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:
| INDIA | MEXICO |
| Permanent Account Number (PAN) | Registro Federal de Contribuyentes (RFC) |
| Central Board of Direct Taxes (CBDT) | Servicio de Administración Tributaria (SAT) |
| Goods and Services Tax (GST) | Impuesto al Valor Agregado (IVA) |
| Income Tax 1961 | Ley del Impuesto sobre la Renta (LISR) |
| Tax Deducted at Source (TDS) | Retención de Impuestos |
| Tax Return | Declaración de Impuestos |
| Ministry of Finance | Secretaría de Hacienda y Crédito Público (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:
| INDIA | MEXICO | KEY CARACTERISTICS |
| Public Limited Company | Sociedad Anónima (S.A.) | – Limited liability. – Freely transferable shares. – Can list on stock exchange. – Minimum two shareholders in Mexico, seven in India. |
| Private Limited Company | Sociedad de Responsabilidad Limitada (S. de R.L.) | – 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) | Sociedad por Acciones Simplificada (S.A.S.) | – 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.
