Although company formation in Mexico is generally a straight-forward process, expert knowledge in local laws and regulations is necessary to ensure no mistakes are made. To register a company in Mexico, companies must follow several steps and procedures provided by the Ministry of Economy, such as enrolling with the National Worker’s Housing Fund (INFONATIV) and the possibility of a quick set-up of your business through the Expedite Business Start-Up System. Companies can focus on their business goals and integrating into the market while NNRoad takes care of legal requirements and incorporation. Our experts can ensure that your company is in compliance with local rules.
- Confirm the selection of a business entity type.
- Advise with the initial capital amount, if applicable.
- Assist with the selection of entity name and request for use of the business name.
- Request appropriate apostilles/legalizations.
- Assist with the identification of key persons in the entity and provide the public deed (including initial shareholder structure) with Public Registry of Commerce.
- With respect to foreign company investment, assist with the registration with the Mexican National Registry of Foreign Investment.
- Assist with the drafting of local articles of incorporation and by-laws and the execution of articles of incorporation with the notary and formal registration of the company.
- Request Mexican Company’s Government e-signature.
- Request Mexican Tax Identification Number.
- Assist with the Opening of Corporate Bank Account.
- Assist with Mexican Employee Social Security Registration.
Hiring employees in Mexico can be a tedious task. Through NNRoad, companies can rest easy because we will act as the employer of record for your company, therefore hiring employees on your behalf and leasing them to you full-time.
- The hiring of and termination of employees/local labor contracts (contract administration - engagement, extension termination and conversion to permanent hire, confidentiality agreement).
- On-boarding and off-boarding employees following local law practice.
- Complete payroll solution and statutory benefit administration.
- Employee management – employee handbook, employee record retaining, timekeeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
- Mandatory social security insurance compliance according to the local laws.
- Advisory of fringe benefits that are given in their field for employees, for example, major medical insurance, life insurance, and car, etc.
- Working VISA application assistance, if needed.
- Local individual income tax reporting, if needed.
Companies with local employees or foreign staff should note several regulations put forth by the Mexican government. For example, Mexico has different tax schemes dependent on whether a foreigner is considered a resident in Mexico or a resident abroad. In order to facilitate the payroll obligations of foreign companies in Mexico, NNRoad can act as the HR department for your company and ensure compliance with Mexico’s payroll structure, including required registration and tax paperwork.
- Registering the necessary company and personnel information for payroll calculation in the payroll software and system.
- Calculation of gross salary, salary deductions (e.g. social insurances, unpaid leaves, etc.), and net salary based on information provided by the Company including irregular payments such as incentive/bonus, commission, allowance, severance, retirement payment, etc.
- Pro-rata calculation for people who join/resign.
- Payroll disbursement - Issuing payment notice to the Company for payroll distribution to employees (E-Paystubs Delivery (CFDI) and employee’s expense claim according to the Mexican IRS laws.
- Calculation and contribution of (1) mandatory social security (2) saving fund (if applicable), and (3) other benefit plans (i.e. Infonavit (Housing) Deductions).
- Year-End Adjustment and Annual Declaration.
Following the correct accounting procedures in Mexico without error can be a difficult task, leading to more and more companies outsourcing their accounting tasks. Companies would benefit from the assistance of our accounting, bookkeeping, and tax services when expanding in the Mexican market. With years of experience in the field of accounting and taxation, our experts will ensure a smooth transition into the Mexican business environment.
- Request bank statements, purchase orders and invoice copies from the client.
- Perform reconciliation of cash flow with provided documentation.
- Preparation of monthly and yearly financial reports.
- Invoice Management.
- Financial Audit, if needed.
- Annual tax return preparation and filing.