Key commercial and taxation factors that are relevant on setting up a business in Mexico

Written and Produced by DFK México

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Mexico is the twelfth country in the world in size and the third largest country in Latin America, just behind Brazil and Argentina. It is located in the southern part of North America and occupies an area of 1,972,550 square kilometers (1,232,844 square miles). On its north, Mexico borders the US, and to the south Guatemala and Belize.

Mexico’s population is estimated over 127 million, making it the eleventh most populous, and the most populous Spanish speaking, country in the world.

Mexico is a federation comprising thirtythree states, including Mexico City, which is its capital and largest city. The federal government consists of three branches: executive, legislative, and judicial.

The Executive power is headed by the president and his cabinet. The president is elected every six years by means of a general election and can only serve one term. The Legislative power is vested upon the Congress of the Union, a two-chamber legislature comprising the Senate and the Chamber of Deputies. The Judicial power is exercised by the judiciary, consisting of the Supreme Court of Justice of the Nation, the Council of the Federal Judiciary, and the collegiate, unitary, and district tribunals.

This document describes some of the key commercial and taxation factors that are relevant on setting up a business in Mexico. The document includes information on:

  • Choice of Legal Form
  • Audit Requirements
  • Taxation
  • Allowances
  • Teamwork
  • Employment
  • Withholding Taxes
  • Miscellaneous

Country Breakdown





Mexican Peso


$ 8200