Can anyone direct me toward some guidelines on how a U.S. couple is to properly and legally establish a business in Baja? Thanks!

Hi David,
Actually... No, no responses or answers yet. It's great to get your reply, though, because as the rest of the business plan takes shape, I've been guilty of overlooking this important issue. You've re-motivated me to get some answers. That said, if you know anything or can guide us, we'd be most appreciative. We're actually flying down to Baja Sur next Saturday for ten days, (mostly kiteboarding in La Ventana) but also to hook up with the inlaws (RV'ing, they are). If there's anything that I could do when IN Baja that would help get us ready for a fall start-up down there, I'd love to know about it.
Thanks, David. Happy New Year and please be in touch.

Brandon

I believe that once residenct is achieved from fm 3 on you can do most anything business-wise a mexican citizen can except wait tables and vote.

Just got back from 10 days in La Ventana, kiteboarding and researching. I learned some valuable information and made some great new contacts for the future business. The key points of what I learned are:
1) Don't be in a hurry for anything. Afterall, it's Baja.
2) With the help of professional lawyer/natario, get started on obtaining an FM3 and forming a corporation.
3) Work towards maintaining both for 5 years while getting a solid grasp on the Spanish language, at which point you might strive for Mexican citizenship.
4) As a Mexican citizen, you retaing your U.S. citizenship, passport, etc., and you can buy and own Mexican real estate fee simple, operate a business w/o restrictions, such as...
5) With any water-based/boat-based business, such as water taxi, for instance, a Mexican partner in the corporation is required, and they must be majority shareholder in the corp, (51%).
6) A big expense of Mexican businesses is social security. I didn't get any percentages on this, but was led to believe it's significantly more than our 15%. (Of course, wages are far below ours, thus off-setting the expense...).
7) Seems like every gringo I talked to who owns RE in La Ventana/El Sargento, had gone the corporation/FM3 route. With the corporation, you're supposed to actually run a revenue generating business, so some of them were brainstorming to come up with a business idea, i.e. renting a piece of their dirt to an RV, etc.

Can anyone clarify, dispute, or add to this info?

Hoping to move this coming fall, i.e. November '07.

Cheers,
Brandon

FM3 with special work permit.
Your work must (by book) be something the locals cannot do.
Get an accountant and pay quarterly taxes to the hacienda.
If you have Mexican employees, you better be paying their social security. If done wrong, they can have a piece of your business.

I've learned recently that any water based business such as panga supported paddling excursions, etc., require "special federal permits." Can anyone speak to this? Anyone know a gringo with a panga fishing charter business who might have gone through this process and know something about these permits? And does staying overnight on wilderness beaches with paying clients require different "special permits" than a panga day-tripping business?

Knowledge is power.
Gracias,
B-

Uh - getting legal advice for Mexico on a Internet forum? Like living on the edge or is this a practical joke?

Get an honest, knowledable attorney. Find one used by title insurance companies. call them and get them to recommend one.

That said, it appears your information is correct. The need for 'special permits' is likely to do with operating in the federal zone - 20meters from the tide line.

No practical joke here... just a good place to BEGIN mining information. I'm happy to report that I've been led to more and more concrete answers, and have gotten referrals to multiple reputable "Contadors" and "Abogados" along with some incredibly helpful outfitters operating in Baja, an air shuttle service, two different Eco-resort managers, and on and on. I believe it's coming together nicely. Once again, it appears that Goethe was right: "At the moment of commitment, the universe conspires to assist you."

Thanks for your input.
Brandon

Hola Brandon,

I posted on the site last wk re opening a BnB in Baja. I see you are also looking to set up a biz. Do you know if "gringos" are permitted to operate an hotel/BnB or is this a reserved occupation for Mexican citizens/need a majority Mexican partner. I would be doing it as an owner occupier. I know a good number of non mexicans are running hospitality businesses but it's good to know the rules. Any help you can offer would be appreciated. I've worked in the UK, France and now Spain and know that everywhere is different. Particularly the "Latin" countries!Look forward to hearing from you.

Saludos,

James

Three thoughts to consider:
1) you need to have the FM3 for 5 years. Then
you apply for an FM2. After you've had the FM2 for 5 years, you can apply for emigrato, which does give you most of the rights of a Mexican citizen.
2) Beware the corporation. The Mexican attorneys we've talked to say it is at best a grey area, and at worst, definitely illegal. One said "I'd love to have a reason to go after some of the Americans who have chosen to own that way to defraud the Mexican government."
3) We've seen regulations change since we've owned here, and I suspect, they will be changing more. Until recently, Americans were below the radar; now there are so many of us, and all the highrises will be bringing more--they won't continue to ignore us. For me, it's important to be entirely legal.