If you are looking to establish your legal identity as a freelancer and operate formally in the Mexican business world, obtaining a registered name is a basic step. Besides positioning your business to comply with commercial and fiscal regulations, this process will give it legitimacy, which will enhance your professional image.

Now, what do we mean by registered name in Mexico? You'll discover this and more in the following.

Registered name in Mexico: Meaning, types and steps to follow

What is the 'registered name' of a company in Mexico?

In Mexico, the registered name is the official name given to a company, legal entity, or corporate body to operate legally. Thanks to this, it can carry out commercial transactions, purchase goods, sign contracts, and engage in legitimate financial activities.

This name identifies the company or person legally before the government, its clients and other interested parties. But in order to do so, it must be registered with the Ministry of Economy or with the Public Registry of Commerce, depending on its legal structure or type of business. 

Understanding its meaning is necessary so you can fulfill your legal obligations as a freelancer to government authorities, including paying taxes such as VAT.

Company name vs. registered name

These two terms are often confused, but they have important differences.

The corporate name, on the one hand, refers to the full and official name of the company or person. That is, as it appears in legal documents and in the Public Registry of Commerce. The name may or may not reflect the main activity of the company, and may even include other elements, such as numbers, acronyms, the name of the partners, etc.

Knowing the correct company name is essential for conducting commercial transactions and issuing CFDI 4.0 invoices, for example.

The registered name, on the other hand, is the name under which the company operates in legal terms, recognized by tax and commercial authorities.

In this case, it tends to show the company's main activity and includes specific elements. These can vary depending on the type of corporation it belongs to (e.g., S.A. de C.V., S.C., etc.).

The company name can change, but the registered name is much more stable and is subject to specific regulations.

Registered name vs. Brand

The main difference between them lies in their function and scope within a business.

The registered name, as mentioned, is your business's legal identity, whereas the brand is a distinctive sign that identifies and differentiates your freelance services or products from the competition. For example, a name, logo, symbol, or a combination.

In short, the registered name is the legal name and the brand is an intangible asset. It usually represents your values and the quality of what you offer to your clientele.

Types of 'registered name' in Mexico

In Mexico, there are different types of registered name, all of which project the nature of a business and its legal structure.

Some of the most common include:

• Public Limited Company (PLC). Used for variable capital companies. Here, the liability of the partners is limited to the amount of their contribution to the capital, e.g., “Empresa XYZ, S.A. de C.V.”

• Limited Liability Company (LLC.). A type of society where the structure is more flexible compared to the former.

• Civil Society (S.C.). Generally for companies providing professional services, such as accountants, architects, law firms, often seen as “Despacho Jurídico DEF, S.C.”

• Partnership in Collective Name (S.N.C.). Here the partners are responsible for the debts and obligations of the organization, for example, “Comercializadora GHI, S.N.C.”

There are also Simple Limited Partnership (S. en C.S.), Cooperative Society (S.C.), and Partnership Limited by Shares (S.C.A.).

Choosing the right type of society will vary based on factors such as the size, nature of the business, preferences, and needs of the partners or owners.

How to process obtaining a 'registered name'

If you are a freelancer and want to obtain a "registered name" for your business in Mexico, follow these steps:

1. Request authorization

The first step is to request authorization to use the desired corporate name.

This will be done through the portal of the Ministry of Economy, in the “Your Company” module. The process guarantees that the chosen name complies with the legal requirements and is not already in use.

2. Create the company and obtain the articles of incorporation

Once you have authorization, you must formally create the company. This involves drafting and signing the articles of incorporation, which you can obtain through a public notary who will also handle the registration with the public registry of property and commerce. This document establishes the legal structure of the business and the rights and obligations of those involved.

3. National foreign investment registry (RNIE), if applicable

 If the company involves foreign investment, it must be registered with the RNIE to ensure compliance with the corresponding regulations.

The wait time to obtain the registered name can range from 7 to 90 business days.

Using an appropriate registered name can enhance your independent business's perception among your clients. It can increase your professionalism, credibility, reputation, and add value to your company. Plus, it helps protect the identity and property of the business, improving your professional image in the market.

Just like a SAT certificate, the "registered name" can aid in negotiations with your clients.

So, why wait to register your independent business and use the registered name to attract more clients? You don't have to worry about how to bill your invoices; you can do it with DolarApp in pesos, and also in dollars if you work with foreign companies.