10 Great Business Ideas to Start in Mexico That Will Thrive
If you are looking for great business ideas to start in Mexico? Then you came to the right place.
If you want to start a business in Mexico, then these great ideas and most thriving businesses will point in the right direction. Well, according to the World Bank’s Doing Business 2020 report, Mexico is positioned as the best country to start a business in Latin America. This thanks to its financial system and autonomous monetary policy. Furthermore, micro, small and medium-sized companies represent one of the key pillars of its economy. Since they generate a high rate of jobs and contribute to the nation’s GDP. Therefore, achieving a profitable business in Mexico has become an increasingly viable opportunity for entrepreneurs and entrepreneurs.
We know that starting a business can be a complicated and confusing task that generates hundreds of questions. Therefore, today we want to dedicate this article to talk about some of the profitable businesses in Mexico.
We will show you what are the legal requirements to start a business and the fastest growing sectors. Also, we will share a list of 10 profitable businesses to invest in Mexico.
Legal requirements to start a business in Mexico
This information will be very useful if you are already determined to create your company in Mexico. It is important that in addition to the business idea, the sector and the budget, you have clear procedures and legal permits to do so. This will avoid future problems such as fines, suspensions or the total closure of the business.
The procedures and permits that we will present below are mandatory for any type of company.
1. Request before the Ministry of Foreign Relations (SRE)
This is the application for permission to form companies. In this procedure, the company name or company name is chosen and presented to the Ministry of Foreign Affairs.
Here you must fill out a form or submit a written document with all the specifications of the business. After that, the payment of the procedure is made and brought before the state delegation. The renewal of the company name must be carried out annually.
2. Articles of incorporation
After your application before the SRE is approved, you must create and formalize the company charter. This document proves the legality of the formation of your business and must indicate the full identity of all partners. As well as its legal structure in which it is specified if it is a corporation, a partnership or a single property.
3. Registration in the Federal Taxpayers Registry
This step is one of the most important for creating profitable businesses in Mexico. It refers to affiliation in the Federal Taxpayer Registry through the Tax Administration Service (SAT). In this step you must choose the commercial activity regime, which can be «Legal entity» or «Natural person with business activity». And according to this, you will be granted a series of tax obligations.
Being enrolled in the SAT allows your company to generate invoices, open bank accounts, pay taxes and contract services. Also, it offers the possibility of accessing loans and government programs for micro-enterprises and SMEs.
To start this process, you must pre-register online on the SAT website. Then, you will have 10 days to formalize the request in one of their offices. As soon as your registration is completed, you will be provided with all the tools that validate that you are registered and you can continue with the other procedures.
4. Land use license
The land use permit is the document that justifies to the authorities the activities that are carried out in a certain property. When creating a company in Mexico you must carry out this procedure in the corresponding municipal agency and pay the indicated value. There a certificate is issued stating the destination that will be given to the property and the type of land use allowed.
5. Notice of opening of a commercial establishment
This is a specific procedure for businesses that operate mercantile activities of purchase and sale of goods or services. It is mandatory to inform the authorities that your company is going to open its doors to start operating. The process is local so it may vary depending on the state in which your business is located. In most cases, it is free and can be done online on the SAT website.
6. Registration with the IMSS (Social Security)
This is a mandatory requirement when setting up a company whether or not you have employees. And it is done in the first 5 days of business opening before the Mexican Social Security Institute (IMSS). Registration allows you as an entrepreneur and your workers in charge to have the social security required by law. The process can be done directly on the IMSS website.
7. Registration in the Mexican Business Information System
All shops, stores, factories or businesses must be registered in the Mexican Business Information System (SIEM). This is in favour of complying with the Law of Business Chambers. Enrollment in SIEM benefits from access to special information on suppliers and customers. As well as information on initiatives, supports and government tenders.
Other requirements
According to the type of company, other mandatory requirements must be met if you want to be part of profitable businesses in Mexico:
- Advertising license: This procedure is only done if you want to install an advertisement outside your business. The value of this depends on the size of the billboard and is processed in the corresponding municipal agency.
- Operating license: Corresponding to hotels, restaurants, bars or any other establishment that offers the sale of alcohol for consumption. This license has two types of classifications. The exclusive “A” rating for hotels and restaurants, and the “B” rating for discos, bars and canteens.
