Forums > General > Living, Working, Retiring

carib

May 27, 2003, 6:37 PM

Post #1 of 12 (989 views)

Shortcut

Starting/running a BUSINESS in MX, anyone done it?

Can't Post |

Hello, I've read just about every article available on this site, the government sites and been to most of the gov. offices in the state of Quintana Roo, in the capital city of Chetumal. I'm most interested in permits, visas and import taxes. Some of the info. just doesn't jive; I do realize this can be the difference between the written law and how it is enforced. For example, I doubt that travelers from the Tampa, Fl ferry exiting into Cancun (200 vehicles) would be taxed for "importing" all the expensive goodies that there motorhomes contain or be held up in customs for days, or actually need to use an import broker since it's a temporary visit.

Does anyone know if you're allowed to tow 2 trailers in tandem with a pickup?

I already have a corporation set up and was told that no import fees would apply to items brought in for the business. Is this true? What about Cokes and Mountain Dew?

My lot is near the new cruise ship port and here's what I want to do:

Load my pickup and a camping and/or covered work trailer with commercial coolers, an ice machine, sink, blender, coffee machine, generator, a portable building etc. and all the used tools necessary to clear an area of my beach lot in order to build a snack bar and later build some cabanas. I'll use the tools and work trailer for 1-2 mos., then haul it back to Fl. Q: Any taxes since the tools are "just visiting" and being used for a business?

I plan on being in the area for 180 days or less, so I should be able to get by on the tourist visa. People are saying to get an FM3 and a work permit. I don't see how either pertain to me since I fit within the visiting guidlines and I'm the biz owner, working for myself and not being paid by the corp. as an employee. If my father and friends come with me to help and they're not getting paid, I wouldn't see that the corp. would need to obtain work permits for them either, since no job is being taken from a resident. (Unless they want to work for free!)

Q: Clearing the land. My lot is commercial and on a private access road. According to the law, commercial lots have more buildable area and thus, could be cleared more. The law states that chemicals, hydraulic plants, etc. will require an environmental impact report ($2,500). It also states that if you believe any change will occur to the environment as a result of your actions, then you should have the report done also. Technically, any person walking on the soil will cause a change to be noted to the plants and animals, but it's a far cry from trimming the trees to a chemical factory!

Q: Can't any unprotected trees/plants be trimmed at my discretion? Also, does anyone know the latest RE: burning brush? Has it been made illegal or can it be done on the far side of the road still? Two lots down, some local workers just burned down the entire front of the lot, burning the rocks, coral and neighboring bushes.

I've been told by the locals that a permit will be necessary to move my private access road on the other side of a row of trees (about 10'). This seems ridiculous. No trees need to be cut down, just trimmed. Has anyone had any experience with this? The official in Chetumal told me they needed the exact coordinants of my lot and photos, to determine which ecological zone my lot was in. Then they would determine if a permit and an eco study was necessary. The local Mayans and the cruise ship workers seem to be able to tear down whatever they want, whenever they want.

I know I need to obtain a concession permit to use the fed. zone beach in front of my lot. Am I allowed to put a temp. canopy on it with no permit? Q: Do I need a building permit for a cement block bar on my lot and the portable storage building. I think it applies to houses and restaurants only?

TIA

gpk

May 28, 2003, 3:47 PM

Post #2 of 12 (958 views)

Shortcut

Re: [carib] Starting/running a BUSINESS in MX, anyone done it?

Can't Post | Private Reply

I hope you come to your senses fast. You are headed for more problems than you can imagine. You really need a lawyer--and you will definitely need more than a tourist visa--you'll be working in Mexico. Even a Mexican citizen couldn't get away with what you are planning.

esperanza

May 28, 2003, 8:35 PM

Post #3 of 12 (944 views)

Shortcut

Re: [gpk] Starting/running a BUSINESS in MX, anyone done it?

Can't Post | Private Reply

Amen.

http://www.mexicocooks.typepad.com

carib

May 28, 2003, 11:05 PM

Post #4 of 12 (934 views)

Shortcut

Re: [carib] Starting/running a BUSINESS in MX, anyone done it?

Can't Post |

If I were a MX citizen, I could strip the land, including chopping and burning the mangroves down and set up shop on someone else's beach and no one would say a word!! This is what I've seen over and over again, and 70% of all working biz owners up and down the Costa Maya beaches are not MX! The waiters, SCUBA and fishing guides, etc. are German, American and Italian. I'm trying to do something that's done every day by MX and non-citizens; I'm just asking for the best way to go about it.

