Soft landing in Mexico: operate from the first month through an already incorporated Mexican company
A soft landing allows a foreign company to serve its clients in Mexico using the legal and administrative structure of an existing Mexican company, instead of setting up its own from day one. The client contracts with, and is invoiced by, a Mexican company of the group, which provides the service in Mexico; from its home country, the foreign company provides the specialized services that correspond to it, under its own contract and invoice. Once the account is consolidated, it can set up its own company.
Who is a soft landing for?
For foreign services companies—consulting, technology, marketing, engineering and other professional services—that already have or are about to close a client in Mexico and need a local supplier that:
- Issue electronic invoices (CFDI) that are valid with the SAT.
- Collect payment in Mexico and meet local tax obligations.
- Is registered as a supplier with the client.
- Operates in Mexico in compliance with labor and tax law.
How does it work?
Each party has a defined role, documented by contract:
- The client in Mexico contracts the service with a Mexican company of the group, which invoices it with VAT.
- The Mexican company provides the service in Mexico with its own operations and under its own responsibility.
- From its home country, the foreign company provides the specialized services that correspond to it, with a contract, deliverables and an international invoice.
- Taxes are set aside first; each payment abroad is made against deliverables and an invoice, with any applicable withholdings.
- The foreign company receives monthly financial reports and the reconciliation of each payment.
Which companies are involved?
The commercial relationship is handled through Aurea Trade Partners, a brand of AU Capital Estratégico, S.A. de C.V., which evaluates the operation, coordinates the contracts and oversees their performance. Local operations are carried out by the Mexican company of The Aurum Group whose corporate purpose and capabilities match the service; for communications and marketing services, Capital Creative.
How is it different from setting up a subsidiary from the start?
A company of your own gives you full control, but its entire structure—articles of incorporation, tax registration, bank account, registrations with the authorities, accounting and supplier registration—must exist before the first invoice. That usually takes several months and generates fixed costs even while the account is not yet invoicing. With a soft landing, the timeline depends on the contracts and on supplier registration, and costs adjust to the actual operation. Once the account is consolidated, the foreign company can set up its own company and take over the contract in an orderly manner.
What is a soft landing not?
We structure it so that each company is accountable for what it does and what it invoices:
- It is not lending a legal name: the Mexican company provides the service it invoices and is accountable for it.
- It is not staffing services for third parties.
- It is not a tax-reduction structure: each company meets its obligations in its own country.
- No payment is made abroad without a contract, deliverables and an invoice.
Four stages, each with a deliverable.
-
01
We evaluate
We review the product, counterparties, margin, term and risks. We verify the identity and tax status of clients and suppliers.
DeliverableViability assessment -
02
We structure
We define the contracts, each party's role, the costs and the financial and logistics flow of the operation.
DeliverableOperating model -
03
We execute
We coordinate purchasing, sales, logistics, foreign trade and collections with customs brokers, carriers and warehouses.
DeliverableExecution log -
04
We close
We reconcile documents, payments and results, and compile the file that substantiates the operation.
DeliverableClosing file
Frequently asked questions
Does the foreign company lose its relationship with its client?
No. The foreign company retains the strategic relationship with its client and the direction of the services it provides from its home country. The Mexican company is the formal supplier in Mexico and is accountable for the service it invoices.
How long does it take to start operating?
It depends on the contracts and on registration as the client's supplier. Since there is no need to set up a company, the timeline is usually measured in weeks, not months. The schedule is agreed in the first phase.
How are fees charged?
Through an implementation fee and monthly fees tied to the operation and to actual collections. They are presented in writing in the proposal, before signing.
What is validated before starting?
Together with the foreign company's tax and legal advisors, we validate the classification of the services, the applicable withholdings and the contracts. Validation comes first; signing comes after.
Can the company later set up its own company in Mexico?
Yes. We recommend starting with a soft landing and evaluating a subsidiary of your own once the account is consolidated. The contracts provide for an orderly transition.
Does your company already have a client in Mexico?
Tell us about the service, the client and the expected volume. The initial evaluation is free of charge.