Doing business

Mexico

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Sociedad de Responsabilidad Limitada (S. de R.L.) is: a Variable Stock Limited Liability Partnership (company) Minimum of 3,000 MXN. Each partner must bring in at least 50% at the time of its creation.	Minimum 2 Maximum: 50 Liability is limited to the amount contributed.
Sociedad en Nombre Colectivo is: a General Partnership No minimum capital.	Minimum 2 Liability is unlimited and joint responsibility.
Sociedad Anonima (S.A.) is: Limited Liability Company (or Corporation) also known as Joint Stock Company in USA 50,000 MXN. 20% released at the time of its creation.	Minimum 2. No maximum. Liability is limited to the amount contributed.
Sociedad Anonima de Capital Variable (S.A. de C.V.) is: a Variable Capital Limited Liability Company. 50,000 MXN. 20% released at the time of its creation.	Minimum 2. No maximum. Liability is limited to the amount contributed.

Business setup procedures

Setting up a company	Mexico	Latin America & Caribbean
Procedures (number)	6.0	9.3
Time (days)	9.0	56.7

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Mexico.
National Business Information Registry
The competent organization: The National Business Information Registry.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	23,683	15,334	18,679
FDI stock (millions USD)	297,000.8	279,792.0	327,248.9
Performance Index*, ranking on 141 economies	101	97	-
Potential Index**, ranking on 141 economies	59	-	-
Number of Greenfield investments***	346	317	-
FDI inwards (in % of GFCF****)	9.2	-0.6	-
FDI stock (in % of GDP)	27.3	35.4	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Mexico

Strong points

- Mexico forms a bridge between North America and Latin America due to its geographical location;
- Mexico has an extensive variety of natural resources allowing for the development of all types of industries at competitive prices;
- Mexico is very open to direct foreign investments;
- Labor costs are not high and in general, there is a skilled labor force;
- Positive structural reforms have been made during the current presidential term;
- Mexico is the world's 8^th tourist destination.

Weak points

- The country depends excessively on its partnership with the United States;
- There is a high level of corruption;
- During the last few months, violence has increased especially the drug cartels;
- The country is encountering significant structural problems (economic and social).

Government measures to motivate or restrict FDI

The Mexican Government has created an open and safe environment for foreign investors. The recently undertaken economic policies should allow investors to manage the safety of their operations despite the unfavorable global external environment.

Public tresury funds have been made available to private companies that have been heavily affected by the crisis. Thus in November 2008, the Mexican government saved the Vitro company, one of the world's biggest glass producers, which was having liquidity problems because of its debts. The amount disbursed to save it was evaluated at 100 billion dollars. The cement corporation, Cemex, in turn registerd a 15 billion dollar debt, a debt which is higher than the value of the company, due to the collapse of the world construction sector.

Bilateral investment conventions signed by Mexico

Mexico counts with 24 Promotional and Reciprocal Protection Agreements for the Investments with Different States

Procedures relative to foreign investment

Freedom of establishment: Guaranteed.
Acquisition of holdings: Having a majority of capital holdings in a Mexican corporation is legal, except in certain sectors.
Obligation to declare: To find out the total to be declared consult General Direction of Foreign Investments
Competent organization for the declaration: General Direction of Foreign Investment

Finding assistance for further information

Investment aid agency: Fesec
Mexicali Industrial
National Bank of Foreign Trade
Other useful resources