I don't have a problem hiring local people, but none of them would qualify to work at a biz that caters to mostly English-speaking Americans and Europeans exiting the cruise ships. I will also accept their USD and Euros, which none of the locals will. They'll only accept pesos and will neither convert nor exchange them. The law states that jobs cannot be taken from qualified locals. There aren't any, demand outweighs supply.

As an example, the SCUBA divers in the area must speak 3 languages in order to work and take a job from a local. None of the locals qualify-the same would apply at my place: language and currency conversion skills. No problem teaching someone, but I'd obviously have to work it myself in the beginning. Habla Espanol, parlez-vous Francais?

Please offer some usable advice, comments or examples.

I have an attorney and am aquiring an accountant. I'll also have income from the US every month and can look at this several different ways. The path of least resitance is preferable.

Thank you

esperanza

May 29, 2003, 5:05 AM

Post #5 of 12 (928 views)

Shortcut

Re: [carib] Starting/running a BUSINESS in MX, anyone done it?

Can't Post | Private Reply

OK, here's my comment. I've read each of your posts about this topic (on both this forum and the Yucatan peninsula forum), as well as the replies to them, and based on what I'm reading it appears to me that you want to bring quite a load of equipment and supplies in order to WORK in Mexico, albeit as the owner of your business. Working in Mexico requires a visa other than an FMT. Several persons who have replied to your posts have suggested that you need professional advice from other than the freebie two-bits-worth you get here; I agree wholeheartedly.

It also appears to me that you have two other things that you'll be bringing with you: a vital lack of understanding of what you can and can't do in Mexico and an incredibly arrogant sense of entitlement. If you can't leave those at home, you'd be better off staying where you are.

http://www.mexicocooks.typepad.com

(This post was edited by esperanza on May 29, 2003, 6:02 AM)

gpk

May 29, 2003, 8:10 AM

Post #6 of 12 (904 views)

Shortcut

Re: [esperanza] Starting/running a BUSINESS in MX, anyone done it?

Can't Post | Private Reply

Amen!

anna

May 29, 2003, 8:43 AM

Post #7 of 12 (897 views)

Shortcut

Re: [gpk] Starting/running a BUSINESS in MX, anyone done it?

Can't Post | Private Reply

I would like to point out that most of what carib has observed and experienced first-hand if probably true since he seems to have done quite a lot of research. I lived in Cabo San Lucas for a year and much of the same sort of businesses were prevalent there. Often the business were started by the foreigners (read that's where the money came from) with a mexican "partner" and mexican employees (sometimes only one). If these businesses were successful they would expand and provide more jobs for locals, if not the owner would close up shop and someone else would soon take up the space. Whether or not you agree philosophically with this practice or not is a personal choice. And there are people planning to move to mexico for more than just retiring. This forum should be for questions and truthful, knowledgeable answers. Judgments tend not to be very useful to anyone, although they do prompt heated debate!. Anyway my point is that all is not sun and beaches and retiring people with a guaranteed income. Our world, including mexico, is in most cases a capitalist-based society, unfortunately or not this is the reality.

Anna

gpk

May 29, 2003, 1:16 PM

Post #8 of 12 (874 views)

Shortcut

Re: [anna] Starting/running a BUSINESS in MX, anyone done it?

Can't Post | Private Reply

I have been in a working "retirement" in Mexico for 3 years--but I have done it legally--including dealing with all the BS, delays, mentiras and everything else. Just because it's possible to take advantage of lax enforcement of laws and regulations doesn't mean we, as foreign guests here, should. I certainly will never cheer someone on in the pursuit of a questionable activity like the one proposed. By the way, illegally working Gringos (and other foreigners)are routinely gathered up and deported--at least from Puerto Vallarta where I have my second Mexican home.

carib

May 29, 2003, 6:04 PM

Post #9 of 12 (864 views)

Shortcut

Re: [carib] Starting/running a BUSINESS in MX, anyone done it?

Can't Post |

Again, I would like to say that I don't want to do anything illegal. I'm asking for advice from those that have already made the trip. So far, everyone's experience has been different than what I was told at the QR state offices.

