Companies should plan around delays, file corporate registration certificate requirements early
6 Feb 19
IMPACT – HIGH
What is the news? The new Obrador administration has made several staffing changes at the National Migration Institute (INM) regional offices that directly affect the adjudication of Temporary Residence Visas. The staffing changes may also have an impact on corporate registration filings in the first quarter of 2019.
What do the delays mean? Companies should plan ahead regarding adjudication delays, which are to be expected with a new administration. Additionally, companies should file taxes and corporate registration documentation as early as possible.
- Visas/permits affected: Temporary Residency visas for both seconded workers and those on Mexican payroll; corporate registration filing requirement.
- Employee impact: Foreign employees already in Mexico need to plan ahead, as they cannot exit and reenter the country until they receive their Temporary Residency ID card; employees planning to start assignments may experience delayed start dates.
- Business impact: Companies that do not plan for delays and complete corporate filings in advance may experience a lapse in sponsorship abilities for Temporary Residence Visas.
- Next steps: Companies should work with employees to plan around adjudication delays.
Background: INM staffing changes are impacting adjudication times in a number of regions, including Mexico City, Monterrey, Guadalajara and the Bajio. Once newly appointed INM staff are sworn in, delays should taper off. Additionally, the Obrador administration is focusing INM resources on migrants and asylum seekers from Central America, and this has contributed to delays as well.
Employees cannot exit and reenter Mexico until their Temporary Residence ID Cards are issued, and the application process must be initiated within 30 days after they first arrive in Mexico. Employees who need to travel internationally should plan in advance and seek assistance obtaining permission to leave the country.
Mexican companies that employ foreign nationals should update their corporate registration certificate with INM as soon as their annual tax returns for 2018 are completed. The tax filing deadline is March 30, and the corporate registration filing is required to be completed 30 days after the tax filing. To prevent any sponsorship disruptions, companies should work with the INM to validate certificates before the end of April. Per current regulations, company representatives may be required to make an in-person appearance to complete the company registration process at the local regional office.
Analysis & Comments: Employers and employees should plan ahead for delays, as they will require additional time to complete the Temporary Residence Visa process. Companies should file tax documents in advance of the March 30 deadline and complete the subsequent corporate registration certificate updates as soon as possible to prevent any lapse in their ability to sponsor foreign nationals
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.