Investing in Mexico is an excellent option to generate resources if you are a foreigner and want to create a successful long-term business model, but there are certain steps that you need to follow to make a safe and useful investment.
4 important considerations to invest in Mexico:
Check your legal status in the country
All foreigners who want to do business in Mexico, directly, through a foreign company, or through a Mexican company with foreign investment to carry out commercial transactions, must be in the country in legal status. What does this mean? It means that the foreigners must prove their legal status in the country with their FMM visitor card, temporary resident card, or permanent resident card.
Enroll in the National Registry of Foreign Investments
The National Registry of Foreign Investments (RNIE) is the institution that collects legal and economic data on foreign investment in Mexico, with these data, the RNIE generates statistics and numbers about the behavior of investment flows by economic sector, destination region, and country of origin.
For better organization, the RNIE is divided into three sections:
· Individuals.
· Foreign Legal Entities.
· Mexican Companies and Trusts.
First Section
Foreign natural persons and legal entities must enroll whenever they carry out commercial acts in Mexico.
Second section
Mexican companies in which foreign investment participates in any proportion must be registered (Mexican Companies with Foreign Investment).
If a foreigner wants to set up a company, they have the legal obligation of register the company in the National Registry of Foreign Investments
Third section
It belongs to any trust that has a foreign investment. For example “restricted zone trusts” are used to buy a property in Mexico.
Foreigners are free to participate in or carry out any legal economic activity on their own, as long as there is no restriction expressly specified in the Foreign Investment Law.
Registration in the Mexican Tax Office (SAT/RFC)
All individuals or legal entities who carry out or intend to carry out economic activities in the country must register in the Federal Taxpayers Registry (Registro Federal de Contribuyente/RFC) which is a Mexican Tax Number. The authority responsible for this is the Mexican Tax Office (Servicio de Administración Tributaria/SAT).
Get Professional Legal Advice
To invest in Mexico according to the Mexican Laws, you must do numerous obligations to different entities.
We recommend that you consider that it is really important to be well informed and updated on this situation because you could also take advantage of those investment incentives that exist in the country.
If you are thinking about the possibility of investing in Mexico, at GAP Legal we can advise you and help you meet all the requirements established in the Mexican laws.