HSBC Doing business in Mexico

This publication is
a joint project with
Doing business in Mexico

Contents
Executive summary 4
Foreword 6
Introduction – Doing business in Mexico 8
Conducting business in Mexico 12
Taxation in Mexico 18
Audit and accountancy 24
Human Resources and Employment Law 26
Trade 30
Banking in Mexico 32
HSBC in Mexico 34
Country overview 36
Contacts 38
Disclaimer
This document is issued by HSBC
Mexico (the ‘bank’) in Mexico.
It is not intended as an offer or
solicitation for business to anyone
in any jurisdiction. It is not intended
for distribution to anyone located
in or resident in jurisdictions which
restrict the distribution of this
document. It shall not be copied,
reproduced, transmitted or further
distributed by any recipient.
The information contained in
this document is of a general
nature only. It is not meant to
be comprehensive and does not
constitute financial, legal, tax or
other professional advice. You
should not act upon the information
contained in this publication without
obtaining specific professional
advice. This document is produced
by the Bank together with
PricewaterhouseCoopers
(‘PwC’). Whilst every care has
been taken in preparing this
document, neither the Bank
nor PwC makes any guarantee,
representation or warranty
(express or implied) as to its
accuracy or completeness, and
under no circumstances will the
Bank or PwC be liable for any
loss caused by reliance on any
opinion or statement made in this
document. Except as specifically
indicated, the expressions of opinion
are those of the Bank and/or PwC
only and are subject to change
without notice.
The materials contained in this
publication were assembled
in November 2011 and were
based on the law enforceable and
information available at that time.

4
Executive summary
Mexico offers an attractive
business environment, legal
certainty, one of the world’s
largest free trade agreement
networks, as well as highly
developed economic sectors
that offer very competitive
costs. The country is
committed to developing
its infrastructure in order to
create a world-class logistics
platform suitable for
international businesses.
The government of Mexico
is also investing in initiatives
to simplify regulations
applicable to international
businesses. Specifically, the
Mexican Government supports
foreign investments through
different public institutions
which advise, support and
facilitate various business
transactions in Mexico.
In 2010, Mexico has been
favoured by large amounts of
foreign direct investment, in
the automotive, manufacturing,
aviation, information technology
and tourism sectors.
Mexico is today´s opportunity
• Strategic geographic location.
• Competitive labour costs.
• Accessibility to large markets.
• Low operation and
transportation costs.
• Young, talented and highly
qualified population.
• Economic stability
and its favourable
business environment.
• Wide network of free
trade agreements.
• Legal certainty for
foreign investment.
• Strong and dynamic
manufacturing industries.
• Internal market.
• Infrastructure and logistic
abilities for industry.

6
Foreword
According to HSBC’s Report
‘The World in 2050’, Mexico
will be the eigth largest
economy of the world in 2050.
Free Trade Agreements with
47 nations all around the world
support Mexico’s status as a
very attractive trade hub.
A strategic geographic location
in the North American region
provides a reduction in costs of
inventory, transportation and
shipping for companies located
in NAFTA countries. Trucks
can deliver merchandise and
products to any point in the
U.S. within 24 hours.
Mexico’s policy objectives
to increase its productivity,
efficiency and quality standards,
have transformed Mexico into
one of the world’s leading
manufacturing countries.
Highly developed
telecommunications systems,
including domestic and
international fibre-optic
and satellite systems, keep
businesses connected on a
national and global scale to
meet business demands.
Government macroeconomic
policies encourage foreign
investment and a stable
economic and political
environment sought by
investors worldwide.
Mexico represents a potential
consumer base of 112 million
individuals whose average
yearly income continues to rise
steadily, as does their appetite
for consumer products of all
kinds. Its employment rate is
also on the rise, contributing
to the economic growth of the
nation. Foreign and domestic
demand is increasing, and GDP
per capita doubles the average
of GDP per capita in the BRIC
countries.
The country’s young, skilled
and plentiful workforce (60%
under age 25) performs at
world-class productivity levels.
An abundance of valuable
raw materials throughout the
country supports a healthy
’bottom line’ for investing firms.
Mexico is the perfect location
for companies desiring to
cost-effectively sell products
and services to consumers
living in North, Central and
South American as well as
the Caribbean.
Mexico has provided HSBC
with the opportunity to create
a solid platform for further
expansion of the business in
Latin America, a region that is
almost comparable to China in
terms of GDP and consumption.
HSBC has made Mexico its
financial hub for Latin America,
where it headquarters its
Latin American business.
HSBC Mexico is the fourth
largest bank in deposits. It
has 1,186 branches and 6,500
ATMs, the largest network in
the country.
Currently, HSBC has 8 million
customers and more than
19,500 employees.
Mexico is, and will continue
to be, an important player
in the global economy due
to its openness, size and
opportunities. We at HSBC are
excited about the prospects to
continue growing our business,
and we would encourage you
to do the same.
Luis Peña-Kegel
Chief Executive Officer
HSBC Mexico

8
Introduction
Doing business in Mexico
Located in the North American
subcontinent, Mexico is framed
by the U.S. to the North,
Guatemala and Belize to the
south, the Gulf of Mexico to the
east and the Pacific Ocean to the
west. The country’s official name
is Estados Unidos Mexicanos
(United States of Mexico), its
official language is Spanish,
with only a small portion of its
population boasting a command
of English. Its functional
currency is the Mexican peso.
Mexico is a Federal Republic
comprised of 31 States and a
Federal District (Mexico City)
with its political system made up
of three levels of government,
federal, state and municipal,
and government made up of
three powers; the executive
(President), the legislative and
the judicial.
For over 50 years, the main
engine powering Mexico’s
economy has been crude
extraction and exportation;
however, more recently, other
factors have emerged that
have grown over time, such as
remittances sent back to Mexico
by Mexican residents in the
U.S., and also the transformation
industry (e.g. automotive,
textile, electronics) and sectors
such as tourism, construction,
telecommunications have been
growing in the last decade.
Economic environment
Nearly 25 years ago, Mexico
embarked on a path towards
greater economic openness,
with an emphasis on opening
itself to foreign trade and on
attracting foreign investment.
Throughout this period, many
significant changes were made
to the Foreign Investment Law.
Free trade agreements were
signed with the most important
economies worldwide (the
North American Free Trade
Agreement, the Free Trade
Agreements with the European
Union and Japan, among
others), as well as a number
of tax treaties to avoid double
taxation, signed with more
than 30 countries.
Mexico has reached a
consistent, solid and stable
macroeconomic framework, as
a result of the monetary policy
implemented by Banco de
Mexico (Central Bank) and the
Finance Ministry, thus allowing
for certainty in the decision
making of companies seeking
to invest in Mexico. In addition,
the country is moving forward
in terms of infrastructure,
seeking to balance a worldclass
logistics platform to
further facilitate business
operations by taking advantage
of its geographic location.
According to the most recent
report on global competitiveness
issued by the World Economic
Forum (WEF), in terms of the
macroeconomic stability subindex
rank, which measures
five variables (public finances,
domestic savings rate, interest
rate differential and public debt),
Mexico improved its position
by 20 places between 2008
and 2009, moving from the
48th position (of an overall 133
countries) to the 28th.
In summary, Mexico boasts:
85 airports (26 national
and 59 international), 16
international sea ports, 27,000
km of railways and 123,000 km
of main highways.
In order to contribute to
increasing the country’s
competitiveness, the Federal
Government increased its
investment in infrastructure
from 3% of the GDP to 5%
over the past three years,
through its most important
infrastructure programme
in decades.
Mexico recorded a population
112.4 million in 2010, 45.7
million of which is classified
as the country’s Economically
Active Population. The forecast
is for the number to double
over a 30-year period.
One of the most important
A challenge for the Mexican
economy is to consolidate
the country’s recovery in
production and employment.
To strengthen this process,
Mexican products must be
better positioned in international
markets and greater foreign
investment must be attracted.

