This guide provides general information to investors intending to operate in Mexico on legal issues on which they may need advice. This guide was drafted on the basis of information available as of April 4, 2022.
This Q&A gives an overview of key recent developments affecting doing business in Mexico as well as an introduction to the legal system; foreign investment, including restrictions, currency regulations and incentives; and business vehicles and their relevant restrictions and liabilities. The article also summarises the laws regulating employment relationships, including redundancies and mass layoffs, and provides short overviews on competition law; data protection; and product liability and safety. In addition, there are comprehensive summaries on taxation and tax residency; and intellectual property rights over patents, trade marks, registered and unregistered designs.
The United States and Mexico boast one of the largest trade relationships in the world, with bilateral investment and trade totaling $1.6 trillion annually. Mexico’s friendly corporate tax system, close geographic location, and common culture of democratic principles make Mexico an excellent investment opportunity for American companies looking to expand their business profile.
Mexico is the second largest economy in Latin America, only behind Brazil. It is the most populous Spanish-speaking country in the world and second most populous in Latin America. Demographic structure in Mexico is favorable for medium-term economic growth with increasing working-age group.