The Mexican Business Information System (SIEM), is a registry created by the Ministry of Economy that in the last decade has been gaining relevance within the Mexican business and industrial environment. In spite of the above, in our experience it is common that many companies are unaware or ignore its existence, but even more important, the sanctions that the authority can issue for not registering in it.
Legal Obligation to register in the SIEM
According to Article 30 of the Law of Business Chambers and their Confederations (LCEC), all companies, without exception, must register their establishments in the SIEM. This registration must be made within two months of the start of operations or registration with the Ministry of Finance and Public Credit (SHCP). The fee for this procedure varies according to the number of employees of the company, with a maximum cost of $670.00 for those with four or more employees.
Registration Procedure
Companies must complete a form that includes basic information such as company name, RFC, business name, location and contact details. A general profile of the company is also required, including aspects such as date of commencement of operations, type of company, main activity, and details on exports or imports. The company must also pay the registration fee mentioned in the previous point.
Registration in the SIEM is valid for one year and must be renewed annually. In addition, any change in the line of business, domicile or cessation of activities must be notified to the corresponding chamber within two months of the change.
Penalties for Non-Compliance
It is essential to comply with this obligation to avoid penalties. Failure to register or to renew annually may result in fines ranging from 200 to 600 times the value of the UMA (approximately between $21,714.00 and $65,142.00 by 2024). In case of a repeat offense, the fine is doubled. Only the Ministry of Economy is empowered to impose these penalties, and the decisions may be challenged through an appeal for review.
Usefulness and Validity of the Registration
The information provided through the SIEM is used to design promotional strategies and for planning business policies at the federal, state and municipal levels, and this data cannot be used as evidence before tax or administrative authorities, so it does not generate direct implications in this area.
At Vega, Guerrero & Asociados we are at your disposal to assist you in the process of registration or renewal in the SIEM, and thus avoid possible sanctions. We can also provide legal advice in case you need to challenge administrative resolutions issued by any Federal, State or Municipal authority.
