Law of MexicoModule 7
Business, employment and tax: companies, setting up and foreign investment, competition and consumers, the labour reform and labour courts, the 40-hour week and tax
Business in Mexico is governed by the Commercial Code and the General Law of Commercial Companies, with the Foreign Investment Law opening most sectors to foreign ownership. A company is usually incorporated before a notary and registered in the Public Registry of Commerce, with tax registration at the Tax Administration Service (SAT). Employment is built on Article 123 and the Federal Labour Law, which a reform of 2019 changed: labour courts in the judiciary, mandatory conciliation, and union democracy. A constitutional reform of March 2026 provides for a gradual reduction of the working week to 40 hours by 2030. Rates and thresholds change often, so check current rules.
This course explains the law of Mexico, not US law. Rules that look the same elsewhere may be different.
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See what is included in the Courses & AI Lab Pass →General education on the law of Mexico, using invented people and businesses. It states laws and procedures in simplified form and is not legal advice. The law and its practice change, and every case turns on its facts, the authority and the state concerned. It does not offer legal representation or a legal opinion on any case. Consult a Mexican lawyer for any real matter.
This course was written on 6 November 2026. To the best of our knowledge, it describes the law of Mexico as it stood on that date. Laws change, and we may have missed or misunderstood something. If you notice a change, or have other information, please do not hesitate to contact us: we will review it and update the course. We do not claim to be the final source of the law.
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