Home / glossary / Article 4 of the Mexican Foreign Investment Law

Article 4 of the Mexican Foreign Investment Law

Foreign investment may participate in any proportion in the capital stock of Mexican companies, acquire fixed assets, enter new fields of economic activity or manufacture new lines of products, open and operate establishments, and expand or relocate existing ones, except as provided in this Law.

The rules on the participation of foreign investment in the activities of the financial sector contemplated in this Law shall be applied without prejudice to the provisions of the specific laws for such activities.

For purposes of determining the percentage of foreign investment in economic activities subject to maximum participation limits, foreign investment that is indirectly made in such activities through Mexican companies with a majority of Mexican capital will not be computed, provided that the foreign investment does not control the latter.

Paragraph added DOF 24-12-1996