Although Mexican law establishes as a general rule that foreign investors may invest in Mexico without the need of any prior authorization, the law reserved certain activities to be conducted by the State and others by Mexican nationals only, and also established certain limitations related to some activities in which foreign investors could only own a specific percentage of the totality of the business.

The investments that should be considered as foreign investments in Mexico are those made in activities with (1) participation by foreign investors in the capital stock of Mexican companies; (2) investments made by Mexican companies in which foreign investors have a majority interest; and (3) participation by foreign investors in other activities described and allowed for them by the foreign investment law.

Even if subject to some restrictions, foreign investors may participate without limitation in the capital stock of Mexican companies, acquire fixed assets, participate in new fields of economic activity or manufacture new product lines and open, operate, expand and relocate existing establishments.

How to Start a Business in Mexico

• Spot Business Opportunities It is critical to identify business opportunities before beginning your own venture in Mexico. …
• Pick Entity Type Next, decide what kind of company would be most suitable for your business needs. …
• Decide Your Industry …
• Submit a Request to the Ministry of Foreign Affairs …
• Draft the Deed of Incorporation …
• Signing the Deed of Incorporation …
• Register Company Address …
• Register for Tax .

PRINCIPAL BUSINESS ENTITIES –

Corporation (SA),
Limited Liability Company (SRL)
Branch of a foreign corporation.