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Investing and Doing Business in Mexico City 2011

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Page 1: Investing & Doing Business In Mexico City

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Investing and Doing Business in Mexico City 2011

Page 2: Investing & Doing Business In Mexico City

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Investing and Doing Business in Mexico City 2011

ContentsPage

Message by the Secretary of the Ministry of Economic Development of the Mexico City

Introduction

3

I. Main data and characteristics of Mexico City: Political Aspects Geographical Aspects Social Aspects Economic Aspects

5

II. Investment Opportunities in Mexico City: Sectors: High Technology Industrial Parks and Projects Industrial Costs Labor Costs Tourist, Commercial and Services CorridorsReduction to tax incentives granted by the Mexico City Government Innovation and development clusters Main International companies established, with branches or representation offices in Mexico City

8

III. Regulation of Foreign Investment: Activities reserved for Mexican StateActivities reserved for Mexican Nationals Activities subject to specific regulation

20

IV. Corporate Structures Representative Office Branch Office Stock Company Limited Liability Company

23

V. Agreements and Treaties signed by Mexico Free Trade AgreementsAgreements for Reciprocal Promotion and Protection of Investments Agreements to Avoid Double Taxation Sister Cities Agreements, Cooperation and Collaboration Agreements signed by Mexico City with other Cities.

25

VI. Mexican Visa Countries and regions requiring visa to travel to Mexico Countries and regions not requiring visa to travel to Mexico Types of Visas

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Investing and Doing Business in Mexico City 2011

VII. Intelectual Property Patent Trademark Commercial Name Commercial Advertisement Designation of origin Industrial Secret

33

VIII. Main Taxes Definitions Foreigner Residents in Mexico Residents abroad Permanent place of business Main local taxes Real estate tax Real estate transfer tax Payroll tax Main federal taxes Income tax Value added tax Flat tax Excise tax

36

IX. Labor Regulation in Mexico Foreign workers Exceptions Work shift Days off and legal holidays Vacations Salary Profit sharing Christmas Bonus Labor Unions Social Security

42

X. Real Estate and Leasing Real estate corridors

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XI. Procedure to incorporate a Company in Mexico Request a Corporate Name Formalization before Notary Public Registries Public Registry of Commerce Federal Taxpayers’ Registry National Registry of Foreign Investments Registration at the Importers and Exporters List Office for a Quick Opening of Business of Mexico City Government

47

XII.

Contact List Organizations of the Mexico City Government Organizations of the Federal Government Chambers of Commerce in Mexico Others

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Investing and Doing Business in Mexico City 2011

Message by the secretary

Our city offers extraordinary advantages making it a very attractive space for investment: it has a strategic geographic location, since it is a natural gateway to the Latin America and North America markets, besides being an interoceanic way between the European and Asian markets. It is the biggest mass of people in the American continent, Mexico City’s Metropolitan Area has 22.8 million inhabitants. It is a global urban economy positioned as the richest city of Latin American and the eight of the world.

All over the world, investment tends to be located in the big cities, Mexico City is not the exception, 51% of all the Foreign Direct Investment coming to Mexican territory is concentrated here. In addition, we are the economic core of our country, upon providing 19% of the Gross Domestic Product and giving employment to 1 out of each 5 Mexicans.

It is the quintessential intellectual capital of Mexico, having 579 universities located in its territory and more than 5 thousand scientists working to provide 80% of the scientific and technological research of the country. It offers the best quality of life, since it has been classified by the United Nations Development Program with the first place nationally in the Human Development Index, taking into account that the GDP per capita is 142% higher than the national average.

It is the number one federal state in national competitiveness, also ranking with the best position in: an inclusive, educated and healthy society; world-class precursor sectors; economic sectors in strong competition and stable and dynamic economy, that is the reason why we have more than 380 thousand established companies and we are the seat of the 500 most important corporations in Mexico.

Welcome to Mexico City, global investment metropolis.

Government of the Federal DistrictMinistry of Economic Development

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Investing and Doing Business in Mexico City 2011

Introduction

This manual “Investing and Doing Business in Mexico City” is a basic tool seeking to promote foreign companies investment in Mexico City.

There are plenty of reasons for foreign companies to decide making investments and business in Mexico City, since besides being Mexico’s capital, it is one of the main decision-making centers in Latin America, it is the seat of the main subsidiaries of global companies, it houses almost half of all scientists and research institutes in Mexico, it concentrates a great quantity of skilled professional and technical human resources, it has a broad developed infrastructure, it has extensive goods and services distribution networks, it participates with almost one fourth of the national GDP, in historical terms it is the federal state having received the highest percentage of direct foreign investment, it has the highest consumption market and constitutes a natural platform to make exports and business towards the United States of America and Canada, as well as towards Central and South America.

To this effect, the Guide “Investing and Doing Business in Mexico City” participates as the first ally for any foreign investor intending to make business in Mexico City, since it will provide him with an overview of the regulations applicable to business, such as: the main characteristics of Mexico City, areas of opportunity for investments, limitations to foreign investment, steps to organize a company, main types of companies, main commercial agreements and treaties entered into by Mexico, regulation of intellectual property, and also in tax, labor and real-estate matters, as well as a list of government and business contacts.

On the other hand, this manual recognizes its limitation as to its scope, since the overview provided here represents a reference and does not intend to provide or substitute the professional advice that foreign investors in due time must hire as support for the carrying out of their investments and development of their business in Mexico City.

Finally and with the confidence of the potential usefulness of this investment manual, the Government of Mexico City confirms its conviction of respect, cooperation and shared development seeking the multilateral benefit with other cities and nations.

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Investing and Doing Business in Mexico City 2011

Chapter IMain data and

characteristics of mexico city

The United Mexican States, world known only as Mexico, is located on the Northern part of the American continent, south of the United States of America and north of Belize and Guatemala.

The capital of Mexico is Mexico City, also known as the Federal District. Mexico City is located in the central part of the country and its main characteristics are the following:

1. Political Aspects

As to federal matters, it is the seat of the three Powers of the Union, that is, Mexico City is the place of residence of the President of Mexico, the General Congress and the Judicial Power.

As to local matters, it is also the residence of the three local Powers, that is, the Head of Government, the Legislative Body and the Judicial Power of the Federal District. As to political and administrative matters, the Federal District is divided into 16 Political Subdivisions and each of them is administrated by a Head of the Political Division, who as well as the Head of Government of the Federal District are elected by means of direct vote.

1) Álvaro Obregón2) Azcapotzalco3) Benito Juárez4) Coyoacán5) Cuajimalpa6) Cuauhtémoc7) Gustavo A. Madero8) Iztacalco9) Iztapalapa 10) Magdalena Contreras11) Miguel Hidalgo12) Milpa Alta13) Tláhuac14) Tlalpan15) Venustiano Carranza16) Xochimilco

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Investing and Doing Business in Mexico City 2011

2. Geographical Aspects

Mexico City is located in central Mexico. It borders to the north, east and west with the State of Mexico and to the south with the State of Morelos.

Its surface is of 1,485 square kilometers.

It has an average altitude of 2,235 meters above sea level.

Mexico City is connected with the whole country:

By air: Through the Mexico City International Airport, which is the one of highest national air traffic and one of the most busy in Latin America. In addition, it has connections with the main cities of the United States of America, Asia, Europe, Africa and Australia.

By road: Through diverse roadways and highways connecting it with the rest of the country, some of these are the highways to the cities of Querétaro, Toluca, Cuernavaca, Puebla, Texcoco, Acapulco, Guadalajara and Veracruz.

In addition, there are more than 35 lines of motor coaches providing service through four bus stations.

The Federal District also has a wide network of public transportation, composed of the System of Collective Transportation known as Metro (Subway), which is the biggest one in Latin America and one of the biggest in the world. It has a total extension of 201 kilometers, about 175 stations and it transports 4 million people every day.

3. Social Aspects

The official language is Spanish.

The population is of 8.7 million people. If we consider the metropolitan area and the adjacent area, the population is about 22.8 million people.

Life expectancy is the highest in the country: 73.7 years for men and 78.6 years for women.

The literacy rate is the highest in the country with 97.1%.

The average years of education are the highest in the country with an average of 10.2 years.

It has the first place nationally with the highest number of high education schools (teachers’ college, university and post-graduate studies) with about 435 schools and 416,000 students.

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Investing and Doing Business in Mexico City 2011

4. Economic Aspects

The currency is the Mexican peso.

Mexico City provides about 19% of the national GDP.

Mexico City has received in the last 15 years (1998 – 2011) around 157 billion dollars for the concept of direct foreign investment, which amounts to 56% of the national total.

Among the main sectors there are the one of services for companies, social and personal services, shops, restaurant and hotels, financial services, real-estate and lease activities, transportation, storage and communications. Thus, Mexico City has the first place nationally in investments in sectors such as traditional telephony and wired telecommunications networks, multiple banking, investment and stock-market mediation services, administration of corporations and companies, transmission and supply of electric power, manufacturing of pharmaceutical products, film and video industry, manufacturing of soaps, cleaning products and toiletries, regular air transportation, collection, treatment and supply of water, wholesale trade of machinery, furniture and general use equipment, among others.

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Investing and Doing Business in Mexico City 2011

Certainly, Mexico City represents a niche of opportunity for foreign investors. There are plenty of reasons for foreign companies to decide making investments and business in Mexico City, inasmuch as:

• It is Mexico’s capital;• It is one of the main decision-making centers in Latin America; • It is the seat of the main subsidiaries of global companies; • It houses almost half of all scientists and research institutes in Mexico; • It concentrates a great quantity of skilled professional and technical human resources; • It has a broad developed infrastructure; • It has extensive goods and services distribution networks; • It participates with almost one fourth of the national GDP; • In historical terms, it is the federal state that has received the highest percentage of

direct foreign investment; • It has the highest consumption market in the country; • It constitutes a natural platform to make exports and business towards the United States

of America and Canada, as well as towards Central and South America.

