Mexico offers legal certainty and one of the world's largest free trade agreement networks which supports the country's status as a very attractive trade hub. The country has demonstrated predictable and stable economic growth; it has huge economic potential.

After a slow 2012, the Mexican economy started to rebound at the end of 2013. While the recovery started at a slow pace, it has been supported by strong external demand, particularly from the United States, and the normalisation of public expenditure. Recent economic data from the World Bank shows that a recovery, led by strong manufacturing exports and public spending is underway. A substantial increase in domestic demand should raise growth in 2015 to 3.5 per cent. Additionally, private investment in infrastructure and the energy sector may further enhance economic growth.

Foreign investment is essential for the Mexican economy and the government has introduced various measures in order to increase the country's competitiveness. Some of the advantages that foreign investors may benefit from can be summarised as follows:

  • Mexico has a strategic geographical location in the North American region, ideal for companies wishing to sell their products to consumers in North, South and Central America. Transport and shipping of goods to the NAFTA countries is very cost-effective. Moreover, the country's Free Trade Agreement with 47 nations all around the world reinforces its competitiveness
  • There is a great abundance of raw materials
  • The country has a skilled and very young population (60 per cent is under 25) that performs at world-class productivity levels
  • Mexico possess a potential consumer base of 112 million individuals with an increasing average yearly income
  • The Federal Government expects public and private investment in infrastructure to reach USD590 billion over the next five years to raise the country's economic growth capacity. The 2014-2018 national infrastructure plan includes 743 projects in areas such as energy, communications and transport

While this guide makes reference to some of the most common issues investors might face, it must be noted that certain industries are subject to special regulation and therefore companies wishing to establish a presence in the country should seek legal advice.

The information in this publication is current at December 2014.


Mexico offers legal certainty and one of the world's largest free trade agreement networks which supports the country's status as a very attractive trade hub. The country has demonstrated predictable and stable economic growth; it has huge economic potential.

After a slow 2012, the Mexican economy started to rebound at the end of 2013. While the recovery started at a slow pace, it has been supported by strong external demand, particularly from the United States, and the normalisation of public expenditure. Recent economic data from the World Bank shows that a recovery, led by strong manufacturing exports and public spending is underway. A substantial increase in domestic demand should raise growth in 2015 to 3.5 per cent. Additionally, private investment in infrastructure and the energy sector may further enhance economic growth.

Foreign investment is essential for the Mexican economy and the government has introduced various measures in order to increase the country's competitiveness. Some of the advantages that foreign investors may benefit from can be summarised as follows:

  • Mexico has a strategic geographical location in the North American region, ideal for companies wishing to sell their products to consumers in North, South and Central America. Transport and shipping of goods to the NAFTA countries is very cost-effective. Moreover, the country's Free Trade Agreement with 47 nations all around the world reinforces its competitiveness
  • There is a great abundance of raw materials
  • The country has a skilled and very young population (60 per cent is under 25) that performs at world-class productivity levels
  • Mexico possess a potential consumer base of 112 million individuals with an increasing average yearly income
  • The Federal Government expects public and private investment in infrastructure to reach USD590 billion over the next five years to raise the country's economic growth capacity. The 2014-2018 national infrastructure plan includes 743 projects in areas such as energy, communications and transport

While this guide makes reference to some of the most common issues investors might face, it must be noted that certain industries are subject to special regulation and therefore companies wishing to establish a presence in the country should seek legal advice.

The information in this publication is current at December 2014.

Legal overview

Political and legal system

Mexico is a federal republic formed of 31 states and a federal district. The federal government is divided in three branches: executive, legislative and judicial.

The head of the executive is the president, elected by popular vote for a period of six years. The legislative power is exercised by the Chamber of Deputies and the Senate, whose members are elected for three years and six years, respectively. Neither the deputies nor the senators can be re-elected after this term.

The judiciary is divided into federal courts and state courts. The federal courts have jurisdiction over constitutional issues, most civil cases as well as major felonies except murder. State courts handle murders, divorces and minor felonies. The Supreme Court is formed of 26 judges selected by the President and confirmed by the Senate. Although they are supposed to serve for life, they submit their resignation to the President every six years.

Data protection

The Mexican Federal Law for the Protection of Personal Data in Possession of Private Persons was published in 2010. Additionally, the Federal Law for Information Access and Government Transparency (IFIA) regulates personal data stored and handled by the federal government.

The Personal Data Protection Law applies to any private person who stores and handles personal data for commercial exploitation and use. However, it does not apply to credit information societies or to those private persons that store and handle data but do not have any intention to commercially exploit that data.

Those that store personal data must:

  • Conduct their activity in a lawful way
  • Obtain the consent of any individual whose personal data will be processed
  • Inform any individual whose personal data will be processed
  • Check that the personal data to be processed is correct and up to date
  • Delete the personal data when it has been used for the purposes contained in the privacy notification

Data controllers must adopt a series of measures to ensure the security of the data. Sanctions for non-compliance with the data protection rules range from warnings to economic fines. However, when a data controller causes a security breach in its data base for its own profit, he might be subject to up to three years in prison.

The IFIA is in charge of conducting data protection, data verification and sanctions proceeding. Non-compliance with the law is punishable by the following penalties:

  • A warning for the infringer to carry out the actions requested by the data subject, following the Personal Data Protection Law
  • Fines ranging from 100 days to 320,000 days of current daily minimum wage in the Federal District. When the infringements relate to the processing of sensitive information, the penalties can increase by up to two times the amount
  • When the infringements continue, an additional fine can be imposed (ranging from 100 days to 320,000 days of the current daily minimum wage in the Federal District)
  • If a data controller causes a security breach in its database for profit, this is punishable by a prison term ranging from three months to three years
  • A person who, for improper gain, processes personal data by deceit, taking advantage of confusion or a mistake by the data subject or data controller, can be punished by a prison term ranging from six months to five years. If this offence concerns sensitive personal data, the penalties can be doubled

Money laundering regulations

In October 2012, Mexico adopted new anti-money laundering regulations. The purpose of the law was to establish certain procedures to prevent and detect transactions involving illegal funds or terrorist financing. The law presents significant changes to the way in which cash transactions are handled in Mexico; it contains rules to identify and notify transactions or activities that the law defines as 'vulnerable'.

