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 on 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.
What are the responsibilities of an employment agency under the current law?
Investors who want to open a recruitment company in Mexico should observe the rules of the Mexican Federal Labor Law, as it regulates the rights the employment agency can have during the selection of suitable employees. According to Article 12 of the law, a Mexican recruitment company, involved in the process of selecting candidates to fill in a job opening, can carry out the following:
- the recruitment of candidates;
- the selection of suitable persons;
- the training of the selected workers;
- other educational activities, in accordance with the industry/function.
The law states that even if the recruitment company will engage in other activities outside recruitment/selection, such as the 3rd and 4th activities mentioned in the list above, the staffing company will not be considered the employer of the said individuals.
It is also important to know that the selection of candidates for overseas employment is done with the participation of various Mexican competent authorities. In this case, the Ministry of Labor and Social Welfare must provide its approval.
What is an employer/employee, as per the Mexican law?
The definition of the employer is established under the Mexican law (more exactly, the Mexican Federal Labor Law). Article 10 is the one that defines what an employer is, which, under the terms of the article, can be an individual or a legal entity that uses the services of one or more individuals (workers).
Article 8 establishes the definition of an employee, which is defined as a natural person who provides his or her services to another individual or to a company. The respective work activity is considered to be subordinate work, as the employee must complete specific tasks, in accordance with the needs/requirements of the employer.
The employment contract in Mexico
Any businessman who will open a company in Mexico must draw and sign adequate employment contracts with their employees. A written contract is mandatory, under the provisions of the law, and this must contain information on the details of the employers, the ones of the employee, the obligations associated with the respective work position, the salary, etc.
Our team of consultants in company formation in Mexico can offer assistance on all the provisions that must be included in this type of contract (work schedule, overtime, rest days, trial period, conditions in which the contract can be terminated, etc.).
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 278,80 (available at the level of 2025);
- 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 419,88;
- 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.