- Registration for online activity: If your business offers products or provides services online you must also complete all the procedures mentioned above. In addition to this, you must have full knowledge of the Mexican Standard for Electronic Commerce. This promotes good practices in electronic commerce activities and applies to all businesses that carry out their commercial activity in digital media.
What are the most profitable businesses in Mexico?
Mexico is a country with great potential for business creation. According to the National Institute of the Entrepreneur, an average of 35,000 new businesses is opened every month. And this is reflected in the increasing interest and initiative to undertake in different markets. Therefore, you must be aware of the sectors with the highest growth for the creation of profitable businesses in Mexico.
Tourism
Mexico has an exceptional natural and cultural wealth, which has made it the most visited country in Latin America, totalling 44.7 million foreign tourists in 2019 according to data from the World Tourism Organization.
These data justify the fact that tourism is one of the most important economic activities in the country. And of course, one of the most viable sectors to develop profitable businesses in Mexico.
Likewise, this is a highly competitive industry, so it is necessary to research, train and maintain high-quality standards. But thanks to the versatility of the market and the wide range of tourist services and activities, it is possible to start and achieve a lucrative business.
Food and drinks
The country not only stands out for its natural and cultural wealth but also for its wide gastronomic offer. So the commercialization of food and drink products is still one of the profitable businesses to invest in Mexico. This thanks to its high demand as it is a mass consumption industry present in everyday life.
So it does not matter if your business is a restaurant, a bar or a cafe, the food and beverage industry remains booming and constantly growing.
Health, beauty and fitness
The health and wellness industry is gaining strength in the country. Well, the number of Mexicans who worry about their physical condition and health status is increasing. Such has been the demand in the sector that the growth of «Health Tourism» has been boosted.
That is, you travel within the country in search of medical attention, cosmetic surgeries or wellness treatments. It is worth mentioning that the development of this sector has allowed it to broaden its focus, covering not only hospitals or medical offices, but also fitness centres, gyms, spas, nutrition clinics, among others.
Technology
Undoubtedly one of the fastest-growing industries in recent years and one of the most lucrative in terms of profitable businesses in Mexico is concerned. This is thanks to the accelerated digital transformation that the world is experiencing and the massive use of information and telecommunications technologies.
This results in a very broad field of action with multiple opportunities for entrepreneurship, ranging from artificial intelligence, software development and app programming to the use of digital platforms and channels.
The latter for the management of digital marketing and advertising services and also for the development of websites and online stores.
Event organization
This industry has a great economic impact in the country, as it represents about 1.5% of GDP. Positioning Mexico within the 10 countries with the most powerful event organization industry. And it is not for less, since Mexico is the epicentre of business conferences and international fairs. Also, the industry encompasses a wide chain of suppliers that includes catering, artists, audiovisual equipment, advertising, among others.
10 Great Business Ideas to Start in Mexico
Since you know the fastest growing sectors within the country, it is time to give you some profitable business ideas in Mexico. So you can investigate and choose the one that best suits your needs and your business vision.
1. Travel and tourism agency
As we mentioned a moment ago, tourism is one of the strongest sectors in the Mexican economy. So setting up a travel agency to market packages and tourist services is an idea that we cannot overlook.
There you can offer from tours and hotel accommodation to air tickets, transport and car rental. You must do hard market research to find out consumers’ travel preferences and motivations. And also locate the areas with the highest profitability and visitor flow.
Also, you must take a good look at who your suppliers will be and make sure they meet all legal requirements. With this, you can guarantee a complete, comprehensive and quality service.
2. Coffee shop or cafeteria
A coffee shop is one of those places that never goes out of style. Well, it is the ideal place to spend a quiet time, share time with other people or have work meetings. This is a business that works well in both a small town and a city. So if you can locate the premises in a busy area, you will have a large influx of customers and visitors.
There, in addition to selling coffee, you can offer sandwiches and snacks to accompany. As well as other types of drinks and typical foods of the region. It is considered one of the most profitable businesses to invest in, as it combines the characteristics of a bar and a restaurant. Also, you can creatively set the venue according to the needs of your target audience.