The new law imposes stringent duties on Mexican companies: financial institutions and companies that effectuate certain cash transactions or engage in real estate venture, are required to meet identity, information gathering and reporting requirements. Those companies that fail to comply can face the following sanctions:

  • Fines of up to 100 per cent of a transaction's underlying value
  • Revocation of permits
  • Prison terms of up to 10 years

Intellectual Property Rights

Mexico is part of most international treaties protecting Intellectual Property Rights. It recently ratified the Madrid Protocol for the International Registration of Marks. The Mexican intellectual property system is divided in industrial property and copyrights. Industrial property is regulated by the Mexican Industrial Property Law which regulates patents, industrial designs, utility models, trademarks and slogans. Copyrights are regulated by the Federal Copyright Law.


Copyright is the right of an author to protection for: literary works, musical works, audio-visual works, dramatic works, cinematographic works, computer programmes, photography and other intellectual works. In addition, a special type of protection called Reservation Rights can be given to titles of publications and characters appearing in works. The Federal Copyright Law recognises both the moral and economic rights of authors.

Protection granted

Copyright does not need to be registered to be protected; protection arises on creation of the works and its fixation on a tangible medium. Registration has only a declaratory effect and it can be obtained by filing an application with the Copyright Office ('Instituto Nacional del Derecho de Autor').


There are two types of infringement: a pure copyright infringement, which is pursued by the Copyright office, and a commercial infringement, which is pursued by the Mexican Institute of Intellectual Property. It is also possible to pursue criminal actions against certain types of copyright infringements.


Protection of the work is for the life of the author plus 100 years after his death; this term is not renewable. Protection of titles of publications and of characters is from one to five years and is renewable, provided they are in use.


Under the Industrial Property Law, an invention is patentable if it is new, it involves an inventive step and has an industrial application.

Protection granted

To protect an invention, an application must be filed with the Mexican Institute of Intellectual Property.


When a patent is infringed, the patent owner can file with the Mexican Institute of Intellectual Property an application of preliminary measures (including seizure of infringing goods) or an administrative infringement action; the Institute can impose a fine of up to USD100,000.


Protection is for a maximum period of 20 years from the filling date, provided that the annual fees are paid.


In Mexico, trademarks are defined as signs that are visible, distinctive and that are not capable of deceiving consumers. According to the Industrial Property Law, the trademarks that can be protected are: word marks, design marks, word and design marks, three-dimensional marks or a combination of these. Sounds, scents, textures and animated or dynamic signs cannot be registered as trademarks.


Protection granted

A trademark must be registered with the Mexican Institute of Intellectual Property to be protected. It is important to file the application for registration of the trademark as early as possible.




When a trademark is infringed, the individual can ask the Mexican Institute of Intellectual Property for: administrative cancellation and annulment action, non-use cancellation actions and infringement actions. If the trademark holder files infringement actions, it requests both preliminary measures and damages. The latter can be requested after an administrative decision is confirmed.



A trademark registration is in force for 10 years from its filing date. This term is renewable indefinitely provided the use of the trademark by the owner is not interrupted for more than three consecutive years.


According to the Industrial Property Law, a design can be registered if it is new and it may be applied in an industry. Registered designs are divided into industrial models and industrial drawings.

Protection granted

To protect a design, an application must be filed with the Mexican Institute of Intellectual Property.


When a design right is infringed, the owner can file with the Mexican Institute of Intellectual Property an application of preliminary measures (including seizure of infringing goods) or an administrative infringement action; the Mexican Institute of Intellectual Property can impose a fine of up to USD100,000.


Protection is granted for a maximum of 15 years from the filling date.

Conducting business

Business entities

Any foreign company or individual wanting to do business in Mexico will need to decide under which form they want to operate. Mexico offers several forms of business organisation to choose from. However, in practice, a foreign parent establishing a subsidiary in Mexico generally makes a choice between corporations ('Sociedad Anonima' - SA) and limited liability companies ('Sociedad de Responsabilidad Limitada' - SRL).


The articles of incorporation of a Mexican company are often lengthy and detailed. These articles must be submitted to a Mexican public notary and approved before they can be filed with the appropriate authorities. The incorporation of the company is not deemed complete until the notarisation and filing procedures are finalised. Notarisation in Mexico is a very formalistic procedure and can entail significant costs. The notarisation and filing of the articles of incorporation will not be possible unless companies comply with the legal requirements outlined below.


Like many other countries, Mexico requires newly established corporations to register at a variety of federal agencies; state and local governments may also require registration with local agencies. Some registrations are mandatory for all newly incorporated companies, whereas other registrations may be required depending on the transactions carried out by the particular business involved.

The following list contains several important registrations that newly incorporated businesses need to make. The list is not exhaustive; other registrations may be required depending on the place of incorporation, type of business, national origin of shareholders, etc.

Public Registry of Commerce and Property

Once the notary has provided with a final official copy of the company's bylaws, these must be filed at the Mexican Public Registry of Commerce and Property in the location where the company is incorporated

Taxpayer Identification Registry

Every newly incorporated business must obtain an RFC registry, which is required to issue invoices, file tax returns and open bank accounts, among others. When requesting the RFC a tax domicile must be provided; this domicile should be in Mexico and it will be the location used by tax authorities to make any type of notification. A specific form must be provided to the tax authorities along with other documentation in order to receive the RFC registry. The registry is provided on an official document; a copy of this document may be required in the future for a number of different transactions

National Registry of Foreign Investment

All corporations with a capital participation primarily held by foreigners are required to register at the National Registry of Foreign Investment. Annual reports are also required; penalties may apply when companies do not comply

Mexican Corporate Information System

New companies must register with the government agency or registry for the specific lines of business in which the company will participate

Capital requirements

In 2011, the Mexican General Mercantile Law was amended; since then, there are no minimum capital requirements for SAs and SRLs. It is for the company to establish the minimum capital in their articles of incorporation. Previously, the minimum capital to establish one of these companies was MXN50,000 and MXN3,000, respectively.

Shareholding requirements

Both, SAs and SRLs are required to have a minimum of two shareholders which can either be individuals or corporations. The main difference is that the capital of an SA is divided in freely transferable shares that can be endorsed without authorisation from the Board of Directors (unless otherwise stated in the bylaws). Nevertheless, an SRL has no shares but social parts; partner's authorisation is necessary for their transmission or for the admission of new partners.

There are no limitations as to the nationality or country of residency of the shareholders, other than those provided for in the Foreign Investment Law. If the shareholders do not reside in Mexico, they should appoint legal representatives.

