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Legal texts and legal practice require close examination of terms and words and every sentence & paragraph can take very different meanings depending on how these are being interpreted. This document is an AI assisted translation of the original in Spanish and it should be used for information purposes only. The author of this document has made reasonable efforts to provide an accurate translation, however, in case of a discrepancy, the Spanish original will prevail before a court of law.


MEXICAN FOREIGN INVESTMENT LAW IN ENGLISH

New Law published in the Official Gazette of the Federation on December 27, 1993
CURRENT TEXT
Last amendment published DOF 15-06-2018

TITLE ONE
GENERAL PROVISIONS

Chapter I
Object of the Law

ARTICLE 1. - This Law is of public order and of general observance throughout the Republic. Its purpose is to determine the rules for channeling foreign investment into the country and to encourage it to contribute to national development.

ARTICLE 2.- For the purposes of this Law, the following definitions shall apply:

  1. Commission: the National Foreign Investment Commission;
  2. Foreign investment:
    1. The participation of foreign investors, in any proportion, in the capital stock of Mexican companies;
    2. by Mexican companies with a majority of foreign capital; and
    3. The participation of foreign investors in the activities and acts contemplated by this Law.
  3. Foreign investor: the individual or legal entity of a nationality other than Mexican and foreign entities without legal personality;
  4. Registry: the National Registry of Foreign Investments;
  5. Secretariat: the Secretariat of Economy;

    6. Reformed fraction DOF 09-04-2012

  6. Restricted Zone: The strip of the national territory of one hundred kilometers along the borders and fifty kilometers along the beaches, referred to in section I of Article 27 of the Political Constitution of the United Mexican States; and
  7. Foreigners Exclusion Clause: The express agreement or pact that forms an integral part of the bylaws, whereby it is established that the companies in question will not directly or indirectly admit as partners or shareholders foreign investors, or companies with a foreigners admission clause.

ARTICLE 3 - For the purposes of this Law, investments made by foreigners in the country with the status of Permanent Resident, except those made in the activities contemplated in Titles One and Two of this Law, shall be considered Mexican investments.

Article amended DOF 25-05-2011

ARTICLE 4 .- 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 latter are not controlled by the foreign investment.

Paragraph added DOF 24-12-1996

Chapter II
Reserved Activities

ARTICLE 5 - The functions determined by law in the following strategic areas are reserved exclusively to the State:

  1. Exploration and extraction of oil and other hydrocarbons, in terms of the provisions of Articles 27, paragraph seven and 28, paragraph four of the Political Constitution of the United Mexican States and the respective regulatory law;

    2. Section amended DOF 11-08-2014

  2. (Repealed.)

    3. Section repealed DOF 11-08-2014

  3. Planning and control of the national electric system, as well as the public service of transmission and distribution of electric energy, in terms of the provisions of Articles 27, paragraph six and 28, paragraph four of the Political Constitution of the United Mexican States and the respective regulatory law;

    4. Reformed fraction DOF 11-08-2014

  4. Nuclear energy generation;
  5. Radioactive minerals;
  6. (Repealed).

    7. Section repealed DOF 07-06-1995

  7. Telegraphs;
  8. Radiotelegraphy;
  9. Post Office;
  10. (Repealed).

    11. Section repealed DOF 12-05-1995

  11. Issuance of bills;
  12. Coinage;
  13. Control, supervision and surveillance of ports, airports and heliports; and
  14. Any others expressly indicated in the applicable legal provisions.

ARTICLE 6.- The economic activities and companies mentioned below are reserved exclusively to Mexicans or Mexican companies with a foreigner exclusion clause:

  1. Domestic land transportation of passengers, tourism and cargo, not including courier and parcel services;
  2. (Repealed.)

    3. Section repealed DOF 11-08-2014

  3. Repealed

    4. Section repealed DOF 14-07-2014

  4. (Repealed).

