6 Challenges When Doing Business in Mexico


It’s no secret that companies experience significant benefits when they choose to manufacture in Mexico. From access to the highest number of free trade agreements to the highly skilled labor force, businesses from around the world come to Mexico to drive costs down and boost operational efficiencies.

However, just like in any country, doing business in Mexico comes with various challenges. In order to take full advantage of the many benefits of manufacturing in Mexico, companies should be aware of the complexities involved, as well. If you’re considering shifting your manufacturing operations to Mexico, here are some of the top challenges— along with solutions—you need to know, curated by casinos en ligne.

Starting a Business

Starting a business in Mexico, although more manageable today, can be a complex process if one does not have the right connections and does not know the process well. Although it has become easier (the World Bank and International Finance Corporation (IFC) improved Mexico’s rank by 38 places this year) still it can be tricky and complicated. There are several procedures that can be delicate to navigate for firms unfamiliar with the Mexican business environment.


In Mexico’s typical business culture meetings start off slowly, and business decisions are not made until the end. There is a large gap between the executive level and the various levels of the rest of the company. For example, business decisions are likely to be made by one person rather than a team or board of directors.

Getting Credit

Mexico’s well-developed financial sector puts it in good standing in terms of getting credit. However, progress can be made, and it is still relatively difficult compared to most developed nations in the world.

Paying Taxes

Paying taxes is a time-consuming process in Mexico, taking some 337 hours of business time per year. Corporate income tax at a rate of 30 percent takes 155 hours alone to complete, and VAT filing and social security contributions take longer than usual to process. Best online pokies Australia for real money also pay tax to the country they operate.

Registering Property

Registering property is a long and arduous task, taking 74 days in total compared to the 26-day norm for OECD countries. Dealing with the Public Registry of Property of the Federal District can be particularly time-consuming, and obtaining a certificate of good standing with the water service and the Zoning Certificate of the property can also take some time.

Trading Across Borders

There is a high cost associated with trading across borders in Mexico, far higher than the average in South America and the Caribbean. This is due to how lucrative the trading business is due to the free trade agreements. The cost of importing is around $1,450 per container and exporting costs $1,780. It also takes quite a long time to move containers, 12 days when importing and exporting on average.

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