Shareholders and partners meeting

  • Ordinary shareholders meeting: these meetings are mandatory and should be held within the four months following the end of the company's financial year. They are generally used to evaluate the course of the business, to appoint supervisory boards and to approve the reports filed by the managers. The minutes of the shareholders' meeting must be kept and should be included in the corporate books
  • Extraordinary shareholder meeting: these meetings are not mandatory and are normally arranged to deal with very specific issues established by law, such as capital contributions and redemptions, anticipated dissolution of the company, mergers with other legal entities, etc. The minutes from these meetings must be notarised and filed at the Public Registry of Commerce


SA and SRL may have either a sole director or a board of directors. Such decisions should be made by the shareholders of the partners. The sole director or board of directors is usually conferred with powers of attorney to conduct specific activities on behalf of the business.

Power of Attorney

The shareholder may, at their discretion, provide any of the following types of power of attorney to the managers, jointly or individually.

General power for acts of administration

This power confers to the vested individual the ability to carry out all the official act of administration of the business. These acts include, among others, processing documents of both public and private character, conducting all kind of diligences before administrative authorities such as the Social Security administration, the Tax Authorities or the Customs General Directorate, and formulating petitions and solicitations before all types of authorities

General power for lawsuits and collections

This power is granted or bestowed upon an individual for the purposes of carrying out any task or diligence related to the legal environment of a given business. It allows the designated individual to act, before the relevant authorities, on behalf of the business in order to protect the legal rights of the business. The vested individual holds general and specific powers to act as a respondent at a trial, enter into arbitration procedures, compel and collect payments and present claims on behalf of the business

Power of Attorney for labour matters

This power allows the vested individual to represent the employer on all matters related to labour issues. It includes, among others, dealing with unions, to refer matters to labour and social services authorities, to execute agreements, to appear before official boards and to make all relevant decisions

Special banking and exchange powers

This power allows the individual the authority to act on behalf of the business in its dealings with securities and to conduct banking transactions and administration functions for the business within prescribed limits

Power of attorney for acts of ownership

This power is granted with the intention that the attorney-in-fact may have all the powers of an owner. The attorney-in-fact who has this type of power may carry out all acts relating to the acquisition and disposition of the assets of the partnership, including real and personal property and the granting of mortgages

Power of attorney to grant and revoke powers of attorney

It allows the individual vested with power of attorney to delegate the powers granted to him to someone else without the need of holding a partners' meeting and having it notarised and registered. Only a notarised delegation of powers of attorney is needed. It is normally used to delegate powers for acts of administration, for lawsuits and collections and for labour matters

Supervisory board

An SA must appoint an individual or group of individuals to perform financial inspection functions; their role is to oversee the financial operations of the company to ensure the best interests of the shareholders are sustained. The individual or individuals in charge of the supervisory functions must file an annual report and present it at the shareholders' meeting.

The partners of an SRL can decide whether a supervisory board is necessary and who will be part of it. The establishment of a supervisory board may also be required by the articles of incorporation.

Tax system

Corporate Income Tax

Under Mexican Income Tax Law, a Mexican corporation is subject to income tax in Mexico on its worldwide income, regardless of the location of its source. A corporation is considered a Mexican tax resident if it maintains the principal administration of its business or its management in Mexico.

Taxable income

Taxable income is defined as all income obtained during the fiscal year whether received in cash, good, services, credit or in any other form.

Deductible items

Great care must be taken to ensure that expenses are deductible for Mexican income tax purposes. Moreover, the proper documentation must be kept and compliance with all requirements must be met in order for an expense to be deductible. Companies operating in Mexico should be conscious of the specific requirements that are applicable for any type of deductions. Mexican law includes a list of certain expenses which may not be deducted for purposes of calculating income tax due. It also specifies maximum amounts allowed for deduction on certain expenses.

Mexican federal income tax

Mexico applies a corporate tax rate of 30 per cent to the income of Mexican businesses. No state within Mexico has a local income tax. Income tax returns have to be filed on a monthly basis and an annual tax return has to be filed on or before 31 March. All monthly payments made are considered advanced payments against the annual income tax liability. No tax filing extensions are allowed by law and all companies must follow the calendar year as their fiscal year. The following list includes some special considerations from the Mexican Income Tax Law (MITL) that corporations need to take into account:

Inflationary effect

An important income item that must be considered by a foreign investor is the so-called 'phantom' or inflationary effect component that attaches to all debt held by a Mexican company.

Mexican businesses, as well as individuals with business activities, are required to calculate the real effect of inflation. For example, in cases where a company has a debt, the inflationary effect could decrease the value of the debt as a result of inflation. The justification for this action is that the value of the outstanding balance has been eroded by inflation and should therefore be considered income to the debtor. Conversely, lenders may deduct the amount resulting from their decrease in their outstanding loan balance as a consequence of inflation. This is justified by the notion that inflation erodes the value of their financial assets. The purpose of this provision is for companies to recognise solely the real income net of inflation effects. It is important to consider that the inflationary effect does not affect the book value of debt and financial assets.

Intercompany pricing

Special attention should be paid to intercompany pricing rules. Expenses charged by the foreign parent company to the Mexican subsidiary may not be deductible if there is not an agreement signed between the related parties, the invoices do not support such expenses and the transfer pricing documentation is not available.

All charges for services should include the direct and indirect costs, plus a mark-up that shall be determined in accordance with OECD transfer pricing guidelines.

Tax conventions

Mexico has entered into tax conventions with several counties, including: Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Norway, South Korea, Singapore, Spain, Switzerland, Sweden, the United Kingdom and the United States.

Income tax treaties offer substantial clarification on issues that may be unclear or conflicting under the domestic legislation of the countries involved. Additionally, tax treaties provide an opportunity for long-term tax planning and a possibility to reduce the tax rate.

Withholding tax

Mexico generally imposes withholding requirements on payments made abroad to a non-Mexican person by a Mexican resident when the source is located in Mexico. The withholding rates applied to the payment will generally vary depending not only on the type obtained by the non-resident, but also on the country of residence of the payee. Withholding rates can vary substantially from one treaty country to the other.


A dividend will be taxed in cases where they are paid out of profits which have not already paid tax at a corporate level. Legally speaking, a company should not be able to pay dividends if there are no accounting or financial profits. However, there are cases in which a company may have accounting profits but not tax profits due to some tax profits which should allow them to take some anticipated deductions or defer their income.

