We hereby inform our clients of the Decree amending, among other laws, the Federal Law on Industrial Property Protection (“LFPPI”) and the Federal Copyright Law (“LFDA”), dated January 15, 2026.

In addition to the LFPPI and the LFDA, the Decree introduces amendments to various federal laws with the aim of incorporating a gender perspective and promoting substantive equality between men and women in art and industrial creations. For the purposes of this Newsletter, we will focus on those implications for the registration and exercise of rights related to copyright and industrial property.

This Decree amended the LFPPI and the LFDA to strengthen gender equality and the effective participation of women in all aspects of intellectual property, also involving the authorities responsible for protecting these rights, which now include measures to ensure equitable treatment in all proceedings.

Among the main changes to the LFPPI are:

• Guaranteeing substantive equality and promoting the active participation of women in the creation, registration, and exercise of industrial property rights.
• Disseminating information on patents and registrations in an accessible manner, ensuring the participation of women and vulnerable groups.
• Implementing strategies that promote the inclusion of women in technology transfer and industrial development programs.
• Developing incentive and support programs with a gender perspective, aimed at increasing female participation in the industrial and technological sector.
• Train human resources specialized in industrial property with a gender focus, ensuring equitable participation in the management and administration of rights.

This amendment sought to amend four articles of the LFPPI based on the argument of modernizing the industrial property regime in Mexico and adapting this system to be more similar to the international model:

1. Article 2: A second paragraph was added to section I to establish that the authorities must:
   1. 1. Guarantee substantive equality between women and men.
      2. Promote the effective participation of women in the processes of creation, registration, and exercise of industrial property rights.
2. Article 3: It is established that, in matters not provided for by the Law, the following shall apply:
   1. 1. The Federal Administrative Procedure Law.
      2. The National Code of Civil and Family Procedures.
3. Article 5: Powers of the IMPI
   1. Section XVI
      1. Its powers are updated to bring them into line with modern criteria for administrative action.
   2. Section XX, subsections d) and e)
      1. Specific scenarios within one of IMPI’s powers are modified, clarifying or expanding its actions in certain procedures.
   3. Section XX, subsection f)
      1. A new specific power is added to the IMPI within that section.
   4. Section XXI
      1. The wording is adjusted to update powers or coordination with other authorities.
   5. Section XXXII
      1. A general power of the Institute is updated to bring it into line with the new regulatory structure.
4. Article 400: Amended to harmonize judicial procedures with the National Code of Civil and Family Procedures.
   1. 1. Unification of procedural criteria at the national level.
      2. Greater consistency between the industrial property system and the new civil procedural model.
      3. Does not modify substantive rights, but rather the way in which litigation is handled.

Simultaneously, Representative Delhi Miroslava Shember Domínguez, from the Morena parliamentary group, submitted a bill to amend Article 233 of the LFPPI, which seeks to ensure that the procedure for declaring the actual and effective use of marks not only be available for three months after the completion of three years following registration, but also be submitted from three months prior to the completion of the third anniversary of registration.

This bill has not been published in the Official Gazette of the Federation, although it is already in process.

On the other hand, the LFDA was also updated with various provisions aimed at strengthening gender equality and facilitating women’s participation in the creative and registration fields. Among the most relevant changes are:

• Promoting substantive equality and eliminating administrative obstacles that hinder women’s participation in the creation and registration of works.
• Promoting affirmative action that encourages the presence of women creators in all branches of copyright.
• Providing enhanced protection to female authors whose works are published under a pseudonym or have not been disclosed, with measures to reduce administrative barriers.
• Promoting initiatives that encourage the registration of women’s works, increasing the visibility of female creators.
• Maintain an up-to-date historical archive with information disaggregated by gender, allowing for the identification and appreciation of women’s participation in artistic and literary creation.
• Conduct procedures under equitable conditions, incorporating a gender perspective and approach at all stages of the registration and protection of works.

These changes impact both the authorities in charge of the matter and the applicants and users of the Mexican Intellectual Property System, seeking to influence the way they interact with the processes of registration and management of rights.

