Expanding your business in Mexico could be a huge opportunity for company growth. Mexico is a natural bridge between Latin America and the U.S., and ranks in the top 3 emerging markets for developing countries. Mexico has achieved political and economic maturity, and the labor force is young and growing each year.
There can be challenges to expanding internationally and managing payroll in Mexico. The culture and language barriers can be difficult, as Spanish is the main language used in business. The federal tax and labor laws can be complex and very costly if not strictly adhered to. Having a local partner is vital to success in Mexico to ensure compliance.
Starting a company in Mexico requires registration at the National Registry of Foreign Investment, obtaining a tax identification card, and registering as an employer with Mexican Social Security and from governing bodies in the local jurisdiction. In-country bank accounts are mandatory for making payments to employees and to the government social security and tax agencies. Companies must supply tax identification number to open bank accounts.
Mexico has a multitude of compliance issues that are a result of anti-corruption efforts, making it difficult to maintain compliance. Corruption is deeply embedded throughout the society and fed by billions of narcotics-related dollars. The 1994 North American Free Trade Agreement (NAFTA) helped Mexico’s economy triple to $2 trillion in 2019.
Without the right payroll solutions, companies that do business in Mexico run the risk of fines for non-compliance, loss of personal employee data and other costs. The complex landscape of payroll in Mexico also presents a serious threat to efficiency and growth for organizations that haven’t developed robust payroll processes. At Blue Marble Payroll, we understand the payroll-related challenges of doing business in Mexico.
Our revolutionary cloud-based payroll management software enables your business to stay current with payroll-related regulations. Blue Marble Payroll solutions simplify payroll and HR reporting, while ensuring compliance with Mexico’s payroll requirements. Blue Marble Payroll provides a unique combination of local, in-country knowledge and user-friendly payroll management software that is vital to your success in Mexico.