1. Sectors

Presently, the Government of Mexico City through the Secretariat of Economic Development, promotes the sustainable development of two great sectors:

i) High-technology industrial parks and projects, andii) Tourist, commercial and service corridors.

1.1 High-Technology Industrial Parks and Projects

The promotion of clean reindustrialization of the Federal District comes from the promotion to the construction and development of high-technology industrial parks and projects.

Some of the industries promoted are:

• Software• Pharmaceutical• Foods and Beverages • Tourism• Development of high-technology processes and products• Integration of automation and control systems• High-technology companies incubator

Investment Opportunities in

Mexico cityChapter II

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Investing and Doing Business in Mexico City 2011

• Development of new materials • Telecommunications• Advanced Telephony• Biotechnology• Call Center and Data Center• Scientific and precision instruments • Technology transfer and innovation services

Location of Industrial Parks in the Federal District

1.2 Industrial Costs

Mexico City offers competitive industrial costs (2008):

Electric Power Rates

Ordinary rate for general service of mid voltage with a demand of less than 100 kW (US$).

H-M – Hourly rate for general service of mid voltage with a demand of 100 kW or more (US$)

Charge for maximum demand measured as complete kW

11.604

Charge per kwh 0.084

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Investing and Doing Business in Mexico City 2011

Basic Services

Telephone rates include local and long-distance calls. The cost of local calls is calculated by minute. However, the cost of the long-distance calls is determined by the distance of the transmission and times tabulation.

Telephone Services

Commercial costs of local telephony (US$)

Rates for Supply of Drinkable Water

RATES FOR WATER CONSUMPTION

Consumption in cubic meters Rates (Pesos)

Lower Limit Higher Limit Minimum Rate

Additional rate per cubic meter

exceeding the lower limit

0 10 99.77 0.00

Higher Than 10 20 99.77 9.97

Higher Than 20 30 199.52 20.60

Higher Than 30 60 405.50 26.81

Higher Than 60 90 1,209.87 31.22

Higher Than 90 120 2,146.50 34.64

Higher Than 120 240 3,185.75 37.45

Higher Than 240 420 7,679.28 39.80

Higher Than 420 660 14,844.07 41.85

Higher Than 660 960 24,889.18 43.66

Higher Than 960 1,500 37,987.34 45.28

Higher Than 1500 Onward 62,435.96 46.73

Source: Financial Code of the Federal District of the year 2009.*Consult Art. 172 of the Fiscal Code of the Federal District

(http://www.finanzas.df.gob.mx/codigo).

Charge per kW billable demand 12.019

Charge per kwh top 0.227

Charge per kwh medium 0.073

Charge per kwh basic 0.061

Installation Costs 99.82

Monthly Rent 17.49

Cost per Call 0.13

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Investing and Doing Business in Mexico City 2011

1.3 Labor Costs

In relation to labor costs, Mexico offers significant savings in respect to other countries in America, Asia and Europe. Thus, transferring operations from the United States to Mexico, for example, might produce savings of almost 90% in labor costs.

On the other hand, in accordance with the International Labor Organization, since 2008, Mexico and China show comparable labor costs. This way, Mexico becomes an excellent exportation base for the North American and European markets.

Source: United States Department of Labor (International Labour Comparisons, 2008)

* Estimate of 2009, using growth in 2009 the unit cost of labor (data from Global Insight) and the exchange rate of year-end

+ Promexico

Source: International Labour Organization (Topic: Wager - 5A Wages, by economic activity - Total)

+ Promexico

Hourly compensation cost in US dollars for productionworkers in manufacturing

Wages (earning per month) in US dollars

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Investing and Doing Business in Mexico City 2011

1.4 Tourist, Commercial and Services Corridors

Presently, there are diverse programs seeking the promotion of the construction and development of tourist, commercial and services corridors in 4 areas of the City:

i) Alameda Central (Central Popular Grove),ii) Paseo de la Reforma (Reforma Avenue),iii) Centro Histórico (Historic Downtown) andiv) Basílica de Guadalupe (Basilica of Guadalupe).

2. Reductions to tax incentives granted by the Mexico City Government

The Federal District Government grants extensive and diverse tax incentives for investors and residents of Mexico City. These are apart from those granted by the Federal Government. The sums and concepts of the incentives are updated each year. The data provided here is informative, to verify the information in force consult the Fiscal Code of the Federal District at www.finanzas.df.gob.mx.

CONCEPTDISCOUNT

PERCENTAGETAX OR DUTY SUBJECT TO DISCOUNT

Owners of real-estate properties established in territorial regularization programs of the Federal District. The owners of other real-estate properties or already having any title deed other than the one requested to be regularized, are excluded.

80%

Real-estate transfer tax.Real-estate tax.Services for the issuance of construction permits or for the registration of statement of construction type, “A”, “B” and “C”.Services for the issuance of apartment buildings or condominiums licenses.Services for the issuance of licenses for properties subdivision, reploting or merger. Services of alignment of real-estate properties on public property. Services to establish the official number of real-estate properties.Duties for the provision of services by any of the administrative and judicial entities or by the Attorney General’s Office of the Federal District. As well as the rights provided for in Chapter IX of Section Fifth of Title Third of Book First of the CFDF (Fiscal Code of the Federal District) .

It will also be granted to the persons having regularized their properties in the territorial regularization programs of the Federal District and needing to carry out a rectification of the corresponding public document.

80%

Services for the issuance of apartment buildings or condominiums licenses.Services for the issuance of licenses for properties subdivision, reploting or merger.Services of alignment of real-estate properties on public property.Services to establish the official number of real-estate properties.Duties for the provision of services by any of the administrative and judicial entities or by the Attorney General’s Office of the Federal District.

Those having a valid title prior to the exposition of the real-estate property in question until 1997 and who proceed to process the registration of the caption of exempted before the Public Registry of Property and Commerce of the Federal District.

80%The rights provided for in Chapter IX of Section Fifth of Title Third of Book First of the CFDF (Fiscal Code of the Federal District).

Owners of housing which construction is irregular. 55%Services for the issuance of construction permits or for the registration of statement of construction type, “A”, “B” and “C”.

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Owners or purchasers of the real-estate properties that are listed or declared as historic or artistic monuments by the INAH (National Institute of Anthropology and History), INBA (National Fine Arts Institute) or by the Secretariat of Culture of the Federal District, and which are restored or remodeled.

70%

Real-estate transfer tax.Real-estate tax.Services for the issuance of construction permits or for the registration of statement of construction type, “A”, “B” and “C”.Services for the issuance of licenses for properties subdivision, reploting or merger.Services for the issuance of certifications, licenses, studies and opinion.And rights established in Chapter IX of Section Fifth of Title Third of Book Firs of the CFDF (Fiscal Code of the Federal District).

Individuals owners of real-estate properties listed or declared as historic or artistic monuments by the INAH (National Institute of Anthropology and History) or by the National Fine Arts Institute, and who live in same and do not use them for any commercial purposes whatsoever.

50% Real-estate tax.

Individuals or corporations having as a purpose to develop new real-estate projects, mainly of services or commercial, or the restoration and renovation of real-estate properties located within perimeters A and B of Historic Downtown. Reductions will not be applicable in those cases in which the use or enjoyment of the real estate under construction is granted for the installation of billboards or any other kind of exterior advertising.

60%

Services for the issuance of construction permits or for the registration of statement of construction type, “A”, “B” and “C”.For the issuance of licenses for special construction.Services for the issuance of apartment buildings or condominiums licenses.Individuals or corporations exploiting oilfields located in the Federal District.Services of alignment of real-estate properties on public property.Services to establish the official number of real-estate properties.Services for the issuance of certifications, licenses, studies and opinion.

Individuals or corporations that in order to assist to fight environmental deterioration, perform business activities of recycling or that in their operation reprocess part of their solid waste produced.

20% upon reprocessing, from

33% up to 44%

Payroll tax.

30% upon reprocessing, from

45% up to 59%

40% upon reprocessing, from 60% up to 100%

Owners of housing or dwelling houses installing or using devices such as solar panels, and rain collection systems evidencing a reduction of at least 20%, in energy and/or water consumption or the recycling of the latter.

20% Water supply duties.

Companies or institutions evidencing to have environmental conditions improvement programs. In case of actions related to drinkable water, fuel or electric power consumption, or adequate minimization or handling of waste by means of redesigns of packages and baling and/or the utilization of biodegradable and/or easily recyclable materials, having to evidence the reduction to original value established before applying the Environmental Self-regulation and Audit program, besides specifying the type of actions performed and the benefits that these represent to improve the environment.

20% upon reducing their regular

operation conditions, from 30% up to 44%

Payroll tax.

30% upon reducing their regular

operation conditions, from 45% up to 59%

40% upon reducing their regular

operation conditions, from 60% up to

100%

Industrial or services companies located in the Federal District acquiring, installing and operating technologies, systems, equipment and materials or performing actions evidencing to prevent or reduce the polluting emissions established by the Mexican official and environmental standards for the Federal District.

10% upon reducing their polluting

emissions, 30% up to 39%

Real-estate tax.

15% upon reducing their polluting

emissions, 40% up to 49%

20% upon reducing their polluting

emissions, 50% up to 100%

Companies annually evidencing that they increased their workforce from 25% and those starting operations.

20% and 45% Payroll tax.

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Investing and Doing Business in Mexico City 2011

In case of starting operations by micro and small companies.

70% Payroll tax.

The companies voluntarily regularizing their registration at the Payroll Tax list and the payments of said tax.

50% Payroll tax.

I. Companies hiring people with disabilities in accordance with the law on the matter.

100% Payroll tax.

II. Industrial companies located in the Federal District replacing at least 50% of the value of imported raw material with local production raw material.

30% Payroll tax.

III. Companies making investments in equipping and infrastructure for the replacement of drinkable water with treated waste water in their productive processes, including the installation of the water tap.

80%Individuals and corporations using or making the most of waste water, treated waste water or drinkable water supplied by the Federal District.

IV. Industrial micro, small and medium companies, evidencing to have carried out the acquisition or lease of machinery and equipment increasing the installed capacity of the company.