For more information on these reforms and related initiatives, we invite you to stay tuned to VAHG’s Newsletters and Publications, where we will continue to share timely analysis and practical perspectives on their potential impact.

 

Mariana González Sánchez|Partner Intellectual Property +52 (33) 38171731 Ext. 222 | mgonzalez@vahg.mx

Martín Arias Cuevas | Associate Intellectual Property +52 (33) 38171731 Ext. 236 | ariascuevas@vahg.mx

 

Daniel Angulo Espinoza|Intern

Intellectual Property

+52 (33) 38171731 | pasantes@vahg.mx

  

**The publication of this document does not constitute legal, accounting, or professional advice of any kind, nor is it intended to be applicable to specific cases. This document refers only to laws applicable in Mexico.

Global Movie Day

“The seventh art”: this is how the discipline known as cinema, invented at the end of the 19th century, has been identified. Every year, “Global Movie Day” is celebrated on the second Saturday in February, as established by the Academy of Motion Picture Arts and Sciences.

This day invites us to remember the multitude of agents and components involved in one of the largest entertainment industries, from photography, sound, acting, and screenwriting to the feelings it generates in the audience.

Cinema is one of the most complex and comprehensive forms of art, as a single production involves images, music, a script, and acting, with all the technical aspects encompassed by each of these elements.

Given the high value and creative and economic work involved in the seventh art, it deserves nothing less than the legal protection afforded by Intellectual Property, through Copyrights, to recognize the authorship of each work and protect the economic exploitation that derives from them.

Behind the cameras and the “glamour” that may be involved in the industry, there is a whole legal framework that must be observed long before a person can sit down to watch a movie, whether in the cinema or through the digital platforms that have become increasingly popular in recent years.

Feature film producers must take into account aspects such as contracts, for example, employment contracts with recording studio staff, leasing of filming locations, administrative aspects of obtaining permits from the authorities to film in public spaces, obtaining consent for the use of images of all people appearing on screen, licenses for any brands that appear in the film, and even the tax implications of declaring taxes on the film’s box office earnings, not to mention, of course, registering the copyrights for photography, musical score, script, etc.

Currently, there are more threats to the industry than ever before: the use of artificial intelligence to replace the work of screenwriters or even the self-generation of images and sound through “prompts,” digital piracy, or the difficulty of accessing content due to the overwhelming supply of digital streaming platforms, among others.

That is why now more than ever, we must turn to copyright protection mechanisms and figures such as collective management societies, actors’ unions, writers, producers, and all the institutions that look after the interests of the industry’s guilds, in order to provide legal certainty for creative agents and ensure that the public consuming this art can access more and better works legally.

Global Movie Day is an opportunity to recognize and appreciate the efforts of the arts, as well as to promote film culture legally, where areas of law such as Intellectual Property, which protects and recognizes the work, resources, and time that these people dedicate, are key to their prosperity.

At VAHG, we have a team specializing in Intellectual Property, the use of new technologies, and, of course, contracts related to this industry. Please do not hesitate to contact our Intellectual Property team, which will provide you with strategic legal advice on the protection of cinematographic and audiovisual works and any other creations eligible for protection under Mexican law, as well as under other international laws, taking into account the specific regulatory characteristics of each jurisdiction.

Our approach ranges from legal risk prevention, copyright management and defense, licensing and transfers, including support in projects that incorporate new technologies and digital platforms. Our attorneys stay up to date and aligned with industry best practices, with a strategic focus on protecting and maximizing the legal and commercial value of your work and intangible assets, both in Mexico and abroad.

 

Mariana González Sánchez | Partner Intellectual Property +52 (33) 38171731 Ext 222|mgonzalez@vahg.mx

Martín Arias Cuevas | Associate Intellectual Property +52 (33) 38171731 Ext. 236 | ariascuevas@vahg.mx

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.

In Corporate and Tax practice, it is common for entities to focus their attention on business operations and compliance with their immediate tax obligations. However, there is a fundamental pillar that is often overlooked and that is crucial for the regulatory and corporate compliance of any company: corporate books.

