Doing Business in Mexico: How to Apply for REPSE in Mexico

Doing Business in Mexico

For companies looking to do business in Mexico, understanding compliance with Mexican labor regulations is crucial. One essential step is registering with the Public Registry of Providers of Specialized Services or Specialized Works (REPSE). REPSE registration is mandatory for foreign and domestic companies offering specialized services or subcontracted labor, and it helps ensure compliance with Mexico’s stringent labor and subcontracting reforms. In this guide, we’ll walk you through the REPSE application process, eligibility requirements, and key considerations to help you operate legally and efficiently in Mexico. Whether you’re expanding your business or establishing new services, understanding REPSE is critical for a smooth and compliant entry into the Mexican market.

What is REPSE?

REPSE, or the Registry of Providers of Specialized Services or Specialized Works, is a governmental registry in Mexico. It was introduced in 2021 to regulate subcontracting practices and ensure labor law compliance under the Federal Labor Law in Mexico.

The primary purpose of REPSE is to combat illegal subcontracting, protect workers' rights, and ensure fair labor practices. By registering with REPSE, companies demonstrate their commitment to legal and ethical standards.

Read more about REPSE for foreign business operations in Mexico

REPSE Application Process

Applying for REPSE in Mexico involves a detailed process to ensure compliance with the labor reform. Here’s a step-by-step overview of how to apply for REPSE:

Determine Eligibility

Companies that offer specialized services or works that fall outside of their client's core business activities are required to register. If your services are integral to the client's core business, REPSE registration is not applicable, and you cannot offer these services through outsourcing.

Necessary Documentation

The required documentation for REPSE registration includes proof of compliance with tax and social security obligations, financial statements, and detailed descriptions of the specialized services or works offered.

Application Procedure

You will need to prepare the following documents and data before starting the application process.

Prepare Documentation

1. Corporate name and taxpayer identification number (RFC)
2. Proof of compliance with tax obligations - obtain a "Constancia de Situación Fiscal" from Mexico's Tax Administration Service (SAT) that certifies your tax status is in order
3. Proof of compliance with Social Security obligations - ensure that you are up-to-date with payments to the Mexican Social Security Institute (IMSS) and the National Workers' Housing Fund (INFONAVIT)
4. Certificate of registration with the Mexican Business Information System (SIEM)
5. List of specialized services or works including the necessary industry codes (example NAICS)
6. Evidence of financial solvency, example financial statement

Submit Application

Go to the Ministry of Labor and Social Welfare (STPS) website and locate the REPSE registration portal. You will need to login using your company's "e-firma" (electronic signature) issued by the SAT. Fill out the application with details about your company. Upload the requested documents. Submit the application. You will receive an acknowledgement of receipt with a reference number for tracking the status of your application.

Review by the Ministry of Labor (STPS)

This review typically takes up to 20 business days but can vary by the volume of applications. Authorities may request additional documentation or clarifications during this period. Be prepared to respond quickly to avoid delays.

Obtain REPSE

If your application is approved, you will receive a REPSE Registration Certificate with your company's registration number. This certificate allows you to legally offer specialized services or works in Mexico. Your company will be listed in the Public REPSE Registry, accessible to companies looking for service providers.

Renew REPSE

The REPSE certification is good for 3 years. Since its implementation in 2021, the expectation during 2024 is that 89,735 REPSE certificates will need to be renewed, according to the Secretary of Labor and Social Security. The peak month of renewal is September 2024 with more than 23,000 REPSE renewals scheduled. The renewal process must be processed three months prior to the date of expiration of the REPSE.

Required documents:

• Proof of compliance with fiscal and social security obligations from SAT, IMSS and INFONAVIT
• Realize the renewal process during the 3 months prior to the expiration date of REPSE
• Update information and documentation utilized for the initial registration
• Verification of activities
  

RENEWAL CALENDAR FOR CERTIFICATIONS OBTAINED IN 2021