    5. Section repealed DOF 20-08-2008

  5. Development banking institutions, in accordance with the terms of the applicable law; and
  6. The rendering of professional and technical services expressly indicated in the applicable legal provisions.

Foreign investment may not participate in the activities and companies mentioned in this article directly, nor through trusts, agreements, social or statutory covenants, pyramid schemes, or any other mechanism that grants them control or participation, except as provided in Title Five of this Law.

Chapter III
Activities and Acquisitions with Specific Regulation

ARTICLE 7 - In the economic activities and companies mentioned below, foreign investment may participate in the following percentages:

  1. Up to 10% in:
    Production cooperative societies;
  2. Repealed.

    3. Section repealed DOF 26-06-2017

  3. Up to 49% in:
    1. (repealed).

      2. Subsection repealed DOF 19-01-1999

    2. (repealed).

      3. Subsection repealed DOF 19-01-1999

    3. (repealed).

      4. Subsection repealed DOF 19-01-1999

    4. (repealed).

      5. Subsection repealed DOF 19-01-1999

    5. Repealed

      6. Subsection repealed DOF 10-01-2014

    6. Repealed

      7. Subsection repealed DOF 10-01-2014

    7. Repealed

      8. Subsection repealed DOF 10-01-2014

    8. Repealed

      9. Subsection repealed DOF 10-01-2014

    9. Repealed.

      10. Subsection repealed DOF 18-07-2006

    10. Repealed.

      11. Subsection repealed DOF 18-07-2006

    11. Repealed.

      12. Subsection repealed DOF 18-07-2006

    12. Repealed

      13. Subsection repealed DOF 10-01-2014

    13. (Repealed).

      14. Subsection repealed DOF 04-06-2001

    14. (repealed).

      15. Subsection repealed DOF 04-06-2001

    15. Repealed

      16. Subsection repealed DOF 10-01-2014

    16. Manufacture and commercialization of explosives, firearms, cartridges, ammunition and fireworks, not including the acquisition and use of explosives for industrial and extractive activities, nor the elaboration of explosive mixtures for the consumption of such activities;
    17. Printing and publication of newspapers for exclusive circulation in the national territory;
    18. Series "T" shares of companies that own agricultural, livestock and forestry land;
    19. Freshwater, coastal and exclusive economic zone fishing, not including aquaculture;
    20. Integral port administration;
    21. Port services of pilotage to vessels to perform inland navigation operations under the terms of the corresponding Law;
    22. Shipping companies engaged in the commercial exploitation of vessels for inland navigation and cabotage, except for tourist cruises and the exploitation of dredges and naval artifacts for the construction, conservation and operation of ports;
    23. Supply of fuels and lubricants for ships and aircraft and railway equipment;

      24. Section amended DOF 26-06-2017

    24. Broadcasting. Within this maximum of foreign investment, the reciprocity that exists in the country where the investor or the economic agent that ultimately controls the investor, directly or indirectly, is incorporated will be taken into account, and

      25. Reformed clause DOF 14-07-2014, 26-06-2017

    25. Scheduled and non-scheduled domestic air transportation service; non-scheduled international air transportation service in the form of air cab; and, specialized air transportation service.

      26. Subsection added DOF 26-06-2017

      Reformed fraction DOF 24-12-1996

  4. (Repealed)

    5. Section amended DOF 12-05-1995. Repealed DOF 24-12-1996

The limits for foreign investment participation set forth in this article may not be exceeded directly or through trusts, agreements, social or statutory covenants, pyramid schemes, or any other mechanism that grants control or a greater participation than that established, except as provided in Title Five of this Law.