For such purposes, companies are required to keep track of an account known as CUFIN (by its Spanish acronym), which will keep track of all profits that have already been taxed at a corporate level and it is updated in accordance to inflation requirements.

The procedure for determining the tax on income from dividends or distributed profits did not suffer any modification by the tax reforms for fiscal year 2014. It is worth mentioning that the tax rate on income and pyramid ratio remains constant because the corporate tax rate remained at 30 per cent without the possibility of any reduction.

Transitory articles of the MITL establish that individuals will be subject to an additional 10 per cent tax over dividends or profits that are distributed by corporations resident in Mexico or permanent establishments; this procedure shall only apply to profits generated from tax year 2014 onwards. In addition, corporations will be in charge of withholding the corresponding income tax for such dividends or profits distributed.

To this end, the legal entity or establishment that held such distribution must maintain the net tax profit account (CUFIN) with the profits generated until 31 December 2013 and start another net tax profit account with the profits generated from 1 January 2014 onwards, under the terms of Article 77 of this law. When entities are not referenced with the two separate accounts, or when the profits mentioned cannot be identified, it is understood that they were generated from 2014.

Regarding profits generated until 2013, no taxation is established when a company receives dividends in subsequent years to 2013, except for those companies paying the dividends from the CUFIN 2013 or earlier. In this regard, financial year 2014 allows dividends distributed to entities residing in Mexico, by profits generated before 2014, to integrate the 2013 CUFIN of the entity who receives them.

In another words, individuals must accrue the total of the dividend, eg, accumulate income before withholding and add the income tax paid by the company regarding its dividend received and can only credit the income tax paid by the company, as the withholding of income tax of 10 per cent is in the nature of final payment.

Corporate flat tax

The Corporate Flat Tax (IETU) since 2014 has been repealed.

Controlled Foreign Companies (CFC)

Under CFC rules, residents and foreign-residents must report foreign-source income that is both received by a foreign company in which the individual participates, directly or indirectly, or subject to a 'preferential tax regime'. Such income is then attributed to the Mexican-resident individual and must be included in his annual tax return, regardless of whether the income is actually distributed from the foreign vehicle to the individual. Income is deemed to come from a preferential tax regime when it is subject to foreign tax at a rate lower than 75 per cent of the income tax that would apply in Mexico to the same type of income. There are certain exemptions to this rule.

Transfer pricing

The arm's length principle is the international transfer pricing standard recommended by the OECD, which was adopted in Mexico for purposes of the MITL. This valuation principle is applied to commercial and financial transactions between related companies. Transactions should be valued as if they had been carried out between unrelated parties, each acting for their own best interest. In this regard, the MITL indicated that: "the taxpayers that enter into transactions with foreign related parties are required for the purposes of this Law, to calculate their gross income and authorised deductions, using the prices and considerations amounts that would have been used by independent parties in comparable transactions".

The rules containing the definitions and the taxpayer's obligations regarding transfer pricing in Mexico are found in the MITL. Likewise, other considerations and rules regarding to transfer pricing are found in other regulations.

The obligation to comply with the MITL transfer pricing provisions applies to the taxpayers that carry out transactions with related parties. Two or more persons are considered to be related parties when of them participates, directly or indirectly, in the administration, control or equity of the other. It is important to mention that related parties can be individual or legal entities, resident in Mexico or abroad.

The MITL sets forth the obligation for taxpayers that carry out transactions with related parties resident in Mexico or abroad, to obtain and keep the documentation that proves that these transaction were agreed on, considering the prices or amounts that would have been used by independent parties in comparable transactions.

Additionally, the MITL establishes the obligation for the taxpayers to present before the tax authorities, together with the annual tax return, information of the transactions carried out with foreign related parties.

According to the Mexican Federal Tax Code, non-filing, filing with errors or incomplete filing of these documents carries a penalty between MXN61,000 to MXN122,010.

Permanent establishment: the MITL defines Permanent Establishment as any place of business in which entrepreneurial activities are conducted, either in whole or in part, or independent personal services are provided.


The Decree for the Development and Operations of the Maquiladora Export Industry defines 'maquila' as the industrial procedure or service destined for transformation, manufacture or repair of foreign goods.

The transfer pricing provisions and obligations for maquiladoras are found in the MITL and IMMEX programme. In this case, the taxpayer has three alternatives: Transfer pricing study, Safe Harbour or an Anticipated Prices Agreement (APA).

Maquiladoras that comply with transfer pricing obligations will not be considered as permanent establishments.

Starting from 1 January 2015, maquiladoras will be subject to VAT on temporary importations on raw materials and machinery introduced to Mexico.

In order to avoid the disbursement of such VAT, maquiladoras have the option of obtaining a certification. Under this scenario, maquiladoras will import goods and a tax liability will be applied to these importations, which will be cancelled once such goods are exported. This means maquiladoras have the obligation of having accurate records of each and every customs transactions (import-export).

Certification shall be valid for one calendar year and may be renewed within sixty days prior to the expiration of the period of validity; provided they show proof that they continue to meet the requirements for certification. Maquiladoras that do not exercise the option to become certified may not pay VAT on goods entering the aforementioned customs regimes, provided that they ensure the fiscal interest on a bond issued by financial institutions, in accordance with the general rules to that effect issued by the SAT.


Taxpayers that conduct entrepreneurial activities, whose income from the immediately preceding fiscal year did not exceed MXN13,000,000, as well as taxpayers whose income from the provision of professional services did not exceed MXN3,000,000 in said year are not required to keep the documentation that proves the intercompany transactions were determined in accordance with arm's length principle.

Preferred tax regimes

Unless proven otherwise, the transactions between Mexican residents and legal entities or entities subject to preferential tax treatment are deemed as if they were between related parties, not using the prices and consideration amounts that would have been used by independent parties in comparable transactions.

Tax authorities' reviews

According to the MITL, the tax authorities have the power of reviewing controlled transactions to determine if they were carried out at market prices. If it is deemed that such transactions do not comply with the 'arm's length principle', the following may take place:

The taxpayer could be subject to an income adjustment determined by the tax authorities. The resulting tax of such adjustment would have to be paid adjusted by inflation plus interest and penalties

Payments made to foreign affiliates by Mexican companies could be considered as non-deductible

Finally, it is necessary to point out that the transfer pricing study would not ensure that the Mexican tax authorities would agree with the results. The only way to avoid this risk would be by obtaining an APA from the SAT.