10% Real-estate tax.

V. Agricultural or agroindustrial production companies making additional investments in machinery or equipment of at least 3,000 days of minimum salary in force in the Federal District.

30% Real-estate tax.

VI. Companies evidencing that started operations in the high-technology sectors.

55% Payroll tax.

30% Real-estate tax.

80% Real-estate transfer tax.

VII. Corporations engaged in the exportation maquiladora (assembly plant) industry and acquiring an area of the industrial spaces built for such purpose by the public entities or private promoters.

30%Real-estate transfer tax.Public Registry of Property and Commerce.

VIII. Companies evidencing to perform exportation maquila (assembly) activities.

10% Payroll tax.

IX. Companies evidencing that more than 50% of their workforce resides in the same territorial demarcations where their workplace is located.

10% Payroll tax.

X. Companies making applied research and technological development projects having an impact on the Federal District, in accordance with the general rules provided for by the Science and Technology Institute of the Federal District.

60% Payroll tax.

Individuals participating in social welfare official programs requiring the authorization to use water and drainage networks.

75%For the authorization to use the water and drainage networks or to modify the use conditions.

Retirees, pensioners for early retirement, for old age, for occupational hazards disability, handicapped, as well as pensioned widows and orphans, separated women, divorced women, female heads of the house and single mothers evidencing to have economic dependents and persons with disability.

Fixed fee for class A of Art. 130 Section

II of the CFDF (Fiscal Code of the Federal

District)

Real-estate tax.

50% Water supply duties.

Senior citizens without fixed income and scarce economic resources.

Difference between fee to pay and fixed

fee established in class A of Art. 130

Section II of the CFDF (Fiscal Code of the

Federal District)

Real-estate tax.

50% Water supply duties.

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Organizations performing the activities listed as follows: I. Strengthening and promoting the enjoyment and exercise of human rights; II. Promoting the performance of works and public services in favor of the population; IV. Promoting regional and community development, in a sustainable manner and the best use of natural resources, environmental protection and the conservation and restoration of ecological balance; V. Performing actions for civil prevention and protection; VI. Supporting vulnerable groups to attain their goals; VII. Providing social assistance in terms of the laws on the matter; VIII. Promoting education and citizen participation in favor of the people; IX. Performing educational services in terms of the General Education Law; X. Contributing human resources, materials or services for the integral health of the people in accordance with the Law on Health and the Law on Health of the Federal District; XI. Supporting the activities in favor of urban development and territorial growth; XII. Motivating the progress of cultural knowledge and development; XIII. Developing and promoting technological research; XIV. Promoting fine arts, popular traditions and maintenance of archeological, artistic and historic monuments and sites, as well as the preservation of the cultural heritage; XV. Providing supporting services to the creation and the strengthening of civil organizations.

80%

Real-estate transfer tax.Real-estate tax.Entertainment tax.Tax on lottery, sweepstakes, draws and contests held in the Federal District. Payroll tax.Services for the issuance of construction permits or for the registration of statement of construction type, “A”, “B” and “C”.Rights established Chapter IX of the Fifth Section of Title Third of Book First of the CFDF (Fiscal Code of the Federal District).

Private Assistance Institutions, legally organized. 80%

Real-estate transfer tax.Real-estate tax.Entertainment tax.Tax on lottery, sweepstakes, draws and contests held in the Federal District.Payroll tax.Water supply duties.For the authorization to use water and drainage networks. Services for the issuance of construction permits or for the registration of statement of construction type, “A”, “B” and “C”.

Persons performing programs for family development 80%

Real-estate tax.Entertainment tax.Tax on lottery, sweepstakes, draws and contests held in the Federal District.Services provided by the Civil Registry.

Persons carrying out for no profit, programs for cultural development, including museums.

80%Entertainment tax and tax on lottery, sweepstakes, draws and contests.

Persons carrying out Mexican cinematographic productions.

80% Art. 269 paragraphs c), d) and e)

Persons carrying out for no profit, programs for sports development.

60%Entertainment tax and tax on lottery, sweepstakes, draws and contests.

Public entities and private promoters building commercial areas such as marketplaces, bazaars, corridors and markets or renovating and adapting real-estate properties for this purpose in the Federal District, which premises are sold to individuals that presently have commercial activities on the street in Mexico City.

30%

Real-estate transfer tax.Services for the issuance of construction permits or for the registration of statement of construction type, “A”, “B” and “C”.Services for the issuance of licenses for properties subdivision, reploting or merger.Services for the issuance of certifications, licenses, studies and opinion.

They will also be applied to the public entities and private promoters constructing industrial areas such as miniparks and industrial corridors or fitting out and adapting real-estate properties for this purpose in the Federal District, to sell them to individuals or corporations performing exportation maquila (assembly) activities.

Street peddlers acquiring premises from the commercial spaces built by the public entities or private promoters and the originally established merchants and whose property where their store was located had been subject to an expropriation and who acquire any premises.

30%

Real-estate transfer tax.Real-estate tax.Registration duties at the Public Registry of Property and Commerce.

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Individuals or corporations investing with their own capital, to perform works for the Federal District, of hydraulic infrastructure, plumbing facilities, public lighting, main arterial highways, including vehicular bridges, cloverleaves, secondary ways, collector streets, local streets, museums, libraries, cultural centers, parks, squares, leveled areas or gardens with a surface covering from 250 square meters up to 50,000 square meters, sports modules or any other social interest work.

90%Constructions established in Chapter IX in its sections III, IV, VII and XIII, of title third of book first of the CFDF (Fiscal Code of the Federal District).

Persons granting donations in cash for the performance of public works.

20% Real-estate tax.

Individuals contributing their individual, family or collective labor for the performance of the works in the services of construction and hydraulic operation corresponding to the connection of drinkable water taps for domestic use, on lands type I and II with a 13 mm diameter and in the connection of discharges for domestic use on lands type I and II with a 15 mm diameter.

95%

Duties for the installation, reconstruction, reduction or change of place of water taps to supply drinkable water or treated waste water and their connection to the public service distribution networks.

Persons acquiring or regularizing the acquisition of a social interest housing or popular housing.

80% Real-estate transfer tax.Duties of the Public Registry of Property and Commerce.60%

Persons with concessions and permits to operate public, commercial, private and individual service of passengers and load transportation, as well as of the public service of individual transportation of passengers.

15%

Vehicle control services appearing in connection with vehicles of public, commercial, private and individual service of passengers and load transportation, as well as related to transportation auxiliary equipping.

Individuals or corporations organizing lotteries, sweepstakes, draws, games with gambling, permitted gambling, all kinds of contests, having facilities located in the Federal District, destined to draws, or permitted gambling, or games with gambling. Those individuals or corporations winning the prizes resulting from or related to the aforementioned activities will also have this benefit.

10%

Vehicle control services appearing in connection with vehicles of public, commercial, private and individual service of passengers and load transportation, as well as related to transportation auxiliary equipping.

Owners of real-estate properties for dwelling house purposes having grown and alive trees or non-wooded green areas on their surface, provided that the trees or green areas occupy at least one third of the properties surface.

25% Real-estate tax.

Properties that are common lands or common goods fully exploited for agricultural purposes.

50% Real-estate tax.

Individuals or corporations evidencing to be owners of buildings in relation to which, they evidence the application of sustainable systems before the Secretariat of the Environment.

10% Real-estate tax.

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2.4 Innovation and development clusters

Presently, the Federal District Government is promoting the following clusters:

i) North: in the zone of the Parque Tecnológico Educativo Ferrería (Ferrería Educational Technological Park) and Universidad Tec Milenio (Tec Milenio University), in Azcapotzalco, engaged in the development of software, nanotechnology and high-technology products.

ii) South: in the San Fernando and Tlalpan hospitals area, close to three important universities of the country (UNAM, UAM Xochimilco and Tecnológico de Monterrey). This pole is engaged in biotechnology, genomics and health.

iii) West: in the Santa Fe area, engaged in financial services and corporate offices.

2.5 Main international companies established, with branches or representation offices in Mexico City

SECTOR EMPRESA ORIGEN DE CAPITAL

AerolineasGrupo Mexicana de Aviación

Grupo AeroméxicoMexico

Japan Airlines Japan

American AirlinesContinental Airlines

United AirlinesUSA

AgroindustriaGrupo Monsanto

CargillUSA

Alimentos Danone France

Grupo Herdez Mexico

Mead Johnson USA

Nestlé Swiss

Grupo Bimbo Mexico

ArmadoraGeneral Motors

FordChrysler

USA

Daimler USA / Germany

NissanMazdaSuzukiToyota

Japan

BMW Germany

Renault France

AutopartesKuo automotriz

San Luis CorporaciónMexico

BridgestoneElectrónica Clarion

Japan

Federal Mogul USA

Continental Tire Germany

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Bebidas y cervezas

Coca Cola de MéxicoGrupo Penafiel

Pepsico de MéxicoPepsi Bottling Group

USA

Grupo Modelo Mexico

Cervecería Cuauhtemoc-Heineken Holland

Cemento y materiales Holcim Apasco Swiss

Corporación Moctezuma Holand

Lafarge France

Comercio autoservicios Walmart USA

Comercio departamental y especializado

SuburbiaOffice DepotRadio Shack

Azerty

USA

Computación y serviciosMicrosoftLexmark

NextiraOneUSA

SAP Germany

Tata Consultancy Services India

Indra Spain

Accenture Bermudas

ConstrucciónICA

CICSAIDEAL

Mexico

OHM Spain

Cuidado PersonalProcter & GambleAvon CosmeticsEstée Launder

USA

L’Oréal France

Electricidad CFE Mexico

Iberdrola Spain

Electrónica Mabe Mexico

SonyPanasonic

Japan

Samsung Korea

SiemensAlstom

Germany

Cooper Industries USA

HoteleriaGrupo Posadas

Grupo PresidenteMexico

LogísticaFedEx Express

PenskeWerner

USA

Maquinaria y equipo Trinity Industries USA

Ottomotores United Kingdom

MineriaGrupo MexicoFresnillo PLC

Industrias PenolesMexico

Papel y Cartón Kimberly-Clark USA /Mexico

Smurfit Kappa Cartón y Papel Ireland

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Petroleo Petroleos Mexicanos Mexico

Química FarmacéuticaBayer

Boehringer IngelheimGermany

RocheNovartis

Swiss

Sanofi-Aventis France

PfizerValeant

USA

Bristol Myers SquibbMerck Sharp & Dohme

Eli LillyUSA

GlaxoSmithKline United Kingdom

Genomma Lab Mexico

PetroquímicaDuPont

Dow QuímicaSherwin Williams

USA

Oxiteno Brazil

Seguros y fianzas

MetLifeSeguros Monterrey New York Life

Banamex (Citi)AIG

USA

MAPFREBBVA Bancomer

SantanderSpain

Allianz Germany

Zurich Swiss

HSBC United Kingdom

AXA France

Servicios Financieros

BanamexMerrill Lynch

American Express Co.JP Morgan

Bank of America

USA

BancomerSantander

Spain

ING Holland

Credit Suisse Swiss

Scotia Inverlat Canada

Telecomunicaciones America Mobil / Telmex Mexico

Telefónica Spain

Nextel USA

Source: Expansión Magazine 500. Mexico. 2010.

