In the race to attract international business, Mexico is a strong contender. Although ranked low on ease-of-doing business lists, the second-largest economy in Latin America is on track to outgrow the GDP of most European nations by 2050. The sectors for transportation, energy, and telecom are particularly strong and the government has taken action to make investments in each more lucrative.
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Good to Know
- Among the labor rights that comprise workers in Mexico, two stand out: Social Security and the annual Christmas bonus, which must be equivalent to at least 15 days of salary. Companies must comply with both.
- Companies that provide outsourcing services are mandated to register with the REPSE (Registro de Prestaciones de Servicios u Obras Especializadas) in order to operate in Mexico.
- The legal representative of any company in Mexico must be local and have the respective powers of attorney in order to carry out all the procedures related to the company.
- Mexico has 12 trade agreements with 46 countries, providing the opportunity for expansion to more than one billion consumers.
Complex Tax Laws
Mexico has the second most complicated tax law in the world. Companies must file both monthly and annual tax declarations. This process demands a considerable amount of time as well as knowledge of how to navigate the Tax Administration Service's digital platform.
Lengthy Company Registration
It can take two to three months — which is twice as long as in developed countries — to register company ownership with the Public Registry. In addition, the time frame varies according to the specific geographic area where the company will be established.
Once the company has been incorporated, it must be registered with the Tax Authorities (SAT) and the Social Security Institute (IMSS) in order to operate and employ in Mexico.
- We can help you navigate the complex regulatory environment in Mexico. Our expert-led managed services and technical consulting were designed to help you expand with ease.
- Backed by GateWay, our pioneering global expansion management (GXM) system, we bring an unparalleled focus on the customer experience. By unifying everything you need for cross-border success on a single platform, you can effortlessly and compliantly manage your international footprint.
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