10
Opening a business
The procedures and time
required to open and close a
company, as well as the red
tape and time required to obtain
construction permits are key
and possibly critical factors in
the success of international
businesses. In Mexico, an
investor is only required to
conduct 8 procedures taking
no more than 13 days to
open a company. Obtaining a
construction permit only takes
12 procedures over a period of
138 days, which is favourable
compared to other countries.
Closing down a company
requires only a two-day notice
period. Additionally, the recovery
rate related to closing down a
business is 64.3%, which is also
comparably favourable.
Favourable exchange
performance
Within the next few years,
Mexico will enjoy better
exchange performance in real
terms compared to many of
the countries against which
it competes in international
markets, as the exchange
performance of the Mexican
peso against the US dollar
and the Euro has remained
stable, as compared to
Asian countries. In light of
the above, a wide range of
business opportunities is
opening up in the short and
medium term that will allow
the increase in profitability and
the positioning of Mexico’s
products in international
markets, by considering
Mexico as a base for
operations and exportations.
Competitive labour costs
12 commercial agreements
signed with 44 nations makes
Mexico one of the country’s
most open to international
trade in the world and
with preferential access to
more than a billion potential
consumers (with income
equivalent to 60% of the
world’s GDP).
Free Trade Agreements
network and commercial
procedures
12 commercial agreements
signed with 44 nations makes
Mexico one of the countries
most open to international
trade in the world and with
preferential access to more
than a billion potential
consumers (with income
equivalent to 60% of the
world’s GDP).
Low transportation costs
Another advantage is its
proximity to the world’s main
consumer centres. This is
relevant, as it allows companies
to respond more rapidly to
changes in demand and it
reduces the cost of inventories.
Incentives for
foreign investors
• Corporate tax rate: Mexico has
a competitive tax rate (30%)
compared to other territories.
• Number of tax payments:
Mexico requires only 6
payments a year.
• Trained personnel: In Mexico,
approximately 90 thousand
students graduate with
engineering and technological
degrees every year. Mexican
universities offer more than
900 engineering and
technology-related
postgraduate programmes.
• Tax Depreciation: The Mexican
government allows for
accelerated tax depreciation in
the production of materials of
92% of the investment value.
Regulatory framework
of Foreign Investments
in Mexico
In Mexico, there is a law that
regulates foreign investment,
which also establishes the
economic activities that
are exclusively reserved for
the Government, and also
establishes those activities
reserved to Mexican nationals
or companies, as well as the
activities subject to specific
regulation to allow for foreign
investment.
Activities reserved exclusively
for the Government
The activities reserved
exclusively for the Government,
as established by law are:
• Oil and other hydrocarbons.
• Basic petrochemicals.
• Electrical power.
• Generation of nuclear power.
• Radioactive minerals.
• Telegraph service.
• Radiotelegraph services.
• Mail service.
• Issuance of bank notes.
• Coin minting.
• Control, supervision and
surveillance of airports
and heliports.
Activities reserved exclusively
for Mexican nationals
The following economic
activities and entities are
reserved exclusively to
Mexican nationals or Mexican
companies, with a clause
for the exclusion of foreign
nationals:
• Domestic land transportation of
passengers, tourism and cargo,
not including courier services.
• Radio broadcasting
services and other radio
and television services,
other than cable television.
• Credit unions.
• Retailing of gasoline and
distribution of liquefied
petroleum gas.
• Development banking
institutions, in the terms
of the corresponding law
1. AMIA (Mexican Association of
Automotive Industry).
• Professional and technical
services, expressly indicating
the applicable legal provisions.
Activities subject to
specific regulation
Activities subject to specific
regulation must be authorised
by the Foreign Investment
National Commission.
Depending on the activity, the
shareholding percentage in the
investment may vary from 10%
to a 100% interest.
Key markets and trade
Mexico’s most significant
industries are:
• Automobile industry –
manufacturing more than 2.260
million vehicles (2010) 1 , 7 of
the 10 largest producers in the
world have plants in Mexico,
and there is a presence of
more than 90% of car-parts
manufacturers.
• Aerospace industry – there
are more than 200 companies
related to this industry, with
exports valued at 3.1 billion
dollars, and competitive and
specialised labour.
• Processed foods – Added
value in this industry reaches
more than 42,560 million
dollars (2008), exports exceed
9 billion dollars. Over the past
10 years, Mexico has attracted
direct foreign investment in
excess of 18.9 billion dollars.
• Tourism – There are over one
million Americans living in
Mexico. There is the potential
of having 10% of U.S. retirees
moving to Mexico, availability
of modern services, access to
quality health services, good
real estate opportunities and a
wide range of attractions.
• Mining – A production value
of around 11,200 million
dollars in 2008, exports of
1.9 billion dollars. The main
products in Mexico are
copper, gold, silver, zinc and
gravel, over 3.6 billion dollars
in direct foreign investment
in 2008.
Aerospace, automobile
manufacturing and tourism
remain the most attractive
industries for the future
in Mexico, aside from
renewable energy, life
sciences, professional
services, software and digital
contents industries.
Business Etiquette
Mexican business people are
used to conducting business
on a personal basis, as they
consider it important to meet
the person with whom they
are to maintain a commercial
relationship. In addition, it is
also customary to formalise
the commercial relationship by
signing an agreement requiring
that both parties comply with
the obligations set out therein.