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Regulation of foreign investment

Chapter III

During last two decades Mexico has been modified its legal Framework regarding foreign investment in order to allow foreign capital in different areas and sectors.

The Mexican Foreign Investment Law and its Regulation (www.ordenjuridico.gob.mx) contains the provisions in this legal area. The authority is the General Bureau Of Foreign Investment which belong to the Ministry of Economy.

In general, the foreign capital can invest in any area. However, there are some exceptions as mentioned below.

1. Activities reserved for Mexican State

• Oil and other hydrocarbons, • Basic petrochemicals, • Electricity, • Nuclear energy generation, • Radioactive minerals, • Telegraphs, • Radiotelegraphy, • Postal Service, • Bank Notes Issuance, • Minting of coins • Control, supervision and surveillance of ports, airports and heliports.

Source: Article 5 of Foreign Investment Law

2. Activities reserved for Mexican Nationals

The following economic activities and companies are exclusively reserved for Mexicans or Mexican companies, with a foreigners’ exclusion clause:

• Domestic land transportation for passengers, tourism and freight, not including messenger or courier services.

• Retail sale of gasoline and distribution of liquefied petroleum gas.• Radio and television broadcasting services, other than cable television.• Credit unions• Development banking institutions as provided by the applicable law.• Professional and technical services specifically provided for under the applicable laws.

Source: Article 6 of Foreign Investment Law

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It is allowed that foreign capital takes part in the above mentioned areas through “Neutral Investment” Neutral investment is a mechanism that allows foreigners to hold larger shares of the equity of Mexican companies. This equity shall not be computed to determine the percentage of foreign investment in the capital stock of Mexican companies.

3. Activities subject to specific regulation

3.1 Up to 10% in:

• Cooperative companies for production

3.2 Up to 25% in:

• Domestic air transportation• Aero taxi transportation• Specialized air transportation.

3.3 Up to 49% in:

• Insurance companies• Bonding companies• Currency exchange houses• Bonded warehouses• Companies referred to in article 12b of the Mexican Securities Market Law• Retirements Funds Administrators• Manufacture and marketing of explosives, firearms, cartridges, ammunition and

fireworks, not including acquisition and use of explosives for industrial and extracting activities nor the preparation of explosive blends for use in such activities.

• Printing and publication of newspapers for circulation solely throughout Mexico• ”T” class shares of companies owning agricultural, livestock and forest lands• Fishing in freshwater, coast and exclusive economic zone, excluding aquaculture• Integral port management• Port pilot services for vessels in order to performs coastal navigation pursuant to the

applicable laws• Shipping companies engaged in the commercial exploitation of vessels for coastal

shipping or coastal trade, except for tourist cruise ships and the exploitation of drills and naval devices for the construction, conservation and operation of ports

• Oil and lubricant supply for ships, aircraft and railroad• Telecommunications Concessionaire companies as provided by articles 11 and 12 of

the Federal Telecommunications Law

Source: Article 7 of Foreign Investment Law

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3.4 Foreign investment up to 49%

Foreign investment may participate in a percentage higher than 49 percent in the economic activities and companies referred to hereafter after approval by the National Foreign Investment Commission.

• Port services to vessels for inland navigation operation, such as towing, mooring and barging

• Shipping companies exclusively engaged in the exploitation of high sea traffic• Companies with a concession or permit for public service aerodromes• Private education services of pre-school, elementary, middle school, high school,

college or any combination• Legal Services• Credit information companies• Securities rating institutions• Insurance agents• Mobile telephony• Construction of pipelines for the transportation of oil an its by products• Drilling of oil and gas well• Construction, operation and exploitation of railroads that are a general means of

communication and the public railroad services

Source: Article 8 of Foreign Investment Law

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Corporate Structures

Chapter IV

In order to carrying out business in Mexico, a foreign investor may act trough different corporate vehicles. Prior to select a corporate vehicle it is important to analyze the tax advantages, corporate purpose, type of market, import and export plan, business plan, possible competitors and limitation of liability, among others.

The most utilized corporate structures in Mexico are the following:

1. Representative office.

Under this structure are allowed limited activities such promotion and distribution of information. The essence of this structure lies in the fact that they will not obtain income.

2. Branch office

This structure allows perform business activities in Mexico and generating incomes in accordance to its corporate by-laws. Therefore, a foreign company doing business in Mexico through a Branch is not a separate entity and consequently, such foreign company may be liable for the branches obligations.

On the other hand, foreign investors may prefer to incorporate a new entity in Mexico. Hence, a new entity will provide a strong corporate presence in Mexico and to limit the liability of the parent company. Under the Mexican Law of Business Organizations (Ley General de Sociedades Mercantiles) are provided several types of business entities. The most common and utilized forms are the Stock Company and the Limited Liability Company. 3. Stock Company (Sociedad Anónima “S.A.”)

The S.A. is the most common type of legal entity used by national and foreign investors and is similar to a U.S. corporation. The main characteristics of the S.A. are the following:

• The liability of shareholders is limited up to the amount to cover the par value of The shares of the company.

• The minimum number of shareholders required is two (legal entities or individuals), with no limit as to the maximum number.

• The minimum fixed capital required is of $50,000.00 Mx. Cy. (approximately 4,135.00 USD).

• The S.A. may adopt the variable capital form which generally is unlimited.• Equity interests in the Company are represented by stock. • The stock is freely transferable, however the by-laws may provide previous authorization

of the Board of Managers or rights of first refusal.

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4. Limited Liability Company (Sociedad de Responsabilidad Limitada “S.R.L.”)

The S.R.L. is the second most common structure for doing Business in Mexico and is similar to limited liability partnerships in the U.S. (L.L.C.). The main characteristics are the following:

• The liability of the partners is limited up to their contributions.• The minimum number of partners required is two (legal entities or individuals), with

maximum of 50 allowed.• The minimum fixed capital required is of $3,000.00 Mx. Cy. (approximately 248.00 USD). • The S.R.L. may adopt the variable capital form which generally is unlimited.• Equity interests in the Company are represented by “participation units”, not by stock. • The transferability of “participation units” is limited, although it can be provided in the

by-laws and the majority of partners must consent the transfer. The SRL is designed primarily for joint venture relationships or closely held companies, where super majorities and restrictions on transfers of equity are desired.

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Commercial agreements, accords

and treaties

Chapter V

Throughout history, Mexico has had a respectful and sound diplomatic relation with foreign countries, always seeking for ties of peace, cooperation and multilateral development.

1. Agreements and Treaties of Mexico with the World

Mexico on its part, is among the first countries in the world with more commercial agreements and treaties entered into. The above allows it to be situated in a privileged position of international trade.

Thus, Mexico has 11 Free Trade Agreements that include 44 countries. Among these agreements, the North American Free Trade Agreement (NAFTA) with the United States and Canada stands out due to its great significance, as well as the Free Trade Agreement between Mexico and European Union.

2.1 Free Trade Agreements

The Free Trade Agreements in force are:

2.1.1 North American Free Trade Agreement (NAFTA), with the United States and Canada (1994).

2.1.2 The G3 Free Trade Agreement, among Mexico, Venezuela and Colombia. (2007). Due to its own decision, Venezuela has withdrawn from this agreement.

2.1.3 Free Trade Agreement with Costa Rica (1995).

2.1.4 Free Trade Agreement with Bolivia (1995)

2.1.5 Free Trade Agreement with Nicaragua (1998).

2.1.6 Free Trade Agreement with Chile (1999).

2.1.7 Free Trade Agreement between Mexico and European Union (2000).

2.1.8 Free Trade Agreement with Israel (2000).

2.1.9 Free Trade Agreement with the European Free Trade Association (Norway, Iceland, Switzerland and Liechtenstein) (2008).

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2.1.10 Free Trade Agreement with the Northern Triangle (El Salvador, Guatemala and Honduras) (2001).

2.1.11 Free Trade Agreement with Uruguay (2004).

2.1.12 Free Trade Agreement with Japan (2005).

Additionally, Mexico has entered into dozens of Bilateral and Multilateral Agreements practically with the whole world, which may be consulted at the following address:http://www.sre.gob.mx/tratados/

2.2 Agreements for the Reciprocal Promotion and Protection of Investments

Mexico has entered into 27 Agreements for the Reciprocal Promotion and Protection of Investments (Investments Protection Agreement) with the following countries.

Source: Promexico

In addition, several Free Trade Agreements subscribed by Mexico include a chapter similar to the Agreements for the Reciprocal Promotion and Protection of Investments, such as the Agreements in force with the United States, Canada, Chile, Colombia and Japan, among others.

2.3 Agreements to Avoid Double Taxation

Mexico has entered into more than 30 Agreements to Avoid Double Taxation with different countries.

