In February, the Mexican legislature passed a modification to regulatory law that will allow entrepreneurs to establish a new business through the internet in one day at no cost. As an amendment to the “Ley General de Sociedades Mercantiles,” which passed 428-1 in the Chamber of Deputies, the reform is expected to further spur innovation in a tech sector that has only been picking up steam in recent years.
“Today is a great day for Mexico,” said Salvador Alva Gómez, the president of prestigious tech school the Monterrey Institute of Technology and Higher Education. “Starting a business in one day at zero cost is a dream come true.”
In addition to Tec de Monterrey’s efforts, the university’s president commended the contributions of the nation’s Ministry of Economy and the federal tax authority for their role in getting the new law passed. “This reform will have great impact in the short term for the country because entrepreneurs are the engine of the new economy, and making their life easier is a step on the way to generating growth, employment, and welfare,” said Gómez.
According to the Mexican government, any company with an annual revenue of up to 5 million pesos (nearly US $300,000) can be established at no cost in 24 hours. There is also no minimum capital requirement for the new business, which may be formed by one or more partners who are only liable up to the amount of their initial contributions to the venture.
Many have touted the rise of tech innovation in Mexico in recent years, and this change is only expected to entice more entrepreneurs to found a formal company. Entrepreneurs of all stripes and backgrounds are now routinely developing software, apps, video games, mobile solutions, and other IT advances like never before.
Growth in the financial services technology world has been particularly robust, and the momentum is only growing as more and more tech-savvy Mexicans who have studied and worked overseas return home to live out their dreams by creating their own startup. And Guadalajara, in the booming state of Jalisco, has come to be known as the Silicon Valley of Mexico, only serving as more evidence that the traditional stereotype of risk-averse domestic investors is becoming even more dated by the day.
Salvador Apud, CEO of US-Mexico Consulting and a board member of the Monterrey-based Zubex Industrial, was among the many to cheer the reform. “Congrats to Tecnologico de Monterrey — my alma mater — for leading the efforts and teamwork to create innovative solutions for one of Mexico’s challenges in doing business to grow the economy,” wrote Apud on LinkedIn.
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