12
Conducting business in Mexico
Forms of business
For purposes of the FIA, foreign
investment is considered to be:
a. The participation of foreign
investors to any extent, in
the capital stock of Mexican
companies;
b. Most Mexican companies
with foreign capital; and
c. Foreign investor participation
in the activities and events
covered by FIA.
Overall, there are three
recognised ways of carrying
out investment projects:
a. By setting up a foreign
investment entity in Mexico,
which can take the form of
a branch or representative
office. These are entities legally
constituted abroad and legally
recognised in Mexico.
b. By establishing a Mexican
company with up to 100%
capital stock held by foreigners.
The Corporations Law
(GLMC) acknowledges
six types of companies.
• General Partnership.
• Limited Partnership.
• Limited Liability Corporation.
• Corporation.
• Limited Liability Partnership.
• Cooperatives.
Any of those companies can
be incorporated as a company
with variable capital stock.
In corporations and limited
liability corporations, the
partners will be liable only to
the extent of their contributions.
There are other mixed liability
companies, such as limited
partnerships and limited liability
partnerships, where some
members are liable without
limitations for the company’s
obligations and others are only
obligated to the extent of their
contributions.
c. Through a Mexican corporation
that is subject to specific
regulation. The participation
of foreign individuals or legal
entities as minority shareholders
or through a Neutral Investment
Scheme is a possibility in
the event that economic
activity is intended to be
conducted, subject to ceilings
on participation. The Economic
Secretary may authorise
trusts to issue investment
instruments, provided they
have no voting rights.
Activities subject to
specific regulations
Foreign investment allowed
in the following areas and
companies is as follows:

14
Up to 10% Cooperative companies for production.
Up to 25% Domestic air transportation.
Aero taxi transportation.
Specialised air transportation.
Up to 49% Insurance companies.
Bonding companies.
Currency exchange houses.
Bonded warehouses.
The companies referred to in article 12b of the Mexican Securities Market Law.
Retirement Fund Administrators.
Manufacture and marketing of explosives, firearms, cartridges, ammunition and
fireworks, not including acquisition and use of explosives for industrial and extracting
activities or the preparation of explosive blends for use in said activities.
Printing and publication of newspapers for circulation solely throughout Mexico.
'T' class shares of companies owning land for agricultural, livestock and
forestry purposes.
Fishing in fresh water and coastal areas and exclusive economic zones,
excluding aquaculture.
Integral port management.
Port pilot services for coastal navigation of vessels pursuant to the applicable laws.
Shipping companies engaged in the commercial exploitation of vessels for coastal
shipping or coastal trade, except for tourist cruise ships and the exploitation of drills
and naval devices for the construction, conservation and operation of ports.
Oil and lubricant supply for ships, aircraft and railroad.
Telecommunications Concessionaires as provided by articles 11 and 12 of the Federal
Telecommunications Law.
More than 49% (once
approval has been granted
by the National Foreign
Investment Commission)
Port services for inland navigation of vessels, such as towing, mooring and barging.
Shipping companies exclusively operating on the high seas.
Companies with a concession or permit for public service aerodromes.
Private education services for pre-school, elementary, middle school, high school,
college or any combination thereof.
Legal Services.
Credit Information companies.
Securities rating institutions.
Insurance agents.
Mobile telephony.
Construction of pipelines for oil and oil by-products.
Drilling oil and gas wells.
Construction, operation and exploitation of railroads (general means of
communication) and public railway services.
Setting up a business
General requirements
The first steps that a potential
investor or business visitor in
Mexico must take are as follows:
1. An invitation on headed paper
must be issued, written in or
translated into Spanish, by the
respective trade or industry
chamber, business association,
public or private organisation,
or by an industrial or business
company or a financial
institution, stating the purpose
of the visit and declaring that
the foreign party has sufficient
financial back-up to cover their
expenses in Mexico at any
location within the country
where business is to be
conducted (company affiliates).
2. Financial solvency must be
proven with a bank letter
demonstrating that the party
will have available, every
month during the year in which
the visit will take place, an
amount equal to 500 days of
the minimum wage of Mexico
City, or a financial solvency
letter from the party’s principal
employer for the term of his/
her stay in Mexico.
3. If the applicant is a business
entity or an individual with
business activities, he/she/it
must submit:
• The company’s articles
of incorporation.
• A certificate issued by a public
notary stating the company
name, business purpose and
official tax domicile.
• The most recent tax return
filed (e-receipt of the last tax
return filed).
• A certificate from the National
Foreign Investment Registry.
• Registration at the respective
chamber, association or
organisation.
• These requirements are not
applicable to government
entities or agencies or to public
higher education institutions.
• In the event that the individual
with business activities is a
foreign national, he/she must
submit valid immigration papers.
Establishing a
Mexican operation
Foreign investors may:
• Hold equity in Mexican
corporations or partnerships;
• Acquire fixed assets;
• Enter new fields of economic
activity or manufacture new
lines of products;
• Open and operate
establishments (branch
offices, agencies);
• Expand or relocate existing
establishments (joint ventures).
Incorporation of a company
Companies will be incorporated
in the presence of a notary and
the amendments to the by-laws
shall also be recorded. The public
notary will not authorise the
deed when the by-laws or the
amendments thereto contravene
the provisions of the General
Law of Mercantile Corporations.
The General Law of Mercantile
Corporations acknowledges
legal standing of foreign
mercantile corporations that
are duly incorporated.
Foreign companies can only
carry out business in Mexico
upon registration in the Public
Registry of Commerce, which
registration shall take place
prior authorisation of the
Ministry of Economy pursuant
to Articles 17 and 17a of the
Foreign Investment Law.
Corporations
The S.A. and S.A. de C.V.
must have a minimum of two
shareholders. The minimum
capital amount for a S.A. is
Mex$50,000, which must be
fully subscribed within one
year from the establishment
of the company. At least 20%
of the value of each share
must be paid in cash; the
balance may be paid with any
other assets.

16
5% of a corporation’s annual
net income must be allocated
annually to a legal accounting
reserve until the reserve equals
20% of the value of all issued
and outstanding capital stock. If
the reserve is reduced for any
reason, it must be restored to
the 20% level.
Any resolution taken by
the Management of the
Corporation (Board of Directors
or Sole Director) or by the
Shareholders that resolves
not to allocate the 5% as
minimum to a legal accounting
reserve is invalid. If this is the
case, the Management of
the Corporation has unlimited
liability and liability in whole for
the amount not allocated.
Partnerships
A minimum number of two
partners is required for the
S. de R.L. and S. de R.L. de
C.V., with a maximum of
50 partners. The minimum
capital amount for a S. de
R.L. is Mex$3,000, which
must be fully subscribed at
the establishment of the
partnership. At least 50% of
the value of each partnership
interest must be paid in cash;
the balance may be paid with
any other assets.
Joint ventures
Business enterprises or
individuals may form joint
ventures (asociación en
participación or A en P) to
pursue a common business
goal. A joint venture is
conducted in the name of an
active associate (asociante),
who manages operations
and has unlimited liability for
the debts of the operation.
The active associate
grants the contributing
associate (asociado) the
right to participate in profits.
Contributing associates are
liable only to the extent of
their contributions. Jointventure
contracts must be
in writing, but they need not
be recorded at the Public
Registry of Commerce. Public
notice of formation of the joint
venture is not required. For
Mexican income tax purposes,
the A en P is considered a
tax entity when it carries on
business activities in Mexico.
Branches of foreign
companies
Foreign companies may
establish a branch in Mexico
by performing the following:
• Obtain prior authorisation
from the Ministry of Economy
(this may be obtained easily);
• Register the by-laws of the
foreign head office with the
Public Commerce Registry;
• Register with the National
Foreign Investment Registry;
and
• Obtain a federal taxpayer
identification number.
Representation offices shall
follow the same procedure
applicable for the branches,
as well as the requirement
to register with the Public
Commerce Registry and
with the National Foreign
Investment Registry.
Branches are subject to
federal corporate income
tax and generally have the
same obligations as Mexican
corporations. In addition,
branches are subject to tax
if they pay dividends from
sources other than from a
‘net tax profit’ account, which
is a retained earnings account
for profits on which income
tax has already been paid.
Structures most often used
by foreign investors
The forms of enterprise most
commonly used by Mexican
and foreign investors are the
S.A. or its variant, the S.A.
de C.V. and, under certain
conditions, the S. de R.L. and
S. de R.L. de C.V. partnerships.
Other authorisations that
need to be considered by
foreign investors
• Authorisation for the
Incorporation of Companies.
• Authorisation for an
amendment to company
by-laws (change of
corporate name).
• Notice of Authorisation for the
Incorporation of Companies
and of Amendments to their
by-laws (change of corporate
name, amendment to the
foreigner’s exclusion clause for
an admission clause; Merger
or Spin-off).
• Purchase of real estate by
foreign nationals outside the
restricted area referred to in the
General Agreement published
on 2nd of March 1998 in the
Federal Official Gazette.
• Purchase of real estate by
foreign nationals outside the
restricted area referred to
in Article 10A of the Foreign
Investment Law.
• Concessions for the exploration
and exploitation of mines and
waters in Mexico referred to
in the General Agreement
published on 11th of May 1998
in the Federal Official Gazette.
• Issuance of authorisation for
the incorporation of a trust in
the restricted area.
• Submission of each notice of
purchase of real estate in the
restricted area, to be used for
non-residential purposes by
Mexican companies that have
a foreigner’s admission clause.

18
Taxation in Mexico
Corporation Income Tax
Income Tax
Income Tax is a federal
obligation. The corporate tax
rate is 30%, which will remain
in place for another two years.
Taxpayers must file monthly
estimated payments no later
than the 17th of the month
following that day in which
income is received. Payment
must be made at a bank or
internet. The full tax return
must be filed by the 30th of
April in the following year.
Tax legislation deems the
following persons to be
residents abroad:
1. Nationals and foreign
individuals not resident in
Mexico. However, if they reside
in Mexico, they are deemed
to be residents abroad if their
primary centre of interest is
not located in Mexico; i.e. when
more than 50% of their annual
income arises from a source of
wealth located outside Mexico,
or, when the centre of their
professional activities is not
located in Mexico, among
other cases; and
2. Entities (companies,
associations or partnerships,
among others) not incorporated
under Mexican law, as well as
those that have not established
their main place of business
or their management centre
in Mexico, but maintain
one or more permanent
establishments in Mexico.
Individuals or entities resident
abroad in the foregoing terms
must pay taxes in Mexico in
any of the following cases:
• When they obtain income
from any source of wealth
located in Mexico.
• When they have a permanent
establishment in Mexico, in
which case, tax is payable on
the income attributable to such
an establishment.
Based on the above, individuals
and entities must pay taxes in
Mexico when they obtain income
derived from the following:
• Salaries;
• Professional fees;
• Compensation paid to board
members, administrators,
statutory auditors and managers;
• Leasing of real estate;
• Leasing of goods;
• Time share tourist service
agreements;
• Sale of shares;
• Financial leases;
• Royalties, technical assistance
and advertising;
• Interest;
• Prizes;
• Artistic and sports activities,
as well as public shows;
• Distributable surplus of nonprofit
entities;
• Dividends, profits, remittances
and earnings distributed
by entities;
• The sale of real estate;
• Building site construction,
installation, maintenance or
placement, inspection or
supervision of real estate; or
• Other income from a source
of wealth located in Mexico.
Deductions
Business expenses are
deductible if they are properly
documented and supported.
The following deductions
are permitted:
• Returns received or discounts
or rebates made in the tax year;
• Cost of goods sold;
• Expenses, net of discounts,
rebates and returns;
• Investments (depreciation
by the straight-line method,
adjusted for inflation);
• Bad debt credits and losses
resulting from acts of God;
• Profit sharing paid to
employees;
• Contributions for the creation or
increase of employee pension
or retirement funds; and
• Accrued interest, subject to
the thin capitalisation rule.
Calculation of Income Tax
It is first necessary to calculate
taxable income, on which the
corporate income tax rate is
then applied. Taxable income
is the difference between
taxable revenue and expenses.
Revenue and expense recognition
is on an accrual basis. Lastly,
the accrual basis is multiplied
by the income tax rate.
Tax incentives
Tax reductions are available
to corporations engaged in
agriculture, stock-breeding,
forestry or fishing activities.
Accelerated depreciation is
available for certain types of
capital investments, such as
machinery and equipment,
starting the year in which the
investment is made.
Additionally, in the last 25
years, Mexico has signed
agreements to avoid double
taxation in order to standardise
tax concepts with those of the
tax jurisdictions of the countries
involved in the negotiation.
This promotes the exchange
of tax information, allowing
the contracting parties to
follow the tax laws effectively
and therefore counteract
tax evasion and avoidance.
Likewise, the agreements
provide for the elimination of
double taxation.
Both countries must see that
the other’s tax obligations
are complied with and
taxpayers must calculate the
tax according to the country
where they reside, and accept
that there are maximum tax
withholding rates in the country
in which the source of wealth
of dividends, interest and
profits is located.
Tax withholding is the amount
that individuals or entities
making payments to parties'
resident abroad must subtract
for income tax purposes.
Although the parties required
to withhold the tax are not
constituents, they are required
to pay taxes owed by the
taxpayer. When the person from
whom foreign nationals obtain
income does not fall under the
foregoing assumptions, and
consequently does not withhold
tax, the taxpayers themselves
must make the payment
directly to the Tax Administration
Service.
When the party making the
payment withholds taxes, he/
she/it must pay such taxes
on a monthly basis no later
than the 17th of the month
following the date in which
the tax is withheld. Payment
must be made at a bank or via
the internet. When payment is
made by the taxpayer receiving
the income, he/she/it must
do so at the authorised office
within 15 days following receipt
of said income.