These records are not only an internal tool, but also a comprehensive legal obligation that links the corporate sphere with tax accounting.

The Legal Basis: A Multidisciplinary Obligation

The obligation to keep Corporate Books is neither optional nor administrative; it derives from two key areas of our legal system:

Tax Area: According to Article 28 of the Federal Tax Code (CFF), the accounting of a legal entity is not limited exclusively to invoices and account statements. The law expressly includes corporate books and records within accounting. In practical terms, this means that the absence, outdatedness, or incorrect implementation of corporate books may constitute a tax violation, subject to observations or contingencies in the event of a review by the authorities.

Commercial Environment: For its part, the General Law on Commercial Companies (LGSM) imposes on corporations (SA) and limited liability companies (SRL) the obligation to keep certain corporate books, with the aim of guaranteeing transparency and legal certainty in the company’s actions.

Essential Books

Depending on the type of company and the provisions of its articles of incorporation, the main records that must be kept are:

• Shareholder Register (SA) or Partner Register (SRL): This book is the definitive record of the ownership of shares or partnership interests. Its main function is to provide legal certainty as to who the shareholders or partners of the company are and what proportion they hold.
• Minutes Book: This book records the decisions made by the shareholders or partners. It is the formal record of the decisions made by the company and documents, among other things, the approval of financial statements, the appointment or removal of administrators, the distribution of profits, and amendments to the articles of association.
• Capital Variation Book: This is a pillar for controlling movements in share capital, especially in variable capital companies. It allows for the monitoring of increases and decreases in capital resulting from contributions, capitalizations, or withdrawals, and provides a clear history of the evolution of the company’s share capital.
• Board of Directors’ Meeting Minutes Book: When the company is managed by a collegiate body rather than a sole administrator, this book is indispensable. It formalizes the agreements of the Board of Directors, serving as evidence of the exercise of its powers, the due diligence of the directors, and the fulfillment of their responsibilities to the company.

Registration as a key element: Article 129 of the LGSM

One aspect that is often overlooked is that formal recognition of shareholder status in relation to the company and third parties is perfected by registration in the Shareholders’ Register.

Articles 73 and 129 of the LGSM establish that it is this register that grants legitimacy for the exercise of corporate rights. Furthermore, in accordance with Article 50 Bis of the Commercial Code (CCom), any movement in this book must be published on the Commercial Companies Publications (PSM) portal of the Ministry of Economy in order to be fully legally effective.

Format and Preservation

The legislation allows these books to be kept in both printed and electronic format, provided they meet certain requirements:

Printed Format: They must be properly bound, pasted, and paginated in accordance with the provisions of Article 34 of the CCom.

Electronic Format: They must comply with the provisions of NOM-151, ensuring the integrity and availability of information in the long term.

Conclusion

Keeping corporate books up to date is not a mere bureaucratic formality or a secondary requirement. It is an essential legal preventive measure for the operation and evolution of any company, especially in the face of processes such as audits, restructurings, transformations, liquidations, or requests from the authorities. At VAHG, we understand that corporate management requires precision, consistency, and a preventive vision. Therefore, we provide comprehensive support in the preparation, updating, and regularization of corporate books, ensuring that companies comply with the highest legal and accounting standards, protect their assets, and operate with full legal certainty.

 

Elvia Ríos Saldaña | Partner

+52 (33) 38171731  Ext 228 | erios@vahg.mx

 

Luis Andrés Estrada Intriago | Senior Associate +52 (33) 38171731 Ext 224 | lestrada@vahg.mx

Luis Humberto Gordillo Rosas | Paralegal +52 (33) 38171731 Ext 238 | lgordillo@vahg.mx

 

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.

In Mexico, the Partnership Agreement is often perceived in business environments as a simple and flexible structure, which has contributed to its frequent use. Many consider it a “quick” and “inexpensive” alternative to the incorporation of a company. It is essential to understand the true nature of a Partnership Agreement, how it differs from a corporation and how it should be properly managed from a legal and tax perspective.

In this context, it is important to point out that the Partnership Agreement is not a corporation, but a contractual figure regulated by the General Law of Commercial Companies, with its own characteristics and obligations that clearly distinguish it from any legal entity.

