Last July 26th, 2023, the creation of the Single Desk for Investors and the Single Registry of Investment Projects was published in the evening edition of the Federal Official Gazette, becoming effective the next day.
Mexico Continues to Rise as a Champion in Foreign Investment
Foreign investment continues to have a very dominant role since, in the year 2022, Mexico was a recipient of a total of US$35 billion dollars, with which Mexico was positioned as the second largest recipient of foreign investment
in Latin America and eleventh globally.
This data shows an interesting recovery if we consider that during the COVID19 pandemic foreign investment in Mexico had a substantial decline. The purpose of the Single Desk for Investors and the Single Registry of Investment Project is to promote foreign investment, making the procedures simpler.
Consequently, the creation of the Single Desk for Investors functions as a platform or mechanism implemented by the federal government to streamline and facilitate the process for investors interested in establishing businesses or making investments in the Country. It serves as a one-stop shop for investors to submit their applications, access relevant information and receive assistance from various government agencies involved in the investment process.
The Single Registry of Investment Projects is a centralized database or registry that contains information regarding investment projects in a country or region. In the case of Mexico, this registry consolidates data on various investment projects, both national and foreign, within different sectors and regions.
The International Experience: Colombia, Chile and the United States of America
On July 19th, 2022, the operation of the Single Desk for Investors VUI-I in Colombia was made public, which has an informative purpose regarding the process that foreigners interested in investing need to follow in
Colombia.
This Single Desk for Investors is a digital platform with information for foreign investors, ranging from sales and benefits up to tax incentives.
In the case of Chile, there is a Foreign Investors Committee that simplifies the process of foreign investment and provides information about investing opportunities in the country.
Likewise, the Foreign Investors Committee provides information associated in the legal sphere, as well as its investment policies, providing specific information regarding the procedures and guidelines.
The United States the process of investing is regulated through state and local level. Each state and county have their own organizations in charge of facilitating investment and provided information to investors.
Nevertheless, at the federal level, the United States has several agencies fostering and channeling job-creating investment as the Department of Commerce of the United States via “SelectUSA” functioning as a point of
contact for foreign investors, guiding them on investing opportunities, economic information and regulations.
Main Objectives of the Single Desk Service for Investors and the Single Registry of Investment Project
In this regard, the main purpose of the decree in question is to promote foreign investment in Mexico by providing foreign investors with access to information and streamlined expeditious mechanisms for the establishment of their investments within Mexican territory; its main objectives are:
- The reduction in regulation timelines, as well as offering access to procedures providing legal certainty at any time and day, through the use of technological platforms;
- To provide orientation to those interested in investing in Mexico about the corresponding procedures and the various agencies and entities of the Federal Government;
- The access to the information related with processes and requirements, as well as to offer an orientation on such mechanism;
- Furthermore, it is important to note that the Sole Registry of Investment Projects will be used exclusively in cases where an investment equal to or exceeding US$100 million dollars; and
- Such registration must be accredited by a certificate that will contain a single registration key.
General Provisions
The Ministry of Economy is the responsible authority of issuing the guidelines and provisions in relation to the decree.
In addition, the Single Desk for Investors and the Single Registry of Investment Projects must commence their operations within 180 days as of the decree’s becoming effective, that is January 23rd, 2024.
The Ministry shall issue the guidelines for the establishment, operation, and functioning of the digital platforms. Such provisions and guidelines must be issued within the next 45 calendar days as of the decree’s becoming effective. Similarly, individuals who wish to invest in Mexico and surpass the US$100 million dollars threshold (or its equivalent in Mexican pesos) shall register it in the Single Desk for Investors and will be entitled to receive assistance from the Ministry. In turn the registration will be evidenced with an untransferable electronic certificate as proof of registration issued by the Ministry, which shall occur not later than September 28th, 2023 and of which we will keep you abreast. Stay tuned!
