Surviving Mexico

The amount of money needed to complete the utilities projects being what it was, SuperPrez started pushing for a mandatory deposit to a bank account. He brought it up at several juntas (meetings), and most seemed to think this was a good idea. However, we needed to open said bank account before any deposits could be made. 

So, since we wanted this to be a non-lucrative community account rather than a personal or business account so that SAT wouldn’t charge for taxes, there were some hoops to jump through. The bank required:

• Legal Status of the Organization:
  • The organization must be legally established in Mexico. This often involves registering with the appropriate government authorities. (We were registered as an Asociación de Colonos (Community Association) in 1995.
• Legal Documentation:
  • Articles of Incorporation: Provide a copy of the organization’s articles of incorporation or equivalent legal documents. (We submitted the Acta Constitutiva)
  • Bylaws: Submit a copy of the organization’s bylaws, which outline the internal rules and regulations. (We actually don’t have any established bylaws, but there’s some wording giving the Asociación legal power over the individual lots on the property certificates and in the Acta Constitutiva.) 
• Tax Identification Number (RFC):
  • Obtain a tax identification number for the organization, known as Registro Federal de Contribuyentes (RFC). This is typically obtained through the Servicio de Administración Tributaria (SAT) in Mexico. (Super Prez had to make several appointments to get this.)
• Board of Directors:
  • Provide a list of the current board of directors, including their names, addresses, and official identification. (This would be la mesa directiva. Since the secretary didn’t have an RFC number, just Super Prez and I were listed on the account.)
• Proof of Address:
  • Submit proof of the organization’s registered address. This can be a utility bill or other official document. (As there are no utilities in La Yacata, we couldn’t actually use my ‘office.’ Instead, SuperPrez used his home address. The bank did an ‘inspection’ to verify its validity. The bulk of the documentation is in my house, but there were enough items in Super Prez’s possession to pass muster. The accounting spreadsheet is in Google Docs, so he could access that from his computer at home to show the inspector, and it was all good.)
• Official Identification:
  • Provide official identification documents for the individuals involved in the organization, such as passports or national identification cards.  (Of course, my permanent residency card and Mexican driver’s license weren’t enough of identification. I had to go back to show my US passport, too. Fortunately, it hadn’t expired.)
• Bank References:
  • Some banks may request references from other banks where the organization holds accounts. (Super Prez has a business and personal account at this bank serving as a reference.)
• Application Form:
  • Complete the bank’s application form for non-profit or non-lucrative organizations. (There must have been 50 pages at least that Super Prez had to sign, digitally sign, and/or submit his fingerprint. I had just a single paper to sign.)
• Minimum Deposit:
  • Be prepared to make an initial deposit, as required by the bank. (The bank required a $1200 pesos initial deposit. I brought $1500. They then charge 600 pesos for bank insurance, but it seems to come with a yearly allowance for the maintenance of up to $1500 for painting and remodeling of the office. That would be nice to access.)

This process took literally days! The first official appointment was 3 hours of both Super Prez and I sitting there while the banker set up the account. Super Prez had already been in previously to get the logistics and required documentation list. Then, since I didn’t have my passport, I came back the next day, only to find the banker had gone on vacation. I went back a second time, and she was still on vacation. Finally, the third time she was in, and less than 10 minutes later, I was added to the account. 

There were some glitches in the matrix confirming for me that banking is one of my least favorite things to do. First, the day of the first official bank appointment, I took a spectacular spill on the road in the centro. What happened was I got off my moto and stepped into a pothole, wobbled across the street and down the block, struggling to regain my balance until I finally fell inches from a parked car. The muchacho washing cars there came over to help this old lady up. At least 20 people saw my fiasco, and I banged my knee pretty good. 

Then, when I tried to deposit money into the account, I couldn’t. It seemed I needed a different number than the one on the paperwork. So when I went back with my passport, I asked, and the woman gave me the number I needed. I was able to make several hefty deposits (hefty being a relative term here) after that. 

However, I was able to access the account online with the special QR code reader and password. So, it looks like we’re good to go for community banking.

****

Get the prequel to our community-building efforts in La Yacata Revolution: How NOT to Buy a Piece of Heaven in Mexico.