News EnglishAnalysis of the Agreement for the Operation of the Single Investment Project Registry

Introduction

The Agreement by which the General Provisions for the Operation of the Single Registry of Investment Projects (the “Agreement”), published on September 30, 2024 in the Official Gazette of the Federation, represents a key piece in the Mexican government’s strategy to strengthen and facilitate the attraction of domestic and foreign investment.

This Agreement, issued by the Ministry of Economy and signed by its head, Raquel Buenrostro Sánchez, primarily aims to establish the necessary provisions to regulate the operation of the Single Registry of Investment Projects (the “RUPI”), within the framework of the economic policy outlined in the National Development Plan 2019-2024.

Legal Background and Context

The RUPI was created in response to the growing need to offer legal certainty and efficiency in the administrative procedures faced by investors in Mexico. The legal basis for this registry is found in several regulatory bodies, such as the Organic Law of the Federal Public Administration, which grants the Ministry of Economy the power to formulate and direct the country’s investment policy. Additionally, the Federal Law of Administrative Procedure, specifically Article 69-C, allows the use of electronic means to carry out administrative procedures, and the General Law of Regulatory Improvement, which focuses on reducing regulatory costs for individuals.

The Agreement is also framed within the Decree that creates the Single Window for Investors and the Single Registry of Investment Projects, published on July 26, 2023. This decree establishes the accompaniment and guidance mechanisms for investors wishing to initiate or expand investment projects in Mexico, underlining the importance of a transparent and simplified investment environment. In particular, it highlights that any investment project seeking access to these benefits must be registered in the RUPI.

RUPI Registration Procedure

The Agreement details the process for investors to register their projects in the RUPI. To begin, investors must register through the Single Window for Investors (the “VUI”) by providing information such as their Federal Taxpayer Registry, name or company name, nationality, address, telephone, e-mail and must have an advanced electronic signature (e.firma); once registered, investors receive a unique investor number, which will be used in the registration process of their projects.

The Agreement establishes that investors, or their designated legal representatives, must provide detailed information about their investment projects in order to register them in the RUPI. Among the required data are included:

1. Investor number in the system.
2. Amount and percentage of investment that each investor will contribute to the project.
3. If the investor already participates in investments in Mexico, the economic activity of such investments.
4. Contact telephone number and e-mail address.
5. Name and description of the investment project.
6. Amount and origin of the investment, as well as the estimated time for the installation of the project.
7. State where the investment is intended to be made.
8. Project requirements, such as inputs, infrastructure, and technical capabilities.
9. Social profitability and environmental care, including employment generation and activities subject to environmental regulation.

It is important that all information and documentation provided is in Spanish. In case the documents are in another language, they must be accompanied by their corresponding translation.

Once the investors have completed the registration process and provided the required information, the General Directorate of Foreign Investment will review the project. If it complies with the established requirements and is aligned with the strategies of the National Development Plan and the federal government’s industrial policy, a registration certificate will be issued in the RUPI. This certificate contains a unique, non-transferable registration key, which certifies the registration of the project.

In the event that a project does not comply with the national priorities or strategies, the Directorate General will provide guidance so that the investor can adapt its project and submit a new application for registration.

Once the registration certificate has been issued, investors have access to personalized support from the Ministry of Economy. This accompaniment involves guidance and support in the federal procedures necessary for the materialization of the investment, such as obtaining permits and licenses.

The duration of the accompaniment depends on the type of investment project. For new foreign investments or the creation of new Mexican companies, the accompaniment will last for two years. In the case of the expansion of existing operations, the accompaniment will be for one year. For large projects, whose investment amount exceeds ten times the minimum established in the Decree, the accompaniment may be extended up to five years.

Likewise, the use of electronic media is highlighted as a fundamental tool to speed up and simplify the procedures related to investment projects. The RUPI system, integrated into the Single Window for Investors, allows investors to manage the entire process of registration and monitoring of their projects digitally, using the e.firma to validate procedures and documents.

Conclusion

The Agreement provides a clear and transparent regulatory framework for the registration of investment projects in Mexico. Through the RUPI, the federal government aims to attract new investments, both domestic and foreign, by ensuring legal certainty and providing support to investors throughout the process. The use of electronic media and the simplification of regulatory processes are key elements that reinforce Mexico’s competitiveness as an investment destination.

 

For more information, please contact: