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Due Diligence in Mexico

Due Diligence in Mexico

Investing in a Mexican business is one of the most significant investments that an individual can make in his/her lifetime. Completing a research called due diligence in Mexico is  necessary before making any business decisions.

If you want to detect potential risks in the company you intend to purchase, you must run a due diligence process in Mexico. It is a process that identifies the risk of an adverse event that can occur within your business, such as loss of key staff, legal claims, market slumps, or default on payments, etc. If you know these factors of any company before purchasing it, you can make a much better decision regarding if you want to invest in such a company or not.

If you are buying a company and want to run a due diligence process in Mexico, you can rely on our experienced lawyers. Our Mexican lawyers can provide you with commercial, financial, and legal due diligence. More usually, after four years of continuous temporary residency, you can get a permanent residency permit in Mexico. This conditional modification is not automatic. As a result, you must apply the change of condition method. There is no requirement to display bank data at the INM in general (Immigration Office). When you obtained your temporary residency, you will have previously done so in a Mexican consulate. As a result, the full procedure may be completed in Mexico, at an INM office. As is customary, you will be required to fill out documents and compose a request letter in Spanish. A copy of your passport, your original temporary residency card, and recent pictures are also required. Then, at the start and conclusion of the process, you must pay the INM fees.

In addition to the due diligence process, you can obtain the legal services of our lawyers regarding debt collection. Our attorneys in Mexico will first try to collect your debt amicably, but in case of negative results, they can further take your debt collection case to court and provide you with legal representation there.

Due diligence for foreigners in Mexico

As a foreigner, buying property might be challenging, but the support of the lawyers at our law office in Mexico can make it an easy task for you. However, if you are not a Mexican, you might overlook some factors that must be considered. For example, after purchasing the property, you might find out that the land was not authorized to be sold or the property had a construction lien against it. Our lawyers undertake a comprehensive and rigorous approach to due diligence in Mexico to protect foreigners from such frauds. Please find below how our lawyers in Mexico City ensures that this business is safe to invest:

  • Review offers and sale contract;
  • Our lawyers practice due diligence in Mexico to ensure that there is no claim against the property;
  • Ensures that the property is not a part of an Ejido (agricultural land provided by the government to the Mexican people);
  • Clarify if the owner has the right to sell the property;
  • The property tax paid up to date;
  • An official survey of the property (cadastral certificate);
  • Proof of non-debt by water companies issued by AGUAKAN and CAPA;
  • Proof of non-debt from municipal public works;
  • Proper manifestation of renovations of the property.

All these legal services regarding the due diligence in Mexico will allow you to start a business with peace of mind without worrying about the possible threats. Our Mexican lawyers will evaluate if the concerned property or business is facing risks, and this will stop you from investing in the wrong place.

Besides due diligence in Mexico, you can also get legal services from our lawyers if you plan to obtain citizenship in this country. Mexico provides an option of citizenship by investment. Our knowledgeable Mexican lawyers can guide you regarding the investment amount and the places where you are allowed to invest for obtaining citizenship.  If you choose to become a citizen, you will get the power to vote, own property, and change your address or work without notifying the National Institute of Immigration (INM). Most crucially, a citizen is entitled to a passport, but a permanent resident is not. As long as you follow the proper procedures and channels, becoming a Mexican citizen does not affect your citizenship in your native country. To learn more about Mexican citizenship, get in touch with our lawyers.

Foreign direct investment in Mexico

Mexico is the world’s ninth-largest foreign direct investment (FDI) recipient. The significant investments come from the United States, Germany, Canada, and Spain; etc. These foreign investments are redirected into various economic sectors. So, these investments must be made with due diligence in Mexico to avoid any possible hazards. This step will help attract more foreign investments and retain them in the country for more extended periods. Please check below the percentage of FDI in different sectors of Mexico in 2020:

  • FDI of 40.6% was directed into manufacturing;
  • 23.2% foreign direct investment was made into financial and insurance services;
  • 9.8% FDI was directed into transport.

Consider contacting us if you need due diligence services in Mexico for your property or business. Our lawyers will provide you with comprehensive legal support in this regard.

If you plan to relocate to Mexico for good, you can also rely on our immigration lawyers. They will help you to obtain a visa by assisting you in the application and document submission process. If you have decided to immigrate to Mexico, here is a piece of general tax information for you. Residents of Mexico are subject to international income taxes. Only income with a Mexican source is taxable for non-residents. Residents of Mexico are those who make the country their permanent home. If a person’s center of important interests is in Mexico, even if they also have a house abroad, they are regarded as a resident of Mexico.