Personal Income Tax (PIT)


Mexico has two personal income tax regimes that may apply to employees performing services in Mexico. The applicable regime will depend upon whether the individual employee is considered as a Mexican resident for income tax purposes.

Tax residence

The tax residence of an individual will usually depend on a series of factors, including whether the individual has a place of abode in Mexico, whether he is a Mexican national or whether the individual has a substantial economic ties to a country other than Mexico, among others. A case-by-case analysis of the factual circumstances applicable to each individual is advisable before any conclusion on residence is reached.

Tax rates

For residents, the tax income is determined by applying a graduated scale with a maximum marginal tax rate of 35 per cent for 2014. Individuals must file their annual income tax returns in April of the next calendar year following the year of employment. However, individuals are not required to file an annual tax return if they receive salary payments and interest that do not exceed MXN400,000 if the interest income does not exceed MXN100,000 and the taxpayer has previously been subject to mandatory withholding payments on that interest.

Inferior limit (MXP)

Upper limit (MXP)


Per cent













































For non-residents, the first MXP125,900 are exempt from income tax. An income tax rate of 15 per cent is applied when income exceeds MXP125, 900 and 30 per cent on income tax that exceeds MXP1,000,000 within a 12-month period.

Non-residents are taxed on their Mexican-sourced income only and do not need to file a Mexican annual income tax return as monthly tax payments (or withholdings) are considered as final or definitive.

Value Added Tax

Value Added Tax (VAT) applies to most transactions involving goods or services taking place within Mexican territory. Such transactions include the importation of goods and services from abroad. The VAT tax rate is 16 per cent applied to each transaction.

The VAT mechanism involves VAT collected, which is charged to the buyer when a sale is made; and outlay, which is paid to the seller when a purchase is made. When the difference is positive (VAT collected is greater than VAT outlays) it is forwarded to tax authorities with the monthly VAT return. When the difference is negative (VAT outlays are greater than VAT collected), a refund or compensation request may be filed on a monthly basis.

Other taxes

Payroll taxes

Mexican employers are generally required to meet payroll obligations in addition to similar obligations met by employees. An employer is required to withhold income tax as well as social security as well as housing and retirement funds contributions from the employee and submit these to tax authorities. The Mexican payroll tax is imposed on a local basis and rates may vary depending on the state. This tax is generally filed on a bi-monthly basis.

Other taxes and contributions as shown below may also be included as part of payroll taxes:

  • Social security: an employer is required to contribute an approximate amount to 23 per cent of the employee's salary to social security (the employee is required to contribute a further three per cent)
  • Housing fund: employers are required to contribute an additional amount equal to five per cent of the employee's salary to a Housing Fund known as INFONAVIT. The fund is designed to finance the construction of low cost housing
  • Retirement fund: employers are required to contribute an amount equal to two per cent of the employee's salary to a retirement fund known as Individual Savings Account. Such account comprises payments for suspension and old age as well. The relevant payments are 3.15 per cent for the employer and 1.125 per cent for the employee (calculated on the employee's base salary)

Federal tax authority database (cloud)

For 2014, new rules were added to establish certain requirements and procedures to comply with the provisions of the Federal Tax Code (CFF) and its regulation. The new measures are aimed at taxpayers required to keep accounting records, silent partners or third parties related to them.

These taxpayers must use electronic accounting systems to generate and upload to the SAT cloud, XML files containing, in general terms, the following:

  • Chart of accounts used during the period, to which a field with an accounts grouping code will be added by the SAT for such purposes
  • Trial Balance including beginning balances, period movements and ending balances of all and each of the accounts within assets, liabilities, capital, P&L accounts and memoranda accounts. Additionally they must include all movements which allow the identification of all taxes, and if applicable, the different tax rates, fees and activities which are non-taxable. For the year end trial balance, the information should include the adjustments that are registered for tax purposes, according to the rules issued by the SAT
  • Details of the general journal entries, including detailed description per transaction, account, subaccount, item as well as the workbook and the corresponding online digital invoice (CFDI) to support the operation in accordance with the rules issued by the SAT


Employment protection legislation

In Mexico, employment is regulated in two ways, individual and collective; individual is regulated by the contract between employer and employee; collective is regulated by the collective bargaining agreement between union and employer. Nevertheless, the Federal Labour Law (FLL), the Social Security Law and the National Workers' Housing Fund Institute's Law apply irrespective of any choice of law to all those who provide services in Mexico (whether or not they are Mexican citizens).

Mexico's new Federal Labour Law took effect in 2012. The reform sought to modernise the country's labour law. Some of the major changes include: increased regulation of outsourcing jobs, increased flexibility in hiring and payment of wages and parental leave rights.

Employment contract

Employees must enter into an individual employment agreement that sets out the terms and conditions of employment. However, the employee's rights are not prejudiced if there is no signed agreement.

There is legislation to protect employees from discrimination on the grounds of ethnic or national origin, sex, age, disability, social or economic condition, state of health, pregnancy, religion, opinions, sexual preference or marital status. Employees subject to discrimination are entitled to file a complaint for constructive dismissal and employees that discriminate are subject to disciplinary actions, including termination for cause. Additionally, both federal and state criminal codes have created the offence of harassment; the offence varies depending on the code.

Employees have various duties in relation to their employees' health and safety. In particular they are required to provide a safe environment for employees to render their services and a place of work that complies with sanitary standards.

Minimum wage

There is no a single national statutory minimum wage rate; the National Minimum Wages Commission sets minimum wage rates on an annual basis. The minimum daily wage depends on the employer's location, in some cases it also depends on the employee's occupation; however, it is not based on age or experience. Mexico is divided into two geographical areas for minimum wages purposes:

  • Area A (along the border between the US and Mexico City): MXN105.15 per day
  • Area B (the rest of Mexico): MXN99.68 per day
  • Banks pay a banking minimum wage which is the minimum wage plus 50 per cent

Working time and leave

Under Mexican law, the working week must not exceed 48 hours for day shifts, 42 hours for night shifts and 45 hours for mixed shifts. Employees can only be required to work overtime in exceptional circumstances.

Although the working week consists of six working days, the daily or weekly distribution can be agreed so that employees have all, or part of, Saturday and Sunday as regular days off. Employees required to work on Sundays as a regular work day are entitled to an additional bonus that amounts to an extra 25 per cent of their usual daily wages. Employees are entitled to at least one fully paid day of rest every six days; if they agree to work on their day off, they receive triple their wages for that day.