Section amended DOF 26-06-2017

ARTICLE 8.- A favorable resolution of the Commission is required for foreign investment to participate in a percentage greater than 49% in the economic activities and companies mentioned below:

  1. Port services to vessels to carry out their inland navigation operations, such as towing, mooring of lines and launching;
  2. Shipping companies dedicated to the operation of vessels exclusively in deep-sea traffic;
  3. Companies holding concessions or permits for public service aerodromes;

    4. Reformed fraction DOF 24-12-1996

  4. Private preschool, elementary, secondary, middle school, high school, higher and combined education services;
  5. Legal services;
  6. Repealed

    7. Section repealed DOF 10-01-2014

  7. Repealed

    8. Section repealed DOF 10-01-2014

  8. Repealed

    9. Section repealed DOF 10-01-2014

  9. Repealed

    10. Section repealed DOF 14-07-2014

  10. (Repealed.)

    11. Section amended DOF 1986-12-24. Repealed DOF 11-08-2014

  11. (Repealed.)

    12. Section amended DOF 1986-12-24. Repealed DOF 11-08-2014

  12. Construction, operation and exploitation of railroads that are general means of communication, and provision of public railroad transportation services.

Section added DOF 12-24-1996

ARTICLE 9 - A favorable resolution of the Commission is required in order for Mexican companies in which the foreign investment intends to participate, directly or indirectly, in a proportion greater than 49% of their capital stock, only when the total value of the assets of the companies in question, at the time of submitting the acquisition request, exceeds the amount determined annually by the Commission.

TITLE TWO
OF THE ACQUISITION OF REAL ESTATE, THE EXPLOITATION OF MINES AND WATERS, AND TRUSTS.

Title as amended DOF 12-24-1996

Chapter I
Acquisition of real estate and exploitation of mines and waters

Chapter name amended DOF 12-24-1996

ARTICLE 10.- Pursuant to the provisions of Section I of Article 27 of the Political Constitution of the United Mexican States, Mexican corporations with a foreigner exclusion clause or that have entered into the agreement referred to in said provision, may acquire ownership of real estate in Mexican territory.

In the case of companies whose bylaws include the agreement provided for in Section I of Article 27 of the Constitution, the following shall apply:

I.- They may acquire the ownership of real estate located in the restricted zone, intended for non-residential activities, and must give notice of such acquisition to the Ministry of Foreign Affairs, within sixty working days following the date on which the acquisition is made, and

Reformed fraction DOF 24-12-1996

II.- They may acquire rights over real property in the restricted zone, which are intended for residential purposes, in accordance with the provisions of the following chapter.

ARTICLE 10 A.- Foreigners who intend to acquire real estate outside the restricted zone, or obtain concessions for the exploration and exploitation of mines and waters in the national territory, must previously present before the Ministry of Foreign Affairs a written document in which they agree to the provisions of section I of Article 27 of the Political Constitution of the United Mexican States and obtain the corresponding permit from said agency.

When the real estate to be acquired is in a municipality totally located outside the restricted zone or when it is intended to obtain a concession for the exploitation of mines and waters in national territory, the permit will be deemed granted if the refusal of the Ministry of Foreign Affairs is not published in the Official Gazette of the Federation within five working days following the date of the filing of the application.

When the real estate to be acquired is in a municipality partially located within the restricted zone, the Ministry of Foreign Affairs will resolve the petition within thirty working days from the date of its presentation.

The National Institute of Statistics, Geography and Informatics will publish in the Official Gazette of the Federation and keep updated a list of the aforementioned municipalities, as well as those that are totally located in the restricted zone.

The Ministry of Foreign Affairs may determine, by means of general agreements to be published in the Official Gazette of the Federation , assumptions in which foreigners, in order to have the right referred to in this article, must only present before said agency a written document in which they agree to the provisions of section I of article 27 of the Constitution, without requiring the corresponding permit from said agency.

Article added DOF 24-12-1996

Chapter II
Real Estate Trusts in Restricted Areas

ARTICLE 11 . - Permission from the Ministry of Foreign Affairs is required for credit institutions to acquire as trustees, rights over real estate located within the restricted zone, when the purpose of the trust is to allow the use and exploitation of such property without constituting real rights over them, and the trustees are:

I.- Mexican companies without a foreigner exclusion clause in the case provided for in Section II of Article 10 of this Law; and

II.- Foreign individuals or legal entities.

