ZALDIVAR CONSULTING, S.C. CERTIFICATE PUBLIC ACCOUNTANTS

REQUIREMENTS TO INCORPORATE A MEXICAN COMPANY LLC Zaldivar Consulting, S.C. (ZC) is an Accounting & Consulting Firm with 25 employees, with offices in Mexico City and Morelia, Michoacan. Among the services ZC offers are consulting, taxes intelligence, auditing, accounting payroll, bookkeeping, outsourcing, business development, corporate books, due diligence, & foreign advice. At the same time, the Firm has develop the “CROS” process which stands for Creation, Running, Operating, and Setting-up operations in Mexico. Due the needs of our customers to know about the requirements to incorporate a Mexican Company LLS, ZC describes the process and information to open an LLC with foreign stockholders (individuals and/or corporations). It is important to mention that the information described vary according to the nationality (birth country) of the stockholders and the objective of the company.

STEPS TO INCORPORATE 1. Fill a format from the Notary 2. Get all the documents requested from the stockholders (if foreigner, they must be apostille) 3. Make a down payment to the Notary and ZC 4. Creation of the LLC 5. Register the LLC with the IRS 6. Physical Address 7. Start Taxes and Accounting obligations 8. Open the bank account 9. Start invoicing 10. Hiring employees 11. Start running the operations

In Mexico City: Hacienda la Escalera 49 Col. Prados Coapa 2ª. Secc. Delegación Tlalpan Ciudad de Mexico 14350 Tel.: +52-55-5677-2708 / 2709

www.zaldivarconsulting.mx [email protected]

In Morelia, Michoacán, Mexico: Calle Batalla Casa de Mata 1595-100 Colonia Chapultepec Oriente Morelia, Michoacán 58260 Mexico Tel.:+52-443-6881-402

PROCESS TO CREATE AN LLC IN MEXICO To create a LLC in Mexico, it is necessary to have at least 2 stockholders If the stockholders of the Mexican Company cannot come to Mexico: Individual / Person.- In case the person cannot travel to Mexico. He/she has to extend an apostille power of attorney (in Spanish) to your representation in Mexico in order to act on your name to do the legal process. Documents apostille requested: Passport, Birth Certificate, Tax ID registration (of home country). If the stockholder is traveling to Mexico, he/she will have to have a working or investor visa or migration document. Corporation.- Translate into Spanish and apostille the titles (by-laws, regulations, & incorporation agreement, Tax ID – any other document to proof the legal existence of the corporation) of the foreign company and the power of attorney of the legal foreign corporation representative (person who represent the company – Tax ID). If the legal representative cannot travel to Mexico, will have to extent a power of attorney apostille on the name of the Mexican representative. The documents of the foreign corporation has to mention that it could open companies overseas and the power to its representative. If the legal representative is traveling to Mexico, he/she will have to have a working or investor visa or migration document. The apostille of documents must be done by an attorney authorized by the Mexican Embassy/Consulate and translated into spanish. The Notary could request additional information, due the Government Mexican Authorities requirements to avoid any case of money laundry. The person who act as the legal representative of the Mexican Corporation, has to have Mexican Tax ID. Once we have all the documents requested, the time to have the LLC incorporated could take approximate 4-8 weeks. The time could vary depending on the nationality of the stockholders and the activity of the LLC. The LLC must be registered with the IRS-Mexico, within 30 days after creation, otherwise the LLC will be invalid, at the same time it should be registered with Foreign Investment Authorities. After incorporation and registration of the Mexican LLC, it could issue electronic invoices, open a bank account on the LLC’s name, and hire employees.

In Mexico City: Hacienda la Escalera 49 Col. Prados Coapa 2ª. Secc. Delegación Tlalpan Ciudad de Mexico 14350 Tel.: +52-55-5677-2708 / 2709

www.zaldivarconsulting.mx [email protected]

In Morelia, Michoacán, Mexico: Calle Batalla Casa de Mata 1595-100 Colonia Chapultepec Oriente Morelia, Michoacán 58260 Mexico Tel.:+52-443-6881-402

QUESTIONNAIRE TO OPEN AN LLC IN MEXICO 

What is the purpose to set-up a company in Mexico? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________

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Where does the money/investment comes from (Company/person and Country)? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________

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What is the nationality and birth country of the Stockholders? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________

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How did the money was obtained? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________

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Are you planning to have employees in the short term? How many? What nationality? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________

In Mexico City: Hacienda la Escalera 49 Col. Prados Coapa 2ª. Secc. Delegación Tlalpan Ciudad de Mexico 14350 Tel.: +52-55-5677-2708 / 2709

www.zaldivarconsulting.mx [email protected]

In Morelia, Michoacán, Mexico: Calle Batalla Casa de Mata 1595-100 Colonia Chapultepec Oriente Morelia, Michoacán 58260 Mexico Tel.:+52-443-6881-402

