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USMCA member with nearshoring manufacturing boom
Region
NORTH AMERICA
Corporate Tax
30%
Setup Time
2 weeks
Currency
MXN
Mexico, bridging North and Central America, offers manufacturing scale and preferential access to US and Canadian markets. The country's company registration framework supports business setup for nearshoring and regional operations.
With a population of 130 million, Mexico offers diverse living from modern Mexico City to beach destinations. Spanish is the official language. The climate varies from tropical to desert.
Healthcare is good with quality private facilities in major cities. Safety varies significantly by region, requiring local awareness. The cost of living is moderate, lower than the US.
The cultural richness, cuisine, and proximity to the US attract both business and lifestyle migrants.
Corporate tax rate stands at 30%. Personal income tax reaches 35%. VAT applies at 16%. Various incentives exist for manufacturing and special economic zones.
The Mexican peso is freely traded with some volatility. USMCA provides preferential North American market access. The manufacturing sector, particularly automotive and electronics, is sophisticated.
Company registration through the Ministry of Economy (electronic system) is established. The S. de R.L. (limited liability company) and S.A. de C.V. (stock corporation) are common vehicles. Foreign ownership is permitted in most sectors.
Company formation takes approximately 2-4 weeks. Minimum capital varies by structure but requirements are flexible. Annual compliance includes tax and corporate filings.
The Fintech Law provides framework for digital assets through the Bank of Mexico and CNBV. Virtual asset licenses are available but with conservative scope limiting certain activities. The regulatory approach is more restrictive than some jurisdictions.
The Ministry of Interior regulates gambling through permit system. Online gambling operates in regulatory gray area. The gambling license framework is complex with limited clarity for remote gaming.
Security concerns affect certain regions and industries. Regulatory complexity requires local expertise. Labor costs have risen though remain competitive versus US.
Banking access is available through Mexican and international banks. Professional services are extensive in major cities.
Mexico suits manufacturing nearshoring, USMCA-focused operations, and businesses serving US or regional markets for their business setup.
Local: S. de R.L.
Local: S.A. de C.V.
Local: Sucursal
| Corporate Tax Rate | 30% |
| Personal Income Tax Rate | 35% |
| VAT / Sales Tax | 16% |
| Capital Gains Tax | 10% |
| Withholding Tax | 10% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | MEDIUM |
| Financial Privacy | LOW |
| Currency Controls | NONE |
| Local Bank Account Required | Yes |
| Non-Resident Bank Account Allowed | No |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | Yes |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | Yes |
| License Required | No |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | No |
| Required Share Capital | $0 |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant through AML Law obligations |
| Business Plan Required | Required for registration with SAT as DNFBP |
| Personnel Required | Compliance Representative (AML certification optional but recommended) |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | No |
| Registry Access | SAT maintains registry of DNFBPs, not publicly accessible |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | No |
| Compliance Audit Mandatory | No |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Tax Administration Service (SAT) and Financial Intelligence Unit (UIF) |
| Licensing Fee | $0 |
| Licensing Fee Details | No licensing fee - VASPs register as DNFBPs with SAT (registration is free but compliance costs apply) |
| Permitted Business Models | Exchange, Custody, Transfer, Wallet services |
| Permitted Activities | Crypto-to-fiat exchange, crypto-to-crypto exchange, custody, storage, transfer of virtual assets |
| Restricted Activities | Banks and fintechs (IFPEs) limited to internal operations with virtual assets approved by Banxico; stablecoin issuance requires financial institution license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | No |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | No |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $0 |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A for gambling |
| Business Plan Required | Comprehensive business plan required for SEGOB license application |
| Personnel Required | Legal representative, compliance officers for AML obligations |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | No |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | No |
| Registry Access | SEGOB maintains license registry |
| Renewal Period | Variable (1-15 years) |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Ministry of the Interior (SEGOB) through Dirección General de Juegos y Sorteos (DGJS) |
| Licensing Fee | $600,000 |
| Licensing Fee Details | Application fees approximately MXN 600,000-1,000,000 (USD 30,000-50,000); ongoing fees 1-2% of gaming revenue |
| Permitted Business Models | B2C (licensed operators only); B2B suppliers not separately licensed |
| Permitted Activities | Sports betting, casinos, slot machines, bingo, lotteries, horse racing (online requires partnership with land-based license holder) |
| Restricted Activities | New land-based licenses currently suspended; online operations require partnership with existing license holder; 2023 decree banned new online slot/casino games (existing licenses grandfathered) |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | No |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $3,500,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant |
| Business Plan Required | Comprehensive 3-year business plan required with operational model, financial projections, and risk assessment |
| Personnel Required | CEO/General Director, Compliance Officer, AML Officer, Board of Directors |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | CNBV maintains public registry of authorized financial institutions |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Monthly |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | National Banking and Securities Commission (CNBV), Bank of Mexico (Banxico), Ministry of Finance (SHCP) |
| Licensing Fee | $3,800,000 |
| Licensing Fee Details | IFPE license approximately EUR 190,000 (MXN 3,800,000+) including application, observations clearance, SPEI connection; SOFOM ENR is unregulated and has minimal fees |
| Permitted Business Models | IFPE (Electronic Payment Fund Institution), IFC (Crowdfunding), SOFOM (Multiple Purpose Financial Company), SOFIPO (Popular Financial Company), Banking |
| Permitted Activities | E-wallets, payment processing, money transfers, electronic funds, crowdfunding, lending, factoring, leasing (depending on license type) |
| Restricted Activities | Deposit-taking reserved for banks/SOFIPOs; lending by IFPEs prohibited; interest-bearing deposits by IFPEs prohibited |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |