Doing business in Mexico

Mexico has a codified civil-law system. Federal laws are published in the Diario Oficial de la Federación and compiled by the Chamber of Deputies. Key bodies for an incoming business include the Tax Administration Service (SAT), the Mexican Social Security Institute (IMSS), the Comisión Nacional Antimonopolio, the Mexican Institute of Industrial Property (IMPI) and the Ministry of Economy for foreign investment and trade.

Key facts

Competition authority

Comisión Nacional Antimonopolio

Data protection law

New LFPDPPP issued 20 March 2025

Foreign investment law

Ley de Inversión Extranjera (last amended 27 May 2024)

Social security registration

Report hires and changes to IMSS within 5 working days

New York Convention

In force since 13 July 1971

Patent term

20 years from filing

Foreign investment in Mexico is governed by the federal Foreign Investment Law, last amended in May 2024. The content of the law, entity forms under the General Law of Commercial Companies and registration steps could not be confirmed from official texts, so this area needs checking before relying on it.

Key facts

• The Foreign Investment Law is the reference statute for sector restrictions and investment registration; check the current text, last amended in May 2024.

Who handles this in MexicoSetting up and running a companyLicences, permits and regulators

The corporate income tax rate, VAT rate, withholding taxes and Pillar Two position could not be confirmed from an official text; the Income Tax and VAT Law PDFs could not yet be checked. The Federal Tax Code, which governs registration and electronic invoicing, was amended in April 2026.

Key facts

• Tax administration rules sit in the Federal Tax Code, amended in April 2026, so registration and e-invoicing procedures should be checked against the current text.

Who handles this in MexicoTax and structuringAccounting and annual filings

Every employee in a subordinate paid relationship must be covered by the mandatory social security regime, and employers must register with IMSS and report hires and changes within five working days. Minimum wage, Federal Labour Law rules and work permits could not be confirmed.

Key facts

• Any paid, personal and subordinate service relationship falls within mandatory social security, whatever the contract is called.

• Employers must register with IMSS and report hires, departures and salary changes within five working days.

Who handles this in MexicoEmployment, payroll and immigration

This topic was written by AI from general knowledge and is being checked against official sources. Confirm anything you plan to rely on with a qualified local professional.

3 statements on rates, thresholds or deadlines are held back until they are checked against an official source.

Foreign ownership of land is restricted in a strip along the borders and coasts, where foreigners use a bank trust or a Mexican company instead.

Key facts

• A Mexican company with foreign shareholders can buy property in the restricted zone directly for business use after notifying the Ministry of Foreign Affairs.

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• Ejido and communal land cannot be bought like private land until agrarian procedures are completed, so title checks matter for industrial and real estate projects.

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• Energy and telecoms regulators were replaced in 2024 and 2025 by bodies within the federal administration, so permits and licences should be checked against the new sector laws.

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Who handles this in MexicoLicences, permits and regulators

This topic was written by AI from general knowledge and is being checked against official sources. Confirm anything you plan to rely on with a qualified local professional.

Mexico has a floating peso and no general exchange controls, so profits and capital can usually be sent abroad without central bank approval. Banco de México runs monetary policy and the SPEI payment system, and the CNBV supervises banks, including their know-your-customer checks. Expect detailed onboarding documents and limits on US dollar cash.

Key facts

• There are no general exchange controls: profits, dividends, interest and capital can usually be remitted abroad without central bank approval, subject to tax withholding.

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• Banco de México runs the SPEI real-time payment system, and the CNBV supervises banks and their AML compliance.

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• Allow time for account opening: banks ask for the registered deed, the RFC tax registration, powers of attorney and beneficial owner details.

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• US dollar cash deposits are limited by regulation, so plan to receive dollars by wire transfer.

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• Crowdfunding and electronic payment businesses need CNBV authorisation under the 2018 fintech law.

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Who handles this in MexicoPayments and currencyBanking and capital

Mexico's tariff law (LIGIE) was amended as recently as 13 October 2026, and the Customs Law and Foreign Trade Law were both reformed in the past year. The content of these changes, including tariff rates and FTA treatment, could not be confirmed and should be checked for each product.

Key facts

• The tariff schedule (LIGIE) was amended on 13 October 2026, so duty rates should be checked against the current text for each tariff line.

• Customs Law (December 2025) and Foreign Trade Law (May 2026) reforms may affect import procedures and trade remedies.

Who handles this in MexicoCustoms, trade and export controls

Mexico replaced its private-sector data protection law with a new LFPDPPP by decree published on 20 March 2025. The new law's authority, transfer rules and sanctions could not be confirmed.

Key facts

• A new LFPDPPP was issued by decree on 20 March 2025, so privacy notices and transfer arrangements built under the 2010 law should be reviewed.

Who handles this in MexicoData protection and cyber

IMPI administers patents and trademarks, and Mexico is in both the Madrid system and the PCT. Patents last 20 years and utility models 15 years. A wide reform published on 3 April 2026 added provisional patent applications, a regulatory-delay patent extension and statutory resolution periods.

Key facts

• International trademark and patent filings can designate Mexico through Madrid (since 2013) and the PCT (since 1995).

• IMPI is the industrial property authority, with functions expanded in 2026.

• Patents last 20 years from filing and utility models 15 years.

• The April 2026 reform added a 12-month provisional patent application and a patent extension of up to five years for health-regulatory delay; confirm its entry into force.

Who handles this in MexicoTrade marks, patents and brands

Merger control and antitrust enforcement now sit with the Comisión Nacional Antimonopolio under the reformed Federal Economic Competition Law. Some concentrations must be notified in advance, but the current thresholds could not yet be checked. The insolvency law was amended in January 2026.

Key facts

• The Comisión Nacional Antimonopolio is the competition authority.

• Concentrations are defined broadly, covering share, asset and trust transactions between competitors, suppliers or customers.

• The Commercial Insolvency Law was amended in January 2026.

Who handles this in MexicoBuying, selling and investing

This topic was written by AI from general knowledge and is being checked against official sources. Confirm anything you plan to rely on with a qualified local professional.

3 statements on rates, thresholds or deadlines are held back until they are checked against an official source.

Businesses in listed vulnerable activities have AML identification and reporting duties, and all legal entities must keep beneficial ownership records for the tax authority. Mexico is party to the OECD Anti-Bribery Convention and a FATF member.

Key facts

• Legal entities can also face criminal liability for certain offences committed in their name or for their benefit.

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• Keep beneficial ownership records up to date, as the tax authority can request them, and expect cross-border scrutiny under the OECD Anti-Bribery Convention and FATF standards.

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Who handles this in MexicoAnti-bribery, sanctions and compliance

Mexico has applied the New York Convention since 1971 without reservations. Commercial arbitration is governed by the Commercial Code, amended in February 2026, whose arbitration provisions could not yet be checked.

Key facts

• Mexico applies the New York Convention without reciprocity or commercial reservations.

• Arbitration rules sit in the Commercial Code, amended in February 2026.

Who handles this in MexicoDisputes and arbitration