Expand your business

The cost of starting a business in Mexico : Registration fee is 16.3% of the estimated income of the business during its first year of operation. The fee is not paid in subsequent years.

This is in addition to any income taxes incurred during that year.

These registration fees are in line with the OECD average.

Once interest gathers all information needed, the procedure to legally build a commercial facility (warehouse, offices, etc.) is 15 steps. Average completion time is 72 days.

The procedure itself is similar to other countries, while completion time is relatively short.

Money invested during the process is equivalent to 10% of the commercial real estate value. This is an expensive process compared to other countries.

At: Water Services Agency (Sistema de Aguas de la Ciudad de México)
Request a water feasibility study

At: Water Services Agency (Sistema de Aguas de la Ciudad de México)
Obtain water feasibility study

The procedure to get electricity connection is 7 steps and 112 days of time spent. In comparison to other countries is a time-consuming method.

Money invest through procedure is 281.3% of income per capita. In a monthly bill for commercial warehouse the tariff is $0.793 MXN pesos per kilowatt-hour. Which means the procedure is average cost but the tariff is expensive in comparison to other countries.

In comparison to other countries Mexico has a low-step but time-consuming procedure for property registration. They are 8 steps that can be done in 42 days.

The invest needed in this procedure is 6.2% of the property value. Value added tax and capital gain tax are excluded. Mexico is above the average cost for this operation.

The new company in Mexico  must pay 9 contributions per year.

Time invested in collecting information, computing tax payable, separating tax accounting books, completing tax return, filling with agencies, arranging payment or withholding throughout the year is 248 hours.

Time and cost to obtain, prepare and submit documents compliance to export in Mexico is 8 hours and $20USD. This process is more efficient than most other countries.

Time and cost to obtain, prepare and submit documents to import in Mexico is 18 hours and $100USD. Compared to other countries, Mexico is below the average. This process is more expensive and time-consuming than in other countries.

Time and cost to customs clearance and inspection for export products is 20 hours and $400USD.
This is about average in compare to other countries.

Time and cost to customs clearance and inspection for import products is 44 hours and $450USD. Compared to other countries, companies will spend more time and money than average to import products.

In many situations a company bankruptcy will continue operating until unable to do so or business assets are sold. In Mexico there is a tendency for companies to continue operating after filing for bankruptcy.

A standard workday is 8 hours a day 6 days a week. Overtime is paid as +50% of hourly pay and there are no restrictions working at night or weekend. If the employee works on its  weekly rest day, this must be paid as +25% of hourly pay.

Vacations are awarded based on seniority

• 6 paid leave days after 1 year worked
• 12 paid leave days after 5 years worked
• 16 paid leave days after 10 years worked

Termination in Mexico

The employer or employee may terminate the employment relationship at any time with cause. The worker must be notified of the conduct and dates on which is was committed. The lack of notice to the worker or the relevant government authorities will provide the employee with grounds to successfully claim that the dismissal was unjustified. As a consequence the company must pay:

• Three months´ salary
• 20 days of salary per each year of service
• Payment of overdue wages, if applicable
• Vacation and Christmas bonuses accrued by the time of dismissal.