20
Transfer Pricing
Mexican transfer pricing
legislation did not comply with
international standards until
1997. However, in December
1996, the Mexican Congress
enacted significant tax reform
introducing transfer pricing
rules consistent with guidelines
issued by the Organisation
for Economic Co-operation
and Development (OECD),
controlled foreign company
legislation, and other antiavoidance
measures. These
changes represented a critical
stride in bringing Mexico’s tax
rules closer to the international
regimes of more developed
countries. To date, several
minor reforms regarding
transfer pricing have been
enacted, although the bulk of
the Mexican rules are mainly
incorporated by reference
in the Mexican Income Tax
Law (MILT) which requires
the application of the OECD
Transfer Pricing Guidelines
to the extent consistent with
the MILT.
Most of the transfer pricing
rules are included in Articles 86
(Sections XII, XIII and XV) 215,
216 and 216 BIS of the MILT.
Under these rules, taxpayers
are required to produce and
maintain documentation
demonstrating that gross
receipts and allowable
deductions for each fiscal year
(FY), arising from international
companies´ transactions are
consistent with the amounts
that would have resulted if
these transactions had taken
place with unrelated parties
under similar conditions.
Moreover, documentation of
inter-company transactions
should be based on a
transactional basis.
All inter-company transactions
between related parties must
be reported at arm’s length
prices for income tax purposes.
This general rule makes the
arm’s length principle the
cornerstone of the income
tax system since it covers
transfers of tangible and
intangible property, services,
domestic and cross-border
transactions, transfers of shares
whether publicity traded or not,
entered into by individual and
corporate taxpayers.
Article 216 specifies the
following six Transfer Pricing
methods:
• Comparable uncontrolled
price method (CUP);
• Resale price method (RPM);
• Cost plus method (CPM);
• Profit split method (PSM);
• Residual profit split method
(RPSM); and
• Transactional net margin
method (TNMM).
Taxpayers have the obligation
to pay income tax in accordance
with the arm’s length principle.
Additionally, taxpayers have
three important transfer pricingrelated
obligations:
• To prepare and maintain
transfer pricing documentation;
• To file an information return on
transactions with non-residents
related parties with the timely
filing of their income tax return
for the previous fiscal year; and
• The transfer of shares and
quotas in Mexican companies
between related parties is
subject to special reporting
requirements.
Personal Income Tax
Scope
Resident individuals are
taxed on worldwide income.
Non-residents are taxed on
Mexican-source income only
(see above). Individuals who
establish their home in Mexico
are considered residents
if their principal centre of
interest is located in Mexico.
An individual’s centre of vital
interest is considered to be
located in Mexico when:
• More than 50% of the
individual’s income in a
calendar year is derived
from Mexican sources; or
• The centre of the individual’s
professional activities is located
in Mexico.
A taxpayer may be a salaried
employee or self-employed
with business income.
The first kind of income
includes salaries, wages,
director’s fees, bonuses,
gratuities, allowances, certain
fringe benefits in kind and
statutory employees’ profit
sharing distributions.
The second kind, i.e. parties
earning income from business
activities or professional
services, including real estate
rental activities, is subject to
tax at the rates established in
the law and published by the
tax authorities.
The individual tax rate is
graduated with a maximum
rate of 30% for the next two
years (2011 and 2012).
For individuals, the fiscal year
in Mexico is the calendar year.
Tax returns must be filed in
April (no later than 30 April)
of the following year. Selfemployed
individuals and those
with rental or business income
must file monthly returns
no later than the 17th of the
month following the one in
which the income is received.
Payment must be made at
a bank or via the Internet,
as applicable. Employees of
foreign companies who work
in Mexico must make monthly
estimated tax payments if
their companies do not have
permanent establishments
in Mexico.
Parties receiving salary and
interest income exceeding
Mex$400,000 are not required
to file annual tax returns.
However, if the real amount of
interest exceeds Mex$100,000
and tax is withheld on that
interest, the individual must
file an annual tax return.
Personal income taxes of
resident and non-resident
employees are frequently
withheld. An individual resident
taxpayer may elect to pay the
remaining tax due either when
the annual return is filed or in
instalments with interest over
a six-month period.
Resident individuals must
include all information with
their annual income tax return,
including exempt and nontaxable
income. In addition,
resident individuals must
include information regarding
their income from donations,
prizes and loans received
during the calendar year,
when it exceeds separately
or in the aggregate.
The employer must pay
Social Security feeds and
Workers’ Housing Fund feeds,
as well as the mandatory
pension plan, according to
Mexican Legislation.

22
VAT Other Taxes
Income from the sale of goods
or the lease of real estate
other than residential property
is subject to value-added tax.
Hotels and hostels, as well as
furnished rental property, are
also subject to value added tax.
Individuals or business entities
making payments to parties
resident abroad for services
used in Mexico and for leased
tangible and intangible assets,
among others, are deemed to
be importers, and are required
to pay the respective value
added tax.
The standard VAT rate is
16% (reduced to 11% in
border regions).
Flat Tax
Flat tax is calculated on a cash
flow basis, with the tax base
determined by subtracting
specific deductions from
taxable revenue. Interest,
salary and royalty payments
are not deductible, with
some narrow exceptions (e.g.
royalties paid to independent
third parties). Under the flat
tax rules, investments and
inventory are fully deductible
when purchased and paid for,
rather than being deducted
under the depreciation or
cost of goods sold rules.
The corporate flat tax rate
is 17.5% from 2010 onwards.
Cash Deposit Tax
Individuals and legal entities
must pay this tax with regard
to all deposits in cash in
foreign or Mexican currency
made into any nominative
account in institutions of the
Mexican financial system.
This tax is applied to amounts
exceeding 15,000 pesos in
cash deposits made into
institutions of the financial
system, whether for one
deposit or the sum of several
deposits per month. This tax
is calculated by multiplying
the amount exceeding 15,000
pesos by the 3% rate.
Deposits for individuals
or business entities made
via internet transfers are
not considered to be cash
deposits; neither are account
transfers, credit titles or any
other document or system
agreed with institutions of the
financial system according
to the applicable laws, even
though such deposits are
charged to the same entity
that receives them.

