Mexico

Financial Reporting Obligations for Companies in Mexico

1. Registry for Submitting Financial Statements

In Mexico, companies are required to submit their financial statements (annual reports) to the Registro Público de Comercio (RPC) (https://www.gob.mx/se/) (Public Registry of Commerce). Additionally, submissions must be made to the Servicio de Administración Tributaria (SAT) (https://www.sat.gob.mx/) (Tax Administration Service), which handles tax-related reporting. Companies listed on the Mexican Stock Exchange must also submit financial reports to Bolsa Mexicana de Valores (BMV) (https://www.bmv.com.mx/) (Mexican Stock Exchange).

Public Access to Financial Statements:

In Mexico, financial statements of listed companies are publicly available through the Mexican Stock Exchange (BMV) (https://www.bmv.com.mx/).

However, financial reports of private companies (S. de R.L., S.A. and other non-listed entities) are not publicly accessible. Such reports are filed with regulators but are not disclosed to the general public.

2. Legal Forms Obliged to Publish Financial Statements

The following legal forms in Mexico are obliged to submit and publish their financial statements (annual reports). These legal forms and their obligations are based on the Mexican Ley General de Sociedades Mercantiles (General Law of Commercial Companies):

  • Sociedad Anónima (S.A.)
    Translation: Joint Stock Company
    Notes: Required to submit annual financial statements to the SAT and RPC. Audits are required if certain thresholds are met.
  • Sociedad de Responsabilidad Limitada (S. de R.L.)
    Translation: Limited Liability Company
    Notes: Required to submit annual financial statements to the SAT and RPC. Audits are required if certain thresholds are met.
  • Sociedad Anónima Bursátil (S.A.B.)
    Translation: Publicly Listed Company
    Notes: Companies listed on the BMV are required to submit their financial statements to the stock exchange, SAT, and RPC. Audits are mandatory regardless of thresholds.
  • Sociedad en Comandita Simple (S. en C.S.)
    Translation: Limited Partnership
    Notes: Required to submit annual financial statements to SAT and RPC. Audits are required if certain thresholds are met.
  • Sociedad en Comandita por Acciones (S. en C.A.)
    Translation: Partnership Limited by Shares
    Notes: Required to submit annual financial statements. Audits are required if thresholds are exceeded.
  • Sociedad en Nombre Colectivo (S. en N.C.)
    Translation: General Partnership
    Notes: Required to submit financial statements to SAT and RPC, but auditing is only mandatory if certain thresholds are met.
  • Sociedad Cooperativa (S.C.)
    Translation: Cooperative Society
    Notes: Required to submit annual financial statements to SAT and RPC. Audits are mandatory if specific financial thresholds are exceeded.
  • Sociedad de Acciones Simplificadas (S.A.S.)
    Translation: Simplified Joint Stock Company
    Notes: Required to submit annual financial statements. Auditing is only required if the company exceeds financial thresholds.

Legal Forms Not Obliged to Publish Financial Statements:

  • Persona Física con Actividad Empresarial
    Translation: Natural Person with Business Activity
    Notes: Not required to submit financial statements publicly but must maintain records for tax purposes.
  • Asociación Civil (A.C.)
    Translation: Civil Association
    Notes: Generally exempt from publishing financial statements unless engaged in significant economic activities.
  • Persona Moral sin Fines de Lucro
    Translation: Non-Profit Legal Entity
    Notes: Not required to publish financial statements unless engaging in commercial activities beyond thresholds.

3. Companies Requiring Audited Financial Statements

In Mexico, the requirement to audit financial statements depends on the legal form of the company and whether certain thresholds are exceeded. The thresholds include turnover, total assets, and number of employees, as specified in the Ley General de Contabilidad Gubernamental (General Governmental Accounting Law) and the Ley del Impuesto Sobre la Renta (Income Tax Law).

Legal Form

Audit Rule

Criteria (must meet at least two of the three)

Sociedad Anónima (S.A.)

Mandatory audit if thresholds are exceeded

- Turnover (more than) MXN 100 million - Total assets (more than) MXN 50 million - More than 250 employees

Sociedad de Responsabilidad Limitada (S. de R.L.)

Mandatory audit if thresholds are exceeded

- Turnover (more than) MXN 100 million - Total assets (more than) MXN 50 million - More than 250 employees

Sociedad Anónima Bursátil (S.A.B.)

Audit always required

No minimum thresholds; audit is mandatory for all S.A.B. (listed companies)

Sociedad Cooperativa (S.C.)

Audit required if thresholds are exceeded

- Turnover (more than) MXN 100 million - Total assets (more than) MXN 50 million - More than 250 employees

Sociedad en Comandita Simple (S. en C.S.)

Audit required if thresholds are exceeded

- Turnover (more than) MXN 100 million - Total assets (more than) MXN 50 million - More than 250 employees

Sociedad en Comandita por Acciones (S. en C.A.)

Audit required if thresholds are exceeded

- Turnover (more than) MXN 100 million - Total assets (more than) MXN 50 million - More than 250 employees

Sociedad en Nombre Colectivo (S. en N.C.)

Audit required if thresholds are exceeded

- Turnover (more than) MXN 100 million - Total assets (more than) MXN 50 million - More than 250 employees

Sociedad de Acciones Simplificadas (S.A.S.)

Audit required if thresholds are exceeded

- Turnover (more than) MXN 100 million - Total assets (more than) MXN 50 million - More than 250 employees

4. Local Stock Exchange and Financial Statements Publication

Companies listed on the Bolsa Mexicana de Valores (BMV) (https://www.bmv.com.mx/) must publish their financial statements according to the exchange's regulations.

5. Deadline for Submitting Financial Statements

The deadline for submitting financial statements is generally within three months after the end of the fiscal year. For companies listed on the BMV, stricter deadlines apply based on exchange rules.

6. Companies Submitting Partial Financial Statements

Certain smaller companies, particularly Sociedad de Acciones Simplificadas (S.A.S.), are allowed to submit simplified financial statements if they meet specific turnover and asset criteria.

7. Consequences for Late Submission of Financial Statements

Failure to submit on time can lead to fines from MXN 10 000 to MXN 100 000 and legal actions. Continued failure may result in being struck off the RPC.

8. Requirements for Foreign-Owned Branches and Newly Established Companies

Foreign-owned branches must submit financial statements in line with Mexican law and parent regulations. Newly established companies must submit their financial statements by the end of their first fiscal year. Audit requirements depend on legal form and thresholds.

Sources

Source Link
Registro Público de Comercio (RPC) https://www.gob.mx/se/
Servicio de Administración Tributaria (SAT) https://www.sat.gob.mx/
Bolsa Mexicana de Valores (BMV) https://www.bmv.com.mx/
Ley General de Sociedades Mercantiles https://www.diputados.gob.mx/LeyesBiblio/pdf/144_140223.pdf
Ley General de Contabilidad Gubernamental http://www.diputados.gob.mx/LeyesBiblio/pdf/LGCG.pdf
Ley del Impuesto Sobre la Renta (ISR) https://www.diputados.gob.mx/LeyesBiblio/pdf/LISR.pdf
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