ARTICLE 12.- The use and exploitation of the real property located in the restricted zone shall be understood to mean the rights to the use or enjoyment thereof, including, as the case may be, the obtaining of fruits, products and, in general, any yield resulting from the operation and lucrative exploitation, through third parties or the fiduciary institution.

ARTICLE 13.-The duration of the trusts referred to in this chapter shall be for a maximum period of fifty years, which may be extended at the request of the interested party.

The Ministry of Foreign Affairs may at any time verify compliance with the conditions under which the permits provided for in this Title are granted, as well as the presentation and veracity of the content of the notices provided for therein.

Amended paragraph DOF 12-24-1996

ARTICLE 14.- The Ministry of Foreign Affairs shall decide on the permits referred to in this chapter, considering the economic and social benefit that the performance of these operations implies for the Nation.

Any application for a permit must be resolved by the Ministry of Foreign Affairs within five working days from the date of its submission to the competent central administrative unit, or within the following thirty working days, if it is submitted to the state delegations of said agency. Once said terms have expired without a resolution being issued, the respective application shall be deemed to have been approved.

TITLE THREE
OF THE COMPANIES

Incorporation and Modification of Corporations

ARTICLE 15 - The Ministry of Economy will authorize the use of the names or corporate names under which the companies intend to incorporate. The clause excluding foreigners or the agreement provided for in Section I of Article 27 of the Constitution must be inserted in the bylaws of the companies that are incorporated.

Article amended DOF 15-12-2011

ARTICLE 16.- The procedure referred to in the preceding article shall apply to incorporated companies that change their name or corporate name.

Amended paragraph DOF 15-12-2011

Companies that modify their foreigner exclusion clause for the admission clause must notify the Ministry of Foreign Affairs within thirty working days following such modification.

If these companies are owners of real estate located in the restricted zone intended for non-residential purposes, they must give the notice referred to in Section I of Article 10 of this Law, within the term set forth in the preceding paragraph.

Article amended DOF 24-12-1996

ARTICLE 16 A .- The requests referred to in Articles 15 and 16 of this law must be resolved by the Ministry of Economy within two working days immediately following the date of their filing.

Article added DOF 24-12-1996. Amended DOF 15-12-2011

TITLE FOUR
ON THE INVESTMENT OF FOREIGN LEGAL ENTITIES

ARTICLE 17 - Without prejudice to the provisions of international treaties and agreements to which Mexico is a party, they must obtain authorization from the Secretariat:

I.- Foreign legal entities that intend to habitually carry out acts of commerce in the Republic, and

II.- The persons referred to in Article 2,736 of the Civil Code for the Federal District in common matters, and for the entire Republic in federal matters, who intend to establish themselves in the Republic and who are not regulated by laws other than said Code.

Article amended DOF 24-12-1996

ARTICLE 17 A .- The authorization referred to in the preceding article shall be granted when the following requirements are met:

  1. That such persons prove that they are constituted in accordance with the laws of their country;
  2. That the articles of incorporation and other constituent documents of such persons are not contrary to the precepts of public policy established by Mexican law; and
  3. In the case of the persons referred to in section I of the preceding article, that are established in the Republic or have an agency or branch office therein; or, in the case of the persons referred to in section II of the preceding article, that have a representative domiciled in the place where they are going to operate, authorized to respond for the obligations they contract.

Any application that complies with the aforementioned requirements must be granted within fifteen business days from the date of its filing. Once said term has expired without a resolution being issued, it shall be deemed to be approved.

The Secretariat shall send to the Ministry of Foreign Affairs a copy of the applications and authorizations granted based on this article.

