Ranking 15th in the list of global economies, Mexico is the second-largest economy in Latin America. It ranks 2d in terms of ease of doing business within Latin America after Chile. Mexico has been one of the leading destinations for the Silicon Valley-like founders to start their companies. Here are Mexico’s main pros to launching your startup.
Due to its favorable location, Mexico has ultimate access to the world’s biggest consumer markets, the US and Canada. What do startup founders long primarily for? No doubt, for a wide customer base. That is what Mexico can easily offer to entrepreneurs since only the US and its own consumer population amount to around 120 million. This is exactly what your company needs to prosper — moderate wages for skilled workers and lower transportation costs to the world’s leading markets such as US and Canada.
The Mexican government uses different channels to promote foreign investment in the country. For instance, foreigners can own 100% of a Mexican corporation. However, the major advantage is that in order to enter the Mexican market and launch the business, just foreign capital will be enough. In other words, there is no need for you to go through costly or drawn-out transfers of assets for the initial investment. Moreover, there are no minimum capital limits for company formation, meaning that you can expand into the country, keeping your tax and other financial obligations low until you will have enough revenue to scale your company up. Mexico’s legal system and tax laws for businesses are the same for both foreign companies and Mexican National owned businesses.
At the same time, country officials did their best to turn Mexico into a significant trade partner of the majority of American states. Mexica is a participant in multiple free trade agreements. NAFTA — a trading agreement between the USA, Canada, and Mexico — is the most famous and fruitful among them.
Mexican economy provides numerous paths for the new founders to realize their dream. The country’s main export products are petroleum oil, computers, and vehicles, while the United States accounts for 76% of Mexican export goods. Mexico is home to Tier 1 and Tier 2 suppliers. Among the most promising Mexican industries are automobile parts and supplies, education and training services, franchising, housing and construction, packaging equipment, plastics, security and safety equipment, technology, and transportation. Mexico is a leading country in LATAM in terms of innovation in business modeling. The country has a mature tech sector, in particular, fintech, and potential for R&D and engineering operations. The country’s tech industry is majorly based in the Mexican Silicon Valley — around the city of Guadalajara.
Mexico is one of the leaders among emerging markets in LATAM which grows lightning-fast. Its zero-border to the US is a tremendous bonus for founders who wants to conquer both South and North America.