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 are not included yet; see official statistics such as the World Bank.
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 EconomíaInstituto 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 EconomíaServicio 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 VATconsistent
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 VATconsistent
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 VATconsistent
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 MéxicoComisión 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 legislationconsistent
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
- InvestmentSecretaría de EconomíaCompany name authorisation, foreign investment registry and trade agreements · Accessed 2026-11-12
- TaxServicio de Administración Tributaria (SAT)Income tax and VAT · Accessed 2026-11-12
- LabourInstituto Mexicano del Seguro Social (IMSS)Employer social security registration · Accessed 2026-11-12
- Financial regulationBanco de MéxicoMonetary and FX policy · Accessed 2026-11-12
- Financial regulationComisión Nacional Bancaria y de Valores (CNBV)Banking supervision · Accessed 2026-11-12
- LabourSecretaría del Trabajo y Previsión Social (STPS)Labour rules · Accessed 2026-11-12
- LabourInstituto Nacional de Migración (INM)Work residence · Accessed 2026-11-12
- CustomsAgencia Nacional de Aduanas de México (ANAM)Customs · Accessed 2026-11-12
- Company registrationInstituto Mexicano de la Propiedad Industrial (IMPI)Trademarks and patents · Accessed 2026-11-12
- LegislationDiario Oficial de la Federación (DOF)Federal legislation · Accessed 2026-11-12