The law gives entrepreneurs the opportunity to create a legal company in one day, making the constitution process accessible and allowing merchants and entrepreneurs to fill all the forms in an online platform at no cost. Mexico aims to design an efficient regulatory system that would decrease the 59.9% informal business rate, while making “Doing Business” in Mexico more attractive.
Some benefits introduced by the law are:
- SMEs can be created and formalized in just one day. This process would take at least 6 days and up to 20, 000 MXN; without considering other several costs such as accountants, notary public and lawyers
- SMEs have the possibility of being part of Public Registry of Commerce
- SMEs will be included in the Federal Taxpayers Registry, according to the National Institute of Statistics and Geography, the total businesses sum up to more than 5 388 000. This is beneficial for credit requests, property registration and potential investments.
- Employees will have access to Social Security services provided by the Mexican Social Security Institute
- Unipersonal companies are now permitted in the Mexican System
- The internet portal usage will make the business creation process more efficient, saving up to 15 million pesos and 82 bureaucracy years for every 1000 businesses created
In 2016, the law was signed by president Enrique Peña Nieto and came into force 6 months after its publication in the Official Journal of the Federation.
Secretariat of Economy, Tax Administration Service, Mexican Social Security Institute, National Institute of Entrepreneurship.
Mexico aims to improve in the Doing Business scale implemented by the World Bank, where it has a score of 73.72/100. According to the National Institute of Statistics and Geography, 59.9% of the informal entrepreneurs and merchants will have the opportunity to formalize and operate in the formal economy.
Retrieved from: El Universal.
No success has been reported, as the law hasn’t come into force yet.
Héctor Galeano Inclán, President of the national Association of Mexican Notaries, has declared this law as risky and dangerous. He says this new online process has no identity protection layers, there’s no protection against malpractices and gives the opportunity to create shell companies. This new law has a cost, in the end charged to all taxpayers.