Foreign Capital: What Restrictions Exist In Mexico?

One of the most common questions we receive when foreigners—whether individuals or legal entities—want to start business operations in Mexico is whether any restrictions on foreign investment or currency controls exist in our country.

Indeed, Mexico does have restrictions on the participation of foreigners in certain economic activities either because they are reserved exclusively to the State or restricted to Mexican companies with a share capital that is completely Mexican, or with limited foreigner participation, as provided by the Mexican Constitution or the Foreign Investment Law (the "Law").

Classification of Companies with Foreign Participation

Mexican law distinguishes four types of corporate structures to classify foreign investments for companies operating in Mexico.