Mexico is the second-largest economy in Latin America and the 15th-largest economy globally. As a major exporter of manufactured goods and a key supplier to the United States, it is currently China’s third-largest trading partner. Over the next five years, Mexico is expected to rank among the world’s top 20 economies. Like most large and complex countries, its legal, financial, and regulatory landscapes can be opaque to foreign investors and enterprises. Possessing extensive market experience and connections familiar with local culture are indispensable assets for navigating complex bureaucratic procedures.

S. de R.L. is one of the most common and popular types of business entities in Mexico. It is a limited liability company comprising at least one shareholder and one director. Shareholders may be individuals or legal entities, with no requirement for local residency. A company secretary is not mandatory. There is no minimum registered capital requirement, though it is typically set at 3,000 Mexican Pesos. The same individual can act as both shareholder and director, and there is no requirement to appoint a legal representative. No capital verification is needed for this entity type, but it must register with the tax authorities following incorporation. S. de R.L. may conduct business both within and outside Mexico, but it is not permitted to engage in public market activities.