03 Apr Provisions on Foreign Investment.
In accordance to articles 38, 41, 43 and 50 of the Regulations of the Foreign Investment Law and the National Registry of Foreign Investment (hereinafter the “Resolution”), the amounts related to the update of information and renewal of the registry before the National Registry of Foreign Investment (hereinafter the “RNIE” for its acronym in Spanish), including for all the annual obligations regarding foreign investment were updated as follows:
Economic Annual Report
The Economic Annual Report shall be presented, depending on the first letter of the company’s name, in accordance with the following calendar:
- From A to J, during April of every year.
- From K to Z, during May of every year.
This Report shall be presented when during the fiscal year reported, any of the following accounts exceeds the amount of MXN$110’000,000.00 pesos (approximately USD $5´860,195.00), either at the beginning or at the end:
- Initial total assets.
- Initial total liabilities.
- Incomes (in Mexico and abroad).
- Outcomes (in Mexico and abroad).
The Quarterly Report to keep the information updated before the RNIE shall be filed on a quarterly basis for the following periods:
- January to March: Within the first 10 business days of April.
- April to June: Within the first 10 business days of July.
- July to September: Within the first 10 business days of October.
- October to December: Within the first 10 business days of January of the following year.
The Regulations establishes different scenarios under which Quarterly Reports shall be filed, among them:
- Quarterly Reports shall be presented when one of the following modifications are performed:
- Company’s name.
- Economic activity.
- Tax domicile.
- The capital stock and/or its structure that involves a modification in the participation of any foreign natural person or legal entity in the capital stock that exceeds the amount of MXN$20’000,000.00 pesos (approximately $1´065,490.00).
- Also, the obligation to file such Reports when the total incomes or disbursements mentioned below exceed the amount of MXN$20’000,000.00 pesos is established:
- New contributions or withdrawal of contributions that do not affect the capital stock.
- Retained earnings of the last fiscal year and disposition of accumulated retained earnings.
- Accounts payable or receivables from: foreign subsidiaries; foreign holding companies; foreign investors that participate as shareholders or partners; foreign investor that are part of the same corporate group.
- In addition, it shall include the name, nationality, country and the activity of the partner or shareholder, lender and debtor that take part in the reported operation.
The information mentioned in sections 1 and 2 shall be presented within the following ten business days at the end of each quarter.