24
Audit and accountancy
Companies listed on the
Mexican Stock Exchange,
government-owned companies
and companies in the finance
sector regulated by The
National Banking and Securities
Commission (Comisión
Nacional Bancaria y de
Valores or CNBV), the National
Commission for the Protection
and Defence of Users of
Financial Services (CONDUSEF)
or the National Insurance and
Bonding Commission, such as
banks and brokerage firms, are
required to have independent
auditors perform annual audits
of their financial statements.
In addition, companies meeting
any of the following threshold
requirements must have
independent auditors conduct
annual audits and file a
tax report.
The following bases are
currently valid:
• Annual revenues of at least
Mex$34,803,950;
• Total assets of at least
Mex$69,607,920; or
• Three hundred employees
or more in each month of
the preceding year.
Annual audits are required
in the year after a company
reaches any of the above
conditions. Audited financial
statements are presented
at the annual shareholders’
meeting, to the tax authorities,
and if the company is publicly
held, to the CNBV. Audits of
financial statements prepared
under Mexican GAAP are
conducted under Mexican
Generally Accepted Auditing
Standards (GAAS). These
financial statements must also
be filed with the tax authorities
along with a tax compliance
report. These reports are filed
electronically with the tax
authorities via the internet.
When a company has lost
two-thirds of its capital stock,
a going-concern paragraph
must be attached to the report,
because it is considered a
technical bankruptcy. In a worstcase
scenario, the audit opinion
may be modified.
The CNBV and the National
Insurance and Bonding
Commission (CNSF) are
statutorily authorised to issue
accounting and reporting
standards for the companies
they regulate. Banking, stock
brokerage houses, investment
funds, financial leasing,
factoring and other financial
institutions are subject to
regulations issued by the
CNBV. Insurance and bonding
companies are subject to
regulations issued by the
CNSF. The primary differences
between the accounting
practices established by the
CNBV and the IMCP (Mexican
Institute of Public Accountants)
refer to the valuation of
repurchase transactions (repos)
and non-consolidation of
non-financial subsidiaries. The
accounting practices issued by
the CNSF differ from Mexican
GAAP primarily in the following
areas: partial recognition of
inflationary effects and deferred
taxes; certain capital reserves
shown as liabilities; the equity
method used for investments
instead of consolidation;
and the assumptions used
for determining employee
compensation at retirement.
Local GAAP
The financial statements must
be presented at the annual
shareholders’ meeting and
approved by the shareholders.
All companies under a S.A.
form of organisation must have
a statutory auditor (comisario)
appointed by the shareholders.
Because of the statutory
auditor’s functions and
responsibilities, he is usually
an independent public
accountant, and generally a
representative of the company’s
independent auditing firm. The
statutory auditor may not be
an employee or executive of
the company. Each year, the
statutory auditor issues a report
stating whether the financial
statements have been prepared
in accordance with Mexican
GAAP. The statutory auditor
also determines whether the
company’s board of directors
has informed the shareholders
of all significant matters.
Professional auditing standards
require that a public accountant
acting as a statutory auditor
rely on an annual examination
conducted in accordance
with generally accepted
auditing standards.
All Mexican corporations
must maintain detailed
accounting records in Spanish
using Mexican pesos and in
accordance with Mexican
GAAP. Mexican companies
must maintain the following:
• a general ledger;
• a general journal;
• an 'inventories and trial
balances' record;
• historical minutes of
board of directors’ and
shareholders’ meetings;
• a record of investments
in shares;
• a record of debts held in foreign
currency, credits and cash; and
• a record of registered shares.
The principal books and
records, together with all
supporting documentation,
must generally be maintained
at the official domicile of the
business and remain available
for 10 years.
The Mexican Corporations Act
and the Income Tax Law only
include general accounting
requirements and do not
specify the form or content
of the books and accounts
that a company must maintain.
Each company is required to
keep the records necessary
to support the amount of
gross income, deductions and
tax credits contained in the
taxpayer’s Mexican income
tax return on an accrual basis.
Management determines the
exact form of the records.

26
Human Resources
and Employment Law
It is important to mention
that, in order to comply with
Mexican labour regulations,
companies wishing to invest
in Mexico must proceed as
follows, among other steps
to be taken:
• Analyse the location where the
company will be set up, the
specific characteristics of the
trade union corresponding, as
well as the working conditions;
• If applicable, execute a Collective
Bargaining Agreement with the
trade union of the production
branch of the Company’s main
line of operation;
• Complete Individual Labour
Agreements with the
employees to be hired;
• Register the employees at the
Mexican Social Security Institute;
• Pay Social Security fees;
• Abide by the provision regarding
the legal ceiling on the number
of foreign workers that may
work for a company in Mexico,
as established in the Federal
Labour Law;
• Organise training and education
programmes as required by
the law as well as maintaining
factories, workshops, offices
and other locations following
security and hygiene principles
to avoid occupational hazards;
• Comply with the security
and hygiene provisions
established in the laws, rules
and regulations in order to
avoid workplace accidents
and illnesses;
• Prepare the Internal Labour
Regulations of the Company,
which govern the working
environment of companies
in Mexico;
• Register the Company’s
Internal Labour Regulations
with the labour authorities;
• Register the Collective
Bargaining Agreement
with the labour authorities;
• Register training and
education programmes with
the labour authorities.
Amendments and additions
to the Social Security Law were
published in the Official Gazette
on 9 July 2010 which altered
the treatment applicable to
corporate personnel working
on a fee basis, in order to
ensure the payment of the
respective Social Security dues.
Maximum number of
permitted foreign employees
In all Mexican companies the
owner must employ a minimum
of 90% Mexican workers in
accordance with Mexican
Federal Labour Law (MFLL).
In the case of technicians and
professional workers, they
must be Mexican; in the event
that Mexican technicians or
professional workers are not
available, the business may
temporarily hire a foreign worker,
but both will then have the
obligation of training a Mexican
technician or professional
worker in order to comply with
the MFLL.
For management or director
levels the rule does not apply.
Employee benefits
The MFLL applies to all
employees in Mexico, regardless of
their nationality or place of work.
Minimum wage
The FLL establishes a
minimum wage payable
in cash to employees on
a weekly or bi-weekly basis,
without deductions or
withholdings. That minimum
wage is determined every
year by the National Minimum
Wage Commission.
Mexico is divided into three
economic regions and the daily
minimum wage varies for each
of these regions.
The economic regions for the
purposes of the minimum wage
for the year 2011 are:
• Economic Region ‘A’, with
a daily minimum wage of
MxP$59.82;
• Economic Region ‘B’, with
a daily minimum wage of
MxP$58.13; and
• Economic Region ‘C’, with
a daily minimum wage of
MxP$56.70.
The minimum wage applies
to all employees within an
economic region, except
those that fall within a series
of specific categories.

