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Foreign investment is put on record

Companies have registries related to real property and commerce, but there is also a third registry that focuses on accounting for foreign capital, such being the National Registry of Foreign Investment (Spanish: Registro Nacional de Inversiones Extranjeras, or RNIE), which as part of the Federal Government is responsible for maintaining registry entries and tracking the flow of foreign investment in Mexico. The Registry reports to the Secretariat of Economy (Spanish: Secretaría de Economía, or SE) and is under the direction of the Executive Secretary of the National Commission of Foreign Investment (Spanish: Comisión Nacional de Inversiones Extranjeras, or CNIE).


Origin

In existence since March of 1973, the RNIE is based on the Law to Promote Mexican Investment and Regulate Foreign Investment (Spanish:  Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera) and was made public with the intent that the authorities monitor compliance with the provisions relating to foreign investment, as well as to have a way to identify the behavior of such foreign investment in national territory.

The aforementioned Law was repealed in December of 1993 with the publication of the Law that currently governs those activities: The Foreign Investment Law (Spanish: La Ley de Inversión Extranjera, or LIE), which has the Regulations to the Foreign Investment Law and to the National Foreign Investment Registry (Spanish: Reglamento de la Ley de Inversión Extranjera y del Registro Nacional de Inversiones Extranjeras, or RLIERNIE).
 

Organization of the RNIE

The RNIE is divided into three (3) sections (Article 31 of the LIE and Article 31 of the RLIERNIE):

  • Foreign individuals and legal entities
  • Corporations
  • Trusts

The SE cannot provide third parties with information contained in the Registry files of those registered.  Such files can only be reviewed by those who can irrefutably certify their status, or acting as an attorney-in-fact for said registered individuals, are required to register or effect registrations with the Registry, vis-à-vis each file that want to review (Article 32 of the RLIERNIE).

 

Procedures (paperwork, formalities, etc.)

The procedures which are carried out with said Registry are:

  • Registration application
  • Notification of updates/modifications to information previously provided to the RNIE
  • Submission of quarterly income and expenditure reports
  • Submission of Annual Economic Report
  • Application to cancel registration
  • Notices from civil law notaries (or certifying public officer)

Applications, notices and reports submitted to the RNIE in accordance with the provisions of the Regulation will be made using the approved forms, along with the supporting documents required therein.  Those documents submitted in a language other than Spanish shall have a translation done by an expert translator submitted along with same (Article 33 of the RLIERNIE).

The RNIE shall respond to a procedure (paperwork, formalities, etc.) no later than 20 working days from the day immediately following the date of submission of same.  Should that period elapse with no decision issued, the form submitted is deemed appropriately and duly completed.

Source: idconline.com.mx

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