Amendments to the Regulations to Mexico’s Foreign Investment Law and the National Registry of Foreign Investments

November 18, 2014
Amendments to the Regulations to Mexico’s Foreign Investment Law and the National Registry of Foreign Investments

On October 31, 2014, Mexico’s Department of Economy published the amendments to the Regulations to theForeign Investment Law (RLIE for its acronym in Spanish) in the Official Journal of the Federation, which willcome into effect 60 business days after publication (February 12, 2015). This is the case notwithstanding theprovisions set forth in Articles 2 and 29 Bis of the RLIE, which came into effect on November 1, 2014, and wereenacted to simplify the submission of notices before the National Registry of Foreign Investments (“RNIE” forits acronym in Spanish), resulting in the reduction of monetary fines levied on companies registered before theRNIE.The amendments to the RLIE provide for various changes in the filing of notices, company registration renewalsand the filing of quarterly reports as to activities abroad, including the following:a) It is no longer necessary to provide notice to the RNIE when there is a change as to: (i) the domicile of thelegal representative; (ii) the legal representative; (iii) the domicile of the company’s plant; (iv) thedomicile of the company’s office; and (v) the name of the owners or shareholders.b) Notices as to changes of information previously submitted to RNIE within a term of 40 business days willnow be submitted quarterly and within 10 business days before the close of each quarter. Such noticesinclude those related to: (i) capital increases; (ii) transfer of equity interests; (iii) change of businessactivity; and (iv) change of tax domicile.c) Quarterly reports as to activities abroad previously submitted within a term of 20 business days will nowbe submitted within 10 business days following the close of the quarter.d) The schedule for presenting the annual financial report to renew company registrations has been modifiedin such a way that now, such submissions must be made within the first five months of each yeardepending on the first letter of the name of the company in accordance with the following: (i) A – J duringApril of each year; and (ii) K – Z during May of each year.e) The article requiring companies to cancel their registration before the RNIE due to liquidation, merger, ordomestication in Mexico and to previously update their registrations, submit financial reports for the lastfive years, and the quarterly reports on activities abroad was repealed.The National Commission on Foreign Investments (“CNIE” for its acronym in Spanish) will issue a generalresolution to determine the minimum amount for the submission of the (i) notices of capital increases, (ii) theannual financial report, and (iii) quarterly reports on activities abroad and with RNIE, as well as new forms forsubmitting such notices.Finally, on the day after the Decree comes into effect, companies with pending obligations before RNIE will have60 business days to comply with such Decree and update their files, with the chance of paying the minimum fine,depending on the type of notice involved.

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