Doing Business Mexico 2024

The keys to doing business in Mexico

In the dynamic global economic scenario, Mexico stands out as a strategic option for foreign investment thanks to its economic stability and prime geographical location, connected to North American, European and Asian markets. In Garrigues, we consider that success in this environment requires an in-depth understanding of the local legal features, among which the following are noteworthy:

Mexico does not impose an exchange control regime, offering flexibility in international transactions.
With 31 investment protection agreements and participating in multilateral agreements, investors enjoy
solid legal support for their transactions.
Except for specific activities, foreign investors are free to participate in various economic activities, acquire assets, enter into contracts and receive concessions, and can choose between establishing a Mexican company and establishing a branch through a foreign company.
Mexico has competitive tax rates, with corporate income tax at 30% and value added tax at 16%, as well
as an extensive network of international treaties for the avoidance of double taxation.

Contents of the guide

General introduction to the country
Competitiveness and business environment. New investment opportunities: nearshoring. Border with the United States. Why Mexico?
Investment protection regime
Legal treatment of domestic and foreign investment. Stability Agreements or protection of investments. Rights and restrictions of foreign investors.
Corporate
Steps to invest in Mexico. Types of companies and their principal aspects (e.g., share capital; boards of directors; shareholders’ rights; distribution of dividends). Limited Liability Company (Sociedad de Responsabilidad Limitada) (S. de R.L.). Corporation (Sociedad Anónima) (S.A.). Variable capital. Representative offices and branches. Mergers and acquisitions subject to regulations. Dissolution and removal of corporate forms.
Mexican tax regime
Main indirect taxes. Indirect taxes. Other taxes. Tax treaties for the avoidance of double taxation. Particularities of the mexican tax system.
Labor
Employment contract. Wage. Vacation. Vacation bonus. Share in the employer’s profits. Year-end bonus. Teleworking. Working hours. Rest days. Transfer of workers. Termination of the employment contract. Foreign workers. Staff outsourcing. Collective employment relations. Social Security contributions. Contribution base wage. Health system. Pension system. Occupational risks.
Real estate
Public and private property. How to acquire property. Restricted Zone. Co-ownership. Competent Entities RPP and RPC.
Competition
Practices restricting free economic competition. Regime for control of concentrations. Penalties.
Banking and securities market
Financing Activities in Mexico. Bank financing. Dynamics and regulation of the business of granting loans in Mexico. Financing through the securities
market in Mexico.
Fintech
Financial inclusion in Mexico and business opportunity. Payment system. Fintech in figures en Mexico. Fintech regulation. Competent authorities.
Personal data protection regime
Principal obligations of legal entities. National personal data protection authority.
Infraestructure
Public infrastructure procurement schemes (concessions, PPP, project finance).
Dispute resolution
Jurisdiction of the Courts. Alternative dispute resolution methods. International commercial arbitration.

Garrigues in Latin America

Our offices in Mexico City, Santiago de Chile, Lima and Bogota each have a strong and experienced legal and tax team. We offer comprehensive multidisciplinary and expert advice covering all angles of business law, advising both local clients and investors on entering and doing business in the Latin American market.