Expand Business in Mexico
Global Upside helps businesses expand into Mexico by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Mexican laws and regulations.
The hiring and incorporation processes in Mexico are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Mexico. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
Surrounded by the Pacific Ocean on the West and the Gulf of Mexico to its East, Mexico is a developing market economy and has strong links to the US. A major part of the economy is dependent on services such as finance, transportation, trade, and government accounting.
- Mexico is the world’s biggest exporter of avocado.
- Mexico’s major import commodities are agricultural machinery, electrical equipment, metalworking machines, steel mill products, and car parts for assembly.
- The main export items are crude petroleum, gold, refined petroleum, copper ore, silver.
A Sociedad Anónima de Capital Variable (S.A. de C.V.) is similar to a US corporation. This form of entity can have an unlimited number of investors. The investors do not bear any personal liability and can procure shares from existing investors.
A Sociedad de Responsabilidad Limitada de Capital Variable (S. de R.L. de C.V.) is similar to an LLC in the US. This form of entity can have up to 50 partners who bear no personal liability for the business. The sole administrator, or the board of directors, are completely responsible for the management of the business.
A Sociedad Anónima Promotora de Inversión de Capital Variable (S.A.P.I de C.V.) is a subsidiary of a Sociedad Anónima de Capital Variable and is governed by the Stocks Market Law (Ley del Mercado de Valores). This form of entity must be managed by a board of directors and not a sole administrator.
It takes a minimum of 3 to 4 weeks to incorporate a legal establishment in Mexico.
The Federal Labor Law regulates employment in Mexico. This legislation mandates that all employment contracts must be in writing and must include:
- Name, nationality, gender, marital status, and address of the worker and employer
- Duration of the employment relationship
- Type of work to be provided
- Job location
- Working hours
- Remuneration and payment conditions
- A statement that the worker will be trained according to the plans and programs established by the company or by law
- Rest days, holidays, and other conditions agreed to by both parties
Mexico observes the following eight national holidays:
- Jan. 1: New Year’s Day
- First Monday in February: Constitution Day
- Third Monday in March: Benito Juarez Day
- May 1: International Labor Day
- Sept. 16: Independence Day
- Third Monday in November: Revolution Day
- Dec. 1 every six years (2024, 2030, etc.): Presidential Inauguration Day
- Dec. 25: Christmas Day
The accounting standards are established by governing bodies including the Mexican Council for Research and Development of Financial Information Standards. It is essential for Mexican companies to maintain compliance with the Mexican Financial Information Standards (NIF), which were earlier known as the Generally Accepted Accounting Principles (PCGA).
The federal data protection laws in Mexico state that collecting, utilizing, storing, transferring, or disclosing an individual’s personal data is prohibited, and that personal data cannot be used for commercial purposes.
Anti-Bribery & Anti-Corruption Law
The Mexican Criminal Code (Decree-Law No. 2,848), Article 333 regulates the bribery of public officials. In addition to this, the Mexican Anti-Bribery Law (No.12,846/2013) authorizes the administrative and judicial consents for all legal establishments.
1. Bribery of Public Officials
i) Imprisonment for up to 12 years
ii) A monetary fine
For Businesses (Administrative) :
i) A fine that ranges from 0.1% to 20% of the total revenue earned
ii) Publication of the critical verdict
For Businesses (Judicial):
i) Prohibition from receiving government grants for up to 5 years
ii) Confiscation of assets
iii) Ban on the operational activities
iv) Mandatory termination of the business
2. Bribery of Private Officials
Not governed under Mexican legislation.