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Legal, Accounting & Tax

Legal, accounting & tax in Mexico

How We
Can Help

For years Mexico has been a great place for foreigners to establish a business.

Some do it to take advantage of the highly skilled workforce to lower labor costs and gain a competitive edge and some to take advantage of the 46 trade agreements to which the country is subscribed and lower tariff costs.

At Start-ops we can help you by taking care of all the administrative tasks of your operation in Mexico. This way you can focus 100% in your operation.

Legal Accounting & Tax Services

To make your nearshore manufacturing operation a success you need to be able to focus 100% in your operation. Mexico has its own legal system and in order to be fully compliant the best idea is to let an expert manage your legal, accounting, and tax needs. 

At Start-ops, we help you every step of the way in your nearshore venture and make sure that the process is easy and effortless for you. We can help you with the whole administrative part of your operation and present you with monthly reports.

With our expertise in doing business in Mexico and its legal system, you can rest assure that your nearshore operation will be a success and that you will always be in full compliance with Mexican policies.

“The freer the competition of any division of labor, the more advantageous to the public.”

-Adam Smith

plan of action

Legal, Accounting & Tax Service

Every business has different administrative needs. However, one thing is for sure, regulatory requirements apply to all businesses alike and noncompliance can lead to expensive fines and even shutdown of operations.

For this reason it is a good idea to have an on-site partner like Start-ops to help you get things done. So, what’s the plan? Well, we have distilled it to just three simple steps for you to have your Mexican operation in full compliance. 

01

We have a strategy meeting

The first step is to understand your business and its needs. We will have an initial virtual or on-site meeting with your team to gather all of the information required.

02

We set everything up

The next step is to make the initial setup in our platform. This is the place where you will be able to see all of your information in real-time.

03

We present you with monthly reports

Once everything is live and running you will receive a monthly report with the status of your Mexican operation.

We want to see you succeed.

At Start-ops we care about each of our clients and we always strive for long-term relationships.

you are in good company

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We take care of everything you need to have a fully operational company in Mexico. Hassle Free.

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FAQ

Common questions about accounting, tax and legal compliance in Mexico

What accounting and tax obligations does a foreign-owned company have in Mexico?

A Mexican entity must keep its books under Mexican NIF accounting standards, file monthly ISR and IVA returns with SAT, issue all invoices as CFDI electronic invoices through an authorized provider, file monthly IMSS and INFONAVIT contributions for employees, and file an annual return. Foreign-owned entities also face transfer pricing documentation requirements on transactions with the parent company.

Can our US accountant handle Mexican accounting and tax filings?

No. Mexican filings must be made through SAT's electronic systems using a Mexican e-signature (e.firma), books must follow Mexican NIF standards rather than US GAAP, and all invoicing must run through the CFDI system. A US accountant can consolidate the Mexican numbers into group reporting, but the Mexican filings themselves require a local accountant registered with SAT.

What is CFDI invoicing and is it mandatory?

CFDI (Comprobante Fiscal Digital por Internet) is Mexico's mandatory electronic invoicing standard. Every invoice a Mexican entity issues or receives must be a CFDI validated in real time by an authorized certification provider. An expense without a valid CFDI is generally not deductible for Mexican tax purposes.

What is permanent establishment risk in Mexico?

A foreign company can create a taxable permanent establishment in Mexico by having staff, contractors, or agents conclude business there on its behalf, even without a registered entity. That triggers Mexican corporate income tax on attributable profits plus filing obligations. Structuring the arrangement correctly from the start, either through an Employer of Record or a properly capitalized subsidiary, is what avoids the exposure.

How often do Mexican tax filings have to be made?

Monthly. ISR and IVA provisional returns are due by the 17th of the following month, IMSS contributions monthly, INFONAVIT and state payroll taxes on their own monthly or bimonthly cycles, and an annual corporate return is due by March 31 for the prior calendar year.

Still have a question about your Mexican entity? Talk to our team in Guadalajara — we reply in hours, not days.

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