10 important issues regarding carrying out operations with your company in Mexico

At Tracer Mexico we provide legal and accounting assistance to Mexicans and foreigners who need to move forward with the creation of their company in Mexico.

Commonly our clients have diverse doubts about having a subsidiary and hiring personnel in Mexico; That is why we put this list of topics regarding some common questions that our clients ask us:

1. In Mexico there are limited liability stock companies; shares can be transferred by contract between individuals.
2. Corporations (sociedad anónima) must hold annual Assemblies within the first 4 months of the year; failure to comply with the foregoing may result in fines and liability of the administrators.
3. Creating a company can take you around 8 weeks; In the same way, obtaining the RFC takes time, it is important to know it and be patient.
4. The tax declaration of Mexican companies is monthly, regardless of the existence of income.
5. Compliance with privacy provisions is necessary if your business processes personal information.
6. The subcontracting regime in Mexico was recently modified, prohibiting the subcontracting of employees; it is possible to subcontract “specialized services” under certain requirements.
7. It is recommended to hire a trusted country manager with tax residence in Mexico.
8. The opening of accounts with banks requires compliance with provisions on money laundering.
9. Foreigners need a visa/work permit to work in Mexico.
10. Most corporate procedures require the intervention of a notary public at an additional cost. By law they must request information regarding the final beneficiaries.