Employees are entitled to a paid vacation period based on their seniority. Employees with more than one year of service are entitled to at least six days' paid holiday a year. This holiday allowance increases by two days for each subsequent year of service, up a maximum of 14 days. After the fourth year of service, the holiday entitlement increases by two days for every five years of service. Employees are normally paid an extra 25 per cent of their salary during their holiday.

In addition to paid vacation, there are seven public holidays each year (for more details see 'Country profile').

Employees have certain rights to time off work for a number of reasons, including maternity and paternity leave.

Paid maternity leave is available for six weeks before and after giving birth; during that time, the IMSS pays the employee's registered salary. If the salary is above the cap registered salary (25 times the minimum daily wage), the employer must pay the difference. The six weeks of maternity leave prior to the birth can be transferred to the moment after the birth (subject to medical approval an authorisation from the employer and IMSS). Fathers are entitled to five days paternity leave.

Social security

Under Mexican law, all employees must be registered and contribute to the following:

  • The Mexican Institute of Social Security: it provides medical services, child care, compensation for occupational accidents and diseases, pensions upon death or disability and pregnancy benefits
  • The National Workers' Housing Fund Institute: it provides subsidised housing to employees, as well as loans for building a home or for home improvements at a low interest rate
  • The Retirement Savings Programme: it provides employees with retirement benefits when they reach 65 years of age

For additional information on social security see 'payroll taxes'.


In Mexico the following benefits cannot be waived or contracted out:

  • Profit sharing: Mexican law requires sharing 10 per cent of taxable income among workers. This expense is mandatory for all companies; however, there is an exemption for newly formed companies for the first year of operations. Profit sharing is required to be paid to all employees except directors, administrators and general managers of the company. It is possible to minimise the effect of profit sharing by replacing this expense with deductible fringe benefits. This is a common and accepted mechanism
  • Christmas bonus: employers must give each employee the equivalent of 15 days' salary as a bonus by no later than 20 December of each year
  • Paid public holiday: The Federal Labour Law requires employees to be paid during public holidays

Personnel limitations

Foreign nationals require a Job Offer Visa to live and work in Mexico. To obtain the Job Offer Visa, employers need to file and Employer's Registry at the Immigration Office. Once they arrive to Mexico, foreign nationals must request a Temporary Residency Card which is valid for one year and renewable for up to four additional one-year periods. The Temporary Residence Card costs MXN3,130. Although the length of the process can vary depending on the applicant nationality, it normally takes between four and six weeks.

There is another visa that allows nationals to visit Mexico for business: the FMM business person visa is valid for 180 days; it can be obtained on the airplane or at the airport upon arrival.

Companies that employ non-authorised individuals can be fined.


In Mexico there must be a justified cause for dismissal in order to be able to terminate the employment relationship. The Federal Labour Law governs the termination of individual employment contracts and labour relationships. Justified causes of redundancy include:

  • The provision of a false employment reference
  • Dishonest or dishonourable conduct, violence, threats or ill treatment towards the employer or other employees
  • Immoral conduct in the workplace
  • Refusal to fulfil contractual obligations without sufficient reason
  • Attending work under the influence of alcohol or drugs


The employers must notify the employee in writing of the date and the reason for dismissal; failure to do so constitutes unfair dismissal. Justified dismissals do not require a severance payment; nevertheless, it is for the employer to prove that the dismissal was justified. It is possible for employees to sue their employer before the Conciliation and Arbitration Labour Board for unjustified dismissal. Employees normally seek reinstatement or severance payment. The latter consists of three months' salary and any other fringe benefits and due salary.

Collective redundancies

Collective redundancies normally occur when the company ceases to operate or closes a department or a specific part of the business leading to a reduction in personnel in that area. Under the Federal Labour Law, the following grounds constitute a legal basis for collective redundancy:

Force majeure

  • Inability to operate at a profit
  • Exhaustion of natural resources in an extractive industry
  • Bankruptcy resulting in permanent closure of the company or reduction of its operations

In all cases (except when the redundancy is due to the exhaustion of natural resources) employees are entitled to severance pay equivalent to three months' salary and to a premium based on the length of their service.

Trade unions

Worker's freedom of association is recognised and guaranteed by the Constitution and various employment legislations. Unions have the right to affiliate employees working for a national or foreign employer. Foreign employees can be affiliated to the unions but they are not allowed to be part of the union's executive committee. All unions must be registered with the public labour authorities.


The Mexican Securities and Banking Commission requires that Mexican Financial Reporting Standards are observed. These standards are the equivalent of the Mexican accounting principles. It must be noted that in Mexico, tax authorities also rely on the generally accepted accounting principles to decode the elements that must be taken into account to determine taxes payable (unless otherwise indicated in the relevant tax law).

Accounting standards

The Mexican Financial Reporting Standards (MFRS) are no longer issued by the Mexican Institute of Certified Public Accountants, but by an organisation that was specifically created for that purpose: The Mexican Council for the Investigation and Development of Financial Reporting Standards. These standards are very similar to the GAAP in the USA and to the IFRS; they are widely recognised and supported by the Securities and Banking commission as well as by banks and other lending institutions. Public companies are now required to apply IFRS.

As explained in the tax section, Mexican companies are required, to a certain extent, to carry out inflation accounting.

As a general rule all corporations are required to follow the accrual method of accounting; nevertheless, in certain circumstances, corporations are allowed to determine their income tax following the cash method. Certain expenses can be capitalised as part of fixed assets and depreciated during the useful life of the asset. However, companies are required to use specifically established rates to depreciate their various assets for tax purposes.

Private businesses are not required to disclose the results of their financial operations. Nevertheless, it is common for banks and other lending institutions, to require businesses to issue frequent financial statements.

Public companies must present annual audited financial statements to shareholders and publish their balance sheets and income statement in newspapers of significant circulation. Additionally, public companies must comply with the rules and regulations of the Securities and Banking Commission, which includes a requirement for an annual external audit.

Financial reporting

The Mexican Institute of Certified Public Accountants sets up the guidelines that financial statements must follow. It is common for corporations to issue these statements for the current period together with comparative information for the immediately preceding reporting period. Companies must also include a statement of changes in stockholders' equity which reflects changes that occurred in these accounts during the reporting period.

