Active registration
Current STPS folio covering the specialized activities we actually perform for clients.
Compliance guide
REPSE in Mexico: What US Companies Must Know
REPSE is the STPS register that a Mexican supplier must hold before it can legally provide specialized services with its own personnel. If your supplier is not registered for the right activity, your invoices are not deductible, the VAT is not creditable, and you can be held jointly liable for their labor obligations.
Last reviewed: September 2, 2026 · Reviewed by the Staffing in Mexico delivery team, a Gracemark Global Group company. General business information, not legal or tax advice. The appropriate structure depends on the facts of each project.
Mexico's 2021 labor reform ended personnel subcontracting. Supplying workers for another company's core activity is now prohibited outright, and everything that remains, genuinely specialized services and specialized works, is only lawful when the provider is registered in REPSE for the exact activities it performs.
For US buyers this changes the diligence question. It is no longer enough to ask whether a supplier is reputable; you have to check that the folio exists, that it is current, that the registered activity matches the scope of work, and that the provider files ICSOE and SISUB reports on time.
We hold active REPSE registration for the specialized services we deliver, file the ICSOE and SISUB reports on the applicable four-month (cuatrimestral) schedule, and hand you the evidence file your tax and legal teams will ask for. We also tell you when REPSE is not the right structure, many engagements are better handled as recruitment, Employer of Record or direct employment, where REPSE does not apply at all.
Definition
REPSE (Registro de Prestadoras de Servicios Especializados u Obras Especializadas)
A public register maintained by Mexico's Ministry of Labor (STPS) listing companies authorized to provide specialized services or works with their own personnel. Registration is activity-specific and renews every three years.
What you get
Four-month (cuatrimestral) reporting
ICSOE (IMSS) and SISUB (INFONAVIT) filings submitted on the applicable four-month reporting periods and evidenced to you.
Contract structure
Service agreements that define scope, specialization and deliverables the way the reform requires.
Evidence file
Constancias, payroll proof, CFDI records and social-security payment evidence for your audit file.
Model selection
An honest read on whether your engagement is specialized services, EOR, recruitment or direct employment.
Supplier audit
We review your existing Mexican suppliers' registrations and flag the ones that expose you.
Which model applies to your engagement
| Your situation | Correct model | REPSE required |
|---|---|---|
| You need a permanent employee hired | Recruitment / direct hire | No |
| You need to employ someone with no entity | Employer of Record | No |
| You use independent contractors | Agent of Record | No |
| Our staff perform a specialized service in your plant | Specialized services | Yes |
| We run an outsourced function end to end | Managed BPO / SOW | Yes, where personnel are deployed |
| You want your core activity outsourced | Not permitted in Mexico | N/A |
Enterprise and MSP programs
Programs delivered inside enterprise and MSP frameworks
Netflix: Latin America expansion, one country at a time
Netflix needed to stabilize a new Latin America program quickly, run from the United States without a local entity in each market.
Gracemark became the local staffing and payroll supplier across the region, supporting compliant local invoicing market by market and earning a formal client award.
Experience shown belongs to Gracemark group teams and companies, including work delivered outside Mexico. Relationships referenced: Netflix, NextSource, Magnit, AgileOne, KellyOCG.
What we commit to on this type of engagement
- Supplier onboarding, compliance documentation and program reporting handled by our team
- Multi-market delivery coordinated under one accountable relationship
- Local invoicing and employment structures adapted market by market
- Recurring, multi-year placement programs administered end to end
Frequently asked questions
What is REPSE in Mexico?+
REPSE is the Registro de Prestadoras de Servicios Especializados u Obras Especializadas, the public register kept by Mexico's Ministry of Labor (STPS). Any company that provides specialized services or specialized works with its own personnel to another company must be registered before it can legally invoice for that service.
Who needs REPSE registration?+
The service provider, not the client. If your supplier places its own workers inside your operation to perform a specialized service, that supplier must hold a valid REPSE registration for the specific activities it performs.
What happens if my supplier is not REPSE registered?+
The invoices are not tax deductible and the VAT is not creditable. The contracting company can also be treated as jointly liable for the supplier's labor and social security obligations, and fines can reach into the millions of pesos.
Can REPSE be used to outsource core business activity?+
No. Mexico's 2021 reform prohibits the outsourcing of personnel for a company's core purpose (objeto social) or predominant economic activity. REPSE only covers genuinely specialized services that differ from the client's core activity.
How long is a REPSE registration valid?+
Registration must be renewed every three years, and providers file ICSOE and SISUB reports on the applicable four-month (cuatrimestral) reporting periods covering social security and contract information. A registration can be revoked, so buyers should verify current status, not just the existence of a folio number.
Is REPSE required for Employer of Record or recruitment?+
Not usually. Recruitment ends when the employee joins, and EOR is a direct employment relationship rather than the supply of personnel for a specialized service. REPSE applies where our people perform a service inside your operation. We confirm which regime applies to your model before contracting.
How do I verify a REPSE registration?+
Ask for the folio, the registered activities and the STPS constancia, then confirm the activity listed actually matches the service being provided. A registration for a different activity does not protect the engagement.
Sources and methodology
- Author
- Staffing in Mexico delivery team, A Gracemark Global Group company
- Reviewer
- Mexico workforce compliance review, A Gracemark Global Group company
- Last reviewed
- September 2, 2026
- What changed in this review
- Reviewed against the current Ley Federal del Trabajo text, the enacted 2026 to 2030 weekly working-hours transition and the 2026 CONASAMI minimum-wage resolution.
Primary sources
- STPS: REPSE, registry of specialized services providers
- STPS: Secretaría del Trabajo y Previsión Social
- Cámara de Diputados: Ley Federal del Trabajo, current text (PDF)
- SAT: tax obligations and payroll CFDI
- IMSS: employer registration and contributions
- Diario Oficial de la Federación
Official Mexican sources are cited directly so you can verify every figure. General business information, not legal or tax advice. The appropriate structure depends on the facts of each project.
Tell us what you need in Mexico.
Send the roles, the headcount or just your question. We come back with a clear recommendation and what it costs.
- A Mexico specialist replies within one business day
- You get a REPSE applicability read, a scope structure and the documentation requirements.
- No obligation, no exclusivity, no lock-in
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Talk to a Mexico Specialist
You get a REPSE applicability read, a scope structure and the documentation requirements.