Article added DOF 24-12-1996

TITLE FIVE
ON NEUTRAL INVESTMENT

Chapter I
On the Concept of Neutral Investment

ARTICLE 18.- The neutral investment is that made in Mexican companies or in trusts authorized in accordance with this Title and shall not be computed to determine the percentage of foreign investment in the capital stock of Mexican companies.

Chapter II
Of Neutral Investment Represented by Instruments Issued by Trust Institutions

ARTICLE 19.-The Secretariat may authorize trust institutions to issue neutral investment instruments which shall only grant, with respect to companies, pecuniary rights to their holders and, if applicable, limited corporate rights, without granting their holders the right to vote in their Ordinary General Meetings.

The Secretariat will have a maximum term of thirty-five business days to grant or deny the requested authorization, counted from the day following the day on which the application was filed. Once said term has expired without a resolution being issued, the respective application will be deemed to be approved.

Paragraph added DOF 24-12-1996

Chapter III
Neutral Investment Represented by Special Series of Shares

ARTICLE 20 - Investments in shares without voting rights or with limited corporate rights are considered neutral, provided they obtain prior authorization from the Ministry and, when applicable, from the National Banking and Securities Commission.

The Secretariat will have a maximum term of thirty-five business days to grant or deny the requested authorization, counted from the day following the day on which the application was filed. Once said term has expired without a resolution being issued, the respective application will be deemed to be approved.

Article amended DOF 24-12-1996

Chapter IV
Neutral Investment in Holding Companies of Financial Groups, Multiple Banking Institutions and Brokerage Firms

ARTICLE 21 .- (Repealed)

Article repealed DOF 24-12-1996

Chapter V
Neutral Investment by International Finance Companies for Development

ARTICLE 22.- The Commission may decide on the neutral investment that international development finance companies intend to make in the capital stock of companies, in accordance with the terms and conditions established for such purpose in the regulations of this Law.

SIXTH TITLE
OF THE NATIONAL FOREIGN INVESTMENT COMMISSION

Chapter I
Structure of the Commission

ARTICLE 23.- The Commission shall be composed of the Secretaries of the Interior; of Foreign Affairs; of Finance and Public Credit; of Welfare; of Environment and Natural Resources; of Energy; of Economy; of Infrastructure, Communications and Transport; of Labour and Social Welfare, as well as of Tourism, who may designate an Undersecretary as alternate. Likewise, those authorities and representatives of the private and social sectors related to the matters to be dealt with may be invited to participate in the Commission's sessions, who shall have the right to speak but not to vote.

Paragraph amended DOF 27-05-2024

The Committee shall meet at least every six months and shall decide on matters within its competence by majority vote, its chairman having the casting vote in the event of a tie.

Article amended DOF 24-12-1996

ARTICLE 24.- The Commission shall be chaired by the Secretary of Economy and for its functioning, it shall have an Executive Secretary and a shall have an Executive Secretary and a Committee of Representatives.

Article amended DOF 27-05-2024

ARTICLE 25.- The Committee of Representatives shall be composed of the public servant appointed by each of the Secretaries of State who are members of the Commission, shall meet at least every four months, and shall have the powers delegated to it by the Commission itself.

Article amended DOF 24-12-1996

Chapter II
Powers of the Commission

ARTICLE 26.- The Commission shall have the following powers:

  1. To dictate policy guidelines on foreign investment and design mechanisms to promote investment in Mexico;
  2. Resolve, through the Secretariat, on the appropriateness and, as the case may be, on the terms and conditions of the participation of foreign investment in activities or acquisitions with specific regulation, pursuant to Articles 8 and 9 of this Law;
  3. To be a mandatory consultation body on foreign investment matters for the agencies and entities of the Federal Public Administration;
  4. To establish the criteria for the application of the legal and regulatory provisions on foreign investment, by means of the issuance of general resolutions; and
  5. Any other duties that correspond to it in accordance with these by-laws.

