Anyone operating in the Mexican market or intending to enter it will need to find a reliable provider of corporate legal services in Mexico.
Your chosen legal firm in Mexico should ideally have a track record of working with investors, and will be aware of the most common administrative pitfalls encountered when doing business in the country.
While a traditional corporate legal firm will be able to assist you with the likes of company formation and visa processing, if you will be seeking other types of back-office services, such as accounting or tax filing in Mexico, you may find that your best option is to seek legal services from a firm with a broader portfolio.
Because a provider offering the likes of accounting, tax advisory, and recruitment, will be able to cover all of your needs with one service agreement, meaning you only have to deal with a single local partner.
Read on to find out more about what makes the Mexican market such a strong prospect for investment as well as information on the sort of support your legal firm in Mexico should be able to offer and tips on what to look for in your provider.
Or contact us now to find out more about how we can support you doing business in Mexico.
Mexico a top destination for investment in Latin America
With a gross domestic product (GDP) exceeding $1 trillion (all figures in USD), Mexico has the second-largest economy in Latin America behind only Brazil and in 2019 attracted more than $29 billion in foreign direct investment (FDI) inflows.
Although GDP has fluctuated, including taking a significant hit due to the COVID-19 pandemic, it has followed a generally upward trend, increasing nearly three-fold between 1995 and 2000. That period has also seen prosperity increase, with gross national income (GNI) almost doubling during the same period.
According to a recent prediction made by the World Bank, Mexico would witness annual GDP growth of 5.7% by the end of 2021.
Mexico is known for being a major hub for trade in the Americas, with high-volume ports serving both the Pacific Ocean and the Gulf of Mexico, while more than $1.7 billion in goods crosses its border with the United States daily. If you are going to be moving import/export, you will want to secure legal services in Mexico from a provider with a history of working in the space.
A series of free trade agreements (FTAs) provide companies resident in Mexico with preferential access to key markets in the region and the rest of the world. That includes the United States-Mexico-Canada Agreement (USMCA), which came into force in 2020.
Mexico is also a founding member of the Pacific Alliance, alongside Chile, Colombia, and Peru. Recently, the ten-year-old economic integration initiative inaugurated Singapore as an associate member in what appears to be the Alliance´s first step in a long anticipated expansion beyond the Western Hemisphere.
Mexico’s services sector generates more than 60% of GDP, and the country is home to a growing pool of talent in professional disciplines, as well as IT-related industries, contributing to it being an outsourcing hotspot.
The country also has a highly developed manufacturing sector, accounting for more than 30% of GDP, with computers, medical equipment, and automobiles among the country’s most important exports.
Other key export goods include agricultural products such as corn, vegetables, and tropical fruits.
If you will be involved in manufacturing, agriculture, or exporting goods, your legal firm in Mexico should have a proven understanding of any sector-specific legislation.
How will your legal firm in Mexico be able to help?
Your legal firm in Mexico will be able to provide you with help in the following ways:
Local connections: With a history of operating in the market, your legal services provider will have well-established networks in both the business and legal communities in Mexico, which could be of potential value to you.
Decision making: Your legal firm in Mexico will be able to offer valuable guidance in key decisions, such as with regards to the structure of your entity, or in terms of which local partners and suppliers to work with.
Intellectual property: Your provider of legal services in Mexico will be experienced in protecting the intellectual property of clients, and will be able to keep your brand or product safe from imposters in the shortest time possible.
Risk management: A good corporate law firm in Mexico will guarantee your compliance with all local regulations, meaning that you can be safe in the knowledge that you will not incur unexpected penalties or face legal inconveniences.
Identify a good provider of legal services in Mexico
When seeking out a provider of legal services in Mexico, the following are useful things to consider:
Good language skills: With official processes in Mexico carried out in Spanish, you will need to find a bilingual provider if you are not able to communicate effectively in that language. Most lawyers will speak some English, it is worth keeping in mind that Mexico has one of the lowest levels of English proficiency in the region, according to a recent study.
Past client feedback: A good legal firm in Mexico will have generated feedback from past clients in the form of online reviews, which should give a good general indication of the quality of the services they provide.
Technological know-how: In the event you will not be based in Mexico, or will be away from the country for long periods of time, you will likely want to find a provider comfortable in the use of an online platform via which you can manage and monitor their workload.
Specialist legal knowledge: Certain sectors and economic activities are governed by particular legal codes, such as in the case of mining and international trade. If you will be working in one of these areas, you will need a provider who is familiar with the relevant legislation.
Biz Latin Hub can provide legal services in Mexico
At Biz Latin Hub, we provide tailored packages of integrated back-office services based on a portfolio that includes accounting & taxation, company formation, corporate legal support, and visa processing, among others.
We have teams in place in 16 markets around Latin America and the Caribbean and we specialize in multi-jurisdiction market entry.
We will provide all of the legal services in Mexico that you need as part of a comprehensive support package that makes working with us more convenient than seeking the services of individual recruitment, accounting, and legal firms.
Contact us today to discuss how we can support you doing business in Mexico.
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