1. A Non-Corporate Contractual Structure

The Partnership Agreement is enacted in Articles 252 to 259 of the General Law of Commercial Companies and unlike a Corporation or Limited Liability Company, the Partnership Agreement is not considered – in corporate terms – as a legal entity, that is to say, it does not have its own legal existence as a company. It is a contract by means of which one person (“the Managing Partner”) allows one or others (“Silent Partners”) to participate in profits or losses of a commercial operation in exchange for contributions.

This implies that:

• There is no corporate name or capital stock.
• There are no meetings or governing board.
• The managing partner acts before third parties and assumes representation.

From a corporate point of view, the Partnership Agreement offers agility and low formal cost, but it also requires a solid contract that protects the parties and precisely establishes the rules of the relationship.

 

2. The Partnership Agreement Myth

There is a recurrent and erroneous perception that the Partnership Agreement can be used as a substitute mechanism for a business corporation, particularly structures such as the Limited Company or the Limited Liability Company (LLC). This interpretation, although common, is legally incorrect and may generate relevant contingencies.

The reality is that the Partnership Agreement does not generate legal personality or independent patrimony, therefore, it cannot open bank accounts in its name or enter into contracts directly; everything is done by the associating party.

In a commercial partnership, the partners have corporate rights, decisions are taken at meetings and the partnership is liable with its own assets. In a Partnership Agreement, the partners do not intervene in the management or appear before third parties; their protection depends exclusively on the quality of the contract.

3. The Tax Treatment: Personality for the Tax Administration Service (SAT)

Although the   Partnership Agreement is not considered a legal entity in terms of the General Law of Commercial Companies for tax purposes it is considered a legal entity.

The Federal Tax Code (art. 17 B) establishes that when a Partnership Agreement performs business activities in Mexico, it is considered a legal entity for the SAT, which implies:

– Registration in the Federal Taxpayer Registry (RFC).

– Electronic accounting and issuance of CFDI.

– ISR and VAT returns.

– Tax obligations comparable to those of any corporation.

The Managing Partner acts as tax representative and is responsible for tax obligations. The Silent Partners may be jointly and severally liable up to the limit of their contribution (Art. 26 Fracc. XVII Federal Tax Code).

The Partnership Agreement is attractive because of its flexibility, confidentiality and low formal cost. But its success depends on an impeccable contractual structure and proper tax planning.

A poorly designed contract or poor tax management can lead to disputes, financial losses and considerable tax penalties.

In practice, the correct implementation of a Partnership Agreement requires special care in three fundamental aspects. The first is to precisely define the contributions of each party, as well as the criteria for calculating and distributing profits and losses. The second is to establish clear and periodic accountability mechanisms, together with transparent rules for the liquidation or early termination of the contract. Lastly, it is essential to ensure strict compliance with tax obligations, since a failure to do so could compromise the viability of the project and generate equity liabilities for both the partner and the associates. 

4. Conclusion

The Partnership Agreement can be a useful tool for specific projects, strategic collaborations or temporary investments. However, it is not a substitute for a corporation and does not offer the same protections. Well structured, it can function as an efficient structure; poorly planned, it can represent a focus of legal and tax risk.

At VAHG, our lawyers have extensive experience in advising companies, investors and entrepreneurs in the incorporation and structuring of partnership agreements and corporations, providing solutions that maximize business opportunities and minimize legal risks. Our lawyers will analyze the legal structure that best suits your objectives, ensuring regulatory and tax compliance, which will be reflected in the protection of your investment and interests.

 

Elvia Ríos Saldaña | Partner

+52 (33) 38171731  Ext 228 | erios@vahg.mx

 

Luis Andrés Estrada Intriago | Senior Associate +52 (33) 38171731 Ext 224 | lestrada@vahg.mx

Juan Manuel Méndez Sánchez | Associate +52 (33) 38171731 Ext 233 | jmmendez@vahg.mx

 

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.

