Doing Business México 2020 MEX | Page 9

Doing Business 2020 5 Mexico Register with the Mexican Social Security Institute (IMSS) Agency : Mexican Social Security Institute (IMSS) This is a federal procedure that is performed to enroll at least one worker in Social Security. The application may be pre-submitted online and then through a visit to the agency’s office the entrepreneur will obtain the registration. This procedure can be done enterely online with the electronic signature (e.firma) or with the Single Registry Number of Population (CURP). 1 day no charge 1 day no charge Notify the local government (Alcaldia) online of the opening of a mercantile establishment Agency : Local District (Alcaldia) The notice of opening a mercantile establishment is fully completed online through the website www.sedeco.cdmx.gob.mx . For low risk activities, the notification record is received automatically in an email. Less than one day no charge Register with the National Business Information Registry (Sistema de Información Empresarial - SIEM) Agency : National Business Information Registry (Sistema de Información Empresarial - SIEM) Mandatory registration with the National Business Information Registry (SIEM) has been in effect since January 1997 for all business establishments subject to a tax regime and performing business activities. The company will be registered with the specific chamber corresponding to its corporate purpose or activities within the following 2 months after registration at the tax authority. 1 day The entrepreneur must file the following documents: i) tax number (RFC); ii) proof of the company's residency; iii) company's localitation map; iv) incorporation deed recorded before the Public Registry of Commerce; v) power-of-attorney (if applicable); vi) ID of the attorney-in-fact or shareholder of the company; and vii) RFC and CURP of the company's attorney-in-fact or shareholder. The process is regulated by the Social Security Act and the Regulations of the Law on Social Insurance regarding Membership, Business Classification, Collection and Taxation. At the same time the company registers with the IMSS, registration at the National Worker’s Housing Fund Institute (INFONAVIT) takes place and individual retirement savings accounts for the employees (Afore) are opened. 6 Register with the local Tax Authorities (Secretaría de Administración y Finanzas de la Ciudad de México) for payroll tax enrollment Agency : Local Tax Authorities (Secretaría de Administración y Finanzas de la Ciudad de México) The company must register with the local tax administration and enroll in the Registry of Taxpayers for payroll tax (Inscripción de Datos al Padrón de Contribuyentes del Impuesto sobre Nóminas). The company can register at the Alcaldia office and the documents required are the following: - Articles of association and legal representative identification. - Application form for enrollment - Taxpayer identification number (RFC) - Notice of enrollment at the IMSS In addition, this procedure can be done online at https://innovacion.finanzas.cdmx.gob.mx/siscon/. The company will need the electronic signature (e.firma) and the registration of the legal representative. The company is enrolled immediately, and it will receive a receipt of the application. Since September 2018, the annual payroll tax declarations should be presented only through the online platform with the company e.firma. 7 8 (online procedure) The costs can vary from MXN $100 to MXN $670 The pre-registration can be done through the portal https://siem.gob.mx/establecimiento/como- me-registro providing the information of the establishment or business location. The entrepreneur will select the payment method and he will wait for the visit of the personnel of the corresponding business chamber, who will validate the location of the business. The cost varies with the number of employees and the company’s activities as shown below. Fees for industry related activities (maximum fees): -6 or more employees $ 670 -3 to 5 employees $ 350 -Up to 2 employees $ 150 Fees for commercial and services related activities (maximum fees): -4 or more employees $ 640 -3 or less employees $ 300 -Up to 2 employees $ 100 The costs can vary from MXN $100 to MXN $670. Takes place simultaneously with previous procedure. Page 9