What Are the Legal Considerations for Doing Business in Mexico

What Are the Legal Considerations for Doing Business in Mexico

This guide to global expansion outlines what your business can expect when pursuing business prospects in Mexico, we cover: Mexican labor laws tend to protect the employee from the employer, which can complicate labor relations. Add to that the high training and staffing requirements, and many companies could face a major challenge if they want to set up shop in Mexico. The fact that Mexico shares a border with the United States and aligns time zones allows companies doing business there to do business during normal business hours. In contrast, companies that work with foreign countries often face extreme scheduling conflicts that lead to late-night calls and meetings. And if necessary, U.S. managers can easily be on site within hours due to proximity. In border cities like El Paso, Texas, employees commute to Mexico on a daily basis. Therefore, it is important to find an insurance broker who can evaluate a business and determine the type of plan it needs. Meeting with a lawyer in Mexico can also help cover responsibilities. Mexican Chamber of Commerce A forum for business people to network and promote best practices, trade and investment. Instead of basing its legal system on common law – as is the case in the United States – Mexico follows the civil law tradition. In addition to the various laws, the Mexican legal system differs in other fundamental ways. Probably the most significant difference is the basis of its legal system.

However, U.S. attorneys can register as legal counsel with a legal team in Mexico if the companies have a legal partner established in the United States. Guide Doing Business in Mexico created by Moore Stephens member firms to do business with or in Mexico. It also provides useful information for those living and working in Mexico temporarily or permanently. Published January 2017. Business activities in. Bloomberg BNA provides expert advice on the tax aspects of expanding and operating businesses abroad. There are several benefits and opportunities for U.S.-based companies considering global expansion into Mexico. Mexico is not only geographically attractive as it shares a long border with the United States, but also has a strong manufacturing and business environment while offering legal protection for intellectual property rights. However, language and cultural differences, as well as some complex rules and regulations, can make doing business in Mexico more complicated than some companies are prepared. As a general rule, professionals practicing in Mexico must be Mexican by birth or naturalized: have a legally issued and duly registered diploma; and to obtain a licence to practise medicine from the General Professional Administration.

Foreigners can own 100% of a Mexican company and open their business in Mexico. The Mexican legal system and corporate tax laws do not distinguish between foreign and Mexican companies. As an employer, it`s in your best interest to hire a Mexican law firm like MexLaw to learn about your rights as an employer, craft employee contracts (which is your best defense if you`re suing an employee), and learn your best practices for hiring and firing employees. You will get advice on what is legally expected of you as an employer to ensure you have happy and productive employees and avoid problems with the Labour Authority. Business unit options are similar to the rest of North America, including public company or company (Sociedad Anonima (S.A.), which has fixed or variable capital. This company will have at least 2 board members and an unlimited number of shareholders. This type of company must have an audit firm that ensures that good management and legal aspects are taken into account. The most common are companies and limited liability companies, a professional legal team can help you assess which option is best for your business and which gives you the most operational benefits. World Bank Doing Business Law Library Collection of economic laws and regulations of economies around the world, link to official government sources.

Topics include corporate law, labour, tax and trade. Tax legislation in Mexico is not only complex, but can vary by industry. Companies operating in Mexico are required by the Mexican tax administration to set up an electronic accounting system to track all beneficiaries and transactions. This can result in an overwhelming administrative burden. Equally tedious is the task of paying taxes in Mexico, as accounting and tax regulations have long required a certain level of personal contact. While the pandemic has limited the need for some face-to-face interactions, it hasn`t eliminated them completely. Doing Business in Mexico A business guide from Baker & McKenzie that helps companies understand Mexico`s economic, legal and regulatory structures. Published in 2017. According to the survey, most companies have not suspended or relocated their industrial facilities to Mexico for safety reasons. However, about 38% of companies surveyed said they invest 5% or more of their annual operating budget in security.

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