(855) 851-5000

Call Us (CANADA / USA TOLL FREE)

Facebook

LinkedIn

Instagram

Search

Foreigners Doing Business in Mexico

Doing business in Mexico may be just what your company needs to prosper, with lower wages for skilled workers and lower transportation costs since Mexico is situated closer to the US and Canada, than, China or India for example. Location also ensures faster production turnaround time, not to mention ease of communication, and similar time zones.

Since, Mexico is a part of The North American Free Trade Agreement NAFTA, between Mexico, Canada and the United States there are many benefits to doing business in Mexico. NAFTA eliminates tariffs between the countries and has built in agreements and legal processes, with international rights for business investors.

Foreigners can own 100% of a Mexican corporation and open their business in Mexico. Mexico’s legal system and tax laws for businesses do not discriminate between foreigner business or Mexican National owned businesses.

Owning a business in Mexico can be a lucrative initiative, but make sure you have a Mexican law firm to represent you and your company, they will help you setup your business in Mexico, a law firm like MexLaw can provide important guidance through, creating a corporation, advising you on Mexican labor law, Mexico’s tax laws, and all red tape that goes along with doing business in Mexico.

Anyone who has begun the process of opening a business in Mexico can not stress enough the importance of using a lawyer, you will need to deal with all business aspects, zoning and building permits, taxes, environmental regulations, and even your own immigration status.

Business entity options are similar to the rest of North American including, Public Limited Company or Corporation (Sociedad Anonima (S.A.) which either have fixed or variable capital. This entity will have at least 2 board members and an unlimited amount of shareholders. This type of company is required to have an accounting firm that will ensure the proper management and legal aspects are taken care of.

Limited Liability Company (Sociedad de Responsabilidad Limitadada (S.de R.L.) either fixed or variable capital. This entity must have at least 2 partners, but no more than 50. It is not required to have an accountant.

Sole Trader (Persona Física con actividad empresarial) An individual with a business using their own name for the business and tax purposes. You are only one shareholder and solely liable.

Professional Service (Sociedad Civil (S.C.) consultants, translators, lawyers or accountants type of business. No minimum capital is required.

NonProfit (Asociacion Civil (A.C.) charities and organizations

The most common being corporations and limited liability companies, a professional legal team can help you assess which option is best for your business and which will give you the most operational benefits.

Mexico’s Labor Law

It is important to familiarize yourself with Mexico’s labour laws. Foreigners doing business in Mexico need to be cautious of their hiring practices and the labour laws of Mexico. Mexico has strict labour laws in place to protect the employees, but a Mexican law firm can help you make sense of the labor laws of Mexico.

As an employer, it is in your best interest to hire a Mexican law firm, such as MexLaw  to learn your rights as an employer, to develop employee contracts (which is your best defense if you end up in litigation with an employee) and learn your best practices for hiring and dismissing staff. You will receive advice on what is legally expected from you as an employer to ensure you have happy, productive staff and avoid having  issues with the labor board.

All conditions and expectations must be documented in an employment contract between the worker and the employer. Any disagreement between the two will result in the employer being required to prove his case against the employee.

Labor laws can change with each state and update without notice.

As in Canada and the US, there are many labor laws involving, child labor, discrimination, harassment, maternity leave, profit sharing, overtime, yearly wage negotiation, vacation days, and union regulations if applicable.

MEXLAW can help you manage the hiring of your employees, assisting your company with the reconciliation of labor disputes and guide you through the Mexican labor laws and the proper employee administration.

There will be a lot to learn about Mexico’s tax laws, it is important that you have a reliable accountant in Mexico to help you deal with the different taxes and make sure you take advantage of tax breaks and deductibles.

Depending on the business you open, you may be required to pay corporate tax, tax on dividends, asset tax, value added tax, and payroll taxes. MexLaw can provide accounting services for your business to help you get the most from your investment.

Good To Know

  • Mexico has a strong tax treaty with the US and Canada, which provides relief from double tax on all income
  • If you are not a permanent resident in Mexico and you want to do business in Mexico you are required to make a declaration to the Mexican Institute for Foreign Investment.
  • Always negotiate your sales contracts and the credit terms carefully, using a qualified lawyer, and purchase receivables insurance to protect yourself against possible non-payment loss.
  • Terminating an employee can be very complicated and costly in Mexico, it is important to have a  lawyer layout all the labor laws and regulations to avoid an ex-employee appealing their dismissal to the labor review board.
  • By forming a Mexican corporation you are able to purchase property in a restricted zone without a fideicomiso.

 

We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.By using this site, you agree to our Privacy Policity
Cookies settings
Accept
Privacy & Cookie policy
Privacy & Cookies policy
Cookie name Active

Privacy Policy

What information do we collect?

We collect information from you when you register on our site or place an order. When ordering or registering on our site, as appropriate, you may be asked to enter your: name, e-mail address or mailing address.

What do we use your information for?