ARTICLE 27 . - The Executive Secretary of the Commission shall have the following duties:

  1. Represent the Commission;
  2. To notify the resolutions of the Commission, through the Secretariat;
  3. To carry out the studies entrusted to it by the Commission;
  4. Submit to the Congress of the Union a four-monthly statistical report on the behavior of foreign investment in the country, including the economic sectors and regions in which it is located; and

    5. Reformed fraction DOF 24-12-1996

  5. Any other duties that correspond to it in accordance with this Law.

Chapter III
Operation of the Commission

ARTICLE 28.- The Commission shall resolve the requests submitted for its consideration within a term that shall not exceed 45 business days from the date of submission of the respective request, under the terms established in the Regulations of this Law.

In the event that the Commission does not resolve within the indicated term, the application will be considered approved in the terms presented. At the express request of the interested party, the Secretariat shall issue the corresponding authorization.

ARTICLE 29 - In order to evaluate the applications submitted for its consideration, the Commission shall consider the following criteria:

  1. The impact on employment and worker training;
  2. Technological contribution;
  3. Compliance with the provisions on environmental matters contained in the ecological ordinances governing the matter; and
  4. In general, the contribution to increase the competitiveness of the country's productive plant.

The Commission, when deciding on the merits of an application, may only impose requirements that do not distort international trade.

ARTICLE 30 - For reasons of national security, the Commission may prevent acquisitions by foreign investment.

TITLE SEVENTH
OF THE NATIONAL REGISTRY OF FOREIGN INVESTMENTS

ARTICLE 31.- The Registry shall not be of a public nature, and shall be divided into such sections as may be established by its regulations, which shall determine its organization, as well as the information to be provided to the Registry itself.

ARTICLE 32 - The following shall be entered in the Register:

  1. The Mexican companies in which they participate, including through trusts:
    1. Foreign investment;
    2. Mexicans who possess or acquire another nationality and who have their domicile outside the national territory; or
    3. Neutral investment;

      4. Reformed fraction DOF 24-12-1996, 23-01-1998

  2. Those who habitually carry out acts of commerce in the Mexican Republic, provided that they are:
    1. Foreign individuals or legal entities, or
    2. Mexicans who possess or acquire another nationality and who have their domicile outside the national territory; and

      3. Reformed fraction DOF 23-01-1998

  3. Trusts of shares or social parts, of real estate or of neutral investment, by virtue of which rights are derived in favor of foreign investment or of Mexicans who possess or acquire another nationality and who have their domicile outside the national territory.

    4. Reformed fraction DOF 23-01-1998

The obligation of registration will be the responsibility of the individuals or legal entities referred to in sections I and II and, in the case of section III, the obligation will correspond to the fiduciary institutions. The registration must be made within 40 business days from the date of incorporation of the company or of participation of the foreign investment; of formalization or notarization of the related documents of the foreign company; or of incorporation of the respective trust or granting of trustee rights in favor of the foreign investment.

ARTICLE 33 - The Registry shall issue the registration certificates when the application contains the following data:

  1. In the cases of fractions I and II:
    1. Name, denomination or corporate name, domicile, date of incorporation, if applicable, and main economic activity to be carried out;
    2. Name and address of the legal representative;
    3. Name and address of the persons authorized to hear and receive notifications;
    4. Name, denomination or corporate name, nationality and residence status, if any, domicile of the foreign investors abroad or in the country and their percentage of participation;

      5. Section amended DOF 25-05-2011

    5. Amount of capital stock subscribed and paid-in or subscribed and payable; and
    6. Estimated date of commencement of operations and approximate amount of total investment with its schedule.
  2. In the case of section III:
    1. Name of the fiduciary institution;
    2. Name, denomination or corporate name, domicile and nationality of the foreign investment or of the trusting foreign
      3. investors;
    3. Name, denomination or corporate name, domicile and nationality of the foreign investment or of the foreign investors designated as trustees;
    4. Date of incorporation, purpose and duration of the trust; and
    5. Description, value, purpose and, if applicable, location of the trust assets.