It is mandatory for public corporations to have an annual financial audit conducted by an independent Certified Public Accountant. Audits must be conducted in accordance with generally accepted auditing standards such as the MFRS. The most important part of the audit is the opinion of the auditor that the information contained in the financial statement present fairly the financial position, results of operations, changes in stockholders equity and cash flow in accordance with the MFRS. Additionally, the independent public accountant must certify that, to the best of his knowledge, the corporation calculated and paid all taxes resulting from its operations during the period under review. Alternatively, he can indicate what taxes, and the amounts have not been paid at the date of the report. The mandatory year-end date for financial statements is 31 December of every year.


Foreign Direct Investment

Although there are no foreign exchange restrictions in Mexico, under the Foreign Investment Law, the following economic activities are exclusively reserved to Mexican national or Mexican entities that trade with foreign participation:

  • National land transport of passengers, tourism and freight (messenger and package services are not included)
  • Retail sale of gasoline and distribution of liquid petroleum gas
  • Radio broadcasting services and other radio and television services (cable television is not included)

Foreign investors are allowed to participate in the following investment sectors up to a certain percentage:

  • Co-operative production companies: up to 10 per cent
  • National air transport, air taxi transport and specialised air transport: up to 25 per cent
  • Manufacture and commercialisation of firearms, printing and publication of newspapers, supply of fuel and lubricants to vessels, aircraft and railway equipment: up to 49 per cent

Authorisation from the Foreign Investment National Commission is required for more than 49 per cent foreign investment participation the following economic activities:

  • Port services to vessels carrying out internal navigation operations
  • Navigating companies dedicated to ocean vessels
  • Concessionaire companies of aerodromes of public service
  • Private educational services at pre-school, elementary, middle, high school and college levels
  • Legal services
  • Mobile telephony
  • Duct construction for petroleum transportation and derivatives
  • Petroleum and gas drilling
  • Construction and operation use of railroads that are general communication routes and public railroad services

Mexican companies can have a foreigner's admission clause, whereby foreign shareholders agree with the Foreign Affairs Ministry to consider themselves as Mexican national regarding their property in Mexico, and agree not to invoke the protection of their governments, under penalty of forfeiting any such property to the Mexican state.

Companies with a foreigner's admission clause that intend to acquire properties in Mexico are subjected to the following restrictions:

  • Real estate properties within the 'restricted zone', that is, 100 km along the borders and 50 km in Mexican beaches, can be acquired for non-residential activities by giving notice to the Foreign Affairs Ministry within 60 business days following the acquisition
  • Rights over real estate properties within the 'restricted zone' for residential activities may be acquired through Mexican long-term trusts, with prior authorisation of the Foreign Affairs Ministry

Government incentives

The Department of Economy has launched various programmes that promote investment in different areas:

  • Manufacturing, Maquila and Export Service Industry (IMMEX): companies with an approved IMMEX programme can temporarily import raw materials, machinery and equipment necessary for the manufacture of goods to be transported and exported
  • Programme for the Advancement of Specific Industry Sectors (PROSEC): this is a duty relief mechanism that allows the importation of certain raw materials, machinery and equipment at preferential duty rates, regardless of their origin. PROSEC rates are normally between zero per cent and five per cent and are granted on the condition that the programme participant produces only a limited range of finished products

There are additional federal programmes to reimburse import duties and Value Added Tax under certain conditions. These programmes benefit companies that export goods.

Free trade agreements (FTA) also incentivise investment and promote the export of goods produced in Mexico. The country has entered into 12 FTAs which grants Mexican products preferential duty access to the world's largest markets. Mexican companies enjoy preferential import duties on imports from FTA signatories.

Imports and exports

The General Customs Administration is the authority in charge of enforcing the law regulating customs. Mexican import controls are more relaxed than in recent years; indeed, most products no longer require prior import permits and import duties have also been reduced. Corporations wishing to import goods into Mexico are required to file and obtain an 'importers' registry'.

Mexico levies customs duties on all goods entering the country. The applicable customs duties can vary depending on different factors, and not just the nature of the goods being imported. Specific customs duty treatment exists for countries with which Mexico has entered into a free trade agreement. Customs duty treatment is also different for companies that operate under one of Mexico's export incentive programmes.

Canada, Mexico and the US have entered into the North American Free Trade Agreement (NAFTA). Under this agreement, goods that are deemed to have originated in any of these countries are subject to preferential customs treatment when entering in any of the other two.

For imports, VAT must be paid at 16 per cent of the value of the product. The VAT rate for the importation of products in the border zone is 11 per cent. There are certain items exempt from VAT, especially those that under customs law are considered in transit, temporary or regarded as returning temporarily exported goods. Duties are generally assessed based on the transaction value of the products imported into Mexico. However, it is important to note that goods receiving preferential treatment under NAFTA are imported free of customs duties with prior approval of the customs authorities.

Mexico has also entered into FTA with other countries and regions; of particular importance is its agreement with the European Union.


The Federal Competition Commission is the agency responsible for enforcing competition law; as such it has very broad investigative and enforcement powers. It can launch investigations on its own initiative or at the request of third parties. Additionally, the Commission can issue advisory opinions on antitrust matters.

The Federal Law of Economic Competition was initially published in 1992; some of the most substantial amendments to the law were published in 2011.

As a general rule, monopolies are prohibited in Mexico. The law recognises two types of monopolistic practices: 'absolute' and 'relatives'.

The law defines absolute monopolistic practices as arrangements amongst competitors whose objective is:

  • To fix prices or exchange information in such regard
  • To limit the production, purchase or distribution of goods and services
  • To divide markets
  • To rig public bids

Such arrangements are considered as null or void; civil and criminal sanctions may be applicable to the parties involved.

Relative monopolistic practices are actions performed by economic agents with substantial market power to unduly displace other agents from a relevant market. Those actions can be: acts, contracts, agreements or procedures which purpose is to eliminate third parties from the relative market or prevent their access to the market. For a relative monopolistic practice to be illegal, it must be performed by an economic agent with substantial market power.

In Mexico, mergers and acquisitions are subject to approval from the Foreign Investments Commission. The Commission must approve the acquisition of more than 49 per cent of a company's capital when the assets of that company exceed a certain amount; this is set annually (the 2014 amount is MXN2.76 billion).

