[ESTABLISHING A BUSINESS ENTITY IN MEXICO] 344
stock of the company is also allowed. Also, the LIE states activities that require the authorization of the National Foreign Investment Commission ( Comisión Nacional de Inversión Extranjera ) in order for Mexican companies with foreign investment to participate, directly or indirectly, in a proportion higher than forty-nine percent (49%) of its capital stock, as such as the private education, public railway transportation, airports and ports services. Furthermore, and in order to control and regulate the provision set forth in the LIE and its regulations, the Mexican government through the SE created the RNIE in which, according to the LIE, the following entities are obliged to be registered: i. Mexican companies in which foreign investment participates; ii. Foreign individuals or entities that normally perform commercial activities in Mexico; and iii. Stock or equity participation trusts of real estate or neutral investment, by virtue of which, rights in favor of foreigners are granted. Mexican companies in which foreign investment participate in its capital stock are required to submit before the RNIE, quarterly
and annually, reports which reflect the increase or decrease of participation of foreign investment in the capital stock of the companies and the fulfillment of the percentages established by the LIE, in the event that the company performs restricted economic activities. 37 Residency and Material Visa Restrictions The Mexican government issued a series of amendments to the Mexican Immigration Law and its Regulations (the “ MIL ”), that caused great changes in the criteria applied by the Mexican National Immigration Institute ( Instituto Nacional de Migración ) which is the government entity in charge of issuing visas and observing the compliance of the MIL. The Mexican government issued such amendments with the main purpose of creating a more efficient system for foreigners visiting Mexico. The MIL establishes, among others, the following visas that foreigners can request from the Mexican National Immigration Institute in order to travel to Mexico: i. Tourist Visa: applicable for foreigners that travel to Mexico with the purpose of performing recreational, cultural or sporting activities. Tourists are allowed by law to stay up to a term of 180 days in Mexico with the possibility of extending such term.
VII.
37 Such quarterly and annually reports shall be filed before the RNIE only when the company exceeds the thresholds of operations with its foreign related parties stated in the dispositions issued by the National Foreign Investment Commission.
ILN Corporate Group – Establishing a Business Entity Series
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