For any international corporation or investor looking to establish a presence in Mexico, a foundational understanding of the country’s governmental structure is not merely an academic exercise; it is a critical component of strategic planning and risk management. The Mexican government, formally known as the United Mexican States, operates as a complex federal republic. Its structure, defined by a rich and often tumultuous history and codified in a powerful constitution, dictates everything from national policy and tax law to local permits and labor regulations.
A clear grasp of this framework is essential for any business leader. It provides the necessary context for navigating regulatory compliance, engaging with various levels of government, and anticipating the political and economic currents that can impact an operation. Unlike more centralized states, Mexico’s power is deliberately distributed—both functionally among its executive, legislative, and judicial branches, and geographically across its federal, state, and municipal levels. This division of power means that a company must be prepared to interact with, and receive approvals from, multiple government bodies at different levels to operate successfully.
This guide provides a comprehensive, high-level overview of the structure of the Mexican government, designed specifically for a business audience. We will begin with a brief historical context that shaped the modern state, focusing on the path that led to the cornerstone of its legal system, the Constitution of 1917. Following this, we will provide a detailed analysis of the division of powers at the federal level, explaining the roles of the President, the Congress, and the Judiciary. Finally, we will explore the crucial roles and responsibilities of the state and municipal governments, providing the clarity needed to operate with confidence and strategic foresight within the Mexican political and administrative landscape.
Federal government of Mexico
The Mexican federal government has three branches: executive, legislative, and judicial and functions per the 1917 Constitution of the United Mexican States.
| Year Founded | 1824 |
|---|---|
|
Founding Document |
Constitution |
|
Type of Government |
Federal Presidential Republic |
|
Sovereign States |
31 and CDMX |
|
Head Of State |
President |
Federal Presidential Republic
The Constitution of 1917 Is The Highest legal Document
To understand the structure and priorities of the modern Mexican government, one must first appreciate the historical forces that forged it. The country’s political framework is not an abstract design but a direct response to a long and complex history, marked by a struggle for independence, stability, social justice, and national sovereignty. The cornerstone of the modern state, the Political Constitution of 1917, is the culmination of these historical struggles, and its principles continue to animate Mexican political life today.
You may or may not know this but in 1519 Mexico was colonized by the Kingdom of Spain. A group of various indigenous populations used to live in the territory where Mexico is located today. The Aztecs, a warrior tribe, excercised control over the other indigenous tribes.
The Aztecs are the founding people of México. They were called like that because they are said to come from Aztlán; a mytical place that has never been found. A group of Aztecs that founded an important city called México-Tenochtitlan began to be known as the Mexicas.
To this picture came Hernán Cortés, a highly skilled Spanish military strategist. Even though Cortez had superior weaponry and other military advantages, the difference in numbers was massive. So, Hernán Cortés allied himself with local indigenous tribes, who were tired of the Aztecs ruling. This combination of strategic alliances, along with the rapid spread of diseases that the Spanish brought to the country, helped Cortés conquer the Aztec empire.
For three hundred years, from 1521 to 1821, the territory of modern-day Mexico was a colony of Spain, known as the Viceroyalty of New Spain. This was a period of profound social and economic transformation, but one where political power was highly centralized and held exclusively by the Spanish Crown and its appointed officials. This long colonial period established a tradition of strong, centralized authority, but it also sowed the seeds of a distinct Mexican identity and a deep desire for self-determination. The Mexican government structure was really different back then.
In 1810, inspired by the Enlightenment and other Atlantic revolutions, the Mexican War of Independence began. After a brutal, decade-long conflict, Mexico finally achieved its independence in 1821. However, the early years of the new nation were marked by profound political instability. The first several decades were consumed by a fierce struggle between two opposing factions: the Centralists, who favored a strong, centralized government similar to the colonial model, and the Federalists, who advocated for a republic with significant power put into the individual states of the republic. This foundational conflict between central and regional power remains a recurring theme in Mexican political history.
The mid-19th century was a defining period known as La Reforma (The Reform). Led by the iconic liberal figure Benito Juárez, this movement sought to create a modern, secular nation-state. The culmination of this effort was the Constitution of 1857, a landmark liberal document that formally established a federal republic, enshrined individual rights, and sought to drastically reduce the political and economic power of the Catholic Church. The Mexican government structure began to take form.