Country Year Country Year Country YearArgentina 1996 Austria 2001 Panama 2006

Netherlands 1998 Sweden 2001 Iceland 2006France 1999 Korea 2002 Australia 2007

United Kingdom

2000 Italy 2002 Trinidad and Tobago 2007

Portugal 2000 Uruguay 2002 India 2008Denmark 2000 Greece 2002 Spain 2008Finland 2000 Cuba 2002 Eslovaquia 2009

Germany 2000 Belgium 2003 China 2009Alemania 2001 Czech Republic 2004 Belarus 2009

CountryIssued in the Federal

Official Gazette (DOF)In force since

Germany 16 March 1994 30 December 1993

Argentina 19 March 2004 15 January 2004

Australia 13 February 2004 31 December 2003

Austria 8 December 2004 1 January 2005

Belgium 6 January 1997 1 January 1997

Brazil 1 January 2007 29 November 2006

Canada 20 June 2007 12 April 2007

Corea 16 March 1995 13 February 1995

Chile 12 May 2000 12 November 1999

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Source: Promexico

2.4 Sister Cities Agreements, Cooperation and Collaboration Agreements entered into by Mexico City with other Cities.

Mexico City has entered into diverse agreements and instruments with other cities. These have as a common aim the promotion in both cities of culture, tourism, education, health, economic development, social development, environment and sports, among others.

Sister Cities Agreements with:Los Angeles, California, USA. 2007Nagoya, Japan 2007La Habana, Cuba 1997Tegucigalpa, Honduras 1999Quito, Ecuador 1999Cantón, San José, Costa Rica 2000Buenos Aires, Argentina 2006Beijing, China 2009Cádiz, Spain 2009Istanbul, Turkey 2010

Cooperation AgreementsSan Salvador, El Salvador 1999Madrid, Spain 1983Walloon Region, Belgium 2001Guangzhou, China 2010Seoul, Korea 2010

Collaboration Agreement Berlin, Germany 1996

Source: International Relations General Coordination of the Federal District Government. January 2011

China 28 February 2006 1 March 2006

Denmark 27 May 1998 22 December 1997

Ecuador 4 April 2001 13 December 2000

Spain 31 December 1994 6 October 1994

United States 3 February 1994 28 December 1993

Finland 11 August 1999 14 July 1998

France 16 March 1993 31 December 1992

Greece 31 December 2005 7 December 2005

Indonesia 8 December 2004 28 October 2004

Ireland 9 August 2000 31 December 1998

Israel 11 August 2000 9 May 2000

Italy 29 March 1995 10 March 1995

Japan 6 January 1997 6 November 1996

Luxembourg 6 February 2002 27 December 2001

Norway 26 August 1996 23 January 1996

New Zeland 15 June 2007 16 June 2007

Poland 18 October 2002 28 August 2002

Portugal 3 April 2001 9 January 2001

United Kingdom 15 March 1995 15 December 1994

Czech Republic 28 January 2003 27 December 2002

Slovak Republic 28 September 2007 28 September 2007

Romania 12 December 2001 15 August 2001

Russia 20 May 2008 2 April 2008

Singapore 23 August 1996 14 September 1995

Sweeden 10 February 1993 18 December 1992

Switzerland 24 October 1994 8 September 1994

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Mexican Visa Chapter VI

The authority in Mexico responsible for immigration matters is the National Immigration Institute (www.inm.gob.mx)

1. Countries and regions requiring Visa to travel to Mexico

The persons of the following countries and regions must get a visa to enter into Mexico (those foreigners having a valid visa and in force of the United States of America and those evidencing to be permanent legal residents in the United States of America, Canada, Japan, the United Kingdom of Great Britain and the countries integrating the Schengen area, may travel to Mexico without a visa).

The stay of Tourists and business Visitors may not exceed 180 days; transmigrants may stay in Mexico up to 30 days:

A AfghanistanAlbanyAngolaAntigua and BarbudaSaudi Arabia ArgeliaArmeniaAzerbaiyán

B BahreinBangladeshBelarusBeninBoliviaBosnia-HerzegovinaBotswanaBrasilBrunei DarusalamBurkina FasoBurundiBután

C Cabo VerdeCamboyaCameroonChadChina ColombiaComorasCongoCongoNorth KoreaIvory CoastCuba

D DjibutiDominicaDominican Republic

E EcuadorEgyptUnited arab EmiratesEritrea Ethiopía

F Russian FederationFiji Islands Philippines

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G GabónGambiaGeorgiaGhanaGrenadaGuatemalaGuineaGuinea BissauEquatorial Guinea Guyana

H HaitíHonduras

I IndiaIndonesiaIrakIrán

J Jordania K KazajistánKeniaKirguistánKiribatiKuwait

L LaosLesothoLíbanoLiberiaLibya

M MacedoniaMadagascarMalawiMaldivasMaliMarruecosMauricioMauritaniaMianmarMoldovaMongoliaMontenegroMozambique

N NamibiaNauruNepalNicaraguaNigerNigeria

O Omán

P PakistánPalestinePapua Nueva GuineaPerú

Q Qatar R Centro African Republic Arab Republic Saharaui Democratic Ruanda

S Salomon IslandsSamoa OccidentalSan Cristobal y NievesSan Vicente y Las GranadinasSanta LucíaSanto Tome y PríncipeSenegalSerbiaSeychelles IslasSierra LeonaSiriaSomaliaSri LankaSudáfricaSudanSurinamSwazilandia

T Thailand TaiwanTanzaniaTayikistánTimor OrientalTogoTongaTunesiaTurkmenistánTurkeyTuvalu

U Ukraine UgandaUzbekistán

V VanuatuVietnam

Y Yemen Z ZambiaZimbawe

Source: National Immigration Institute

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2. Countries and regions not requiring visa to travel to Mexico

The persons of the following countries do not need a visa to enter Mexico as Tourists, Transmigrants and Business Visitors. The stay of Tourists and business Visitors may not exceed 180 days; transmigrants may stay in Mexico up to 30 days:

A GermanyAndorraAnguilaNetherlan Antilles ArgentinaArubaAustraliaAustria

B Bahamas (Comonwealth)BarbadosBelgumBeliceBulgaria

C CanadaChileCyprusSouth KoreaCosta Rica

D Denmark E SlovakiaSloveniaSpainUnited States of America Estonia

F FinlandFrance

G GibraltarGreeceGreenlandGuadalupeFrench Guiana

H Hong Kong (China)* Hungary

I IrelandIcelandAzores IslandsBermudaCayman IslandsCocos IslandsCook IslandsFaroe IslandsGuam IslandsFalkland IslandsMarianas IslandsMarshall IslandsChristmas IslandsNiue IslandsNorfolk IslandsPitcairn IslandsReunionU.S. Virgin IslandsWallis and Futuna British Virgin IslandsIsraelItaly

J Japan L LatviaLiechtensteinLithuaniaLuxembourg

M Macao (China)*MahoreMaltaMartiniqueMicronesiaMonacoMontserrat

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N NorwayNew CaledoniaNew Zealand

P NetherlandsPalauPanamaParaguayFrench Polinesia PolandPortugalPuerto Rico

R United KingdomCzech Republica Rumania

S American SamoaSan MarinoSanta HelenaSingaporeSwedenSwitzerland

T British Territory Indian OceanTokelauTrinidad and TobagoTurks and Caicos

U Uruguay

V Venezuela

Source: National Immigration Institute

Consular seal required

The persons of the following countries do not need a visa, but they must get the consular seal on their passport to enter into Mexico as Tourists, Transmigrants and Business Visitors. The stay of Tourists and business Visitors may not exceed 180 days; transmigrants may stay in Mexico up to 30 days:

El Salvador Jamaica Malaysia

3. Types of Visas

In Mexico, there is diverse immigration status such as: tourist, student, retirement, investor, religious minister, political refugee, correspondent, among others. The requirements and terms may vary in accordance with each country. To learn more details and specific requirements visit: www.inm.gob.mx/index.php/page/Solicitudes_de_Tramites

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Undoubtedly, intellectual property is one of the most important assets that a company has. To this effect, Mexico offers legal security and protection to the intellectual property rights.

Thus, Mexico has ratified the main international agreements on the matter, such as the Paris Convention, the Agreement on Trade Related Aspects of Intellectual Property Rights and also, Mexico is member of the World Intellectual Property Organization.

The authority in charge for regulating and administrating intellectual property in Mexico is the Mexican Institute of Industrial Property (IMPI) www.impi.org.mx and the legal instrument regulating this matter is the Industrial Property Law and its respective Regulations.

Following are the main characteristics of the most representative figures protecting Intellectual Property rights in Mexico.

1. Patent

The protection of a patent may be requested before the IMPI, provided that the following requirements are met:

i) It is a new invention,ii) The invention must be the result of an inventive activity andiii) The invention must be subject to industrial application.

Pursuant to the Industrial Property Law, the holder of a patent must exploit it, on his own behalf or though a licensee, either by the use or manufacture of the invention in the country or through the subsequent import and sale of the product patented or obtained by the patented process.

The term of a patent is of 20 years, non-extendible.

2. Trademark

A trademark is any distinctive characteristic distinguishing products or services from others of their same kind or class on the market. A trademark may be a name, a distinctive figure, a tridimensional form or the combination of them, sufficiently distinctive that is useful to distinguish a product or a service from others of their same class or kind.

Intellectual Property

Chapter VII

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The classification of the trademarks is the following:

i) Nominative: They are the trademarks allowing to identify a product and its origin by means of a word or a group of groups. Their particularity is based on the fact that they must be phonetically distinguished from other products or services of their same kind or class.

ii) Design: They are the trademarks that can be visually but not phonetically recognized. Their particularity is based on the fact that they are logotypes, symbols, designs or any distinctive figurative element.

iii) Mixed: They are trademarks combining elements i) and ii) above, that is, words with figurative elements presenting the trademark as a sole element or a sole group.

iv) Tridimensional: There are the trademarks protecting the boxes, cartons, cans, bottles or containers, that is, the manner in which the products are presented for their commercialization.

