Creating a company in Mexico is not easy. And when it comes to legal issues, things can get very complicated. Statistics show that up to 90% of entrepreneurs do not have legal protection for their companies. This is usually due to high costs, delays in processing paperwork, confusion, and more.
In the US, you can incorporate your company online in minutes. By comparison, in Mexico the process is very complicated and involves working with a law firm or notary, costing up to 30,000 pesos. Worse still, the process can be so confusing that many entrepreneurs incorrectly file their documents and end up paying double the original cost to correct them.
To address these problems, Yaritza Rodelo and Andrea Durán founded EasyLex, a platform that automates the company-creation process. With a seed investment from Agave Lab Ventures, these Tec de Monterrey graduates were able to create the first version of their platform.
“From our experience in law firms, we realized that there is very little innovation in the Mexican legal system. So we thought, ‘We are passionate about law, but how we can practice it in a different, more efficient way.’” Yaritza said. “That’s when it occurred to us to automate the company creation process.”
To date, EasyLex has helped establish 35 companies and they expect to close the year with 180. Their services and solutions cater to startups that are in the growth stage.
“Our customers are often young entrepreneurs just starting out. They’re used to shopping on Amazon.com and we wanted to provide a service that was equally fast and easy to use.”
Their website also has e-books and step-by-step guides that explain how to form a company using EasyLex. “We have plainly-worded guides in Spanish so that entrepreneurs can understand which incorporation best suits them.”
Prices vary according to the entity and the type of company. The price ranges from 8,500 to 12,000 pesos, depending on the local state’s registration fees.
Five step process
Creating your company using Easylex only takes five simple steps.
First, you answer an eight-question questionnaire that asks for the name of the company and the percentage of ownership of each founder. Once you answer these questions and pay online, you can see the first draft of the documents.
Then, EasyLex takes care of the rest. They customize the bylaws and the corporate bylaws. The second step is to submit the files with the Ministry of Economy to get the company name approved. As soon as the name is authorized, the documents are delivered, which usually takes five days.
“Our guarantee is that once we have the authorization, we’ll have the documents delivered in five to eight business days ,” she said.
The third step is to notarize the documents. In this step, the documents are finalized as the Articles of Incorporation.
Then, the documents are delivered to a local notary in their city for pickup. “The fourth step is that the client collects the Articles of Incorporation. There are specific legal requirements that require the user to pick up the forms in person.”
The fifth and final step is to download the registration confirmation on the platform.