Investment framework and opportunities in Mexico
Procedures Relative to Foreign Investment
- Freedom of Establishment
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Guaranteed
- Acquisition of Holdings
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Having a majority of capital holdings in a Mexican corporation is legal, though there are some limitations. There are certain strategic sectors in which the percentage of foreign investment is legally regulated and limited in the following manner (Article 7, Foreign Investments Law - Ley de Inversión Extranjera):
- Up to 10% in co-operative production associations.
- Up to 25% in local air transportation.
- Up to 49% in insurance and bonding companies; currency exchange houses; leasing companies; factoring companies; investment funds (not private equity companies); companies involved in the manufacture and sale of explosives and firearms; newspapers, cable TV and basic telephone services; and port administration.
For more information, see the text of the the Mexican foreign investment law governing such limitations.
- Obligation to Declare
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The laws restricting or regulating certain takeovers and mergers are the following:
- Foreign Investment Law (Ley de Inversión Extranjera)
- Federal Antitrust Law (Ley Federal de Competencia Económica)
- Securities Law (Ley del Mercado de Valores)
- Competent Organisation For the Declaration
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Mexican Federal Tax Administration (in Spanish)
- Requests For Specific Authorisations
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A special authorisation is needed for foreign ownership from the National Foreign Investments Commission (Comisión Nacional de Inversiones Extranjeras) when foreign investment will exceed 49% in: Shipping companies, Air terminals, Cellular-telephone services.
To find out the total that must be declared visit the Mexican Federal Tax Administration.
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Latest Update: July 2024
Mexico: Investing in Mexico