The term of a trademark is of 10 years and may be indefinitely renewed.

3. Commercial name

The commercial name is any name useful to distinguish an industrial, commercial or services company or establishment, within the geographical zone where its effective clients are located. Both the commercial name and the right to its exclusive use will be protected without the need of registration.

The term of the commercial name is of 10 years and may be indefinitely renewed.

4. Commercial advertisement

The commercial advertisement is composed of the phrases or sentences useful to announce products or services, commercial, industrial or service establishments or concerns to the public, to distinguish them from those of their own kind.

The term of a commercial advertisement is of 10 ten years and may be indefinitely renewed.

5. Designation of origin

The designation of origin corresponds to the name of a geographical region of a country useful to designate the product originated in same and which quality and characteristics are exclusively due to the natural and human environment.

The term of a designation of origin will be determined by the continued existence of the conditions that caused it and will only cease being in force by means of a statement by the IMPI.

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6. Industrial Secret

In terms of Mexican law, any information of industrial or commercial application of a confidential nature, meaning to obtain or keep a competitive or economic advantage before third parties in the performance of economic activities and regarding which it has adopted the means or systems enough to preserve its confidentiality and the restricted access to same, is considered as industrial secret. Thus, the information of an industrial secret must necessarily refer to the nature, characteristics or purposes of the products; to the production methods or processes; or to the means or ways of distribution or commercialization of products or the provision of services.

It is convenient to mention the existence of other figures protecting the industrial property rights such as, the utility Model, the industrial Design and the integrated Circuits.

Finally, it is convenient to mention that in accordance with Mexican law, Industrial Property rights may be protected to guaranty their compliance by means of administrative-law, civil and criminal proceedings.

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Main Taxes Chapter VIII

In this chapter, the main taxes applicable to the companies deciding to invest and make business in Mexico City, will be briefly explained. Since this manual is for informative and reference purposes, we recommend all investors that for tax advice purposes, they should contact a specialized accounting firm with seat in Mexico City.

The two main tax collecting institutions are:

i) federally, the Tax Administration System (www.sat.gob.mx) and ii) locally, the Secretariat of Finance of the Federal District ww.finanzas.df.gob.mx/).

NOTE: To see tax discounts and incentives granted by the Government of the Federal District see Chapter II of this document.

1. Definitions

1.1 Definition of foreigner

For tax purposes, foreigners are the natural persons (individuals) or juridical persons (business corporations, non-profit associations or civil partnerships, among others) governed by the laws of another country, by reason of nationality, domicile, residence, seat of operation, among other criteria.

To explain the tax treatment applicable, foreigners may be: Residents in Mexico and Residents Abroad.

1.1.1 Residents in Mexico

Tax legislation considers as residents in Mexico, the following persons:

• Natural persons, both national and foreign, having established their dwelling house in Mexico.

• When they have also a dwelling house in another country, they are considered as residents in Mexico if more than 50% of the annual income of the natural person comes from a source of wealth located in this country, or else, that the center of his/her professional activities is located in Mexican territory, among other cases.

• Mexican natural persons who are officers of State or workers of same, even when the main seat of their business is located abroad.

• Juridical persons (business corporations, non-profit associations or civil partnerships, among others) having been organized in accordance with Mexican laws, as well as those having established in Mexico the main seat of their business or their headquarters. It should be mentioned that it is assumed that Mexican natural persons are residents in Mexico except that they prove that they are residents in another country.

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1.1.2 Residents abroad

Tax laws consider residents abroad, the following persons:

• Natural persons, national or foreign, not having their dwelling house in Mexico. Notwithstanding the above, if they have a dwelling house in Mexico, they will be considered as residents abroad if they do not have in this country their main center of interests, that is, if more than 50% of the annual income that they earn does not proceed from a source of wealth located in Mexico, or else, if the center of their professional activities is not located in Mexican territory, among other cases and,

• Juridical persons (business corporations, non-profit associations or civil partnerships, among others) not organized in accordance with Mexican laws, as well as those not having established in Mexico the main seat of their business or their headquarters, but keeping one or more permanent places of business in Mexican territory. Natural persons or juridical personal that in accordance with the above, be residents abroad, must pay taxes in Mexico in the following cases:i) When they obtain income from any source of wealth located in Mexican territory.ii) When they have a permanent place of business in the country, for the income attributable to same.

1.2 Definition of permanent place of business

It is considered as permanent place of business any place to do business, performing, totally or partially, business activities or rendering independent personal services. These places are, for example: branches, agencies, offices, factories, workshops, facilities, mines or any place of exploration, extraction or exploitation of natural resources.

It is considered that there is a permanent place of business in the country in the following cases:

• When a resident abroad performs business activities in the country by means of trust.• When he acts in the country through a person exercising powers to enter into agreements

on his behalf or by himself. • When an insurance company earns income for collection of premiums within Mexican

territory, or grants insurance against risks situated in it. • When he acts through an independent agent, if this does not act within the regular

framework of his activity.• When construction, demolition, installation, maintenance or assembly services in real-

estate properties and other related are performed in Mexico, provided that they have a duration of more than 183 calendar days, consecutive or not, in a one-year period.

2. Taxes

Following is a brief description of the main local and federal taxes.

2.1 Description of main local Taxes

In connection with local taxes, their tax discounts and incentives granted by the Government of Mexico City, refer to Chapter II of this document.

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2.1.1 Real-estate tax (Impuesto Predial)

It is set forth in Article 126 of the Fiscal Code of the Federal District(http://www.finanzas.df.gob.mx/codigo).

Natural persons and juridical persons owners of the land or of the land and the constructions on same, independently of the rights on the constructions by a third party, must pay the Real-Estate Tax.

This tax is calculated by applying a fixed rate to the cadastral value of the real estate. See Article 130 of the Fiscal Code of the Federal District.

Source: Art. 130 of the 2011 Fiscal Code of the Federal District.

2.1.2 Real-estate transfer tax (Impuesto sobre adquisición de inmuebles)

Natural persons and juridical persons acquiring real-estate properties consisting of the land, of the constructions or of the land and the constructions built on it located in the Federal District, are obligated to pay this Tax, as well as the duties resulting from same. Article 112 of the Fiscal Code of the Federal District (http://www.finanzas.df.gob.mx/codigo).

This tax is calculated by applying the following rate on the total value of the real estate:

RangeLower Limit

to cadastral value of real estate

Higher LimitTo cadastral value

of real estateFixed Fees

Additional rate exceeding the lower

limit

A $0.11 $162,740.82 $134.58 0.01344

B $162,740.83 $325,481.16 $156.44 0.02561

C $325,481.17 $650,963.56 $198.12 0.08004

D $650,963.57 $976,444.70 $458.65 0.09822

E $976,444.71 $1,301,927.10 $778.35 0.10074

F $1,301,927.11 $1,627,408.26 $1,106.23 0.11709

G $1,627,408.27 $1,952,889.39 $1,487.32 0.12099

H $1,952,889.40 $2,278,371.81 $1,881.13 0.13219

I $2,278,371.82 $2,603,852.96 $2,311.40 0.13827

J $2,603,852.97 $2,929,335.38 $2,761.43 0.14229

K $2,929,335.39 $3,254,816.51 $3,224.55 0.14666

L $3,254,816.52 $3,580,297.67 $3,701.90 0.15065

M $3,580,297.68 $3,906,090.04 $4,192.23 0.15914

N $3,906,090.05 $11,718,268.85 $4,710.71 0.17185

O $11,718,268.86 $24,663,843.29 $18,135.70 0.17193

P $24,663,843.30 En adelante $40,393.19 0.17844

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Source: Art. 113 of the 2011 Fiscal Code of the Federal District.

In case of acquiring a portion of the real estate, once having obtained the result of applying the rate established to the total value of the real estate, the percentage acquired will be applied to said result.

2.1.3 Payroll tax (Impuesto sobre nóminas)

Natural persons and juridical persons who, in the Federal District, make disbursements in cash or in kind for the concept of compensation to subordinated personal work, regardless of the designation granted to them, are obligated to pay the payroll tax. Article 156 of the Fiscal Code of the Federal District (http://www.finanzas.df.gob.mx/codigo).

For purposes of this tax, they will be considered as disbursements destined to compensate the subordinated personal work, the following:

-Wages and salaries

-Overtime

-Rewards, premiums, bonuses, inducements and incentives

-Remunerations

-Bonuses and Christmas bonuses

-Employers’ participation to the savings fund

-Seniority Premiums

-Commissions

Payments made to administrators, statutory auditors or members of the corporations and associations auditing or administration managing boards.

Source: Art. 156 of the 2011 Fiscal Code of the Federal District.

The Payroll Tax will be determined, by applying the rate of 2.5% on the total sum of the disbursements made for the concept of compensations to the subordinated personal work. Article 158 of the Fiscal Code of the Federal District.

3.1 Description of the main federal Taxes

3.1.1 Income Tax (Impuesto Sobre la Renta)

It is set forth in the Income Tax Law (www.ordenjuridico.gob.mx)

Foreigners residing abroad and obtaining an income in Mexico, or when they have a permanent place of business in the country, for the income resulting from said place of business, must pay said tax.

Range Lower Limit Higher Limit Fixed FeesAdditional rate

exceeding the lower limit

A $0.12 $77,627.01 $146.34 0.00000

B 77,627.02 124,203.16 146.35 0.03163

C 124,203.17 186,304.56 1,619.55 0.03261

D 186,304.57 372,609.23 3,644.68 0.03261

E 372,609.24 931,523.08 9,720.07 0.03696

F 931,523.09 1,863,046.16 30,377.54 0.04565

G 1,863,046.17 UP 72,901.56 0.04565

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The aforesaid persons must pay taxes in Mexico when they obtain income for the following concepts: salaries; fees; compensations to boards members, administrators, statutory auditors and managers; real-estate properties lease; personal property lease; share-time tourist service agreements; sale of shares; financial leasing; royalties, technical assistance and advertising; interests; prizes; artistic and sporting activities or shows for the public; distributable remainder of juridical persons for non-profit purposes; dividends, profits, transfers of funds and earnings distributed by juridical persons; sale of real-estate properties; construction of works, installation, maintenance or assembly on real-estate properties, inspection or supervision, and other income coming from source of wealth in Mexico.

