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Registering in the Mexican Business Information System (SIEM by its Spanish acronym)

Recently, we were consulted by one of our foreign clients who was paid a visit by an individual identifying himself as an employee of the Secretariat of Economy (Secretaría de Economía in Spanish) and who informed him that it is obligatory to register with the Mexican Business Information System (Sistema de Información Empresarial Mexicano in Spanish or SIEM).

In consideration of the foregoing, we believe it necessary to be familiar with what this Information System is about, and whether or not registration is indeed obligatory for business corporations.

 

What is the SIEM?

The SIEM is the Mexican Business Information System comprised of a complete registry of existing companies from both a pragmatic and promotional outlook, accessible via the Internet to confederations, authorities, companies and the general public.[1]

 

What is the legal basis of the SIEM?

Article 30 of the Law on Business Chambers and their Confederations (Ley de Cámaras Empresariales y sus Confederaciones in Spanish), published the 20th of January, 2005 in the Official Gazette of the Federation (Diario Oficial de la Federacion or DOF in Spanish) sets forth that all merchants and industrialists, without exception and obligatorily, must register each of their establishments with the SIEM, updating same annually.

This shall not be obligatory for all those merchants and industrialists who are neither established nor subject to a fiscal regime (taxation).[2]

 

What are the objectives of the SIEM?

The objectives of the SIEM, among others are:

1) To become a common base of information for promoting the programs of the Secretariat of Economy.

2) To establish itself as a nation-wide central business information system), as well as an information link with both national and foreign external systems.

3) To become integrated into a nation-wide, readily accessible database.

4) To support the generation of statistical and economic studies.

5) To be a business-information reference site for promoting businesses.

6) To become a virtual business center for promoting micro, small and medium enterprises.

 

How much do I need to pay?

The maximum parameters as published in the Official Gazette of the Federation [3] are:

Rates for industrial companies (maximum fees)    6 or more employees $ 670    3 - 5 employees $ 350    Up to 2 employees $ 150   Rates for commerce and service companies (maximum fees)    4 or more employees $ 640    3 or less employees $ 300    Up to 2 employees* $ 100

* You can refer to a list of those companies which, based on their activities, pay $100.00 pesos at: http://www.siem.gob.mx/siem2008/ayuda/Actividades.asp

 

How are companies registered?

Operators are responsible for securing the information needed from the companies.

The operators can do so in one of the following three ways:

1) A visit to the company: Using this procedure, operators will send a duly-accredited promoter/interviewer to the official domicile of the company in order to secure the information in the appropriate format and collect payment of the rate as appropriate.

2) Direct intake at operator facilities: Using this procedure, the companies may report to the official domicile of the operators, their branches, agencies or service modules, and provide their data directly at the counter set up for that purpose.

3) By certified mail, fax or e-mail.[4]

 

When should companies register?

A) Newly-created companies:  Two (2) months following the date of its filing (registration) with the Ministry of Finance and Public Credit (Spanish: Secretaria de Hacienda y Crédito Público commonly referred to as Hacienda, is the Mexican equivalent of the Treasury Department in the U.S.).

B) Updating registration data: Annually.  In this case, a year is considered as one calendar year. Thus, if you register in September of 2006, you will need to register again in September of 2007.

Whenever a company ceases its activities, whether in part or in their entirety, or changes its line of business or has a change in domicile, it should make such known to the appropriate operators within a period of two (2) months from the date said events occur.[5]

 

Is there any sanction (fine) if as a merchant I do not register with the SIEM?

Pursuant to Article 40 of Law on Business Chambers and their Confederations, the Secretariat of Economy shall impose a sanction on those merchants or industrialists who commit the following acts, with a fine equivalent to anywhere between 200 to 600 times the minimum wage depending on the economic means of the offender:

I. Failure to comply with its obligation to register in a timely fashion with the SIEM, or do not register all its establishments, or provides incorrect or incomplete information at registration; or

II. Failure to comply with their obligation to inform the corresponding Chamber for SIEM registration purposes when it ceases their activities, whether in part or in their entirety, or changes its line of business or has a change in domicile.

In the event of a repeat offense, a fine of up to double the previous sanction may be imposed.

 

CONCLUSION

As you may realize after reading the foregoing, it is indeed obligatory to register your companies with the SIEM.

Therefore, in México, when setting up a business corporation, it is necessary to register said company primarily with the:

1) Public Registry of Commerce (Registro Público de Comercio in Spanish).

2) Federal Taxpayer Registry (Registro Federal de Contribuyentes, or RFC in Spanish).

3) National Registry of Foreign Investment (Registro Nacional de Inversiones Extranjeras in Spanish), in the event the corporation has foreign investments.

4) Mexican Business Information System (Sistema de Información Empresarial Mexicano or SIEM in Spanish).

 

When an individual operates and administers his own business, he should register with the:

1) Federal Taxpayer Registry (Registro Federal de Contribuyentes, or RFC in Spanish).

2) National Registry of Foreign Investment (Registro Nacional de Inversiones Extranjeras in Spanish), should he be a foreigner.

3) Mexican Business Information System (Sistema de Información Empresarial Mexicano or SIEM in Spanish).

Therefore, whether you are setting up a business corporation or opening your own business, we advise you to execute this registration in due time.