Corporate Registration Process Now Longer; May Delay Visa Approvals

The situation

The new government in Mexico has implemented a policy that may require an employer’s legal representative to appear at the local immigration office nearest to the company’s registered domicile to renew the corporate registration certificate each year.

Background

Employers must renew their corporate registration certificates annually using their tax return receipt from the previous year. Employers must have an approved corporate registration certificate on file with the government to sponsor remunerated visas.  Corporate registration certificates from the previous years should be updated by March 30 of the current year.

A closer look: personal appearance requirement

During the appointment at the Immigration Office, the legal representative must validate that the business is operating locally and must confirm the names of all foreign nationals registered with the company and the corporate information pertaining to the legal entity. Previously, employers’ representatives were typically not summoned to appear as part of the annual update process.

Impact for employers

• In-person process. Employers should prepare their legal representative with the required information to expedite the appointment. Fragomen can assist with this preparation. The legal representative should be prepared for the appointment to be a time-consuming process.
• File tax return early. Employers should file their tax returns as soon as possible to obtain the tax receipts required for the corporate registration certificate. Filing tax returns closer to the April 1 deadline (when the old corporate registration certificate expires) may result in a significant time period where employers would not be able to sponsor new foreign nationals and in some cases could delay visa renewal application approvals as the employer awaits a registration certificate appointment.

 

Impact for foreign nationals

Foreign nationals’ remunerated visa approvals may be delayed due to the longer administrative process for corporate registration, which may delay work start dates.

These delays may be further exacerbated by the processing delays resulting from the replacement of government officials in Mexico City, Guadalajara, Queretaro and several other large cities in Mexico.

Looking ahead

It is possible that the new government may change immigration processes. Fragomen will report on related developments.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].