Business Administration in Mexico

Overview by Globlatrade.net:

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
Sociedad de Responsabilidad Limitada (S. de R.L.)  is: a Variable Stock Limited Liability Partnership (company)
 
 
Minimum of  3,000 MXN. Each partner must bring in at least 50% at the time of its creation.
Minimum 2. Maximum 50
 
 
Liability is limited to the amount contributed.
Company's name registration by the Ministry of Foreign Affairs: MXN 640 ; Act of constitution by a public notary in order to obtain tax registration number: MXN 9,000 ; Registration to the Public Commercial Register: MXN 1,402; Inscription to the National Business Registry Information: MXN 385.
Sociedad en Nombre Colectivo is: a General Partnership
 
 
No minimum capital.
One or more partners
 
 
Liability is unlimited and joint responsibility.
Company's name registration by the Ministry of Foreign Affairs: MXN 640 ; Act of constitution by a public notary in order to obtain tax registration number: MXN 9,000 ; Registration to the Public Commercial Register: MXN 1,402; Inscription to the National Business Registry Information: MXN 385.
Sociedades en Comandita Simple (S. en C.) is: a Limited Partnership.
 
 
No minimum capital.
One or more partners
 
 
Some partners have limited liability, others have unlimited and jointed responsibility.
Company's name registration by the Ministry of Foreign Affairs: MXN 640 ; Act of constitution by a public notary in order to obtain tax registration number: MXN 9,000 ; Registration to the Public Commercial Register: MXN 1,402; Inscription to the National Business Registry Information: MXN 385.
Sociedad Anonima (S.A.) is: Limited Liability Company (or Corporation) also known as Joint Stock Company in USA
 
 
50,000 MXN. 20% released at the time of its creation.
Minimum 2. No maximum.
 
 
Liability is limited to the amount contributed.
Company's name registration by the Ministry of Foreign Affairs: MXN 640 ; Act of constitution by a public notary in order to obtain tax registration number: MXN 9,000 ; Registration to the Public Commercial Register: MXN 1,402; Inscription to the National Business Registry Information: MXN 385.
Sociedad Anonima de Capital Variable (S.A. de C.V.) is: a Variable Capital Limited Liability Company.
 
 
50,000 MXN. 20% released at the time of its creation.
Minimum 2.  No maximum.
 
 
Liability is limited to the amount contributed.
Company's name registration by the Ministry of Foreign Affairs: MXN 640 ; Act of constitution by a public notary in order to obtain tax registration number: MXN 9,000 ; Registration to the Public Commercial Register: MXN 1,402; Inscription to the National Business Registry Information: MXN 385.
 
Business Setup Procedures
The statutes of the company must be written down in Spanish and registered on a notarized document. It is required to obtain a permission authorizing the creation a company/corporation drawn up from the Ministry of Foreign Affairs.
The Competent Organization
The National Business Information Registry.

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Working Conditions

Legal Weekly Duration
48 hours per week (8 hours per day)
Retirement Age
65 years old
Working Contracts
Employment contracts can be for a specific job assignment or for a fixed period of time. If there is no stipulation, it is for an indefinite period of time.

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Cost of Labor

Minimum Wage
52.50 MXN  in the geographical area  A,  50.96 MXN in the geographical B, 49.50 MXN in the geographical C.  Consult the site of minimum wages  for  the geographical zones since the minimum wages per hour are modified every month.
Average Wage
Average monthly gross earnings in Mexico is MXN 5,660 (USD 430). For more information, consult National Minimum Salaries Commission
Social contributions
Social Security Contributions Paid By Employers: 2 %.
Social Security Contributions Paid By Employees: 10.5 %.

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Social Partners

Social Dialogue and Involvement of Social Partners
Mexican syndicates (or unions) are divided and organized by activity sectors and they have a relative power.  Most of them are affiliated to The Confederation of Mexican Workers (CTM). It must be considered that the syndicates have been developed as institutions of 'social resistance' which prevent, in many cases, structural reforms as well as the economic development of the country.
Unions
Mexican Syndicates
Confederation of Mexican Workers
Unionization Rate
30 %.
Labor Regulation Bodies
Ministry of Labor and Social Security
Confederación Patronal de la República Mexicana (COPARMEX)

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