Mexican laws consider the possibility of establishing branches or representative offices of foreign companies.

The same rules, which govern commercial companies operating in the same sector, apply to the former. However, not having own autonomy with regard to the foreign company, potential legal actions against the same can have repercussions on the equity of the latter. For this reason, having a branch in Mexico does not have many practical applications, except in cases of specific needs.

Representative offices, conversely, operate by carrying out not-for-profit activities, for example, showrooms, promotion or technical assistance offices, though these cannot execute commercial contracts or agreements on behalf of the foreign company, so as to avoid the application of tax rules established for common commercial companies.

Representative offices enjoy a simplified regime that only apply for the payment of the social security contributions established for employees or to make salary withholdings or those on office rent payments.