Once the registration certificate and its renewals have been issued, the Registry reserves the right to request clarifications regarding the information submitted.

Any modification to the information submitted under the terms of this article shall be notified to the Registry in accordance with the provisions of its regulations.

ARTICLE 34.- In the incorporation, modification, transformation, merger, spin-off, dissolution and liquidation of mercantile corporations, partnerships and civil associations, and in general, in all legal acts and events in which the persons required to register with the Registry under the terms of Article 32 of this Law intervene by themselves or represented, the notaries public will require such persons or their representatives to prove their registration with the aforementioned Registry, or if the registration is in process, to prove the corresponding request. If they fail to do so, the notary public may authorize the public instrument in question, and shall inform the Registry of such omission within ten working days following the date of authorization of the instrument.

ARTICLE 35.- The parties obliged to register in the Registry shall renew their registration certificate annually, for which purpose it shall be sufficient to submit an economic-financial questionnaire under the terms established in the respective regulations.

ARTICLE 36.- The federal, state and municipal authorities are obliged to provide the Secretariat with the reports and certifications necessary for the fulfillment of its functions in accordance with this Law and its regulatory provisions.

TITLE EIGHT
OF PENALTIES

ARTICLE 37.- In the case of acts carried out in contravention of the provisions of this Law, the Secretariat may revoke the authorizations granted.

The acts, agreements or social and statutory covenants declared null and void by the Secretariat, for being contrary to the provisions of this Law, will not be legally effective between the parties nor will they be enforceable against third parties.

ARTICLE 38.- Violations of the provisions of this Law and its regulatory provisions shall be sanctioned in accordance with the following:

  1. In the event that the foreign investment carries out activities, acquisitions or any other act that requires a favorable resolution from the Commission to be carried out, without having previously obtained such resolution, a fine of one thousand to five thousand salaries shall be imposed;
  2. In the event that foreign legal entities habitually carry out acts of commerce in the Mexican Republic, without having previously obtained the authorization of the Secretariat, a fine of five hundred to one thousand salaries will be imposed;
  3. In case of performing acts in contravention of the provisions of this Law or its regulatory provisions regarding neutral investment, fines of one hundred to three hundred salaries will be imposed;
  4. In case of omission, untimely compliance, submission of incomplete or incorrect information regarding the obligations of registration, report or notice to the Registry by the obligated parties, a fine of thirty to one hundred salaries will be imposed;
  5. In case of simulation of acts with the purpose of allowing the enjoyment or disposition of real estate in the restricted zone to foreign individuals or legal entities or to Mexican companies that do not have a foreigner exclusion clause, in contravention of the provisions of Titles Two and Three of this Law, the offender shall be sanctioned with a fine up to the amount of the transaction; and
  6. In case of other violations of this law or its regulatory provisions, a fine of one hundred to one thousand salaries shall be imposed.

For the purposes of this article, salary means the general daily minimum wage in force in the Federal District at the time the infraction is determined.

For the determination and imposition of penalties, the interested party must be previously heard and, in the case of monetary penalties, the nature and seriousness of the violation, the economic capacity of the violator, the time elapsed between the date on which the obligation should have been complied with and its compliance or regularization, and the total value of the transaction must be taken into consideration.

The Secretariat shall be responsible for the imposition of sanctions, except for the infraction referred to in Section V of this Article and the others related to the Second and Third Titles of this Law, which shall be applied by the Secretariat of Foreign Affairs.

The imposition of the penalties referred to in this Title shall be without prejudice to any civil or criminal liability that may apply.

ARTICLE 39.- Notaries public shall list, insert or add to the official file or appendix of the instruments in which they intervene, the official documents containing the authorizations to be issued under the terms of this Law. When they authorize instruments in which such authorizations are not listed, they shall be subject to the penalties determined by the corresponding notarial laws and the Federal Public Brokerage Law.