Are you a foreigner and want to invest in Mexico?

Learn how the foreign investment law applies to you

Mexico is one of the most attractive countries to invest in Latin America, thanks to its strategic location, international treaties, and its enormous domestic market. However, if you are a foreigner, before investing, you need to understand how Mexico's foreign investment law works, as it regulates which sectors you can participate in, with what percentages, and under what conditions.

In this article, we explain the first 5 key steps to comply with foreign investment laws and launch your project legally and safely.

Step 1: Check if your activity is permitted by foreign investment law

The Foreign Investment Law establishes the sectors in which you can freely participate as a foreigner, and those in which there are restrictions or prohibitions. For example:

• Prohibited : Broadcasting, passenger transport in national territory, printing of newspapers for national circulation, etc.

• Limited or conditional : Air transport, banking, insurance, among others.

• Allowed without restriction : Trade, manufacturing, tourism, services, technology, among many others.

Step 2: Choose your investment model in accordance with the foreign investment law

You can invest as:

• Natural person (in certain cases)

• Through a Mexican commercial company

• Through a trust

• As a portfolio investor (stock market)

The most common option is to establish a Mexican company with foreign participation . Foreign investment law allows this in most sectors, but it's essential to review the permitted participation percentage.

Step 3: Legally incorporate your company in Mexico

The next step is to formalize your business in Mexico with the help of a notary public. To do this, you'll need:

• Request naming permission from the Ministry of Economy

• Prepare and notarize the articles of incorporation

• Obtain your RFC from the SAT

• Register in the Public Registry of Commerce

⚠️ It is important to clearly indicate foreign participation in the share capital in the articles of incorporation, in compliance with the foreign investment law.

Step 4: Register in the National Registry of Foreign Investments (RNIE)

All foreign investments in Mexico must be registered with the National Registry of Foreign Investments (RNIE) . This registration is mandatory and must be kept up-to-date with annual or quarterly reports, depending on the case.

❗ Skipping this step may result in significant fines for non-compliance with foreign investment law.

Step 5: Comply with tax, immigration and labor obligations

Once your company is incorporated and registered, you must comply with:

• Tax obligations to the SAT

• Registration with the IMSS if you hire staff

• Immigration procedures if you or your partners want to reside in Mexico as investors

Foreign investment law is only one part of the legal framework. Integrating it with other laws is key to operating safely.

⚖️ Why do you need a lawyer who understands foreign investment law?

Mexico's foreign investment law is a technical legal framework that changes according to new reforms or government policies. A common mistake is to assume that all sectors are open or that simply starting a company without legal advice is sufficient.

A specialized lawyer can help you:

• Analyze the permitted turn

• Design an optimal legal and tax strategy

• Comply with all mandatory records

Looking for advice on investing in Mexico?

At Joshua Than Cancino – Law Firms , we specialize in foreign investment and corporate law. We advise investors who wish to establish businesses in Mexico legally, safely, and profitably, in compliance with foreign investment law.

📍 Based in Tuxtla Gutiérrez, we work with national and international clients.

💼 Contact us for a personalized consultation and start your investment off on the right foot.