Mexico: Operating a Business

Sociedad de Responsabilidad Limitada: Variable Stock Limited Liability Partnership

Number of partners: Minimum: 2; Maximum: 50
Capital (max/min): Minimum of  MXN 3,000. Each partner must bring in at least 50% at the time of its creation.
Shareholders and liability: Liability is limited to the contributed amount.

Sociedad en Nombre Colectivo: General Partnership

Number of partners: Minimum: 2. On of the partners must be designed as manager.
Capital (max/min): No minimum capital.
Shareholders and liability: Liability is unlimited and responsibility is joint.

Sociedad Anonima de Capital Variable (S.A. de C.V.): Variable Capital Limited Liability Company

Number of partners: Minimum: 2, including an administrator.
Capital (max/min): Minimum of  MXN 50,000
Shareholders and liability: Liability is limited to the contributed amount.

Sociedad Anonima (S.A.): Limited Liability Company or Corporation

Number of partners: Minimum: 2, including an administrator.
Capital (max/min): Minimum of  MXN 50,000
Shareholders and liability: Liability is limited to the contributed amount.

General Professional Associations

Mexican Business Information System (SIEM)
Confederation of Employers of Mexico (COPARMEX)

Business Setup Procedures

For Further Information

Doing Business: Mexico, to learn about procedures to start a business in Mexico
SIEM - Sistema de Información Empresarial Mexicano (Mexican Business Information System)

The Competent Organisation

The National Business Information System

Recovery Procedures

Minimum Debt-to-Capital Ratio Triggering Liquidation

When losses are two thirds of the social capital.

Bankruptcy Laws

General Law of Commercial Companies

Reorganization and Rehabilitation Laws

Comapny mergers, transformations, and splits are regulated by the General Law of Commercial Companies.

For Further Statistics

Mexico National Labour Statistics (in Spanish)

Opening Hours

 

• Legal Weekly Duration

48 hours per week (8 hours per day)

• Maximum Duration

Maximum of three extra hours daily on a maximum of three times per week.

• Night Hours

From 10 p.m. to 6 a.m.

Working Rest Day

From 6 a.m. to 8 p.m.

Paid Annual Vacation

After one year of continuous work, the employee has the right to six working days of paid vacation. This increases from two to twelve days for every additional year worked .

Retirement Age

65 years old

Child Labour and Minimum Age For Employment

Minors, aged between 14 and 16 years old cannot work more than six hours per day, they do not have the right to work extra hours or holidays.

Informal Labour Market

According to the International Work Organization, there are 25.5 millions of persons in Mexico who work in the informal market (about 50% of the active population).

Pay

Minimum Wage

In 2020, Mexican President Andres Manuel Lopez Obrador lifted the minimum wage by 20 percent. The minimum wage is 123.22 pesos, or about $6.53 a day.

Average Wage

Monthly average gross salary: 33,200 MXN

Other Forms of Pay

• Pay For Overtime

Overtime is paid double per each extra hour worked. It cannot exceed more than 9 hours per week.

• Pay For Rest Days Worked

The worker is entitled to an additional 25% of his daily salary.

• Pay For Night Hours

According to the minimum salary assigned to the geographical area as established by the National Minimum Salary Commission.

• Pay For Overtime at Night

The extra night hours are paid double.

Social Security Costs

The Areas Covered

Disability insurance; pensions for disability, old age and death; medical assistance for maternity care, accidents and illness with benefits extending to members of the employee's family. 

Contributions

Contributions Paid By the Employer: Employers contribute to the social security system (9.934% to 24.434%), the housing fund (5%), and the retirement fund (2%), for a total of about 16.934% to 31.434% of wages. However, these contributions are deducted from the salaries of employees.
Contributions Paid By the Employee: Employees contributes up to 2.727% of their salary for social security system.

Competent Organization

Institute of Security and Social Services for the State Workers
Ministry of Health

Recruitment

Method of Recruitment

Enterprises use specialised methods of recruitment, but recommendations by word of mouth are also common. Nevertheless, applying for a job over the Internet is becoming increasingly popular.

Recruitment Agencies

Occ, Trovit, and Bumeran.

Recruitment Websites

Bolsa Mexico
Infojobs Mexico
Federal Government Employment Website

The Contract

Dispute Settlement

Social Partners

Social Dialogue and Involvement of Social Partners

Mexican labour unions are organised by activity sectors and most are affiliated with the Confederation of Mexican Workers (CTM). They are relatively powerful and originally emerged as institutions of social resistance. As a result, in some cases, the unions resist economic structural reforms that may ultimately serve to benefit the economic development of the country.

Unionisation Rate

13.5% of wage and salary earners in 2014 (OECD)

Unions

List of Labour Unions in Mexico
Confederation of Mexican Workers (CTM)

Regulation Bodies

Ministry of Labour and Social Security
Confederation of Employers of the Mexican Republic