Facts in this handbook are compiled from official sources such as local authorities. Rules change — confirm the current position through the source links or with the authority before making major decisions.
01Overview
- Region
- North America
- Capital
- Mexico City
- Currency
- MXN
- Languages
- Spanish
- ISO code
- MX / MEX
Jurisdictions
- Mexico (federal) — Federal level; states levy their own local taxes and permits
China's direct investment
- China's 2025 FDI flow
- 14.5 USD 100m
- End-2025 FDI stock
- 62.4 USD 100m
- Flow rank
- #13 by flow
Source：2025 Statistical Bulletin of China's Outward Foreign Direct Investment ↗ · Flow is for calendar 2025; stock is at end-2025. Flow rank is from Table 8 (top 20); other countries from Annex Tables 1–2 (originally USD 10k, converted to USD 100m; one decimal, two below 1). A negative flow means divestment exceeded new investment that year.
Macro indicators such as GDP and population will be added from the World Bank in the data release (P1).
02Market Entry
Industries to study: Manufacturing & plant relocationTrade, logistics & warehousing
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Under the Foreign Investment Law, 100% foreign ownership for most activities
- Applies to
- Some activities are reserved or capped; foreign investment must be registered with the National Foreign Investment Registry
- Jurisdiction
- Mexico (federal)
- Source
- Secretaría de Economía
- Cross-check
-
Outward Investment and Cooperation Guide: Mexico (2025 ed.) consistent
03Business Formation
Common legal entity
The company form most commonly used by foreign investors for a local operating entity.
S.A. de C.V. or S. de R.L. de C.V.
- Applies to
- Both are generally taxed as corporations
- Jurisdiction
- Mexico (federal)
- Source
- Secretaría de Economía
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Under the Foreign Investment Law, 100% foreign ownership for most activities
- Applies to
- Some activities are reserved or capped; foreign investment must be registered with the National Foreign Investment Registry
- Jurisdiction
- Mexico (federal)
- Source
- Secretaría de Economía
- Cross-check
-
Outward Investment and Cooperation Guide: Mexico (2025 ed.) consistent
Registration authority
Primary authority for company or commercial registration.
Ministry of Economy (name authorisation) and Public Registry of Commerce
- Applies to
- Incorporation is normally executed before a notary or commercial broker
- Jurisdiction
- Mexico (federal)
- Source
- Secretaría de Economía
Local director / representative
Whether a locally resident director, manager or representative is required.
No nationality or residence requirement for directors
- Applies to
- Foreigners working locally need suitable immigration status
- Jurisdiction
- Mexico (federal)
- Source
- Secretaría de Economía Instituto Nacional de Migración (INM)
Foreign-entity setup flow
Main approval stages for a foreign investor setting up an entity (no time estimates).
Name authorisation → incorporation before a notary → Public Registry of Commerce → SAT tax ID (RFC) and e.firma → foreign investment registry → IMSS registration
- Applies to
- No time estimates given
- Jurisdiction
- Mexico (federal)
- Source
- Secretaría de Economía Servicio de Administración Tributaria (SAT) Instituto Mexicano del Seguro Social (IMSS)
- Cross-check
-
Outward Investment and Cooperation Guide: Mexico (2025 ed.) consistent
Tax Guide for Chinese Residents Investing in Mexico (2024 ed.) consistent
Local registered address
Whether a local registered address or premises is required at incorporation.
A fiscal domicile in Mexico is required
- Applies to
- Used for SAT tax registration
- Jurisdiction
- Mexico (federal)
- Source
- Servicio de Administración Tributaria (SAT)
Beneficial ownership register
Whether companies must keep or file ultimate beneficial owner information.
Beneficial owner information must be kept and provided on SAT request
- Applies to
- Ordinary companies
- Jurisdiction
- Mexico (federal)
- Source
- Servicio de Administración Tributaria (SAT)
04Taxation
Headline corporate income tax
Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.
30%
- Applies to
- Mandatory employee profit sharing (PTU) also applies; qualifying taxpayers in the northern border region may pay 20%
- Jurisdiction
- Mexico (federal)
- Source
- Servicio de Administración Tributaria (SAT)
- Cross-check
-
Outward Investment and Cooperation Guide: Mexico (2025 ed.) consistent
Tax Guide for Chinese Residents Investing in Mexico (2024 ed.) consistent
Income tax and VAT consistent
Indirect tax (VAT / GST / SST)
Standard rate and type of VAT, GST or sales & service tax.
VAT (IVA) standard rate 16%
- Applies to
- Qualifying taxpayers in northern and southern border regions may apply a reduced rate
- Jurisdiction
- Mexico (federal)
- Source
- Servicio de Administración Tributaria (SAT)
- Cross-check
-
Outward Investment and Cooperation Guide: Mexico (2025 ed.) consistent
Income tax and VAT consistent
Tax authority
Authority responsible for corporate tax registration and filing.
SAT
- Applies to
- Ordinary companies
- Jurisdiction
- Mexico (federal)
- Source
- Servicio de Administración Tributaria (SAT)
Tax treaty with China
Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.
In force
- Applies to
- Rates and conditions per the treaty text and STA publications
- Jurisdiction
- Mexico (federal)
- Source
- State Taxation Administration (China)
Dividend withholding tax (non-residents)
General withholding on dividends paid to foreign shareholders, before treaty relief.
10% withholding generally applies to dividends paid to non-residents
- Applies to
- May be reduced under tax treaties
- Jurisdiction
- Mexico (federal)
- Source
- Servicio de Administración Tributaria (SAT)
- Cross-check
-
Tax Guide for Chinese Residents Investing in Mexico (2024 ed.) consistent
Income tax and VAT consistent
05Banking & Payments
Banking & financial regulator
Primary regulator for banking and foreign exchange.