FORMAT TO CREATE AN LLC IN MEXICO NOTARY FORMAT - MEXICAN LLC 1.- MENTION CARACTERISTICS OF THE TYPE OF CORPORATION YOU REQUEST. __________________________________________________________________________________ 2.- LEGAL NAME FOR THE MEXICAN COMPANY (MENTION AT LEAST 5 CHOICES): A)_______________________________________________________ B)_______________________________________________________ C)_______________________________________________________ D)_______________________________________________________ E)_______________________________________________________ 3.- LOCATION IN MEXICO (STATE, AND MUNICIPALITY): ______________________________________________________________________________ 4. YEARS OF THE COMPANY TO LIVE (Could be indefinite):_______________________ 5. OBJECT OF THE COMPANY (WHAT SERVICES OR PRODUCTS WILL BE SELLING): _________________________________________________________________________________ __________________________________________________________________________________ 6. FOREIGNERS CLAUSE: ADMISSION OF FOREIGNERS

( YES )

7. TOTAL CAPITAL STOCK AMOUNT (IN MEXICAN PESOS): _____________________________ 8. VALUE FOR EACH STOCK (Mexican Pesos) AND NUMBER OF STOCKS: __________________ 9. DISTRIBUTION OF STOCKS AMONG THE INVESTORS. MINIMUM 2, INCLUDE COMPLETE NAMES – COULD BE PERSON(S) AND/OR COMPANIE(S): NAME OF STOCKHOLDER, STOCK (MX$), STOCKS (#),TAX I.D. 10. ADMINISTRATION OF THE COMPANY: A) BOARD OF DIRECTORS, AT LEAST MENTION: PRESIDENT: _______________________________________________________________________ SECRETARY: _______________________________________________________________________ TRESURER: _______________________________________________________________________ OTHERS: _______________________________________________________________________ B) SOLE ADMINISTRATOR (COMPLETE NAME): ________________________________________ In Mexico City: Hacienda la Escalera 49 Col. Prados Coapa 2ª. Secc. Delegación Tlalpan Ciudad de Mexico 14350 Tel.: +52-55-5677-2708 / 2709

www.zaldivarconsulting.mx [email protected]

In Morelia, Michoacán, Mexico: Calle Batalla Casa de Mata 1595-100 Colonia Chapultepec Oriente Morelia, Michoacán 58260 Mexico Tel.:+52-443-6881-402

11. MENTION IF ANY OF THE MEMBERS OF THE BOARD WILL HAVE INDIVIDUAL POWERS: __________________________________________________________________________________ a.- POWERS: A) FOR LAWSUITS AND COLLECTIONS ( ) B) FOR ACTS OF ADMINISTRATION ( ) C) FOR ACTS OF DOMAIN ( ) D) TO GRANT AND SUBSCRIPTION TITLES AND CREDIT OPERATIONS ( ) E) FOR LABOR CONFLICTS OR OTHER ( ) F) TO GRANT SPECIAL POWERS TO THIRD PARTIES AND REVOKE THEM ( ) b.- ANY OTHER SPECIAL AND/OR SPECIFIC POWERS: __________________________________________________________________________________ 12. INDICATE NAME AND POWERS, IF GRANTED TO ANY ADDITIONAL PERSONS (DIFFERENT OF MEMBERS THE BOARD OF DIRECTORS): __________________________________________________________________________________ __________________________________________________________________________________ 13. NAME OF THE COMISARY (PERSON WHO REVIEW THE OPERATIONS OF THE COMPANY) (CANNOT BE PARENTS OR FAMILY OF THE BOARD OF DIRECTORS, NOR EMPLOYEES OF THE COMPANY) COULD BE AN ACCOUNTANT. __________________________________________________________________________________ 14. INFORMATION ABOUT EACH STOCKHOLDER AND AN OFICIAL IDENTIFICATION (PASSPORT) WITH PICTURE SHOULD BE ATTACHED:

Stockholder’s name Complete Address Place of Birth. City and Country Date of Birth. Marital Status Occupation Nationality E-mail Tax ID Phone number Type of ID Father’s name Mother’s name In Mexico City: Hacienda la Escalera 49 Col. Prados Coapa 2ª. Secc. Delegación Tlalpan Ciudad de Mexico 14350 Tel.: +52-55-5677-2708 / 2709

www.zaldivarconsulting.mx [email protected]

In Morelia, Michoacán, Mexico: Calle Batalla Casa de Mata 1595-100 Colonia Chapultepec Oriente Morelia, Michoacán 58260 Mexico Tel.:+52-443-6881-402

15. INFORMATION ABOUT LEGAL MEXICAN REPRESENTATIVE FOR THE MEXICAN COMPANY, AND AN OFICIAL IDENTIFICATION WITH PICTURE SHOULD BE ATTACHED:

Legal Representative Complete Address Place of Birth. City and Country Date of Birth. Marital Status Occupation Nationality E-mail Tax ID Phone number Type of ID Father’s name Mother’s name

DEPENDING OF THE INFORMATION PROVIDED ADDITIONAL DOCUMENTS WILL BE REQUESTED.

In Mexico City: Hacienda la Escalera 49 Col. Prados Coapa 2ª. Secc. Delegación Tlalpan Ciudad de Mexico 14350 Tel.: +52-55-5677-2708 / 2709

www.zaldivarconsulting.mx [email protected]

In Morelia, Michoacán, Mexico: Calle Batalla Casa de Mata 1595-100 Colonia Chapultepec Oriente Morelia, Michoacán 58260 Mexico Tel.:+52-443-6881-402