Doing Business or Investing in Mexico

Doing Business or Investing in Mexico?

Doing business in Mexico City can be very profitable. Almost any good business idea can succeed and make excellent profit but there are some risks. One must be aware of the risks of doing business in Mexico.

One important, often overlooked risk is assigning or selling the rights of distributorship to someone or a corporation.

In Mexico, when distributorship rights are assigned to someone, as per Mexican law they are for life even if the contract mentions a written period of time. If you are thinking of giving them for one year or so, Don't.

The only way to remove assigned rights must be done through the courts and Mexican courts favor their citizens.

Wish to Incorporate in Mexico?

You must create a “fe de comiso” with a Mexican Notary Public. Mexican Notary Public's in Mexico are considered members of the court or lawyers. With the corporation document in hand, you can open the company with a bank. The bank holds the document and the government recognizes the corporation.

There are numerous profitable businesses in Mexico.

I will describe one profitable business in Mexico that worked out very well for a friend, who is a Canadian Investor.

While working in Mexico, I was having lunch with a banker friend in one of the northern states. As we ate, our conversation lead to potential business opportunities for foreign investors in Mexico. My friend proceeded to tell me of businesses taken over by the bank for financial reasons.

He, the banker told me of a local gold mine that had been held by one family for over 140 years. The family decided to let the bank take the mine over. My friend gave me directions on how to get there. When I got to the property, I introduced myself to the Security guard. I quickly discovered, the guard was the mines last geologist.

After a quick tour, I took the guard/geologist out to lunch. During our meal, I discovered everything about the mine.

The information revealed to me over lunch include mine projections, mineral estimates, errors and mistakes that led to the mines failure.

The first discovery was that the mine could produce 16 to 23 grams of gold per metric ton of dirt excavated.

The second discovery was that all the mining equipment for excavation was purchased in 1919.

I called my friend in Canada, told him about the mine. He flew down to Mexico City accompanied by a Canadian geologist. I drove them to the mine and they researched the mine. Collected samples for analyze's.

Six weeks later, he purchased the mine with his Mexican corporation.

Today, his company is very profitable.

The lessons to be learned here is;

Never judge a man by the position he currently holds.

Always stay updated. Even shovels get improved.                    Get the best and latest shovel.

Listen to others.