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Advantages of Settling your Company in Mexico
One of the main benefits of settling your business in Mexico is related to its trade policies. This means that the country has a total of 12 free trade agreements (FTAs), networking with 46 countries from all around the world. In this sense, companies facilitate their trading process, which at the same time rises their competitiveness in the global market. Also, Mexico is considered as an emerging market with a stable economy. For this reason, expanding operations in Mexico can boost your business growth, increase your brand presence, build better partnerships, and provide greater stability for potential investors. In terms of currency, the Mexican Peso is cheaper compared to the U.S. dollar or the euro, which reduces the costs for equipment, manufacturing, construction, real state, and practically any other purchase. In Mexico, it is proved that production costs are 22.5% lower in comparison with costs in the USA. However, prior to settling your business, you must take into account the next essential labor laws in Mexico.90% of the employees should be Mexican
According to the Mexican Federal Labor Law, at least 90% of the workforce hired by a company must be Mexican nationals, and 10% should be foreign employees. However, there’s an exemption for managers and general directors, which are not included for the maximum percentage accepted of foreign workers. In the case of foreign employees, they must obtain the required permissions from the National Institute of Migration in order to work in the country.Minimum Rights
Employees are guaranteed with minimum employment rights such as:- Minimum wage.
- Six days of vacation after the first year of working with the company.
- Vacation bonus.
- Christmas bonus with a sum equivalent to 15 days of salary.
- Maximum of 48 working hours per week.
- Minimum a rest day in a week.
- Salary deductions.