Section Index
- Our Legal Service Partners
- Legal Services
- Legal Entry Strategies
- Challenges Legal
- Timeline Found Company
- Legal Forms in Mexico
- Employee Laws
- Visas in Mexico
Service providers
- Our Legal Service Partners
- Legal Services
- Legal Entry Strategies
- Challenges Legal
- Timeline Found Company
- Legal Forms in Mexico
- Employee Laws
- Visas in Mexico
Partnering with local experts who understand the nuances of Mexican law is key to avoiding unnecessary risks and costly mistakes. Our legal entities are well-versed in local regulations and market dynamics, ensuring full compliance.
Mexecution Legal Partners
From establishing Mexican corporations to handling contracts, permissions, visas, and regulatory compliance, Mexecution’s C-Level Business Legal Service Providers are specialized law companies providing, tailored services to support clients expanding into the Mexican market. With expertise in local regulations and market dynamics, they are dedicated to helping you succeed.
Click on a profile to learn more about each Legal company
Main Industries: Manufacturing, Construction and Technology
Main Industries: Manufacturing, Engineering professionals, Logistics
Main Industries: Corporate M&A, Corporate and Project Finance & Real Estate
Main Industries: Technology, Health Services and Transportation
Main Industries: M&A (transactional), Real Estate, Manufacturing
Main Industries: Automotive, Mechanical and Plant Engineering, Logistics
Main Industries: Pharmaceutical, Hydrocarbon and Manufacturing.
Corporate Services offered by our Legal Partners
Partial List of the Services
- Legal Entity / Company founding
- Regulatory and Compliance Guidance
- Registration with Authorities
- Employee Contracts
- Licensing and permits for operations
- Immigration
- Labor Law
- Trademark Registration
- Drafting or review of agreements
- Corporate Bank Account
Entry Strategy Mexico; With what business model to start into the market
Any foreigner can open a company in Mexico and own 100% of the business without needing a local partner. To start operations, several pathways are available, each suited to different business models and operation sizes.
Virtual Office
Establishing a virtual office in Mexico offers a low-risk solution to test the market while allowing you to stay close to your customers and build stronger connections before fully committing.
- Closer to your customers
- Invoicing in Mexico
- Having currencies in Dollars, Euros, MXN-Pesos
- Rent a virtual office
- No need of hiring local employees
Local Sales Office
Setting up a local sales office in Mexico is essential for building strong, person-to-person relationships, as physical presence and personal interaction are highly valued in Mexican business culture. Its the right strategy if you start hiring employees and before committing to start a production plant.
- Own office space
- People on payroll
Manufacturing Plant
Starting production in Mexico allows you to streamline your operations, reduce supply chain costs by producing closer to your customers and key markets, and increase delivery speed and efficiency.
- Assembly or manufacturing products
- Attractive for new clients
- More competitive due to efficient supply chain
Challenges of Law Legislations in Mexico
<p>Doing business in Mexico presents several challenges that require overcoming legal hurdles.</p>
Frequent Legal Changes
In Mexico, legal regulations and laws can change within months. Best example is the recent Mexican legislative reforms limit judicial powers and increase presidential authority, raising concerns about democratic balance and human rights. Changes to the Amparo Law restrict judges from suspending general norms, risking protections for citizens, especially those without resources.
Permissions & Authority
Securing permissions and achieving full compliance in Mexico is complex and requires thorough research into local regulations. Businesses must navigate bureaucratic processes, obtain permits, and stay updated on legal requirements. For foreign companies, unfamiliarity with the local landscape makes this both time-consuming and critical to avoid delays or penalties.
Complex Tax System
Mexico’s tax system includes numerous taxes at both the federal and state levels, such as VAT, income tax, and special taxes. The complexity of tax compliance is heightened by frequent reforms and stringent reporting requirements.
Employee Laws
Labor laws in Mexico, primarily governed by the Federal Labor Law (Ley Federal del Trabajo), protect workers' collective rights through worker unions and ensure fair treatment in the workplace. Navigating these complex regulations can be challenging for employers, as they must stay compliant with ever-evolving legal requirements while managing their workforce effectively.
These laws outline
- employers' and employees' rights and obligations
- covering areas like contracts, terminations, severance pay, and dispute resolution
- mandating compliance with regulations on equal pay, non-discrimination, and workplace harassment prevention
“"Legal regulations can change rapidly, and non-compliance can result in substantial penalties. Therefore, it is crucial to have a knowledgeable and reliable legal advisor to ensure adherence to local laws."
Timeline to start a company in Mexico
Establishing either a Branch or a Mexican Company are quite similar, and it typically takes between 2-6 months, depending on the business model you want to operate. While setting up a wholly-owned subsidiary in Mexico can take several months due to legal and regulatory complexities, partnering with a shelter company enables manufacturers to launch operations in just 30-60 days.