This era of liberal reform was violently interrupted by foreign intervention. In the 1860s, France, under Napoleon III, invaded Mexico and, with the support of Mexican conservatives, installed the Austrian archduke Maximilian von Habsburg as the Emperor of the Second Mexican Empire. This period was short-lived but deeply traumatic. The republican forces, led by President Juárez, ultimately defeated the French and executed Maximilian in 1867, restoring the Republic. This experience had a profound and lasting impact, instilling a deep-seated principle of national sovereignty and a fierce opposition to foreign intervention in the Mexican political psyche.
From 1876 to 1911, Mexico was under the authoritarian rule of General Porfirio Díaz. This nearly 35-year period, known as the Porfiriato, was characterized by political stability and significant economic modernization. Díaz’s government encouraged massive foreign investment, particularly from the United States and Great Britain, which fueled the development of railroads, mining, oil, and export-oriented agriculture. The country’s infrastructure was modernized, and on the surface, Mexico appeared to be a prosperous and advancing nation.
However, this progress came at a tremendous social cost. The Mexican government structure became a dictatorship. Therefore, the economic benefits were concentrated in the hands of a small domestic elite and foreign investors. The vast majority of the rural population was dispossessed of their land, which became concentrated in massive estates known as haciendas. Workers in the new factories and mines faced harsh conditions with few rights, and all forms of political dissent were brutally suppressed. The slogan of the era was “Order and Progress,” but for most Mexicans, it meant order at the expense of liberty and progress at the expense of justice.
This profound social and economic inequality eventually became unsustainable, leading to the eruption of the Mexican Revolution in 1910. The Revolution was not a single, unified movement but a complex and bloody decade-long civil war involving multiple factions, each with their leaders and agendas. Figures like Francisco Madero fought for democratic reform, Emiliano Zapata fought for land rights for the peasantry under the banner of “Tierra y Libertad” (Land and Liberty), and Pancho Villa led a powerful movement in the north. It was one of the great social upheavals of the 20th century, and its core demands—for democracy, land reform, and workers’ rights—would directly shape the future of the nation. It gave Mexico a new government structure.
The conclusion of the Mexican Revolution’s most violent military phase led to a constitutional convention in the city of Querétaro. The delegates drafted a new constitution, which was promulgated on February 5, 1917. The Political Constitution of the United Mexican States of 1917 is the document that governs Mexico to this day and is considered one of the most progressive legal documents of its time.
It was revolutionary because it was one of the first constitutions in the world to explicitly enshrine not just liberal individual rights (like freedom of speech and religion), but also sweeping social rights. Its key articles are a direct reflection of the demands of the Revolution:
Article 27 of the Constitution established national ownership of all land and natural resources. It laid the groundwork for a massive program of agrarian reform, breaking up the large haciendas and redistributing land to rural communities in the form of ejidos (communal landholdings).
Article 123 of the Constitution was a comprehensive labor code embedded directly into the Constitution. It established the eight-hour workday, the right to strike, protections for female and child laborers, and the right to a minimum wage. It was a direct response to the abuses of the Porfiriato and created the foundation for Mexico’s highly protective labor laws.
Article 3 of the Constitution established free, mandatory, and secular public education.
Critically, the Constitution re-established a strong federal system with a clear division of powers and, most importantly, the absolute principle of no re-election for the President, a direct reaction to the 35-year rule of Porfirio Díaz. This document is the foundational blueprint for the entire structure of the modern Mexican government.
The Constitution of 1917 establishes the Mexican government structure. It is comprised of a federal government, known as the “Supreme Power of the Federation,” which is divided into three distinct and independent branches: the Executive, the Legislative, and the Judicial. This separation of powers is designed to create a system of checks and balances, ensuring no single branch can accumulate absolute authority. This structure is essential for understanding where power resides and how policy is made at the national level.
According to Mexico’s government structure, the executive power in Mexico is vested in a single individual: the President of the United Mexican States. In Mexico’s political system, the President holds a position of immense power and influence. He serves as both the head of state (the ceremonial representative of the nation) and the head of government (the chief executive responsible for running the country).
The President: The President is elected by a direct popular vote for a single, six-year term known as a sexenio. The principle of “no re-election” is a cornerstone of the Mexican political system and is enshrined in the constitution as an absolute prohibition. This powerful mandate gives the President significant influence to shape the national agenda during their six years in office. The President’s powers are extensive and include directing all aspects of the executive branch, appointing cabinet members and other senior officials, directing foreign policy, acting as the supreme commander of the armed forces, and having the power to introduce legislation directly to the Congress.
