Mexico Country Profile business trade issues

Mexico

DOING BUSINESS

Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

A few aids allow investors to facilitate their setting-up in Mexico. Indeed, foreign companies benefit from the same treatment as Mexican companies. Foreign companies can set up in about a hundred industrial parks. These parks allow them to benefit from simplified formalities and different aids. The Mexican Investment Board and the.can be contacted in order to obtain further information.

Furthermore, there are different programmes aimed at encouraging the export of manufactured products.
The Programa de Importacion Temporal para Producir Articulos de Exportacion is a temporary import programme.
The Programa de Empresas Altamente Exportadoras is a subcontracting programme for export and for highly exporting companies.
These programmes give right to certain advantages: financial assistance, reduction of customs clearance procedures VAT reimbursement (IVA - impuesto sobre el valor agregado. 15% rate)
Some pieces of information concerning investment conditions in Mexico can be provided by the Mexican Bank for Foreign Trade (BANCOMEXT).

Legal forms of companies

Form	Number of partners/shareholders	Minimum and/or maximum capital	Liability	Registration fee	Release of financial documents
Sociedad a Responsabilidad Limitada is a Private Limited Company	Minimum 2. Maximum 50	Minimum MXN 3,000. Each partner must bring in at least 50% at the constitution.	Liability is limited to the amount contributed.		Yes, if the company is quoted on the stock-exchange.
Sociedad en nombre Colectivo is a general partnership	No minimum One of the partners must be appointed as a manager of the company.	No minimum capital.	Liability is unlimited.		No
Sociedades en Comandita is a limited partnership.	No minimum	No minimum capital.	Liability is limited to the amount contributed for certain partners and unlimited for others.		No
Sole Proprietorships is a sole proprietorship.	1 person	No minimum capital.	Liability is unlimited.		No
Sociedad Anonima de Capital variable (S.A. de C.V) is Public Limited Company with variable capital.	Minimum 2, one of them should be the administrator. No maximum.	Maximum MXN 50,000. 20% released at the constitution.	Liability is limited to the amount contributed.		Yes
Sociedad Anonima is a Public Limited Company.	Minimum 2, one of them should be the administrator. No maximum.	Maximum MXN 50,000. 20% released at the constitution.	Liability is limited to the amount contributed.		Yes

Registration and licensing procedures
Status must be drawn up in Spanish in a deed drawn up by a solicitor. Beforehand, the Ministry of Foreign Affairs must grant an authorization of constitution.

Foreign exchange control
Currency exchange controls have been suspended in 1991. Today, free conversion of currencies is carried out as well as the right to transfer profits and capital with no limitation of amount or time.

Regulations concerning equity investment
A majority holding interest in the capital of a Mexican company is legal, except in certain sectors.

Foreign Direct Investment inflows in Mexico

FDI inflows	2003	2004	2005	World rank (*) 2005
FDI inflows (USD million)	14 184	18 674	18 055	75/141

Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

Last modified in 2006 - ongoing update