 A Sole Proprietorship is only applicable to individuals with business activities in Mexico (foreigners with immigration status or Mexican nationals). This is called “Actividad Empresarial” and this is the structure in which an individual engaged in any business activity can pay their taxes.
There are different types of business activities in Mexico: commercial, industrial, fishing, livestock and forestry.
Those who perform the above activities are required to pay the following taxes:
» “Impuesto sobre la renta (ISR)” – Income tax
» “Impuesto al Valor agregado (IVA) – Sales Tax
» “Impuesto al Activo” – Asset Tax
» They can also be subject to production and service tax. (“Impuesto sobre producción y servicio”)
Any individual can open or do business in his/her own name and is considered as a single entity for tax and liability purposes.
A sole proprietorship in Mexico is a company by itself and does not need to be registered as a corporation.
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