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.
Hiring employees in Mexico requires an Employee certificate of registration from the National Institute of Migration (INM). Foreign nationals can get a temporary visitor visa with work permissions, and a temporary resident visa can be obtained when a person receives a job offer from a company in Mexico. Minimum wage in Mexico is 102.68 MXN per day, but in border towns the minimum wage is 176.72 MXN per day.
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.
Blue Marble provides cloud-based payroll technology with customized reporting so you can track your payroll in real-time. Our in-country experts can help with payroll and compliance questions and ensure you stay up to date with all payroll regulations in Mexico. If you need help simplifying payroll and compliance in Mexico, we can help – talk to us today about how our easy-to-use payroll and reporting tools can save time and resources.