01 Apr Provisions on Foreign Investment.
In connection with the statement issued by the Economy Ministry on March 26th, 2020, in which administrative measures were taken in order to contain the viral propagation from the COVID 19 and for such purposes the terms and timeframes regarding the Economy Ministry were suspended, it was established that the statutory limits and timeframes for procedures before the RNIE will be borne normally.
Apart from the foregoing, the General Department from Foreign Investment in the above mentioned statement, pointed out that said procedures shall be filed through its platform found on http://rnie.economia.gob.mx, or by a PDF format sent via email address to trámites.rnie@economia.gob.mx, between 9:00-18:00 Monday to Friday, specifying in the subject of the email the type of procedure to file and the name of the Company, as in the following example:
– Inscripción (Example 1, S.A. de C.V.), Aviso de Actualización Trimestral (Example 2, S.A. de C.V.), Informe Anual (Example 3, S.A. de C.V.).
For translation purposes:
— Registration (Example 1, S.A. de C.V.), Quarterly Report (Example 2, S.A. de C.V.), Economic Annual Report (Example 3, S.A. de C.V.).
Once having submitted the above, the authorities will deliver via email a temporary acknowledgement of receipt so that whenever the contingency is over, one can appear before the Ministry of Economy to collect the physical acknowledgement format.
Hence, and in accordance to articles 38, 41, 43 and 50 of the Regulations of the Foreign Investment Law and the National Registry of Foreign Investment, the amounts related to the update of information and renewal of the registry before the National Registry of Foreign Investment, and the annual obligations regarding Companies that own foreign investment in their Capital Stock are the following:
Economic Annual Report
The Economic Annual Report shall be filed, 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 (this year shall be presented the latest on Thursday, April 30th).
- From K to Z (or if the name starts with a special character), during May of every year.
This Report shall be filed when during the fiscal year reported, any of the following accounts exceeds the amount of MXN$110’000,000.00 (approximately USD $ 450,8261.39), either at the beginning or at the end:
- Initial total assets.
- Initial total liabilities.
- Incomes (in Mexico and abroad).
- Outcomes (in Mexico and abroad).
Quarterly Reports
The Quarterly Reports, in order to keep the information from companies that own foreign investment in their capital stock, updated before the RNIE, they shall be filed on a quarterly basis within the first 10 business days followed to the end of each period:
- January to March (This year shall be presented the latest on Thursday, April 16th)
- April to June.
- July to September.
- October to December.
The Regulation establishes the following scenarios under which Quarterly Reports shall be filed:
1. Quarterly Reports shall be filed when one of the following modifications are performed by the Company’s:
- Name.
- Economic activity.
- Tax domicile.
- 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.
2. Also, the obligation to file such Reports when the total incomes or disbursements mentioned below exceed the amount of MXN$20’000,000.00 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.
Should you require further clarification or information, please do not hesitate to contact us.
Contact
Jesús Bueno
jbueno@cuestacampos.com
Berenice Soto
bsoto@cuestacampos.com