28
Maximum working hours
The maximum number of
hours an employee is required
to work, without the need to
pay overtime, is 48 hours per
week. Employees may work in
three different shifts, i.e. the
day shift, the night shift and
the mixed shift. The number of
hours per day depends on the
work shift of each employee.
The maximum number of hours
in the day shift is eight, seven
hours for the night shift, and
seven and a half hours for
the mixed shift. The employee
must be allowed a break
of at least 30 minutes during
each shift.
Employees are entitled to at
least one day of rest per week.
In some cases, the normal
work hours may be distributed
throughout the week as
necessary. Most employees
distribute these over five
days in order to provide
an extra day off.
Overtime
In the event that the employees
are required to work more
hours than their regular shift,
the employer must pay the
first nine hours of overtime
(these hours are computed on
a weekly basis) at 200% of
the standard pay per hour, and
overtime exceeding those nine
hours must be paid at 300% of
standard pay per hour. Sunday
work is subject to a premium
equal to 25% of the wage,
regardless of any overtime
premium that may apply
whenever Sunday is part of the
regular working week. When
Sunday is not part of the regular
working week (day of rest),
it must be paid at 200% of
the standard pay per hour.
Year-end or Christmas bonus
Before 20 December of each
year, all employers must pay
their employees a year-end
bonus equal to at least fifteen
days’ wages.
Paid holidays
The following are the legal
paid holidays in Mexico:
• 1st of January (New Years Day);
• The first Monday in February
(in exchange for the 5th
of February);
• The third Monday in March (in
exchange for the 21st of March);
• Labour Day 1st of May;
• Independence Day
16th of September;
• The third Monday in November
(in exchange for the 20th
of November);
• 1st of December (every six
years upon inauguration of a
new president); and
• 25th of December.
Vacations
Employers with more than one
year of seniority are entitled
to six days of paid vacation.
That six-day period is increased
by two days per subsequent
year of seniority up to twelve
days. After the fourth year, the
minimum paid vacation period
is increased every five years
of services thereafter.
Vacation premium
Vacation days, as set above,
must be paid to the employee
plus an additional 25% of the
employee’s normal wage.
Profit sharing
As of the second year of
operations, all employers
must distribute among their
employees an amount equal to
10% of the employer’s pretax
profits; that percentage
is established by the National
Profit Sharing Commission.
50% of the 10% has to be
distributed in proportion to the
number of days worked by
each employee throughout the
year. The other fifty percent is
distributed according to each
employee’s wage.
Profit sharing must be paid to
the employees within 60 days
after the employer is required
to file its year-end income tax
return. Certain managerial
employees, such as directors,
managers and administrators,
are not entitled to profit sharing.
Training
All employers are required
to provide training to their
employees in order to increase
the employee’s productivity
and opportunities. The
employer must have training
programmes approved by the
Ministry of Labour and Social
Welfare. A Joint Commission
comprising an equal number
of representatives of the
employees and of the employer
must revise and implement
the company’s training and
instruction programme.
Health and safety
All employers are required
to provide a safe environment
for employees to render
their services and a place
of work that complies with
sanitary standards.
A Joint Health and Safety
Commission must be created to
investigate the causes of illness
and accidents and to propose
resources to avoid them.
Employers are also required
to comply with Federal Health
and Safety regulations and with
a number of Official Mexican
Standards regarding a number
of different topics such as
fire and accident prevention,
exposure to toxic substances and
employee protective equipment.
Working tools
Employers are required to
provide working tools and
working materials in order
for their employees to perform
their work efficiently. Those
working tools and materials
should be in acceptable
condition and be replaced by
the employer, with no additional
charge to the employee, as
soon as they wear out due
to regular wear and tear.
Immigration procedures
All foreign nationals entering
Mexico must have entry
permits or visas, depending
on the specific circumstances
of their stay.
The required documentation
may be obtained from Mexican
Foreign Service offices
abroad, including embassies
and consulates, and from the
immigration authorities in
ports of entry. Additionally,
certain tourism offices
authorised by the Ministry
may issue tourist visas.
Work permits and
self-employment
Work permits are generally
granted for periods of one
year; however, they may
be extended.
In general a prospective
employee must provide the
following documentation in
order to obtain the work permit:
• Invitation letter from Mexican
company with the offer of
position (employment contract);
• Sufficient resources while
working in Mexico;
• Passport;
• Photos; and
• Other identification.
.
The period of time to obtain the
work permit is around 6 weeks
In case of foreign nationals
who will be self-employed
in Mexico, the following
requirements exist:
• No minimum capital
investment is required; and
• Expatriates must apply for
investor status and must
be able to show sufficient
economic capability and
practical experience to
undertake a business operation.

30
Trade
The General Customs
Administration is the authority
in charge of enforcing the laws
regulating customs clearances,
as well as determining customs
systems, methods, and
procedures; it also takes part
in the study and development
of projects related to duties,
countervailing duties, and other
foreign trade regulation and
restriction measures; complies
with agreements; orders and
carries out the verification of
foreign trade merchandise
in transport; handles intransit
verification of foreign
vehicles; establishes taxes on
foreign trade and other taxes
in accordance with the Law
Importation and Exportation
Law and other ordinances,
as well as the customs value
of merchandise based on
the Customs Law (CL); and
determines the nature, state,
origin, and other characteristics
of merchandise, in order to
establish tariff classifications.
Mexico’s anti-trust law prohibits
monopolies and certain
horizontal restrictive practices
deemed to be ‘absolute
monopolistic practices’.
Price fixing, restrictions on
production and distribution
market sharing and concerted
bidding in public tenders are
strictly prohibited.
The law also prohibits the
following practices by firms
that have substantial power
in the market place and that
restrain or attempt to restrain
competition: vertical market
sharing; restriction on resales;
tie-ins; exclusivity contracts;
refusal to deal; boycotts; and
certain other practices.

32
Banking in Mexico
The National Banking and
Securities Commission
(Comisión Nacional Bancaria
y de Valores CNBV) establishes
operating and accounting
rules for banks. The Ministry
of Finance, the CNBV and the
Central Bank are the principal
regulators in Mexico.
Foreign participation in the
financial sector is increasing,
and the flow of foreign capital
has reinvigorated the banking
system in Mexico.
Types of bank accounts;
• Individuals debit account.
• Corporate debit account.
• Credit for Industry and SMEs
Credit rating simple.
• Credit revolving.
• Mortgages receivables.
• Automotive Dealers.
• Credit to Equipment or
Fixed Assets.
• Credit to Working Capital
(variable or fixed rate).
• Corporate credit card.
• Financial Leasing.
Ability to access local
financing (e.g. local lending)
The Mexican government
in conjunction with private
sector facilitated the access
to local financing in order to
improve relations with the
international investors for
setting up a business, invest
in development of new core
business, and renovation of
equipment and technology.
Additionally, Mexico has a large
list of Free Trade Agreements
in order to obtain cost reduction
in the investment initiatives.
Development banks provide
credit to priority sectors,
including agriculture, fishing,
importing and exporting,
industrial development, public
works and tourism. Additionally,
development banks provide
technical support.
One of the key issues in
accessing local financing
is the timing and extensive
requirements of the banks. In
some cases this issue is key
to deterring investment from
foreign investors. Different
government and private
organisations exist to support
the process.