Any of the information we collect from you may be used in one of the following ways: To personalize your experience (your information helps us to better respond to your individual needs) To improve our website (we continually strive to improve our website offerings based on the information and feedback we receive from you) To improve customer service (your information helps us to more effectively respond to your customer service requests and support needs) To process transactions Your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason whatsoever, without your consent, other than for the express purpose of delivering the purchased product or service requested. To administer a contest, promotion, survey or other site feature To send periodic emails The email address you provide for order processing, will only be used to send you information and updates pertaining to your order.

How do we protect your information?

We implement a variety of security measures to maintain the safety of your personal information when you place an order or enter, submit, or access your personal information. We offer the use of a secure server. All supplied sensitive/credit information is transmitted via Secure Socket Layer (SSL) technology and then encrypted into our Payment gateway providers database only to be accessible by those authorized with special access rights to such systems, and are required to?keep the information confidential. After a transaction, your private information (credit cards, social security numbers, financials, etc.) will not be kept on file for more than 60 days.

Do we use cookies?

Yes (Cookies are small files that a site or its service provider transfers to your computers hard drive through your Web browser (if you allow) that enables the sites or service providers systems to recognize your browser and capture and remember certain information We use cookies to help us remember and process the items in your shopping cart, understand and save your preferences for future visits, keep track of advertisements and compile aggregate data about site traffic and site interaction so that we can offer better site experiences and tools in the future. We may contract with third-party service providers to assist us in better understanding our site visitors. These service providers are not permitted to use the information collected on our behalf except to help us conduct and improve our business. If you prefer, you can choose to have your computer warn you each time a cookie is being sent, or you can choose to turn off all cookies via your browser settings. Like most websites, if you turn your cookies off, some of our services may not function properly. However, you can still place orders by contacting customer service. Google Analytics We use Google Analytics on our sites for anonymous reporting of site usage and for advertising on the site. If you would like to opt-out of Google Analytics monitoring your behaviour on our sites please use this link (https://tools.google.com/dlpage/gaoptout/)

Do we disclose any information to outside parties?

We do not sell, trade, or otherwise transfer to outside parties your personally identifiable information. This does not include trusted third parties who assist us in operating our website, conducting our business, or servicing you, so long as those parties agree to keep this information confidential. We may also release your information when we believe release is appropriate to comply with the law, enforce our site policies, or protect ours or others rights, property, or safety. However, non-personally identifiable visitor information may be provided to other parties for marketing, advertising, or other uses.

Registration

The minimum information we need to register you is your name, email address and a password. We will ask you more questions for different services, including sales promotions. Unless we say otherwise, you have to answer all the registration questions. We may also ask some other, voluntary questions during registration for certain services (for example, professional networks) so we can gain a clearer understanding of who you are. This also allows us to personalise services for you. To assist us in our marketing, in addition to the data that you provide to us if you register, we may also obtain data from trusted third parties to help us understand what you might be interested in. This ‘profiling’ information is produced from a variety of sources, including publicly available data (such as the electoral roll) or from sources such as surveys and polls where you have given your permission for your data to be shared. You can choose not to have such data shared with the Guardian from these sources by logging into your account and changing the settings in the privacy section. After you have registered, and with your permission, we may send you emails we think may interest you. Newsletters may be personalised based on what you have been reading on theguardian.com. At any time you can decide not to receive these emails and will be able to ‘unsubscribe’. Logging in using social networking credentials If you log-in to our sites using a Facebook log-in, you are granting permission to Facebook to share your user details with us. This will include your name, email address, date of birth and location which will then be used to form a Guardian identity. You can also use your picture from Facebook as part of your profile. This will also allow us and Facebook to share your, networks, user ID and any other information you choose to share according to your Facebook account settings. If you remove the Guardian app from your Facebook settings, we will no longer have access to this information. If you log-in to our sites using a Google log-in, you grant permission to Google to share your user details with us. This will include your name, email address, date of birth, sex and location which we will then use to form a Guardian identity. You may use your picture from Google as part of your profile. This also allows us to share your networks, user ID and any other information you choose to share according to your Google account settings. If you remove the Guardian from your Google settings, we will no longer have access to this information. If you log-in to our sites using a twitter log-in, we receive your avatar (the small picture that appears next to your tweets) and twitter username.

Children’s Online Privacy Protection Act Compliance

We are in compliance with the requirements of COPPA (Childrens Online Privacy Protection Act), we do not collect any information from anyone under 13 years of age. Our website, products and services are all directed to people who are at least 13 years old or older.

Updating your personal information

We offer a ‘My details’ page (also known as Dashboard), where you can update your personal information at any time, and change your marketing preferences. You can get to this page from most pages on the site – simply click on the ‘My details’ link at the top of the screen when you are signed in.

Online Privacy Policy Only

This online privacy policy applies only to information collected through our website and not to information collected offline.

Your Consent

By using our site, you consent to our privacy policy.

Changes to our Privacy Policy

If we decide to change our privacy policy, we will post those changes on this page.
Save settings
Cookies settings