Banco de México and the CNBV
- Applies to
- Ordinary companies
- Jurisdiction
- Mexico (federal)
- Source
- Banco de México Comisión Nacional Bancaria y de Valores (CNBV)
Exchange controls
Whether general exchange controls or cross-border fund rules apply.
No general exchange controls
- Applies to
- AML limits apply to USD cash deposits and similar
- Jurisdiction
- Mexico (federal)
- Source
- Banco de México
- Cross-check
-
Outward Investment and Cooperation Guide: Mexico (2025 ed.) consistent
06Employment
Social security contributions
Main employer social security schemes for local and foreign employees.
IMSS
- Applies to
- Employers must register employees and contribute
- Jurisdiction
- Mexico (federal)
- Source
- Instituto Mexicano del Seguro Social (IMSS)
Labour & work permit authority
Authority for labour rules and foreign employee work permits.
STPS
- Applies to
- Ordinary companies
- Jurisdiction
- Mexico (federal)
- Source
- Secretaría del Trabajo y Previsión Social (STPS)
Foreign employee work permit
Main permit types needed for foreign employees to work legally.
Temporary or permanent residence with work authorisation
- Applies to
- Processed by INM
- Jurisdiction
- Mexico (federal)
- Source
- Instituto Nacional de Migración (INM)
- Cross-check
-
Outward Investment and Cooperation Guide: Mexico (2025 ed.) consistent
07Trade & Customs
Main free trade agreements
Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).
USMCA (T-MEC), CPTPP, EU–Mexico agreement and others
- Applies to
- Preferences require meeting rules of origin; USMCA auto rules are especially strict
- Jurisdiction
- Mexico (federal)
- Source
- Secretaría de Economía
Customs authority
Authority for import/export clearance and tariffs.
Agencia Nacional de Aduanas de México (ANAM)
- Applies to
- Importers must be enrolled in the importers' register
- Jurisdiction
- Mexico (federal)
- Source
- Agencia Nacional de Aduanas de México (ANAM)
08Investment & Manufacturing
Investment authority / agency
Body responsible for approving, registering or promoting foreign investment.
Ministry of Economy
- Applies to
- Ordinary companies
- Jurisdiction
- Mexico (federal)
- Source
- Secretaría de Economía
Free zone / SEZ regime
Whether free zones or special economic zones operate under rules different from the mainland.
IMMEX maquila programme (duty-deferred imports) and others
- Applies to
- Requires approval and ongoing compliance
- Jurisdiction
- Mexico (federal)
- Source
- Secretaría de Economía
09Digital & IP
Personal data protection law
Main law and regulator governing collection, use and cross-border transfer of personal data.
Federal Law on Protection of Personal Data Held by Private Parties
- Applies to
- A new law was enacted and the regulator changed in 2025 — check the latest DOF text
- Jurisdiction
- Mexico (federal)
- Source
- Diario Oficial de la Federación (DOF)
- Cross-check
-
Federal legislation consistent
IP office
Authority for trademark and patent filing and registration.
IMPI
- Applies to
- Trademark rights are territorial; register locally or designate via the Madrid System (check WIPO membership)
- Jurisdiction
- Mexico (federal)
- Source
- Instituto Mexicano de la Propiedad Industrial (IMPI)
10Compliance & Risk
New York Convention party
Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.
Yes
- Applies to
- Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
- Jurisdiction
- Mexico (federal)
- Source
- UNCITRAL
Live risk monitoring
Geopolitical, conflict and trade-route risk events for Americas, monitored by our sister site Global Risk Monitor.
Global Risk Monitor · Geopolitical and trade-route risk monitoring
11Step-by-Step
Main setup steps in Mexico
- 1Name authorisation
- 2incorporation before a notary
- 3Public Registry of Commerce
- 4SAT tax ID (RFC) and e.firma
- 5foreign investment registry
- 6IMSS registration
No time estimates given
General checklist (setting up a subsidiary)
- Decide model and jurisdiction
- Confirm licences
- Prepare documents
- Incorporate
- Register for tax
- Open bank account
- Obtain operating licences
- Start operations
Steps follow the setup-procedure fact on this page, without times or fees; rely on the official sources.
12Official Resources
Chinese official resources
Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices
- MOFCOM country investment guideMOFCOM · PDF (Chinese)
- Green guideMOFCOM · PDF (Chinese)
- Country tax guide (STA)State Taxation Administration · PDF
- Commercial office中华人民共和国驻墨西哥合众国大使馆经济商务处
- MOFCOM going-global platformMOFCOM
- Compliance & security alertsMOFCOM platform
Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.
Local authorities
- Investment Secretaría de Economía Company name authorisation, foreign investment registry and trade agreements · Accessed 2026-11-12
- Tax Servicio de Administración Tributaria (SAT) Income tax and VAT · Accessed 2026-11-12
- Labour Instituto Mexicano del Seguro Social (IMSS) Employer social security registration · Accessed 2026-11-12
- Financial regulation Banco de México Monetary and FX policy · Accessed 2026-11-12
- Financial regulation Comisión Nacional Bancaria y de Valores (CNBV) Banking supervision · Accessed 2026-11-12
- Labour Secretaría del Trabajo y Previsión Social (STPS) Labour rules · Accessed 2026-11-12
- Labour Instituto Nacional de Migración (INM) Work residence · Accessed 2026-11-12
- Customs Agencia Nacional de Aduanas de México (ANAM) Customs · Accessed 2026-11-12
- Company registration Instituto Mexicano de la Propiedad Industrial (IMPI) Trademarks and patents · Accessed 2026-11-12
- Legislation Diario Oficial de la Federación (DOF) Federal legislation · Accessed 2026-11-12