Investors can open a recruitment company in Mexico if they follow the standard incorporation steps applicable to all Mexican companies, as there aren’t any distinctions for the registration of this business type. Consequently, businessmen should seek a suitable location for the company, register it with the local authorities, comply with management requirements and many others.
For all these, our specialists in company formation in Mexico remain at your service, with professional assistance and tailored advice for the needs of a recruitment business. Foreign clients can also address us for various post-incorporation services, such as accounting (this service will be completed through the assistance of our accountants in Mexico).
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What business form should investors choose for a recruitment agency?
Companies in Mexico can operate through several business forms. However, the most common way to develop a business here is by incorporating a limited liability company. This legal entity is most suitable for the majority of business activities carried out in this country, pertaining to small and medium-sized companies.
Investors who will open a company in Mexico as a limited liability company will benefit from the protection of their personal assets against corporate debts. This advantage appears because the legal entity and the investors are 2 separate entities, and the latter can be held accountable only for the amount of capital that they have invested upon the incorporation of the business.
Investors can also open a recruitment company in Mexico by registering the corporation. However, this company type is suitable only for large companies.
Do recruitment agencies need a license to operate in Mexico?
Yes, one of the requirements for company incorporation in Mexico is to have a valid business license. This document grants the right to develop a commercial activity in a given field and the obligation to obtain it also applies to recruitment companies.
Companies must apply for a license in accordance with the rules of the Employment Agency Regulations (2006). The legislation has been amended in 2014 and it refers to private recruitment agencies. The law stipulates that the license must be issued prior to engaging in any business activities.
It must also be noted that such companies have specific obligations when they engage in international employment. For instance, in the case of a recruitment company that recruits Mexican employees for foreign companies abroad, the recruitment company must complete due diligence on the respective foreign businesses.
It also has the obligation to verify if the employee, once relocated overseas, benefits from all the terms and conditions agreed upon the employment (salary, work conditions, housing, etc.).
Types of recruitment agencies in Mexico
There are 2 types of recruitment agencies. Thus, investors can opt to set up a company in Mexico that will engage in employment activities related only to the Mexican employment market, or it can safeguard the employment of international workers in Mexico or from Mexico to other countries, as mentioned above.
Facts about employment in Mexico
Companies operating in Mexico that hire employees will pay their workers in the country’s national currency, which is the Mexican Peso (MXN). Salaries are paid throughout the entire financial year, and this can be done on a monthly or bi-monthly basis.
In the list below, our consultants have prepared a short presentation on Mexican employment conditions:
- the general minimum wage, calculated per 1 day of work, is MNX 248,93 (available at the level of 2024);
- Mexico has a different salary threshold in the northern region of the country, known as the Northern Border Free Zone, where the salary per 1 day of work is established at MNX 374,89;
- salaries are taxed following a progressive system, ranging from 1,92% to a maximum 35%;
- wages have been constantly increased in the last few years (in 2020, the general minimum salary was MNX 123,22).
Salaries are updated on an annual basis by the National Minimum Wage Commission. In Mexico, workers are entitled to receive the 13th salary (which represents the equivalent of 15 days of work), payable prior to 20th of December.
We invite you to address our consultants for more details on the procedure of opening a recruitment company in Mexico.