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Jurisdiction Monitor / Latin America / Mexico

Mexico [MX]

Corporate tax, FATF status, sanctions exposure, data-protection law and arbitration enforceability for Mexico — the facts a founder or counsel checks before incorporating or signing cross-border. Jurisdiction table checked 2026-08-14.

Corporate tax rate
30%
FATF status
compliant
Sanctions exposure
No
EU list of non-cooperative jurisdictions
not listed
Data-protection law
LFPDPPP
New York Convention
Yes
Apostille Convention (1961)
Yes
Foreign ownership
Yes
Local director requirement
No
What this jurisdiction is classically used for

Nearshoring and manufacturing for the US market

Mexico's case is geography plus USMCA: manufacture inside the treaty, ship north on a truck, and cut both tariff exposure and the lead times that come with Asian supply chains. IMMEX and the maquiladora regime handle temporary import of inputs. This is an operating decision about where things are made, not a tax structure.

This describes how the jurisdiction is commonly used in practice — not a recommendation for your situation. What fits depends on where your people, customers and assets actually are.

What has changed here

Tracked since 2026-08-03

No changes recorded for this jurisdiction since tracking began. Every review pass so far has confirmed the figures above.

All changes across the dataset →

Corporate tax rate in Mexico

The headline corporate income tax rate in Mexico is 30%. Free zones, small-business reliefs and participation exemptions can change the effective rate — treat this as the starting point.

What is this? Corporate tax rate →

FATF status in Mexico

Mexico is FATF-compliant and not on the grey list, which generally means smoother bank onboarding.

What is this? FATF status →
Source: FATF — High-risk and other monitored jurisdictions

Sanctions exposure in Mexico

Mexico is not subject to broad sectoral sanctions programs in our dataset.

What is this? Sanctions exposure →
Sources: OFAC — sanctions programs by country (United States) · European Commission — sanctions and restrictive measures · The UK Sanctions List (single source since 28 January 2026) · UN Security Council — Consolidated List

EU list of non-cooperative jurisdictions in Mexico

Mexico appears in neither annex of the EU list as at the current revision.

Data-protection law in Mexico

The applicable data-protection statute is LFPDPPP (in force since 2010). If you process EU/UK personal data you also need a valid transfer mechanism into Mexico.

What is this? Data-protection law →

New York Convention in Mexico

Mexico is a party to the 1958 New York Convention, so a foreign arbitral award can generally be enforced by local courts — the single most important box to tick before agreeing to arbitration with a counterparty here.

What is this? New York Convention →
Source: UNCITRAL — status of the 1958 New York Convention

Apostille Convention (1961) in Mexico

Mexico is a party to the 1961 Hague Apostille Convention. Public documents — corporate certificates, powers of attorney, notarised papers — need only a single apostille to be recognised in other member states, with no consular legalisation. This materially speeds up cross-border paperwork.

What is this? Apostille Convention (1961) →
Source: HCCH — status table, 1961 Apostille Convention

Foreign ownership in Mexico

Foreigners may generally own 100% of a local company in Mexico.

What is this? Foreign ownership →

Local director requirement in Mexico

Mexico does not mandate a resident local director.

What is this? Local director requirement →

Company forms available here

6 forms

The entity types actually used in cross-border practice, with the name each one carries in its own register.

  • Stock corporation (S.A. de C.V.)
    Sociedad anónima de capital variable
  • Limited liability company (S. de R.L. de C.V.)
    Sociedad de responsabilidad limitada de capital variable
  • Investment promotion stock corporation (S.A.P.I. de C.V.)
    Sociedad anónima promotora de inversión de capital variable
  • Simplified shares company (S.A.S.)
    Sociedad por acciones simplificada
  • Listed stock corporation (S.A.B. de C.V.)
    Sociedad anónima bursátil de capital variable
  • Sole proprietor
    Persona física con actividad empresarial

Names are given as the register uses them and are deliberately not translated — a form is called what it is called. The list covers what is commonly used, not everything the statute allows, and availability to a foreign founder can depend on activity, licensing and residency.

Calculators for this jurisdiction

3

Free, no sign-up, computed in your browser.

  • Apostille or full consular legalisation
    →
  • Structure screen: what the joints cost
    →
  • What the paying country withholds
    →
Non-financial professions: what FATF assessed

Lawyers, accountants, corporate and trust providers, real-estate agents, dealers in precious metals and casinos carry anti-money-laundering duties of their own. FATF rates how well a country's law meets three of its recommendations on them.

R.22 — customer due diligence by these professions
PC — partially compliant
R.23 — other AML duties on them
NC — non-compliant
R.28 — their regulation and supervision
PC — partially compliant
Assessed by: FATF · report of 2023-05 (MER+FUR(s)) · methodology 2013

This rates the quality of the legislation, not whether you personally must run these checks, and not how the law is enforced in practice — FATF measures enforcement on a separate scale that is not in this dataset.

Reports from 2025 onwards use the 2022 methodology; everything earlier uses the 2013 one. Ratings from the two are not directly comparable, which is why the methodology is always shown.

Primary source · tables updated: 24 August 2026 / 14 August 2026
Draft a contract under Mexico law

forma. generates NDAs, service, supply and corporate documents wired to this jurisdiction — from lawyer-built templates, processed privately on your device.

About forma. →
Structure your business in Mexico

Ignito Advisory designs cross-border holdings, IP routing, banking onboarding and regulatory strategy. First assessment is free.

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Informational resource curated by the Ignito legal practice and cross-checked against primary sources. This is not legal advice and does not create a lawyer-client relationship. Rules change — verify against the primary source before you sign or file. Terms of Use · ← Back to the monitor

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