Presently, the general rate of this tax is of 30%.

3.1.2 Value-Added Tax (Impuesto al Valor Agregado)

This tax must be paid in case of obtaining income for sale of goods or for lease of real-estate properties other than dwelling house. If the real-estate properties are rented furnished, or they are hotels or guest houses, the value-added tax will also be paid. Natural persons or juridical persons making payments to residents abroad for provision of services made use of in Mexico, for the use or enjoyment of tangible and intangible assets, among other cases, it is considered that they make imports, and they must pay the tax incurred in accordance with the Value-Added Tax Law (www.ordenjuridico.gob.mx)

Presently, the rate of this tax reaches 16% inside Mexico and 11% in the borders of Mexico.

3.1.3 Flat Tax (Impuesto Empresarial de Tasa Única)

Natural persons and juridical persons residing in Mexican territory, as well as residents abroad with permanent place of business in the country, are obligated to payment of the flat tax, for the income that they obtain, regardless of the place where such income is produced, for the performance of the following activities: sale of goods, provision of independent services and granting of the temporary use or enjoyment of goods.

Residents abroad with permanent place of business in the country are obligated to pay the flat tax for the income attributable to said place of business, resulting from the aforementioned activities.

This tax is set forth in the flat tax Law (www.ordenjuridicom.gob.mx).

The rate of this tax is of 17% for 2009 and of 17.5% from 2010.

Note: It should be noted that the Income Tax and the Flat Tax are not paid together, that is, in an accumulative manner. By legal provision only one of them is paid, the one resulting higher.

3.1.4 Excise Tax (Impuesto Especial sobre Producción y Servicios)

Natural persons and juridical persons are obligated to pay this tax for the sale or the final import of alcoholic beverages and beer, alcohol, denatured alcohol and uncrystallizable honeys, patterned tobaccos, gasolines and diesel. It is also paid for the provision of the following services: commission, mediation, agency, representation, brokerage, consignment and distribution, due to the sale of alcohols, beers and tobaccos.

This law is set forth in the Excise Tax Law (www.ordenjuridico.gob.mx).

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Labor regulation between employers and workers is one of the most important subjects to consider by foreign businessmen upon making investments and business in Mexico. Therefore, this chapter explains various basic questions involving labor regulations in force in Mexico City. Legal regulation of labor matters in Mexico is governed by the Federal Labor Law(www.ordenjuridico.gob.mx).

1. Foreign workers

By legal provision in Mexico, the employer must hire in his/her company or establishment ninety (90%) percent of Mexican workers.

1.1 Exceptions

The rule mentioned in the preceding paragraph does not apply to general directors, administrators and managers, that is, all of them may be foreigners.

In addition, in the categories of technicians and professionals, in case that there are no Mexican workers with the specialty required, the employer may temporarily hire foreign workers, in a proportion not exceeding 10%.

2. Work shift

The work shift is the time during which the worker is available to perform his/her work for the employer. There are three kinds of work shift:

• Day shift: comprised between 6 am and 8 pm.• Night shift: comprised between 8 pm and 6 am.• Mixed shift: it is the one comprising periods of time of the day and night shifts, provided

that the night period be of less than three hours and a half, because if it comprises three and a half or more, it will be deemed night shift.

The maximum duration of the shift will be: eight hours the day shift, seven the night shift and seven hours and a half the mixed shift

Labor Regulation in Mexico

Chapter IX

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3. Days off and legal holidays

Per each six days of work, the worker will enjoy one day off, at least, with full salary pay.

In addition and by legal provision, the following days are legal holidays:

• January 1st,• the first Monday of February,• the third Monday of March, • May 1st,• September 16,• the third Monday of November in commemoration of November 20;• December 1st of every six years, corresponding to the change of President;• December 25, and • those corresponding to ordinary election days.

4. Vacation

After one hear of work, workers are entitled to a period of paid vacation in accordance with the following table.

Years worked Days of vacation

1 62 83 104 12

5 to 9 14

Additionally, during the days of vacation they will be entitled to a vacation premium equivalent to 25% on the salaries corresponding to them during the vacation period.

5. Salary

Salary is the retribution that the employer must pay to the worker for his/her work.

5.1 Minimum salary by law

The minimum Salary is the lowest amount that that the workers must receive in cash for the services rendered in a work shift.

The sum of the minimum salary is annually determined by the National Minimum Salaries Commission.

During this year 2011, the daily minimum salary in Mexico City is of $59.82 Mexican pesos (approximately 4.9 USD daily). www.conasami.gob.mx

6. Profit sharing

Workers are entitled to the profit sharing of the companies, in accordance with the percentage determined by the National Commission for Workers’ Profit Sharing in the Companies. Presently, said percentage is of 10% of the profits.

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6.1 Exceptions to profit sharing

There are exempt from profit sharing distribution:

• newly created companies, during the first year of operation, • newly created companies, engaged in the preparation of a new product, during the first

two years of operation;• newly created extractive industry companies, during the exploration period;• private assistance institutions, recognized by the laws, that with private property

goods perform acts with humanitarian purposes of assistance, non-profit and without designating individual beneficiaries;

• the Mexican Social Security Institute and decentralized public institutions with cultural, assistance or charity purposes; and

• companies having a capital lower than the one fixed by the Secretariat of Labor and Social Welfare by fields of the industry, previous consultation with the Secretariat of Industry and Trade.

7. Christmas Bonus

Workers completing one year of stay in the job will be entitled to an annual bonus that must be paid before December twenty, equivalent at least to 15 days of salary.

8. Labor Unions

The Labor Union is defined as the association of workers or employers, established for the analysis, improvement and defense of their respective interests.

Labor unions may be established from a group of 20 workers and nobody can be obligated to become part of a union or not.

9. Social Security

In Mexico, there are various institutions related to social security. For purposes of this manual, only two important institutions to be taken as reference by investors will be mentioned:

i) Mexican Social Security Institute (IMSS). This institute is the one in charge of operating the health system of the workers and their families, provide them with medical attention due to occupational hazards, diseases and maternity, disability, life, retirement, early retirement and old age, as well as day care centers and social benefits.

ii) National Workers’ Housing Fund Institute (INFONAVIT). This institute is the one in charge of operating the financing system allowing the workers to obtain low-cost credit for the acquisition, construction, repair, expansion or improvement of their homes or housings.

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In Mexico City, the acquisition of lands or real-estate properties by foreigners is allowed, either as juridical persons (corporations) or as natural persons.

The only requirement demanded from the foreigners who will acquire a land or real estate in Mexico City is that they agree before the Mexican Secretariat of Foreign Relations, to be considered as Mexican nationals in connection with said properties, submitting themselves to Mexican laws and not to invoke for such purpose the protection of their governments in relation to said properties.

Some of the factors to be verified before acquiring a real estate in Mexico City are:

• that the seller is the lawful owner• the existence of encumbrances on the real estate• the land use of the real estate• the construction permits as the case may be• compliance with payment of the taxes corresponding to the real estate (real-estate tax)• compliance with payment of water and electric power supply.

Moreover, real-estate property acquisitions in Mexico City must be formalized in writing before a Notary Public www.colegiodenotarios.org.mx and registered at the Public Registry of Property and Commerce of the Federal District (www.consejeria.df.gob.mx/rppc).

Presently, there are various tax incentives for foreign companies acquiring real-estate properties in Mexico City. Likewise, there are several industrial parks and developments offering very competitive business conditions (se Chapter II of this document).

1. Real-estate Corridors

Offices market in Mexico City, in its corridors, is comprised of 5 million square meters approximately, distributed in 700 buildings, thus, being the biggest real-estate market in Latin America. The increase of business activities has made that business spaces in Mexico City grow and improve their quality. These new spaces are mainly concentrated in the areas of Reforma, Polanco, Paseo de las Palmas and Santa Fe.

Real State & Leasing Chapter X

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Localization of Office Markets in Mexico City corridors

Source: Real-estate market report. Colliers International, 2007

Regarding spaces for commercial premises, Mexico City has around 3,000,000 square meters approximately of floors for sale, which are distributed into department stores, supermarkets and specialized stores.

In addition, Mexico City has various first-class showgrounds to hold conventions and expositions,

EXHIBITION SITE SURFACE SQUARE METERS

Exhibimex 7,837

Centro de Negocios y Comercio de la Cd. de México(Mexico City Business and Trade Center)

24,000

Palacio Mundial de las Ferias(World Fairs Palace)

6,500

World Trade Center 24,000

Centro BANAMEX(BANAMEX Center)

34,245

Expo Santa Fe(Santa Fe Expo)

37,900

TOTAL SURFACE 134,482

Source: AMPROFEC.

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As mentioned in Chapter V, the most commonly used types of companies in Mexico, both by foreign investors and by local investors are, the Stock Company (S.A.) and the Limited-Liability Company (S.R.L.). The procedure to organize any of the two types of aforementioned companies is the following:

1 Select a Corporate Name.

In the first place, it is required to obtain the authorization for the use of the Corporate Name that will be used by the new company. Said authorization is issued by the Secretariat of Foreign Affairs and will be granted provided that there is no other Corporate Name registered that may be identical or similar to the extent of confusion. Obtaining this authorization takes between one and two business days and the cost is of $965.00 Mexican pesos (around 79.6 USD). http://www.sre.gob.mx/tramites/sociedades/tema2a.htm

2 Formalization before Notary Public.

Once having obtained the aforementioned authorization, the applicant has ninety business days to appear before any Notary Public in Mexico in order to formalize the corporate bylaws of the new company. www.colegiodenotarios.org.mx/

The corporate bylaws of the new company must contain:

• The name, nationality and domicile of the of the incorporators; • The purpose of the company;• The paid capital stock contributed by each incorporator;• The domicile of the company;• The designation of a Board of Directors or of a Sole Administrator, as well as of the

Statutory Auditor. • The rules for the application of profits and losses, as well as the rules for the dissolution

and liquidation of the company, among others.