Concentrations must be notified when the transaction fulfils one or more of the following thresholds:

  • It has a value in Mexico exceeding USD86,140,800
  • It involves the accumulation of 35 per cent or more of the assets or shares of an economic agent whose annual assets or sales in Mexico exceed USD84,140,800
  • It involves the accumulation in Mexico of assets or shares with a value exceeding USD40,199,040 and the annual sales or assets of two or more of the economic agents taking part in the concentration, jointly or individually, exceed USD229,708,800

These rules apply to all transactions in which any of the thresholds is met, regardless of whether the parties are Mexican or foreign entities. If economic agents fail to notify the transaction, the Commission may begin an investigation procedure that can result in one of the following sanctions:

  • Correction or cancellation of the transaction
  • Total or partial reversal of the concentration
  • A fine equivalent to up to eight per cent of the economic agent's income in Mexico in the previous year


Capital markets

The only securities exchange in Mexico is the Mexican Stock Exchange where both foreign and local companies can be listed. In addition to the local exchange, the Mexican Stock Exchange manages the International Trading System which is an electronic conduit to trade shares listed on other stock exchanges.

The exchange is also regulated by the National Banking and Securities Commission which requires a registration statement for any securities to be publicly offered in Mexico. To trade on the Mexican Stock Exchange, the following must be registered with the National Registry of Securities: the relevant securities and documents such as the prospectus, legal opinion, financial statements and stock certificate.

Companies listed on the Mexican Stock Exchange can be incorporated as a limited liability corporation, which is the most common form for listed companies or as a more flexible limited liability corporation created to support new business and ventures. It is important to note that all public companies need to adopt minimum corporate governance requirements set out in the Securities Market Law, the CNBV regulations and the Mexican Stock Exchange regulations.

Banking system

The National Banking and Securities Commission (CNBV) establishes operating and accounting rules for banks. The Ministry of Finance, the CNBV and the Central Bank are the principal regulators in Mexico. Following the peso crisis of 1994, the Mexican banking system underwent profound reforms to increase financial stability and support the growth of the sector. Some of the most significant reforms were: the reform of the bankruptcy and lending laws, moving the administration of pension funds to the private sector and raising the foreign bank participation allowance. Indeed, the financial system proved resilient during the first wave of the global financial crisis despite the sharp fall in economic activity.

The Mexican banking sector remains highly concentrated; it is currently dominated by seven major banks, five of which are foreign owned, which account for nearly 80 per cent of assets and a similar share of loan to portfolio. However, the Mexican tax authority has approved the opening of several new banking entities since 2006. After the fiscal reform of 2013 (which consisted of the enactment of 34 financial and banking laws), Mexico became one of the first countries to fully implement the Basel III reform.

Despite banks' high liquidity levels, businesses would like to see an increase in credit as commercial lending to the private sector remains low at 15 per cent of GDP. In 2013, Congress approved a financial reform to increase bank lending to priority areas such as small and medium enterprises, infrastructure projects, technology innovation and patent development. These measures are likely to foster a more competitive, consumer-friendly banking system.

Insurance industry

Mexico is the second largest insurance market in the region (its value is USD20 billion) and according to the World Bank, is one of the easiest countries to do business in Latin America. The current investment opportunities are enormous, primarily as a result of the extremely low penetration rate.

Mexico has a large educated population and a rapidly growing middle class; nevertheless, vast wealth disparities make market penetration challenging. The country is currently investing in titanic infrastructure projects. It is estimated that the Mexican government will spend USD400 billion between 2013 and 2019, which will undoubtedly create further business for insurers and reinsurers. The funds will be distributed amongst different projects in sectors such as energy, transport, water and urban development. It is considered that national players have neither the capacity nor the expertise to insure (or reinsure) these development plans; which will present marked opportunities for foreign companies to enter the market.

As far as regulation is concerned, after several years of discussions, a new regulatory framework was approved on 28 February 2013. The norm will introduce a new regulatory and supervisory scheme based on the three pillars of the EU Solvency II Directive. The Solvency II framework might be applied in Mexico before it is fully implemented in Europe. Mexican rules will be more aligned to international standards than in any other Latin American country and regulatory certainty is highly appreciated by foreign investors.

Investment management industry

In Mexico, the investment fund industry is divided in retail funds and hedge funds.

There are four types of retail investment funds:

  • Equity investment fund, which invests in shares, debentures and other securities
  • Debt instrument investment fund, which invests exclusively in securities, titles or documents representing a third party-debt
  • Capital investment fund, which invests in shares or partnership interests, debentures and bonds of companies that require medium and long term financing
  • Special purpose investment fund, which is created to follow a certain investment practice as defined by its bye-laws and published in its prospectus.

The principal regulatory body for retail funds is the National Banking and Securities Commission. However, for certain specific operations, such as repurchase transactions, securities lending, issuance of securities and foreign currency transactions, retail funds may be subject to regulation by the Central Bank of Mexico.

As a general rule, funds can be marketed by any authorised financial intermediary. It must be noted that all investment fund management companies must fulfil certain minimum capitalisation requirements as established by the CNBV.

The Mexican hedge fund market is very small. Moreover, hedge funds cannot be authorised as such by competent authorities, and therefore their products cannot be advertised.


Mexico has excellent transportation routes. Its big road network and railroad system communicates the interior part of the country, the north and south borders, making connections between the United States, Guatemala and Belize; and the west and east coasts, joining the sea ports on the Pacific Ocean with those on the Gulf of Mexico and the Caribbean Sea, at the Atlantic Ocean. Mexico has:

  • 76 airports (12 National Air Traffic Services: and 64 international departures, which also develop national services)
  • 117 sea ports (49 for coastal navigation and 68 for high seas as well as for coastal navigation)
  • 27,000 km of Railways
  • 133,000 km of paved highways (120,000 km of two lane highways y 13,000 km of highways having least four lanes

Country profile

Capital City

Mexico City


1,964,375 sq. km







International dialling code

+ 52

National holidays (2015)

1 January - New Year's Day

2 February – Constitution Day

16 March – Benito Juarez's Birthday

2 April – Maundy Thursday

3 April – Good Friday

1 May – Labour Day

16 September - Independence Day

16 November – Revolution Day

12 December – Day of the Virgin of Guadalupe

25 December - Christmas Day

Business and Banking hours

8am - 7pm (Banks 9am to 5pm)

Stock exchanges

Bolsa Mexicana de Valores (BMV)

Political Structure

Federal Republic

Doing Business rank 2014


Ease of Doing Business


2015 rank

2014 rank

Change in rank

Starting a Business




Dealing with Construction Permits




Getting Electricity




Registering Property




Getting Credit




Protecting Investors




Paying Taxes




Trading Across Borders



No change

Enforcing Contracts




Resolving Insolvency




                                                     Source: World Bank Group (Doing Business)