For up to date Information visit this link:
https://www.bizlatinhub.com/peo-mexico-employer-record-services/
Mexicos large and educated population, proximity to the USA and diverse range of FTAs make it an attractive region to engage in commercial operations. Before jumping in and hiring staff in Mexico, you will need to consider the method by which you will hire local staff. Depending on your business needs, you may hire staff through a local legal entity, or through a Professional Employer Organisation (PEO).
Ensure that you are aware of Mexican employment law before hiring staff by viewing our short presentation below, created by our legal team in Mexico City.
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Key Considerations: Employment
Find below, some of the key considerations that should be taken into account before contracting staff in Mexico
Yes – 30 days
Is there an employee
probation period?
Yes
Do staff need a local
employment
contract?
Yes
Can expatriate staff
be hired?
Minimum of 6 days
Vacation
entitlement
Max employer
contribution is MX
$264,027
Total cost of
employment
Employers
Who manages
withholding tax?
• Christmas Bonus
• Vacation Bonus
• Profit Sharing
• Medical Insurance
Employee benefits
4. Forming a Legal Entity in Mexico
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In Mexico, there are (3) main types of legal entities:
Corporations (SA or SA de CV), Limited Liability Company (S de RL) and the Mexican
Investment Promotion Company (SAPI)
Advantages:
• Greater control of your employees
• Better knowledge of local market,
laws and regulation
• Viewed more positively than a
PEO solution
Disadvantages:
• High set-up/ongoing costs
• Administration involved in
managing a local company
• Accounting and tax obligations
5. Professional Employer Organization
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Advantages:
• You can operate without forming
and maintaining a local entity
• Limited legal responsibility
• Cost-effective way to convert
international contractors into
employees
Disadvantages:
• The PEO becomes a co-employer
• Loss of control
• Costs involved with PEO services
• Compromised company culture
International PEO is a method to employ staff without having your own company
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contact@bizlatinhub.com
Are you looking to hire staff?
As you are now aware, you have two
options to hire staff:
a) Through a Local Legal Entity or
b) Through a PEO solution
Need assistance hiring employees?
Partner with Biz Latin Hub to learn how we can
support you and your business in Latin America
7. Doing Business in Mexico?
Learn More Here!
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Business
Opportunities in the
Mexican Automotive
Industry
Service Company
Registration in the
Energy Sector –
Mexico Company
Formation
Corporate Law
Firm Mexico: How
Can We Help With
Doing Business?