The Federal Public Administration (The Cabinet): To carry out their vast duties, the President is assisted by a cabinet, comprised of the heads of the various executive departments, known as Secretariats of State (Secretarías de Estado). These are the functional ministries of the government. For any business operating in Mexico, understanding the roles of these key Secretariats is crucial, as they are the primary points of contact for regulatory and policy matters. The most important for foreign business include:
The second power in Mexico’s government structure is the one in charge of setting the rules, i.e., creating the laws. The legislative power of the federation is vested in a bicameral legislature, the Congreso de la Unión, which is composed of two houses: an upper house (the Senate) and a lower house (the Chamber of Deputies).
This is the lower house, analogous to the U.S. House of Representatives or the British House of Commons. It is composed of 500 deputies. The election system is a mixed-member model: 300 of these deputies are elected directly by popular vote from single-member districts across the country. The remaining 200 are elected by a system of proportional representation from large, five-region party lists. This system is designed to ensure that smaller political parties have representation in the legislature. Deputies serve a three-year term and, following recent reforms, can be re-elected for up to four consecutive terms. The Chamber of Deputies has the exclusive power to approve the annual federal budget, a critical check on the power of the President.
This is the upper house. It is composed of 128 senators. The election is also a mix: each of the 31 states and Mexico City elects three senators. Two of these seats are awarded to the party that wins the popular vote in the state, and the third seat is awarded to the party that finishes in second place (the “first minority”). The remaining 32 senators are elected by proportional representation from a single, national party list. Senators serve a six-year term, concurrent with the President, and can be re-elected for one additional term. The Senate has exclusive powers related to foreign policy, including the power to approve international treaties negotiated by the President. It also confirms the appointments of ambassadors, consuls, and Supreme Court justices.
For a bill to become law, it must be debated and approved by majorities in both the Chamber of Deputies and the Senate, and then signed by the President. This bicameral system ensures a more deliberative and representative legislative process.
In case of conflict between the two other powers, there’s third power in Mexico’s government structure that resolves it. The judicial power of the federation is vested in a system of federal courts, headed by the Supreme Court of Justice of the Nation (Suprema Corte de Justicia de la Nación – SCJN).
The Supreme Court: The SCJN is the highest court in the land. It is composed of 11 justices (ministros) who are nominated by the President and confirmed by a two-thirds vote of the Senate. Justices serve a 15-year term, a design intended to ensure their judicial independence from the political cycle. The Supreme Court is the ultimate interpreter of the Constitution and has the power of judicial review, meaning it can declare laws passed by the Congress or acts of the President to be unconstitutional.
The Federal Judiciary: Below the Supreme Court is a hierarchy of federal courts responsible for hearing cases involving federal law. This includes regional Circuit Courts (Tribunales Colegiados y Unitarios de Circuito), which primarily hear appeals from lower courts, and District Courts (Juzgados de Distrito), which are the primary trial courts for federal cases.
The Council of the Federal Judiciary (Consejo de la Judicatura Federal): This is the administrative body responsible for the oversight, discipline, and management of all federal courts and judges below the Supreme Court. It plays a crucial role in ensuring the independence and proper functioning of the judiciary by handling all administrative matters, allowing the justices to focus on their legal rulings.
Mexico’s government structure is also divided geographically. In addition to the functional separation of powers, the Mexican Constitution establishes a clear geographical division of authority among three levels of government: Federal, State, and Municipal. Understanding this federalist structure is critical for any business, as it dictates which government entity has jurisdiction over specific permits, taxes, and regulations that will impact your day-to-day operations
The federal government is known as the Supreme Power Of The Federation. This power is divided into three branches known as the Powers of the Union: the legislative, the executive, and the judicial.
One person, the President, serves as the head of the executive branch. The President chooses a Presidential Cabinet of 21 Ministers to assist in running the country.
Federal legislative power is composed of two houses: the Chamber of Deputies, comprising 500 deputies, and the Senate of the Republic, comprising 128 senators.
The judicial power of the federation is vested in a system of federal courts, headed by the Supreme Court of Justice of the Nation.
The Federal Government, as outlined in the section above, has exclusive jurisdiction over matters that affect the entire nation. This is a good thing. For example, your legal representative does not need to be in the same state as your registered address to go to the Tax Administration Service (SAT) and obtain your Mexican company’s RFC.
