Concanaco proposes law to formalize 1 million Mexican businesses

The Confederation of National Chambers of Commerce, Services and Tourism (Concanaco Servytur) has proposed a National Law for Transition to Formality in Mexico. The initiative aims to transition approximately 30% of informal economic units—roughly 1.05 million businesses—into the formal regulatory scheme within the next year.

Currently, 67% of Mexico's 6.1 million micro, small, and medium-sized enterprises (MSMEs) operate informally, contributing to a national employment informality rate of 55%. The proposed program follows a three-phase implementation: accompaniment through fiscal and labor diagnostics, regularization based on commercial activity and risk, and consolidation through access to financing, training, and regulatory stability.

To support this transition, Concanaco has proposed specific fiscal adjustments, including increasing the annual income limit for individuals under the Simplified Trust Regime (RESICO) from 3.5 to 5 million pesos and raising the limit for legal entities from 35 to 50 million pesos. Additionally, the proposal suggests a simplified 7% VAT option to reduce administrative burdens for small family businesses. These proposals have been presented in working sessions with President Claudia Sheinbaum Pardo and the Ministry of Finance.