How To Start A Nonprofit Organization In Mexico24 August, 2021
If you are a foreigner who wants to start a nonprofit organization in Mexico, it might seem tricky since the local compliance regulations and laws are different from that of other countries.
Nonprofits can come under the category of non government or civil society organizations. It is important to be familiar with Mexico’s laws regarding the different categories of NGOs.
Given below are the steps to start a nonprofit organization in Mexico.
1. Create A Nonprofit Business Plan
Before you start with the official process of starting your nonprofit, make sure you create a business plan which is practical, backed up by research and fulfils your nonprofit’s objectives.
Your business plan should cover the following areas,
- Objectives And Purpose – Make a list of the objectives of your nonprofit and define the corporate purpose of your organization.
Write a short summary of who you want to help and why you want to help them.
- Marketing plan – No nonprofit can expect to be successful without a strong and effective marketing plan.
Note down the ways your organization will find and convince people to support your organization.
- Financial plan – Starting a nonprofit requires a significant sum of money.
Your plan must include ways to generate money for your organization including fundraising and project financing strategies.
You can also include the different types of fundraising platforms you plan to use for raising money.
- Legal plan – There are various legal procedures involved in starting a nonprofit.
Since you are starting a nonprofit in Mexico, make sure you review all the legal requirements and note down all the paperwork you will need to fill and file.
- Drafting of statutes – All the statutes you draft must be in accordance with the Federal Law on the Promotion of the Activities of Civil Society Organizations.
This is required for all civil society organizations in Mexico.
2. Incorporate Your Company
In order to incorporate your company, you need to apply for authorization through the Ministry of Economy’s website.
You will be required to submit the name of your organization. The name you choose must not be identical to the name of any other registered organization in Mexico.
The Tax Administration Department will issue you an electronic signature which must be presented in the incorporation process.
After getting authorization, file your articles of incorporation. Adopt bylaws to outline the operating procedure of your nonprofit.
Your incorporation documents will contain information like your nonprofit’s legal name, registered Mexico address, names of founding directors and other information.
If you are unfamiliar with the incorporation process, hire an incorporation service to help you out.
3. Register Your Nonprofit Organization
You must register your nonprofit organization before a public notary in order to confirm the establishment of your organization.
You will be asked to provide the articles of incorporation.
You must also register your organization with the tax department in order to receive your registration card from the Registro Federal de Contribuyentes.
4. Get The CLUNI
If your nonprofit wants to access federal government support, it has to receive a CLUNI or single registration key.
You can receive this key by applying for a CLUNI position through the Mexico government’s portal.
In order to keep your CLUNI, your nonprofit must comply with certain obligations.
- A report of your organization’s annual activities must be presented at the start of every year at the Federal Register of Civil Organizations.
- The financial statements of your nonprofit organization must be presented.
- The monthly tax returns must be presented before the SAT by the second week of every month.
- The annual tax returns must be submitted by the second month of every year.
Depending upon the category your category falls under, there might be other additional steps you have to complete.
If you want professional help consider hiring a lawyer who specializes in Mexico nonprofits.
He will be fully aware of Mexico’s laws regarding nonprofits and will help you with the necessary legal procedures.
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