If you are conducting business in the Mexican market or planning to launch there, it is important to understand financial regulatory compliance in Mexico. Compliance is crucial for avoiding legal issues and financial penalties, which could impact your company’s reputation and business operations. Financial regulatory compliance falls under corporate compliance and is typically part of corporate secretarial services, also known as ‘cosec.’ This guide provides an overview of the financial regulatory compliance requirements for company formation or ongoing operations in Mexico. Contact us today for assistance with market entry and support for your business. Mexico offers investment opportunities and is the second-largest economy in Latin America, with a GDP of over $1.4 trillion. It has seen a significant increase in foreign direct investment (FDI), reaching over $38.6 billion in the first half of 2023. Mexico’s popularity among foreign investors has grown, and it has steadily increased FDI as a percentage of its GDP. The country has bilateral and multilateral free trade agreements (FTAs), including the USMCA, which replaced NAFTA in 2020. Mexico is also a member of the Pacific Alliance, an economic association that includes several Latin American countries and has plans to expand into the Asia-Pacific region. Mexico is known for its agricultural and industrial output, but the services sector contributes more than 60% to its GDP. The country is also becoming recognized for its tech talent, particularly in cities like Guadalajara. Compliance with financial regulations is necessary to take advantage of opportunities in this vast market. Financial regulatory compliance in Mexico includes several key responsibilities applicable to all legal structures. These include holding an annual general meeting, updating corporate books, reporting shareholders to the Tax Authority, submitting annual and quarterly economic reports, and updating the Mexican Entrepreneurial Information System (SIEM). Additionally, companies must renew their employer registration with immigration authorities, review and modify internal labor regulations, prepare labor contract addendums, ensure data protection and intellectual property compliance, renew leases, and provide up-to-date information to banks holding corporate accounts. Biz Latin Hub specializes in market entry and back-office services in Latin America and the Caribbean. With offices in 17 key cities, we offer assistance with accounting and taxation, company formation, due diligence, hiring and PEO, and corporate compliance. Contact us for support with financial regulatory compliance in Mexico and other services for your business.
