Background on TMF Group and Relevance
TMF Group, a leading provider of business solutions for global businesses, recently published its findings on the Global Corporate Complexity Index 2025. The report evaluates 79 jurisdictions worldwide to analyze the administrative burden faced by companies when dealing with business regulations in different countries.
TMF Group’s insights are crucial for understanding the challenges companies encounter in various markets. Their expertise and extensive network make their reports valuable resources for businesses looking to navigate complex regulatory environments.
Mexico’s Rising Complexity in Doing Business
According to the report, Mexico has climbed one notch in terms of business complexity, now ranking third, just below Greece and France. This increase is primarily due to recent labor law modifications that have benefited workers, such as regulations around home office arrangements and the Ley Silla.
These changes reflect a focus on enhancing employee well-being while maintaining stringent compliance requirements. Dunia Salomon, Country Head of TMF Group Mexico, emphasized that businesses should anticipate these shifts and adapt their strategies accordingly.
Key Labor Law Changes in Mexico
- Home Office Regulations: New rules have been established to accommodate remote work arrangements, adding complexity for businesses to ensure compliance.
- Ley Silla: This labor law reform aims to protect workers from excessive work hours and promote a better work-life balance.
- Other Legislative Initiatives: Various proposals have been presented and approved in Congress, further shaping the labor landscape in Mexico.
Nearshoring Strategy in Mexico
Despite recent changes in US trade policies, Dunia Salomon highlighted that nearshoring remains a vital strategy for businesses. Nearshoring refers to outsourcing business processes to nearby countries, often in Latin America, to take advantage of proximity, cultural alignment, and cost benefits.
Salomon explained that although there might be uncertainty in the legislative agenda, nearshoring continues to be a key strategy for companies seeking to optimize operations and maintain competitiveness.
Key Questions and Answers
- What is the Global Corporate Complexity Index? It’s a report by TMF Group that evaluates the administrative burden faced by companies in 79 jurisdictions worldwide when dealing with business regulations.
- Why has Mexico’s ranking increased in the index? Recent labor law changes, such as home office regulations and the Ley Silla, have added complexity for businesses operating in Mexico.
- What is nearshoring? Nearshoring is the practice of outsourcing business processes to countries close to one’s home market, often in Latin America, to leverage proximity, cultural alignment, and cost benefits.
- How should businesses adapt to these changes in Mexico? Companies should anticipate shifts in regulations and develop strategies to ensure ongoing compliance, as highlighted by Dunia Salomon from TMF Group Mexico.