It is considered that the company is legally existent from the date of legalization of the Public Deed issued by the Notary Public upon formalizing the aforementioned documents.

The fees of the Notary Public to formalize the organization of a new company amount on average to $10,000.00 Mexican pesos (around 825.6 USD)

Procedure to incorporate a company in Mexico Chapter XI

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3. Registries.

3.1 Public Registry of Commerce.

The Public Document issued by the Notary Public must be registered at the Public Registry of Commerce corresponding to the domicile of the new organized company. It is common practice that the Notary Public in question, arranges for this registration process. www.consejeria.df.gob.mx/rppc/index.html

3.2 Federal Taxpayers’ Registry

Any new company must apply for its registration before the Federal Taxpayers’ Registry. Therefore, the company will be able to start business activities as well as to issue invoices, pay taxes and open bank accounts, among others. This process is free of charge and takes one business day. http://www.sat.gob.mx/sitio_internet/21_12672.html

3.3 National Registry of Foreign Investments

Once the new company has been organized before Notary Public, notice must be given to the National Registry of Foreign Investments. Said notice is by means of pre-established forms including information related to the nationality of the investors, the capital stock contributed to the company and the equity percentage in same, among others. In some cases it is also required to submit periodical supplementary notices. www.economia.gob.mx/swb/es/economia/p_Direccion_General_Inversion_Extranjera

3.4 Registration at the Importers and/or Exporters List.

This registration is necessary for the company to perform foreign trade operations, either imports or exports. www.aduanas.gob.mx/aduana_mexico/2008/padrones_encargos_conferidos/146_15531.html

4. Office for a Quick Opening of Business of the Government of the Federal District

The Office for a Quick Opening of Business has as a purpose to guide entrepreneurs and businessmen in compliance with the regulations that economic activities are subject to in Mexico City as well as to support them in the processes for the opening of their business and the beginning of investment projects(www.sedeco.df.gob.mx/actividades/noticias /apertura_ empresas/index.html).

This Office formally started operations from July 14, 2009 and has provided personalized attention to investors, businessmen and entrepreneurs in general, who are interested in carrying out projects in any of the sixteen Political Subdivisions composing the Federal District.

The purpose of the Office for a Quick Opening of Business is to give legal certainty to the investors and their projects by means of specialized advice guarantying that their arrangements are timely performed and in an environment of absolute transparency and honesty. Thus, in accordance with the magnitude and complexity of each project, businessmen will know whether their projects have technical viability, land use and infrastructure services feasibility, etc. Likewise, they are advised on the mechanisms and procedures necessary to complete the opening of their businesses.

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Following is a list with the main contacts related to local and federal government organizations and private organizations in Mexico City.

1. Organizations of the Government of the Federal District

Office of the Mayor / Jefatura de Gobiernowww.df.gob.mx

Ministry of Economc Development / Secretaría de Desarrollo Económicowww.sedeco.df.gob.mx

Finance Ministry / Secretaría de Finanzaswww.finanzas.df.gob.mx

Quick Opening Office / Oficina de Apertura Rápida de Negocioswww.sedeco.df.gob.mx/actividades/noticias/apertura_ empresas/index.html

Tourism Ministry / Secretaría de Turismowww.mexicocity.df.gob.mx

Mix Found of Tourism Promotion / Fondo Mixto de Promoción Turísticawww.fmpt.df.gob.mx/

Ministry of Urban and House Development / Secretaría de Desarrollo Urbano y Viviendawww.seduvi.df.gob.mx

Ministry of Public Infraestructure and Services / Secretaría de Obras y Servicioswww.obras.df.gob.mx

Ministry of Ecology / Secretaría del Medio Ambientewww.sma.df.gob.mx

Science and Technology Institute / Instituto de Ciencia y Tecnologíawww.icyt.df.gob.mx/

Public Registry of Property and Commerce / Registro Público de la Propiedad y el Comerciowww.consejeria.df.gob.mx/rppc/index.html

International Affairs Office / Coordinación General de Asuntos Internacionales http://www.transparencia2008.df.gob.mx/wb/Transparencia/coordinacion_general_de_asuntos_internacionales

Contacts List Chapter XII

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2. Organizations of the Federal Government

Ministry of Tax and Public Credit / Secretaría de Hacienda y Crédito Públicowww.shcp.gob.mx

Ministry of Foreign Affairs / Servicio de Administración Tributariawww.sat.gob.mx

Ministry of Foreign Affairs / Secretaría de Relaciones Exterioreswww.sre.gob.mx

National Istitute of Migration / Instituto Nacional de Migraciónwww.inm.gob.mx

Mexican Institute od Social Security / Instituto Mexicano del Seguro Socialwww.imss.gob.mx

ProMéxicowww.promexico.gob.mx/

Foreign Investment Bureau / Dirección General de Inversión Extranjerawww.economia.gob.mx

3. Chambers of commerce in Mexico

Chamber of Commerce Mexico-USA / Cámara de Comercio México - Estados Unidoswww.amcham.com.mx

China Chamber of Commerce and Technology Mexicohttp://chinachambermexico.org/

Chamber of Commerce, Services and Tourism of Mexico City / Cámara de Comercio, Servicios y Turismo de la Ciudad de Méxicowww.ccmexico.com.mx/

Mexico-France Chamber of Commerce and Industry / Cámara Franco Mexicana de Comercio e Industriawww.cfmci.com

Japanese Chamber of Commerce and Industry Mexico / Cámara Japonesa de Comercio e Industria de México, A.C.www.japon.org.mx

Mexican Chamber of Building Industry / Cámara Mexicana de la Industria de la Construcciónwww.cmic.org

National Chamber of Preserved Food Industry / Cámara Nacional de la Industria de Conservas Alimentariaswww.canainca.org

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National Chamber of Tannery Industry / Cámara Nacional de la Industria de la Curtiduríawww.canalcur.com.mx

National Chamber of Perfume, Cosmetics, Beauty and Sanitation Industry / Cámara Nacional de la Industria de la Perfumería, Cosmética y Artículos de Tocador e Higienewww.canipec.org.mx

National Chamber of Clothing Industry / Cámara Nacional de la Industria del Vestidowww.cniv.org.mx

National Chamber of Trucking Services / Cámara Nacional del Autotransporte de Cargawww.canacar.com.mx

National Chamber of Movie and Video Industry / Cámara Nacional de la Industria de la Cinematografía y del Videogramawww.canacine.org.mx

National Chamber of Graphics Art Industry / Cámara Nacional de la Industria de Artes Gráficaswww.canagraf.net

National Chamber / Cámara Nacional de la Industria Editorial Mexicanawww.caniem.com

National Chamber of Pharmaceutical Industry / Cámara Nacional de la Industria Farmacéuticawww.canifarma.org.mx

National Chamber of Iron and Steel Industry / Cámara Nacional de la Industria del Hierro y del Acerowww.canacero.org.mx

National Chamber of Wire Telecommunications Industry / Cámara Nacional de la Industria de las Telecomunicaciones por Cablewww.canitec.org

National Chamber of Transformation Industry / Cámara Nacional de la Industria de Transformaciónwww.canacintra-digital.com.mx

National Chamber for Groceries Oils and Fats / Cámara Nacional de la Industria de Aceites y Mantecas Comestibleswww.aniame.com/

National Chamber of Electronic Telecommunications and IT Industry / Cámara Nacional de la Industria Electrónica de Telecomunicaciones y Tecnologías de la Informaciónwww.canieti.net

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National Chamber of Restaurant and Spicy Food Industry / Cámara Nacional de la Industria de Restaurantes y Alimentos Condimentadoswww.caniracnacional.com.mx

National Chamber of Textile Industry / Cámara Nacional de la Industria Textilwww.canaintex.org.mx

National Chamber of Consulting Companies / Cámara Nacional de Empresas de Consultoríawww.cnec.org.mx

National Chamber of Radio and TV Industry / Cámara Nacional de la Industria de Radio y Televisiónwww.cirt.com.mx

National Chamber of Industrialized Corn / Cámara Nacional del Maíz Industrializadowww.cnmaiz.org.mx

National Chamber of Electronic Manufacturing / Cámara Nacional de Manufacturas Eléctricaswww.caname.org.mx

National Confederation of Industrial Chambers / Confederación Nacional de Cámaras Industrialeswww.concamin.org.mx

4. Others

Notary Public Bureau of Mexico City / Colegio de Notarios Públicos del Distrito Federal.www.colegiodenotarios.org.mx/ Mexican Bar Association / Barra Mexicana Colegio de Abogadoswww.bma.org.mx

International Airport of Mexico City / Aeropuerto Internacional de la Ciudad de Méxicowww.aicm.com.mx

International Airport of Toluca / Aeropuerto Internacional Adolfo López Mateos Funciona como aeropuerto alterno al de la Ciudad de Méxicowww.aeropuertointernacionaldetoluca.com/

Mexican Association of Industrial Parks / Asociación Mexicana de Parques Industrialeswww.ampip.org.mx/

Mexican Banks Association / Asociación de Bancos de Méxicowww.abm.org.mx

Mexican Stock Exchange / Bolsa Mexicana de Valoreswww.bmv.com.mx

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National Commission of Banks and Securities / Comisión Nacional Bancaria y de Valoreswww.cnbv.gob.mx

Guide of Business Procedures / Guía de trámites empresarialeswww.guiate.df.gob.mx

Federal Laws / Leyes federales vigenteswww.ordenjuridico.gob.mxwww.diputados.gob.mx/LeyesBiblio/index.htm

Mexico City Laws / Leyes locales vigenteswww.df.gob.mx/leyes

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© 2011 Government of Mexico City.

Mexico.

ISBN in process

Printed in Mexico

Acknowledgess:

My most sincere thanks to the Government of the Federal District and to the Ministry of Economic Development of the Federal District for their support in the preparation of this document.

Víctor Joaquín Cadena Mé[email protected]

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