India and Mexico legal and tax comparison

November 6, 2023

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Hector Galicia

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As investment from India into Mexico continues to grow annually, I have crafted this article to provide a comparative analysis of the tax and legal terminologies commonly encountered when establishing a company in Mexico. You will learn more about terms between Mexico and India

This comparison aims to offer clarity and guidance for Indian investors navigating the corporate landscape in Mexico.

Tax-related terms between India and Mexico

In the following table I prepare a comparison between India and Mexico common tax-related terms that are very usual in Mexico:

INDIAMEXICO
Permanent Account Number (PAN)Federal Taxpayer Registry (RFC)
Central Board of Direct Taxes (CBDT)Tax Administration Service (SAT)
Goods and Services Tax (GST)Value Added Tax (VAT)
Income Tax 1961Income Tax Law (LISR)
Tax Deducted at Source (TDS)Withholding tax
Tax ReturnTax return
Ministry of FinanceMinistry of Finance and Public Credit (SHCP)

Primary types of business between India and Mexico

Also, I prepare a Comparison of the primary types of business entities in Mexico and their closest counterparts in India:

INDIAMEXICOKEY CHARACTERISTICS
Public Limited CompanyPublic Limited Company (SA)– Limited liability. – Freely transferable shares. –Can list on stock exchange. – Minimum two shareholders in Mexico, seven in India.
Private Limited CompanyLimited Liability Company (S. de RL)– Limited liability. -Restrictions on share transfer. –Cannot list on stock exchange. – Minimum two and maximum 50 members in Mexico, maximum 200 in India.
One Person Company (OPC)Simplified Joint Stock Company (SAS)– Single shareholder. – Limited liability. –Cannot list on stock exchange.

This table shows the closest equivalents, but it's important to note that the exact legal implications, tax treatment, and other operational specifics can vary significantly between Mexico and India due to different laws and business environments.

Conclusions

Mexico legal and tax system are high complex but with a lot of similarities with India, understanding basic terms will facilitate your landing in Mexico.

If you require more information about setting up your Company in Mexico, contact us. Learn more about Mexico in our Blog.

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Written by Hector Galicia

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