 

 

 

Since 2003, September has been recognized in Mexico as “Wills Month,” a joint initiative of the Home Office and the National Association of Mexican Notaries. During this month, civil law notaries offer free advice and reductions in fees and costs associated with preparing a will, with the aim of promoting a culture of preventive law and providing certainty in the transfer of assets.

 

The purpose is clear: to encourage people to put their legal affairs in order, protect their loved ones, and avoid future conflicts. However, more than two decades after its implementation, participation remains low. Factors such as misinformation, cultural prejudices, and constant procrastination continue to hinder the adoption of this practice.

 

Although the program represents progress, its reach is limited if it is not accompanied by structural, educational, and cultural changes that transform the way issues such as asset management, death, inheritance, and estate liability are addressed.

 

From a legal point of view, a will is the most effective instrument to ensure that the will of a person regarding the destination of his or her assets is respected. Writing a will correctly not only provides legal certainty to the heirs, but also avoids intestacy proceedings and considerably reduces family conflicts arising from the succession.

 

In addition, a will allows for the legal protection of vulnerable people, such as minor children, elderly or disabled people, through the appointment of guardians or executors to look after their interests.

 

Granting a will should not be understood as an act of distrust, but as a manifestation of planning, responsibility and foresight. It is an accessible legal tool that allows anticipating and avoiding legal and family problems in the future.

 

Although the Wills Month has contributed to facilitate this process and generate greater awareness, estate planning should not depend solely on an annual campaign. It must be consolidated as part of a legal culture that promotes the patrimonial autonomy of individuals and guarantees the legal security of their heirs.

 

At VAHG we are ready to advise our clients in the succession planning of their estate, offering personalized legal assistance for the granting of wills and other legal instruments, guaranteeing the security and well-being of their loved ones.

 

Fernando Hernández Gómez

Senior Partner and Commercial Notary Public No. 9 of the State of Jalisco

+52 (33) 3817 1731 Ext 225

fhernandez@vahg.mx

 

Cristina Vázquez Aldana Urrutia

Partner and Notary Public No. 41 of Guadalajara

+52 (33) 3630 0906 Ext. 121

cvazquez@vahg.mx

 

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.

Introduction

August 9 marks the International Day of Indigenous People, a date to reflect on the respect, protection and recognition of the cultures, traditions and rights of indigenous people worldwide. In Mexico, this day is especially significant due to the cultural richness that indigenous people represent in our country. However, one of the most important challenges they face is the protection of their cultural expressions, traditions and ancestral knowledge from abuse and misappropriation.

In this context, it is relevant to analyze the legal framework and initiatives that seek to guarantee the protection of copyrights on indigenous expressions, as well as the growing importance of Collective Intellectual Property (CIP), which offers a fundamental tool for the defense of their cultural and patrimonial rights.

 

Copyright of Indigenous Expressions in Mexico

Mexico’s Federal Copyright Law recognizes the need to protect literary, artistic and scientific creations, but, historically, the expressions of indigenous people have been marginalized within this legal framework. Indigenous songs, dances, oral traditions, weavings and other forms of cultural expression have not always enjoyed the same protection as the creations of individual authors. This is partly due to the lack of recognition of the collective and communal nature of these expressions, which do not always conform to the concept of individual authorship that prevails in the traditional copyright system.

 

Recently, Mexican legislation has taken important steps to recognize and protect indigenous cultural expressions within the Intellectual Property System. The Copyright Law establishes that, in the case of the expressions of indigenous people, copyright ownership corresponds to the community, and not to an individual, in recognition of their collective and ancestral character.

In addition, the National Copyright Institute (INDAUTOR) has begun to promote more inclusive mechanisms to register and protect the collective works of indigenous people, as part of a broader strategy for the defense of their cultural heritage.

 

Collective Intellectual Property: A Comprehensive Approach to the Protection of Indigenous Rights

Collective Intellectual Property (CIP) as previously mentioned, is a concept that has gained prominence in recent years and is a crucial legal avenue for protecting the knowledge and cultural expressions of indigenous communities. This approach recognizes that creations do not belong to an individual author, but to the community. The CIP becomes, therefore, a tool that seeks to guarantee the control and responsible use of the knowledge and cultural expressions that belong to indigenous communities.

