Restrictions of Foreign-Owned Corporations in Mexico
According to foreign investment laws in Mexico, foreign investors may hold 100% of a Mexican corporation or partnership. The legal system and tax laws do not discriminate between foreigner business and Mexican National owned businesses.
One thing that separates foreign-owned corporations and Mexican owned corporations are the activities they may carry out. Foreign investment is permitted in most sectors except for those activities listed below.
Sectors reserved for the Mexican State
- Oil and other hydrocarbons exploration and extraction
- Sale of electricity to the public
- Nuclear power
- Radioactive minerals
- Telegraph and radiotelegraph services
- Postal services
- Printing money and coin minting
- Control, supervision, and surveillance of ports, airports, and heliports
Sectors reserved for Mexican Corporations
- National land transportation of passengers, tourism, and cargo, not including courier and parcel services.
- Development of banking institutions.
Activities in which the foreign investment can only participate in 49%
- Manufacture and marketing of explosives, firearms, cartridges, ammunition, and fireworks, not including explosives for industrial and extractive activities, nor the development of explosives.
- Printing and publication of newspapers circulated within the national territory.
- Series “T” shares of companies that own agricultural, livestock, and forestry land.
- Freshwater, coastal, and exclusive economic zone fishing, not including aquaculture.
- Integral port administration.
- Port pilot services to vessels to carry out inland navigation operations under the terms of the Law.
- Shipping companies dedicated to commercial exploitation of vessels for inland and cabotage navigation, except for tourist cruises and the operation of dredges and naval artifacts for port construction, conservation, and operations.
- Supply of fuels and lubricants for ships and aircraft and railway equipment
- Regular and non-regular national air transport service; international air transport service not regulated in the air taxi mode; and, specialized air transport service.
The National Foreign Investment Commission under the Secretariat of the Economy is the government agency that determines whether foreign investors may move forward in a restricted sector.
Considerations for incorporating your business
- Determine which type of corporation suits your need
- Legal and accounting advice
- Tax, accounting and reporting obligations
- Labor laws in Mexico
- Zoning and building permits
- Environmental regulations
- Your immigration status
Contact MexLaw to help you establish a business in Mexico. We assist with the first steps of incorporation throughout the entire lifecycle of the company.