Mexico has been improving its legal frame to encourage foreign investors to set-up operations and do business within Mexican soil. As general rule, foreign investment is freely allowed up to 100% of a Mexican entity’s equity; however, some activities are reserved either to the Mexican government, for example oil and gas, nuclear energy and postal service; or to Mexican companies with not foreign investment, such as broadcasting, credit unions and development banking.  Nevertheless, the Mexican government has provided some formulas to allow foreign participation in key sectors.

According to the Foreign Investment Law, foreign investment in mining, construction of pipelines and drilling of oil and gas wells is allowed up to the 49% in Mexican companies; although, this percentage may be increased up to the 100% with previous authorization of the Foreign Investment Commission.

Therefore, foreign investors are entitled to invest in Mexico and they have several options to do it, such as through a joint venture with Mexican partners, organizing and new company under Mexican law or acquiring up to 100% equity of an existing entity.