Doing Business

Doing Business in Mexico 2015

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32 Tax and Legal Services - PwC Mexico Regulatory climate Regulatory authorities The government-owned central bank, Banco de México, is charged with the responsibility of establishing monetary policies and is autonomous from the government. The Foreign Investment Commission (Comisión Nacional de Inversión Extranjera) and its Executive Secretary are responsible for administering the controls on foreign investment and authorizing specific investments, where required. Foreign Investment Commission The Foreign Investment Commission is the central authority that approves foreign investment in new or existing companies where required under the law. The Commission operates through an Executive Secretary and the necessary staff. National Register of Foreign Investment The Foreign Investment Law (Ley de Inversión Extranjera) establishes a National Register of Foreign Investment (Registro Nacional de Inversiones Extranjeras), which is maintained by the Ministry of Economy (Secretaría de Economía "SE"). Under the applicable provisions, the following information must be included in the Register: • Mexican companies with foreign shareholders. • Foreign individuals or legal entities that regularly carry out acts of commerce in Mexico, and branches of foreign investors or entities established in Mexico, • Trusts owning shares (or other equity) of Mexican companies or real estate in Mexico, and "neutral" investment trusts with foreign beneficiaries. When SE is provided with the necessary information, it will issue the corresponding registration certificate, which must be renewed on an annual basis. For this purpose, it is necessary to complete and submit an economic-financial questionnaire. The parties referred to in the first and second categories above and the trustees of the trusts referred to in the third category above are responsible for registering with SE within 40 business days following the occurrence of any of the following: • Incorporation of the corresponding company. • Participation of the foreign investment in and the formalization or notarization of the documents relative to Mexican branches of foreign companies, or • Formation of a trust or the granting of trust rights to foreign investors as set forth above. Regulatory legislation The Foreign Investment Law reserves certain activities to the Mexican government or to Mexican nationals, and limits foreign ownership to a specified maximum minority percentage of Mexican company shares in certain cases, as detailed at the end of this Chapter.

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