For any foreign company or individual planning to conduct business in Mexico, there is one alphanumeric code that is more fundamental than any other: the RFC. You will encounter this acronym at every stage of your operation, from incorporating your company and opening a bank account to issuing your first invoice and paying your employees. Understanding what an RFC is and how to obtain one is not just an administrative task; it is the absolute first step to establishing a legal and financial identity in the country.
So, what is an RFC in Mexico? The RFC, or Registro Federal de Contribuyentes, translates to the Federal Taxpayers Registry. It is the unique tax identification number assigned by the Mexican tax authority, the Servicio de Administración Tributaria (SAT), to every single individual and legal entity that has economic activities in Mexico. Think of it as the equivalent of an Employer Identification Number (EIN) for a company or a Social Security Number (SSN) for an individual in the United States, but used specifically for tax purposes.
This guide provides a comprehensive overview of the RFC, designed specifically for foreign companies and individuals. We will explain in detail who needs an RFC, the step-by-step process for obtaining one for both your company and your foreign personnel, and the critical role it plays in your day-to-day operations. Ultimately, a clear understanding of the RFC is the foundational piece of knowledge for ensuring your business operates in full compliance with Mexico’s fiscal framework.
At its core, the RFC in Mexico is the primary tool the SAT uses to track all economic activity in the country. It is a unique code composed of letters and numbers that is permanently assigned to a taxpayer.
The structure of the RFC in Mexico is different for individuals and for companies:
For Individuals (Personas Físicas): The RFC is typically a 13-character code derived from the person’s full name and date of birth, followed by a three-character “homoclave” assigned by the SAT to ensure its uniqueness.
For Legal Entities (Personas Morales): The RFC is a 12-character code. They generally compose it of the first three letters of the company’s name, the date of its incorporation, and a three-character homoclave.
This code is more than just a number; it is your company’s official identity before the Mexican government. Without it, your business is effectively invisible to the financial and fiscal systems, making it impossible to operate legally.
The requirement to obtain an RFC in Mexico is broad. The simple rule is that SAT requires any person or entity making wealth in Mexico to have one. For a foreign company setting up operations, this requirement applies to several key parties.
This is the most straightforward requirement. Every single legally constituted company in Mexico, regardless of its corporate structure (S.A. de C.V., S. de R.L. de C.V., etc.), must have its own corporate RFC.
This corporate RFC is absolutely essential for:
Opening a Corporate Bank Account: No bank in Mexico will open an account for a company without its official RFC certificate.
Issuing Invoices (CFDI): You cannot issue a legally valid electronic invoice without a company RFC.
Hiring and Paying Employees: You cannot legally register employees with the IMSS or run payroll without a company RFC.
Signing Contracts: Virtually all formal commercial contracts require the RFC.
In short, your business cannot begin to operate until SAT assigns it its own RFC.
This is an area that often creates confusion for foreign companies. It is not just the company itself that needs an RFC in Mexico. Certain foreign individuals associated with the company must also obtain their own personal RFCs. This includes:
Foreign Employees: Any foreign national who will be employed by your Mexican company and will be on the local payroll must obtain their own personal RFC. This is because they will be earning income in Mexico and will be subject to Mexican income tax.
The Legal Representative: The individual who holds the official power of attorney for the company and acts as its legal representative before government authorities must have their own personal RFC. This is a critical point. Often, a foreign company will want to appoint an executive from their home country as the legal representative. To do so, that executive must first obtain legal residency in Mexico and then secure a personal RFC.
It is crucial to plan for this. The process for a foreign individual to obtain an RFC is multi-stepped and requires them to first have a valid residency permit.
RFC in Mexico for Foreign Individuals
Obtaining a corporate RFC in Mexico is a formal process that takes place after your company has been legally incorporated. It is managed entirely by the SAT.
First and foremost, you cannot get a corporate RFC in Mexico until your company legally exists. This means you must have already completed the process of incorporating your S.A. de C.V. or S. de R.L. de C.V. before a Notary Public and have your finalized incorporation deed (acta constitutiva).
As mentioned above, the individual who will act as the company’s legal representative at the SAT appointment must have their own valid, personal RFC. This is a common bottleneck. If your designated legal representative is a foreigner, they must complete their personal residency and RFC process before they can obtain the RFC in Mexico for the company.
The next step is to schedule an appointment online through the official SAT portal. Appointments can sometimes be difficult to secure, especially in major cities, so it is important to begin this process as soon as the incorporation deed is finalized.
You must bring a specific set of original documents to the SAT appointment. While the exact list can vary slightly, it generally includes:
During the appointment, a SAT agent will review all of your documentation, verify the information in their system, and officially register the company in the Federal Taxpayers Registry. At the conclusion of the appointment, they will provide you with the company’s official Cédula de Identificación Fiscal. This is the official document that contains your company’s RFC number. In addition, they will help you set up your company’s e.firma (electronic signature), which is essential for all digital tax filings.
The process for a foreign individual (such as an expatriate employee) to obtain a personal RFC in Mexico is similar, but it has a critical prerequisite.
A foreign national cannot obtain an RFC in Mexico while on a tourist visa. They must first have legal residency status. This means they must have already completed the INM process and have been issued either a Temporary Resident Card (Tarjeta de Residente Temporal) or a Permanent Resident Card (Tarjeta de Residente Permanente). As part of this residency process, they will also be assigned a CURP (Unique Population Registry Code), which is also a requirement for the RFC application.
Once they have their residency card and CURP, the individual can schedule their own appointment at the SAT. They will need to bring:
Their valid passport.
Their official residency card (temporary or permanent).
Their CURP certificate.
Proof of their address in Mexico (e.g., a utility bill).
During the appointment, the SAT agent will register them and issue their personal RFC certificate and e.firma.
It is very common for foreigners to confuse the RFC and the CURP. While both are unique identification codes, they serve completely different purposes and are issued by different government agencies.
The CURP (Clave Única de Registro de Población) is a population ID. It is issued by the National Population Registry (RENAPO), which is part of the Ministry of Interior (SEGOB). Every single Mexican citizen and every legal resident (both temporary and permanent) is assigned a CURP. Think of it as being similar to a Social Security Number in the U.S.; its primary purpose is to identify you as an individual within the country.
The RFC (Registro Federal de Contribuyentes) is a tax ID. It is issued by the tax authority (SAT). Not everyone with a CURP has an RFC. You only need an RFC in Mexico if you are going to engage in economic activities and have an obligation to pay taxes.
In short: All residents have a CURP, but only residents who work or own a business have an RFC in Mexico. You must have a CURP before you can get an RFC.
The RFC in Mexico is the foundational key that unlocks your company’s ability to operate legally and financially. Without it, you cannot open a bank account, you cannot invoice your clients, you cannot pay your employees, and you cannot comply with your tax obligations. It is the central piece of your corporate identity within the Mexican system.
Navigating the process of obtaining an RFC for both your new legal entity and your key foreign personnel requires a clear understanding of the requirements and a meticulous approach to documentation. Any errors or delays in this initial, critical stage can have a cascading effect, holding up the launch of your entire operation.
At Start-Ops, we specialize in managing this entire foundational process. We guide our clients through every step, from the initial company incorporation to securing the necessary appointments and preparing all the documentation required by the SAT. We handle the complexity of the administrative setup so you can be confident that your business is built on a solid, compliant foundation from day one.
Contact us for a strategic consultation to explore how we can streamline your company’s entry into the Mexican market.
