Foreign Investment Breakthrough
Dear Clients and Friends:
Please be advised that on May 13, 2014, a resolution which extends the criteria established to enforce Article 17 of the Mexican General Law of Foreign Investment was published in the Official Gazette of the Federation. The provisions of such resolution entered into effect on May 14, 2014.
The aforementioned provision of the Foreign Investment Law previously provided that foreign entities that seek to engage in commercial activities and intend to settle in Mexico were obligated to obtain an authorization from the Ministry of Economy (SE).
Now, the current resolution, exempts those foreign entities seeking to establish in Mexico to supply a service to obtain such authorization, provided such foreign entities are incorporated under the laws of the Members of the World Trade Organization, provided that they submit through its legal representative or agent, a writ stating the following under oath:
- Its company’s bylaws and other incorporation documents are not contrary to public policy and shall provide the main activity that the foreign entity intends to carry out in Mexico, same which conforms to the provisions of the Foreign Investment Law;
- They have been incorporated under the laws of their country of origin;
- In the event of foreign entities referred to in Section I of Article 17 of the Foreign Investment Law, such foreign entities must be established in Mexico or will have an agency or branch and provide the corresponding domicile; and
- For foreign entities stated on section II of Article 17 of the Foreign Investment Law, these foreign entities must have a representative domiciled at the place where they will operate authorized to respond to the obligations undertaken, and must provide the corresponding name and address.
For further reference please go to http://www.dof.gob.mx/nota_detalle.php?codigo=5344328&fecha=13/05/2014 to view the Spanish version of the provisions of the corresponding resolution.
Ernesto Velarde Danache, Inc.