With a stable economy and a strategic geographic location, Mexico offers many opportunities to businesses seeking to expand into North and Latin America. Haynes Boone attorneys Alberto de la Pena, Diego Sánchez, Joel González, Edgar Klee, Alejandro Gonzalez and Eduardo Corzo created a catalogue of information Chinese companies should know when investing in business in Mexico.
Read an excerpt below:
How to Set Up a Foreign Company in Mexico?
1. Overview
Mexico stands as a beacon of opportunity for businesses seeking to expand into North and Latin America, boasting a stable economy and a strategic geographic location. Mexico's extensive network of trade agreements, coupled with its commitment to open markets and foreign investment, positions it as one of the most trade-friendly and open economies in the world. In 2022, Mexico was the second largest recipient of foreign direct investment in Latin America. According to UNCTAD's World Investment Report 2023, foreign direct investment inflows increase by 11.9% to USD $35.3 billion in 2022.
In 2024, Mexico continues to attract foreign investment across various sectors, including manufacturing, technology, energy, real estate and finance. Understanding the legal framework and business environment is crucial for those considering entering the Mexican market or expanding their operations within the country.
2. Branches and Representative Offices
Pursuant to Mexico's Foreign Investment Law ("FIL"), a foreign company seeking to establish and register a branch or representative office in Mexico must request authorization from the Mexican Ministry of Economy ("ME"). The ME is required to respond to the application within 15 business days of its filing. However, certain resolutions issued by the National Commission of Foreign Investments of the ME, exempt foreign companies from China, Argentina, Australia, Austria, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Cuba, Denmark, Dominican Republic, Ecuador, El Salvador, France, Germany, Guatemala, Honduras, Italy, Japan, Netherlands, Nicaragua, Nigeria, Norway, Peru, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, United Arab Emirates, United Kingdom, United States and Uruguay from the requirement to obtain such authorization and will only need to submit a notice with certain details regarding the foreign company.
It is important to highlight that, any document submitted in a language other than Spanish before a Mexican governmental authority, must be translated into Spanish by a certified translator and include the corresponding apostille (if applicable).
