Business Operation Licenses
The business operation license is the authorization granted by the Municipal authorities, for the development of business activities in a determined establishment, in favor of the holder of the same (hereinafter the “License”).
The Finance Law for the Municipality of Los Cabos, Baja California Sur (hereinafter the “Law”), in its Article 169, provides the obligation set forth as following: “All owners or contributors of business lines or business activities, industrials and of services must be registered in the Record of Taxpayers Contributors for the Municipality of Los Cabos, within the next 30 (thirty) days following to the date of the beginning of operations, provided that they fulfill the registration requirements established by the respective laws and regulations and, obtain their operation license and annual renewal for each one; making the payment of fees in the amount of 7 (seven) times the daily value of the Unit of Measure and Update”.
The annual renewal of Licenses will start the first day of January and will conclude the last day of March, and may be extended in a general manner when determined by means of a written agreement, by the Municipal General Treasury Office (hereinafter the “Treasury Office”), not exceeding such extension of the last day of April.
The Licenses will be granted for each business line without considering the address or the owner, previously to a study practiced by the Municipal authorities for these purposes. It is understood for business line all concrete activity, either commercial, industrial, or of services rendering, according the classification of the record lists of the Treasury Office. The establishments operating diverse concrete activities, must obtain a License for each one of them.
The Licenses granted by the Municipal authority do not grant their holders permanent or definitive rights; therefore, the authority that issues them may at any time, in the cases set forth by the Law, rules its revocation without the right of reimbursement of any amount and the companies of any nature that, due to the development of their activities, is necessary to assign inspection agents or municipal controllers, or both at the same time, either for the monitoring or application of the regulations or governmental dispositions or to monitor the collection of the tax, must cooperate for the accomplishment of such acts.
Restricted Business Lines.
In the case of restricted business lines concerning the sale and consumption of alcohol beverages, the procedures provided by the Law that regulate the Storage, Distribution, Sale and Consumption of Alcoholic Beverages for the State of Baja California Sur and its Regulations shall be followed.
In the event of change of name or corporate name, domicile or activity, assignment of rights and obligations or closure of business, contributors are bound to return the Licenses to the Treasury Office, simultaneously with the corresponding notice. The noncompliance of this provision will be sanctioned with a fine of 10 (ten) to 15 (fifteen) times the daily value of the Unit of Measure and Update.
Any commercial establishment purporting to operate extraordinary hours, different than the schedule set forth by the Municipal Police Department, as well as provisions that regulate specialized matters, will request authorization to the Treasury Office and register its schedule in the pertaining offices; otherwise a fine of 20 (twenty) to 100 (one hundred) times the daily value of the Unit of Measure and Update will be imposed.
- Contributors are bound to place in a visible part of the establishment the License and to show to the inspection agents and other authorities duly identified, the documents requested for the operation of their activities, as well as to provide all the information necessary for the revision or the corresponding research. The violation of these provisions will be sanctioned with a fine of 25 (twenty-five) to 75 (seventy-five) times the daily value of the Unit of Measure and Update. The foregoing without prejudice of the criminal liability that may be incurred.
- The lack of opportune declarations, as well as the falsehood of data contained therein, the opposition to inspection visits leading to the correct determination of the taxable base, and, in general, the noncompliance of tax obligations will be sanctioned, regardless of the criminal liability incurred, with a fine of 25 (twenty-five) to 100 (one hundred) times the daily value of the Unit of Measure and Update.
- The business lines that are not registered in the corresponding record list, and those that have not obtained a License for their operation or are operating breaching the terms of the License granted, will be closured by the Tax authorities and will be sanctioned with a fine of 10 (ten) to 15 (fifteen) times the daily value of the Unit of Measure and Update, accordingly to the procedure set forth in the corresponding Title of the Law. All contributor subject to these business lines is bound to notice the corresponding office in the event of change of name, business name or corporate name, domicile, in the event of assignment of rights and obligations, or of any act that modifies the record lists, within the next 30 (thirty) days following the verification of the act.
Note: This document is a summary with disclosure purposes only. It does not constitute a legal opinion and may not be used or cited without our prior written consent. We assume no responsibility for the content, scope or use of this document. For any comments regarding this Memorandum, please contact any member or attorney of Consulbaja S.C.