34
HSBC in Mexico
Overview
Our international proposition
is designed to meet the needs
of our commercial customers
conducting business in more
than one country (either in a
parent/subsidiary structure or as
a trader of goods or services).
HSBC has been present in
Mexico since the opening
of its Representative Office
in 1970 which in 2000,
following the acquisition of
Republic National Bank, was
merged with this bank’s local
subsidiary and renamed as
HSBC México, S.A.
On 25 November 2002, HSBC
acquired control of Grupo
Financiero Bital, S.A. de C.V. and in
January the group was rebranded
as Grupo Financiero HSBC S.A.
de C.V. HSBC Holdings plc owns
99.99% of the financial group.
HSBC México is a broad banking
franchise which offers a wide
range of corporate, business
and personal banking services.
HSBC Mexico is one of the leading
banking and financial services
institutions in the country.
Network
In order to meet the needs
of our customers, HSBC has
different customer segments
divided by Personal Financial
Services (PFS), Commercial
Banking (CMB) and Global
Banking and Markets (GBM).
The network in Mexico includes
more than 1,070 branches,
6,400 ATMs, and a presence
across the 31 Mexican states.
Historical Milestones
August 1941 Banco Internacional, S.A. is established in Mexico
City. It is the founding member of Grupo Financiero
Bital, S.A. de C.V
1980 Banco Internacional merges with 11 other major
Mexican Banks. It becomes known as Grupo
Financiero Bital, S.A. de C.V.
2000 HSBC acquires Republic National Bank of New York
(Mexico) S.A., and changes the name to HSBC
México, S.A.
November 2002 HSBC acquires Grupo Financiero Bital, S.A. de C.V.,
with a network of more than 1,300 branches and
6 million customer accounts; the biggest customer
base in Mexico.
December 2002 HSBC injects new capital of US$800 million into
HSBC México, S.A. to fortify and guarantee its
financial strength.
October 2003 Grupo Financiero Bital, S.A. de C.V. (‘GFBital’),
acquires the remaining 49% of shares
in Seguros Bital.
November 2003 Grupo Financiero Bital, S.A. de C.V. (‘GFBital’),
acquires 100% of the shares of Afore
Allianz Dresdner, S.A. de C.V., which it renames
to HSBC Afore.
January 2004 Grupo Financiero Bital, S.A. de C.V. changes its
name to Grupo Financiero HSBC S.A. de C.V.
July 2004 Grupo Financiero HSBC S.A. de C.V. acquires
Allianz Rentas Vitalicias.
December 2009 HSBC injects US$700 million of new capital into
HSBC México, S.A. to fortify its financial strength.
Awards for Excellence
‘Best Personal Banking
Internet Site 2010’
– Global Finance
‘Best Information
Security Initiatives
in Latin America 2010’
– Global Finance
Corporate Social
Responsibility
For HSBC, Corporate
Sustainability is about bringing
social and environmental
issues together with financial
performance to maintain and
grow a successful business for
the benefit of our stakeholders.
• We apply clear policies and
processes to manage potential
social and environmental risk in
our lending and other financial
activities in sensitive sectors.
• We help our clients to seize the
opportunities presented by the
shift to a low-carbon economy.
• We try to reduce our own
environmental footprint
and share good practice
on this with our clients
and other stakeholders.
• We focus our community
investment (philanthropic
activities) on education and
the environment.
Our education programmes
help to lift people out of poverty,
build financial literacy and promote
environmental awareness.
Our environmental programme
focuses on the HSBC Climate
Partnership – a five-year
environmental programme
to reduce the impact of
climate change on people,
forests, freshwater and cities.
HSBC’s programme partners
are carrying out original
scientific research, developing
demonstration projects,
creating working models, and
proving clear solutions so
that governments can enact
legislation for the adoption of
low-carbon policies. HSBC
Mexico supports several
programmes in commitment
with its community and
environment. According to
HGHQ policy of supporting
education, environment and
community, HBMX donated
in the first semester of 2011,
more than $18m.
’Sólo levanta la mano’ campaign.
In alliance with Lazos Foundation,
experts in education nationwide
who support underprivileged
children likely to drop out of
school if they don’t receive a
scholarship in the next school
year. The achievements for the
first semester are: 8 schools
supported, 1,120 students
sponsored by clients and
colleagues with a monthly
scholarship, training for 37 school
teachers. This school has also
been supported by the financial
education programme ’More
than Money’ and the regional
programme Zippy´s friends.
HSBC signed an investment of 40
million pesos over four years with
the National DIF with Prevention
and Treatment of Children and
Adolescents Migrants and
Returnees Unaccompanied.
in a four-year alliance.
Our head office in Mexico City,
the HSBC Tower, will continue
implementing energy saving
processes to reduce atmospheric
emissions, water consumption
measures and recycling water
as well as developing policies
and processes for a better
waste management.
We are a LEED certified
company granted by the U.S.
Green Building Council, which
means to be the first building
of this type in Mexico and
Latin America.
HSBC Mexico makes partnership
with different NGO´s for the
Green Insurance like WWF,
Probosquede Chapultepec Trust
and Cosejo Civil Mexicano para la
Silvicultura Sostenible.
Through our ATM donation
campaign in the months of April
and May, HSBC clients donated
to support 6 different NGOs that
care for children with cancer
around the Country (Fundación
Rebecca de Alba, AC) and also
a campaign to support education
in México with the Mexican
Bank’s Association (ABM)
thought ’Bécalos’.
HSBC Mexico is also awarded,
for the fourth consecutive year,
Socially Responsible Company
by the CEMEFI (Mexican
Centro for Philanthropy).

36
Country overview
Capital city
Area and population
Language
Currency
International dialling code
National Holidays
Business and banking hours
Major Stock exchanges
Political structure
Economic statistics (2009)
1 www.imf.org
2 www.reuters.com
Mexico City
Area of 1,964,375 sq km and population size of 112 million
Spanish
Peso
52
Scheduled Public Holidays for 2011
New Year’s Day January 1
First Monday of February in exchange for February 5
Third Monday of March in exchange for March 21
Labour Day May 1
Independence Day September 16
Third Monday in November in exchange for November 20
Every six years upon
inauguration of a
new president December 1
Christmas Day December 25
8 hours
BMV
Democratic republican government based on a congressional system
according to the 1917 Constitution
GDP US$875 billion 1
FDI US$11.4 billion 2

38
Contacts
Hector Macias Noriega Advisory
Tel: +52 (55) 5263 5854
Email: hector.macias@mx.pwc.com
http://www.pwc.com/gx/en/
worldwide-tax-summaries
Website: www.hsbc.mx
Phone: +52 (55) 5721 3150
Head Office: HSBC Mexico
Torre HSBC,
Av. Paseo de la Reforma,
347 Col. Cuauhtémoc, C.P. 06500
Mexico City, Mexico
1st Edition: December 2010
Copyright
Copyright 2011. All rights reserved.
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