Anahuac de Cancun; Certified Executive in Franchises from the Mexican Franchises Association.