The executive branch is the one with which foreign business owners will interact the most. Through its Ministries, the executive power creates government agencies, such as SAT, IMSS, or COFEPRIS, to assist it in fulfilling its mission.
For businesses, the most important areas of federal jurisdiction include:
The primary federal taxes, including Income Tax (ISR) and Value-Added Tax (IVA), are managed by the SAT.
All immigration matters are managed by the National Institute of Migration (INM), which is part of the Ministry of Interior (SEGOB).
The Federal Labor Law (LFT) and national workplace safety standards (NOMs), enforced by the Ministry of Labor (STPS).
Mexico is a federation composed of 31 free and sovereign states and Mexico City, which gained a status similar to a state in 2016. Each state has its own constitution, which cannot contradict the federal constitution, and its own three-branch system of government:
A Governor (Gobernador): The head of the state executive branch, directly elected for a single, six-year term.
A State Congress (Congreso Estatal): A unicameral (single-chamber) legislature responsible for passing state laws. Members are typically elected for three-year terms.
A State Superior Court of Justice (Tribunal Superior de Justicia del Estado): The head of the state judicial branch, responsible for interpreting state law.
The state governments have jurisdiction over all matters not exclusively reserved for the federation. For businesses, this most commonly includes:
State-Level Taxes: The most significant of these is typically a payroll tax, a percentage levied on the total payroll of a company.
The Public Registry of Property and Commerce: This is a critical state-level institution. It is where all property deeds are registered and where all major corporate acts—such as the formation of a company, the granting of a power of attorney, or a corporate merger—must be officially recorded to be legally valid.
Local Labor Justice: The labor law itself is federal. But, the day-to-day resolution of labor disputes has traditionally been handled by state-level Local Conciliation Center (Juntas Locales de Conciliación Laboral).
State Environmental Permits: While major industrial projects may require federal environmental approval, many other activities require specific environmental permits from state authorities.
Certain Business Licenses: Depending on the industry, some specific operating licenses may be issued at the state level.
The state is further divided into municipalities, which are the most local level of government, analogous to a county or a city government in the United States. A Municipal President, and a municipal council govern each of Mexico’s over 2,400 municipalities (ayuntamiento). These officials are directly elected for a three-year term.
The municipal governments are responsible for providing local public services and have jurisdiction over matters within their territory. For any business looking to establish a physical presence—be it a factory, a warehouse, or an office—the municipal government is the first and most critical point of contact.
Their key responsibilities affecting business include:
Zoning and Land Use Permits (Uso de Suelo): This is perhaps the most critical municipal function for a new business. The municipality determines the official zoning for all land within its borders and must issue a land use permit before any commercial or industrial activity can take place on a property.
Licencia de Funcionamiento): Most businesses need a basic operating license from the municipality to legally open their doors to the public.Local Utilities and Services: The municipality is responsible for providing essential services like water, sewage, and garbage collection.
Property Taxes (Impuesto Predial): The municipal government is responsible for assessing and collecting annual property taxes on all real estate.
For any company planning to build a new facility, successfully navigating the permit and licensing process at the municipal level is one of the first and most critical operational hurdles.
The structure of the Mexican government is a complex, multi-layered system designed to distribute power and balance the interests of the nation, the states, and local communities. For a foreign company, this tripartite system of federal, state, and municipal jurisdictions can seem daunting. However, the system is well-defined and operates within a clear constitutional and legal framework. A successful operation in Mexico is contingent on understanding which level of government has authority over each aspect of your business.
Understanding this structure is key to a successful operation. It allows a company to identify which government agencies it needs to engage with, to anticipate the regulatory hurdles at each level, and to build a compliance strategy that addresses its obligations to all three levels of government.
At Start-Ops, we specialize in helping companies navigate this intricate landscape. Our deep expertise in the functions and jurisdictions of every level of the Mexican government allows us to manage the entire administrative and regulatory process for our clients. From securing federal tax IDs and immigration permits to obtaining state operating licenses and municipal construction permits, we provide the comprehensive support necessary to ensure your business is established correctly and remains fully compliant. We handle the complexity of governance so you can focus on your core mission: building a successful and thriving business in Mexico.
Contact us for a strategic consultation to explore how we can help you navigate Mexico’s governmental framework with confidence.