Mexico: Corporate/Commercial Law

Mexico's President Claudia Sheinbaum has signed an initiative to reform the Foreign Investment Law, introducing for the first time a formal foreign investment review regime based on national security considerations. The proposal would require prior authorization from the National Foreign Investment Commission for certain acquisitions exceeding 49% ownership in strategic sectors including critical infrastructure, dual-use technologies, fundamental supplies, and sensitive information.

Nearshoring has put Mexico on the radar of hundreds of Chinese companies looking to manufacture, sell, or invest closer to the United States. Yet not all of them manage to gain a foothold. Many arrive with strong products and sufficient capital, but stumble on obstacles that are not technical or financial they are cultural and legal.

When an Asian company seeks to expand into Mexico, the path is usually imagined as a linear and direct one: define a corporate structure, prepare the documents, and make sure that the lawyers in Mexico do their job. The problem is that, when the necessary documentation is not anticipated with precision, delays and obstacles to the expansion can arise. These do not usually stem from an underlying legal issue or from a decision of the authorities, but rather from the details of a simple document such as a power of attorney.