Mexico Warns Shareholders to Pay Up: Annual Report Deadline Looming
The Mexican Tax Authority is reminding shareholders and partners of foreign-owned companies operating in Mexico that they must submit their annual reports by March 31st, or face the consequences.
Key Requirements for Financial Regulatory Compliance in Mexico
According to regulations, foreign-invested companies in Mexico are required to submit quarterly and annual reports to the National Registry of Foreign Investments (RNIE) if certain criteria are met. These include:
- Changes in corporate name, tax domicile, or business activities
- Modifications to capital stock and/or shareholding structure
- Personal details of shareholders or partners, including information on where they pay taxes
Consequences for Non-Compliance
Failure to submit the report by the deadline could result in fines and penalties for non-compliance. In addition to the annual report, companies with foreign investments are also required to register with the Mexican Entrepreneurial Information System (SIEM) and keep their information up to date.
Other Key Requirements
Other key requirements for financial regulatory compliance in Mexico include:
- Renewal of employer registration with immigration authorities
- Review and modification of internal labor policies
- Preparing labor contract addendums
- Data protection and intellectual property policies
- Renewing leases on company property
- Providing updated information to banks servicing corporate accounts
Quarterly Reports for Foreign-Invested Companies Meeting Financial Benchmarks
Mexican companies that meet certain financial benchmarks must also submit quarterly reports to the RNIE within 10 business days of each period.
Advice from Biz Latin Hub
Biz Latin Hub, a leading provider of integrated market entry and back-office services in Latin America and the Caribbean, is urging foreign-owned companies operating in Mexico to take immediate action to ensure compliance with these regulations. “Non-compliance can have serious consequences for businesses operating in Mexico,” said [Name], CEO of Biz Latin Hub. “We strongly advise all foreign-invested companies to prioritize financial regulatory compliance to avoid fines and penalties.”
Get Help from Biz Latin Hub
If you’re a shareholder or partner of a foreign-owned company operating in Mexico, don’t wait until it’s too late. Contact Biz Latin Hub today to learn more about our services and how we can help you navigate the complex world of financial regulatory compliance in Mexico.