FORMING AND OWNING A MEXICAN CORPORATION

Foreigners wanting to set up and operate a business in Mexico may want to know some of the options available to them before making a decision.

Following is some general information regarding incorporating a business in Mexico.

The Foreign Investment Law of Mexico allows for 100% investment capital ownership of Mexican corporations by foreigners in those areas not reserved exclusively for the Mexican Nation (Government) or for capital participation in lesser percentages.

 The limitations are as follows

 AREAS RESERVED EXCLUSIVELY FOR THE NATION, IN WHICH FOREIGNERS CANNOT PARTICIPATE

 Oil (petroleum) and other hydrocarbons.

Basic Petrochemicals.

Electricity.

Nuclear energy generation.

Radioactive minerals.

Telegraph.

Radio telegraphs.

Mail.

Currency printing.

Minting.

Control, supervision and surveillance of ports, airports and heliports; and

Those other expressly designated in the applicable laws.

Activities and corporations exclusively reserved for Mexicans and Mexican Corporations with foreigners exclusion clause:

Land transportation of national passengers, tourism and freight, without including parcel and messenger services.

Gasoline and petroleum liquid gas retailing.

Radio and television, except cable TV.

Credit Unions.

Development banking institutions.

Rendering of Professional and technical services expressly designated by the laws.