Opening a Mexican hub looks like a project until you hit week 4 and realize three things: (1) the Mexican legal entity setup has a public-notary bottleneck nobody warned you about, (2) the first 5 hires need to happen on EOR while the entity completes registration, and (3) "real estate or co-working" is the easy decision that the rest of the playbook depends on.
We've helped 12 US companies stand up Mexican hubs of 10-50 people in the last 36 months. This is the version of the playbook where you don't lose a quarter.
The 90-day playbook
Choose entity type and start the legal clock
Two structures matter: S.A. de C.V. (corporation, more flexible, used by 70% of US subsidiaries) or S. de R.L. de C.V. (LLC equivalent, simpler governance, used by 30%). For most US scale-ups, S. de R.L. de C.V. is the right call — fewer governance requirements, same tax treatment, simpler dissolution if you ever pivot.
You need a Mexican commercial lawyer ($3,500-$6,000 for full incorporation) and a Mexican accountant ($1,200-$1,800/month recurring). Both should start day 1.
The bottleneck nobody mentions: public notary (notario público) signature. Mexican notaries are not US notaries — they're appointed lawyers with quasi-judicial authority. Available notary slots can be 2-3 weeks out. Book day 1, not day 15.
Output: Acta constitutiva (incorporation deed) signed, RFC application filed.
SAT, IMSS, INFONAVIT, IDSE — the four registrations
Once your RFC issues:
- SAT (tax authority): register as employer, get e-firma (digital signature), set up CFDI invoicing. 5-7 business days.
- IMSS (social security): register as patrón (employer), get patrón number. 7-10 business days.
- INFONAVIT (housing fund): register for employee housing contributions. 3-5 business days.
- IDSE (employer-employee notification system): register access for monthly filings. 2-3 business days.
All four can run in parallel. The bottleneck is usually e-firma — it requires an in-person SAT appointment and slots can be 10-14 days out.
Output: Patrón number issued, e-firma installed, ready to make first local hire.
Hire on EOR while entity finishes, migrate later
You can't wait for the entity to fully register before hiring — that's 4-6 weeks lost. Hire your first 3-5 people through Deel or Remote on day 30 while the entity setup continues in parallel. Migrate them to your own subsidiary in days 60-75 when registrations complete.
Tenure-preservation clause: the EOR-to-subsidiary migration must be documented as a "transfer of employer" not a "termination and rehire." Otherwise vacation accrual, seniority and aguinaldo prorations reset. Use this exact language in the migration agreement: "Transferencia patronal sin interrupción de antigüedad."
Output: 3-5 hires on EOR by day 45. Migration to subsidiary completed by day 75.
Real estate vs co-working vs all-remote
The three viable models, and when each makes sense:
| Model | Cost (15-person hub) | Best for |
|---|---|---|
| All-remote | $0 + $200/employee home stipend | Engineering-only hubs, day-1 setup |
| Co-working (WeWork, Selina, Público) | $4,500-$8,000/mo | Hybrid culture, 8-20 people, flexibility |
| Private office (Polanco, Condesa, Roma Norte) | $8,000-$18,000/mo + $30K buildout | 25+ people, multi-year commitment |
Default for hubs under 25: co-working. The flex contracts (3-6 months) let you reverse without write-offs if your hub plan changes.
Output: Workspace contract signed, day-1 access scheduled.
Local ops, local payroll, local IT — operational independence
By day 75 the hub should run with minimal US dependency:
- Mexican accountant running monthly payroll (not your EOR anymore)
- Local IT support (Bestnet, Geek, or freelance MSP) for laptop deployments
- Local office manager or coordinator for compliance, vendor management
- Direct reporting line into a US-based manager — but not the CEO
The hub's failure mode is usually: it becomes a satellite that needs the US CEO for every decision. The fix: empower a hub lead within the first 60 days, ideally promoted from the first 3 hires.
Output: 5-10 employees operational, payroll on subsidiary, local accountant filing monthly, hub lead in place.
Total setup cost — what we've seen
| Line item | Range | Notes |
|---|---|---|
| Mexican legal (incorporation) | $3,500-$6,000 | One-time |
| Mexican accountant (3 months setup) | $3,600-$5,400 | Then $1,200-$1,800/mo recurring |
| EOR bridge fees (5 employees × 3 months) | $8,985-$11,985 | While entity completes |
| Workspace deposit + 1st month | $9,000-$16,000 | Co-working route |
| IT setup (10 laptops + MDM) | $14,000-$18,000 | MacBook Pro 14" standard |
| Recruitment fees (5 hires) | $25,000-$40,000 | If using recruiter |
| Total 90-day setup | $64,085-$97,385 | For 5-10 person hub |
The line item that surprises everyone: recruitment fees. First 5 hires are 8-12x harder to source than #6-15, because there's no existing employee referral pipeline. Budget 1 month salary per hire for recruitment, and don't try to save here — the first 5 hires define the hub's culture and quality bar for years.
The 5 cities US companies actually pick
| City | Best for | Talent depth | Cost vs Mexico City |
|---|---|---|---|
| Mexico City (Polanco, Condesa, Roma) | Default, all functions | Deepest | Baseline |
| Guadalajara (Providencia, Andares) | Engineering, especially backend | Strong tech | -12 to -18% |
| Monterrey (San Pedro, Valle) | Industrial ops, B2B sales | Strong commercial | +5 to +12% |
| Querétaro (Juriquilla) | Aerospace, manufacturing | Specialized | -8 to -15% |
| Mérida (Centro) | Remote-first, lifestyle hire | Growing | -20 to -28% |
Key takeaways
- Real timeline is 75-90 days. Anyone selling 30-day setup is selling EOR-only, not subsidiary.
- Use EOR for first 3-5 hires while entity registers. Migrate to subsidiary day 60-75 with "transferencia patronal sin interrupción" language.
- Co-working is the default workspace for hubs under 25 people. Private office only past multi-year commitment threshold.
- Total 90-day setup cost: $64K-$97K for a 5-10 person hub. Most US companies underbudget by 30-40%.
- Book the notary on day 1. The 2-3 week notary backlog is the most common slip-cause.