I want to obtain all of the necessary permits and told all of the offices of my intentions. They were very agreeable and want to promote the southern area of QR because Cancun & Playa have been taking away potential tourist and industrial dollars away from the capital for years. Tourism is the most profitable industry in all of MX and Vicente Fox intends to encourage foreign investment through incentives, etc. they're also trying to force banks to loan $ for projects and mortgages. http://www.quintanaroo.gob.mx/qroo2001/principal.htm

I've spent a year on the net reading MX law and their gov. websites, so I'm not going into this blindly. I realize that things are done differently there, but my catch 22 seems to be in getting an FM3: I'll be on a time limit, my items would not be used household and some would be in country just temporarily. I'll read my incorp. paperwork and see if any special permissions can be obtained, as stated in the obscure business section of the importation laws.

Hiring local people and teaching them English is definitely a goal, but there again, the catch 22 is that I would need to speak to the customers and have the locals do the cooking. I'm also having a pick up your own food type of bar until proficient waiters/waitresses could be trained.

Madam ZZ

Jun 9, 2003, 8:21 AM

Post #10 of 12 (811 views)

Shortcut

Re: [carib] Starting/running a BUSINESS in MX, anyone done it?

Can't Post |

OK> I am starting a business in the Cancun area too. I have a lawyer and a notaria.They tell me what to do and when. I know I will have to slip someone a gift before this is over and it may not be an official, but someone who would go to an official who could then put the matter in his desk and stop it. So I am not going to wave a red flag before them! All manual labor should be done by Mexicans and if you wait to teach servers English, you will be sorry. You need to learn Spanish to communicate with your cook and wait staff. Your menu should be bilingual so the waitstaff can have something pointed to. You need to accomocate your workers, pay their social security and give them the presribed days off and vacations. Your building permits will be contingent on who your general contractor is. ..not whether your relatives can do something. You are in Mexico. You will also have to get a permit to stop construction.

Madam ZZ

Jun 9, 2003, 8:31 AM

Post #11 of 12 (810 views)

Shortcut

Re: [carib] Starting/running a BUSINESS in MX, anyone done it?

Can't Post |

I posted below and then came up and re-read your early posts.You are asking for a heap of trouble the way yy ou are planning on going about this. The heavy items will be taxed. Why not? Mexico has CocaCola bottling. Vicente Fox was president of the Mexican division. They have the cute glass bottles tourists will love. Why would you want to bring in American products for a Mexican tourist stop? Why should they let you...and customs won't unless they believe all of this is for your personal conumption. You need import permits AFTER your business is in order. This is not a Cool Aide stand around the corner. It is a Mexican, foreign held business. You will only be allowed to do a limited amount of work in the store-ie getting your receipts together for the accountant. Talk to your lawyer in detail.

Uncle Donnie

Jun 9, 2003, 4:35 PM

Post #12 of 12 (776 views)

Shortcut

Re: [carib] Starting/running a BUSINESS in MX, anyone done it?

Can't Post |

I may be mis-reading this entire scenario but it appears to me that after talking to the local officials and receiving answers that you didn't care for that you've turned to this forum and it's readers to supply answers to legal questions which have already been answered.

One question I have is why you want to import soft drinks? Mexico is a major market for Coke and other drinks. And have you considered buying your tools and equipment in Mexico? There are plenty of restaurant supply businesses in the country and lots of hardware stores with U.S. and Mexican- made tools and equipment.

And the FM-3 costs only about $100 so why not get things done correctly? The law states that you can get only one FM-T per year so if you need to stay longer or return sooner you might run into problems if the locals decide to enforce that provision.

As for what the Mayans and the cruise line folks do, that's something you'll never be able to control so my advice is to stay within the written (or interpreted) law in your area. And as far as I know, every tree in Mexico belongs to the federal government. That means even if you planted it and now want to trim it or fell it that you must get a permit.

A friend recently hired some guys to trim some large trees on her land but was stopped almost immediately by a government official (within an hour) but I hired some guys to trim trees in my yard six miles away and wasn't bothered. In Mexico, as in many other places, things are different depending upon where you are at any given time.

My advice would be to stop looking for loopholes and follow the instructions of the local officials. Most information gained from us in regard to building permits and regulations would be almost useless in the face of opposing opinions of local experts.

I WILL tell you for a fact that many Mexican Tourist Insurance issuers require that you notify them if you intend to tow anything. Failure to do so can negate ALL of your coverage if you have an accident. Also, they'll probably tell you if they'll cover you for pulling tandem trailers.

Good luck!!!

Shameless self-promotion:
http://www.headformexico.com