 

In Mexico, important steps have been taken to incorporate the principles of CIP into legislation. In 2020, the Mexican Congress approved the Amendment to Article 2 of the Mexican Constitution, recognizing the Collective Rights of Indigenous People over their cultural heritage, which includes the protection of their knowledge, languages, religious practices, art and sciences. This Amendment laid the groundwork for greater inclusion of CIP in the legal protection of indigenous communities.

 

Recent Initiatives and Projects in this Field

At a national level, several institutions and civil society organizations have begun to work on strengthening the rights of indigenous peoples in the field of Intellectual Property.

Some noteworthy initiatives include:

1. The Project for the Protection of the Rights of Indigenous People on their Intellectual Property of the National Commission for the Development of Indigenous Peoples (CDI), which seeks to promote the legal protection of indigenous cultural expressions and encourage the inclusion of these communities in the Intellectual Property System.

 

2. The Alliance for the Protection of Traditional Knowledge between several indigenous people and international organizations, which has allowed the creation of databases for the registration of their knowledge and cultural expressions, facilitating their protection against commercial exploitation without consent.

 

3. The implementation of the Digital Platform for the Registration of Indigenous Knowledge and Expressions, created by INDAUTOR, which allows indigenous communities to register and protect their collective works, such as music, art, dances and languages, with the support of specialized legal advisors.

 

 

Despite the progress made, several challenges persist in the effective protection of the rights of indigenous people over their cultural expressions. One of the main obstacles is the lack of knowledge and awareness of Intellectual Property Rights within indigenous communities themselves, as well as the limited capacity of national authorities to effectively implement and enforce legal frameworks.

Another major challenge is the misappropriation of traditional knowledge, especially in industries such as pharmaceuticals, fashion and entertainment, where companies often exploit the cultural resources of indigenous communities without obtaining their consent or offering fair compensation.

In conclusion, on the International Day of Indigenous People, it is fundamental to remember that the protection of copyrights and Collective Intellectual Property is not only a legal issue, but also a matter of social and cultural justice. Mexico, as a country with a great diversity of indigenous peoples, has the responsibility to continue strengthening its regulatory framework to ensure that indigenous communities can effectively protect their cultural expressions and be the holders of the benefits derived from their ancestral wealth.

 

At VAHG, we have extensive experience in the field of Intellectual Property and Copyrights, especially in the protection of cultural expressions and traditional knowledge of indigenous people. Our Firm offers legal advice and comprehensive management services for the protection of collective cultural heritage, providing our clients with specialized support in the registration and defense of their rights. If your community or institution needs guidance on how to safeguard your cultural expressions within the Mexican legal framework, please do not hesitate to contact us. We will be pleased to help to ensure the protection and acknowledgement of your Intellectual Property Rights.

 

Fernando Hernández Gómez | Senior Partner Intellectual Property +52 (33) 38171731  Ext 225 | fhernandez@vahg.mx	Mariana González Sánchez | Partner Intellectual Property +52 (33) 38171731 Ext 222 | mgonzalez@vahg.mx

 

Martín Arias Cuevas | Associate

Intellectual Property

+52 (33) 38171731 Ext. 236 | ariascuevas@vahg.mx

 

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.

 

 

Heritage Identity, Economic Engine and Legal Challenges

Every July 24, the World celebrates International Tequila Day, a commemoration that recalls when UNESCO declared, in 2006, the agave landscape and industrial facilities of Tequila, Jalisco, a World Heritage Site. This date recognizes not only the cultural value of tequila, but also its economic relevance and complex international regulation.

In the 20th century, key steps were taken for its protection and regulation, such as the Tequila Denomination of Origin (DOT) in 1974 and the Tequila Regulatory Council (CRT) in 1994, essential frameworks for the protection, standardization and promotion of the national product in Mexico and at a global level.

Production 2024: A Year of Historic Figures

The end of 2024 showed an outstanding scenario for the tequila industry. To capture this year in figures, here are a few numbers:

– Production: 495.8 million liters of tequila were produced.