3. Food truck
Food truck, mobile restaurant or fast food truck, is one of the oldest profitable businesses in Mexico, but also one of the most innovative and practical in the food industry.
This is a very versatile business model since it does not remain in a fixed place. This is located in different areas to offer food at strategic points.
One of the advantages of riding a food truck is that the investment is less compared to a traditional restaurant. Also, thanks to its flexible location you will be able to access a greater number of potential clients. This will also allow you to expand the offer of your menu.
And as in any undertaking, it is necessary to have a business plan, carry out all legal procedures, plan the investment, have the necessary equipment and manage to advertise.
4. Spa
Currently, a large number of health problems are associated with stress. This results in thousands of people interested in improving their quality of life and obtaining well-being outside of the hustle of everyday life.
As a result, the Spa business has been a protagonist in the growth of the health and beauty sector in Mexico. This has led to accelerated development of “wellness tourism” or “wellness tourism” which includes a spa, alternative medicine, yoga and relaxation services, representing the consumption of approximately $ 18 billion.
Investing in this business is a safe step in the health industry. This thanks to its profitability and the variety of specialities and services.
5. Food addresses
Thanks to the rise of mobile home applications, this service has become very popular, as it prevents travel to the place of food and is accessible from any location. It has a high demand in commercial and office areas. Here the food offer can be very varied, so you will have the option to specialize in fast food, sandwiches, traditional lunches or vegetarian food.
Also, you can offer the service under the concept of balanced food. This way you will capture the attention of a wider audience. It is considered one of the most profitable businesses in Mexico because it is easy to establish and does not require a large investment in infrastructure. You can start it from your home and as you grow, expand by setting up a store.
6. Event organization company
We have already seen the importance of this industry within the country’s economy. Therefore, this is one of the most profitable businesses to invest in. It ranges from parties, family reunions and corporate events to large congresses and conventions. So your offer of services may include logistics, catering, consulting, planning, the supply of audiovisual equipment, among others.
It is very possible that when starting an event organization company you will have to subcontract third party services to complete your offer. So make sure you inform yourself well and train yourself to make the best choice of providers. Also, it tries to provide a personalized service with added value for customers.
7. Gym or fitness centre
As part of the business of the health, beauty and wellness sector we find gyms and fitness centres. The number of people concerned about their appearance and physical condition is increasing. As well as athletes looking for an ideal place to train.
The profitability in this business will depend on the rates you manage, the services offered, the quality of your equipment and the monthly expenses of the establishment. However, if you segment your target audience, personalize services, and offer competitive prices, it can be a very lucrative business.
8. Digital agency
Digital media is a fundamental part of business growth. More and more businesses are hiring a digital marketing and advertising services to improve their online presence. Therefore, starting a digital agency is one of the profitable businesses in Mexico with the greatest opportunity for growth.
Here you can offer everything from graphic design services, website development and digital marketing strategies to software and app programming. You decide how wide you want the service offered to be since the possibilities in digital media are endless. What is certain is that the demand for this type of services is increasing. So you can target consumers from all industries.
9. Repair and sale of smartphones
92 out of 100 Mexicans have a mobile device. And it is not surprising, since the use of smartphones has become indispensable in everyday life. This thanks to the multiple functionalities that facilitate the daily tasks, the resolution of problems or the management of tasks.
Therefore, it results in a great opportunity for entrepreneurship with high demand, either with the sale of smartphones or with the offer of repair and maintenance services. According to studies, the sale of smartphones, applications and accessories for these devices will have a profit margin of one trillion dollars by 2020.
10. Audiovisual production
This is another of the profitable businesses in Mexico related to technology. This is because audiovisual content is the most consumed by internet users. And for that reason, many companies, entrepreneurs and brands are aiming to create video content, either as part of their promotional strategy or to communicate with their audience.
This opens up a business opportunity to offer video production services. Here you can specialize in corporate videos, animated videos or even videos for weddings and events. The field of action is very diverse and very well paid.
Final words
Now that you know the legal requirements and the fastest growing sectors in the country, you are ready to start planning your business.
The options to create profitable businesses in Mexico are very varied and you can take great advantage of them. This if you define business objectives, study the target audience, research the competition and intelligently invest resources.
Tell us, do you want to start these business ideas in Mexico?