What type of Legal Form should I constitute my company?
When deciding on the type of company to open in Mexico, it's crucial to consider your business model and distribution strategy. Your decision should also consider tax implications, liability concerns, and the long-term strategic goals of your business.
Is Mexicos most used business structure and is a type of corporation in Mexico where the share capital is determined by the bylaws and represented by shares.
- Minimum capital requirement is 1 Peso per shareholder.
- At least two shareholders
- Share proportions can vary
- No residency restrictions for shareholders
Is a Mexican corporation tailored to attract private investment and improve corporate governance, offering greater flexibility than a traditional S.A., particularly for venture capital and private equity.
- Designed to attract and manage private investments with flexible structures.
- Must comply with Mexican regulations
- Potential tax advantages a
- Possible profit sharing
A limited liability company limits members' obligations to their capital contributions. Ownership interests aren't represented by certificates and are transferable only under specific conditions in the General Corporation Law.
A common form to start operations in Mexico is through a Shelter Service, where the Mexican Shelter Company provides foreign manufacturers with administrative and operational support, enabling them to operate in Mexico without establishing a legal entity.
Employees Laws in Mexico
Here a few employee laws which an employer must take into consideration when hiring Mexican employees. There are many other topics such as bonus, maternity & paternity leave, over time, among many others.
Slightly over 40% of the population belongs to the middle class, and the unemployment rate is 3.5%.
- Daily average wage for blue collar workers is between $11.50 USD to $17.36
- Salaries are paid twice a month, on the 15th and the last day of the month.
- In the operational sector, wage payments might occur weekly
The Labor Law stipulates a maximum of 48 hours work week, with one full day of rest per week. HIt’s also important to note that certain industries or specific job roles may have different working hour regulations.
- Max. 48 working hours for daytime work and 42 hours for nighttime
- Can work up to 9 hours of overtime
- For Sundays, employees receive +25% of their daily wage
Mandatory to pay by law to its employees:
- Christmas bonus
- Vacations
- Vacation premium
To retent employees and avoid high rotation, varios additional benefits are offert such as:
- Medical indurance
- Life insurance
- Car insurance
- Saving fundings
- Food voucher
- Bonus program
The number of vacation days increases with the length of employment
- After completing one year of work, employees are entitled to 12 vacation days.
- For the next five years, vacation days increase by 2 days per year, up to a maximum of 20 days.
- From the sixth year onward, vacation days increase by 2 days every five years, with a maximum limit of 35 days.
Employers must register employees with the Mexican Institute of Social Security (IMSS), granting access to healthcare, retirement benefits, disability coverage, and maternity/paternity leave, which help attract and retain top talent.
After registration, employers should contribute a percentage of employees’ salaries to the IMSS fund to finance these social security programs. The contribution rate is 13.5% of the employee’s salary.
Employers are responsible to contribute for following taxes:
- the Mexican Tax Administration Service (SAT)
- the IMSS
- National Housing Fund (INFONAVIT)
- Retirement Savings System (SAR).
Visas in Mexico
To employ foreign workers in Mexico, the Mexican company must first obtain a Constancia de Empleador, which is a permit authorizing the employment of foreign nationals. Following this, an employment visa can be applied for.
The visa permits the foreign national to attend conferences and seminars, hold business meetings with private institutions, individuals, or representatives from Mexican or foreign companies, seek investment opportunities, consult on projects, provide training, conduct interviews, and negotiate deals.
However, the foreign individual cannot sign legal documents on behalf of the company in Mexico.
This visa permits the holder to reside in Mexico for a period ranging from 180 days to a maximum of four years. To qualify, the foreign individual must be sponsored by either a Mexican or foreign entity, or a government or private institution, to offer services in Mexico.
This visa allows the holder to reside in Mexico indefinitely. To qualify, the individual must maintain a regular temporary immigration status for four consecutive years or have family ties in Mexico, such as a Mexican spouse or children.
The 10-year visa may be granted to foreign nationals who are frequent travelers, economically solvent, permanent supervisors of foreign companies with Mexican affiliates, executives of Mexican companies abroad, or those invited by public or private entities to participate in non-commercial activities in Mexico.
Why Choose Mexecution?
Transparency & Honesty
Transparency and honesty are the cornerstones of our business, as we firmly believe in fostering trust and open communication with our clients and partners.
Reliability & Punctuality
Our service providers deliver reliable and timely services, consistently prioritizing client satisfaction and fostering trust, with the goal of building long-lasting partnerships that drive mutual success.
Trust
Trust is the foundation of our and our Service Providers' relationships, built on open communication, integrity, and exceptional service delivery.
Quality & Standards
Our Service Providers are committed to excellence through meticulous detail, continuous improvement, and strict quality control in all operations.
Industry Sectors
15+
C-Level Contacts
80+
Clients
500+
Years of experience
20+