November 18, 2014

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

By Floriberto Morales

On October 31, 2014, Mexico’s Department of Economy published the amendments to the Regulations to the
Foreign Investment Law (RLIE for its acronym in Spanish) in the Official Journal of the Federation, which will
come into effect 60 business days after publication (February 12, 2015). This is the case notwithstanding the
provisions set forth in Articles 2 and 29 Bis of the RLIE, which came into effect on November 1, 2014, and were
enacted to simplify the submission of notices before the National Registry of Foreign Investments (“RNIE” for
its acronym in Spanish), resulting in the reduction of monetary fines levied on companies registered before the

The amendments to the RLIE provide for various changes in the filing of notices, company registration renewals
and the filing of quarterly reports as to activities abroad, including the following:

a) It is no longer necessary to provide notice to the RNIE when there is a change as to: (i) the domicile of the
legal representative; (ii) the legal representative; (iii) the domicile of the company’s plant; (iv) the
domicile of the company’s office; and (v) the name of the owners or shareholders.

b) Notices as to changes of information previously submitted to RNIE within a term of 40 business days will
now be submitted quarterly and within 10 business days before the close of each quarter. Such notices

include those related to: (i) capital increases; (ii) transfer of equity interests; (iii) change of business
activity; and (iv) change of tax domicile.

c) Quarterly reports as to activities abroad previously submitted within a term of 20 business days will now
be submitted within 10 business days following the close of the quarter.

d) The schedule for presenting the annual financial report to renew company registrations has been modified
in such a way that now, such submissions must be made within the first five months of each year
depending on the first letter of the name of the company in accordance with the following: (i) A – J during
April of each year; and (ii) K – Z during May of each year.

e) The article requiring companies to cancel their registration before the RNIE due to liquidation, merger, or
domestication in Mexico and to previously update their registrations, submit financial reports for the last
five years, and the quarterly reports on activities abroad was repealed.

The National Commission on Foreign Investments (“CNIE” for its acronym in Spanish) will issue a general
resolution to determine the minimum amount for the submission of the (i) notices of capital increases, (ii) the
annual financial report, and (iii) quarterly reports on activities abroad and with RNIE, as well as new forms for
submitting such notices.

Finally, on the day after the Decree comes into effect, companies with pending obligations before RNIE will have
60 business days to comply with such Decree and update their files, with the chance of paying the minimum fine,
depending on the type of notice involved.