– Agave Consumption: On the part of the agro-industrial sector, 1.8 million tons of Agave Tequilana Weber of the Blue Variety, raw material for Tequila, were cultivated.

– Exports: 400.3 million liters were exported, mainly to the United States, which increased its consumption from 321.6 to 334.9 million liters (4.1%).

– Productive links: At the end of 2024, 206 tequila companies were in operation, 42,441 agave producers and 2,991 brands registered for Tequila.

– DOT Protection: currently recognized in 57 countries, with projected expansion to the United Arab Emirates, Paraguay, South Korea, Angola and OAPI.

 

Current Outlook: Sustainability and Agribusiness Challenges

Although the industry has a solid inventory with more than 500 million liters in warehouses, it faces problems of overproduction of agave that have generated market imbalances and price volatility. However, the CRT and producers have implemented strategic planning focused on sustainability, with clear goals for 2030 and constant analysis of environmental indicators.

In addition, the opening of new markets has been promoted, especially Asia and Africa, and international promotion measures have been strengthened to consolidate Tequila as a high quality, authentic and sustainable beverage.

The integration of the productive sector, the CRT and authorities from the three levels of government is essential to maintain tequila’s competitiveness and safeguard its cultural and commercial values.

International Tequila Day is, above all, an opportunity to celebrate a beverage that represents the soul of Mexico, its cultural richness and its great economic weight worldwide. The impressive closing of 2024, with almost 500 million liters produced, demonstrates the strength of the sector, although not exempt from logistical, environmental and market challenges.

Our Firm is an expert in the Tequila Industry, providing legal advice on Intellectual Property, Corporate Law, Mergers and Acquisitions, as well as on Regulatory, Tax and Foreign Trade Matters. We accompany our clients at all times, throughout the entire Tequila value chain, from the field to the international markets, offering them legal security with innovative strategies and solutions focused on sustainable growth and the protection of Tequila as Mexico’s National Heritage.

At VAHG, we are happy to celebrate this day and we are deeply committed to the Tequila Industry. If you would like to receive specialized advice on any of our Tequila Industry Practices mentioned above, please contact our Attorneys.

 

Fernando Hernández Gómez | Partner Mergers & Acquisitions/Propiedad Intelectual +52 (33) 38171731  Ext 225 | fhernandez@vahg.mx

Mariana González Sánchez | Partner Intellectual Property +52 (33) 38171731 Ext 222 | mgonzalez@vahg.mx

 

Martín Arias Cuevas | Associate

Intellectual Property

+52 (33) 38171731 Ext. 236 | ariascuevas@vahg.mx

 

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.

On July 16, 2025, relevant amendments to the Federal Law for the Prevention and Identification of Operations with Illicit Resources (LFPIORPI) and the Federal Criminal Code were published in the Official Gazette of the Federation (DOF). These reforms came into effect on July 17, 2025, and aim to strengthen Mexico’s legal framework for the prevention of money laundering and terrorist financing, in line with the latest international standards.

 

Key Changes

1. Expansion of Vulnerable Activities.

• New transactions in the real estate sector are included, such as construction activities and the receipt of funds for real estate developments.
• Cryptocurrency transactions originating abroad but directed at Mexican citizens are now subject to reporting obligations.

2. New Thresholds for Virtual Assets.

• The reporting threshold is reduced from 645 to 210 UMAs per transaction (approximately MXN $23,700.00).
• Any transaction generating a commission greater than 4 UMAs must be reported, regardless of the transaction amount.

3. Adjustments for Public Notaries and Commercial Notary Public.

• A unified regulatory framework is established for Notary Public and Commercial Notary Public, eliminating prior regulatory discrepancies between both types of obligated entities.
• New reporting thresholds are introduced, such as for the incorporation of legal entities and the creation of trusts: reporting is now required for amounts starting at MXN $452,500.00.

4. Client and Beneficial Owner Identification.

• Requirements to directly identify clients and collect official documents are reinforced.
• In the case of legal entities and trusts, the beneficial owner must be precisely identified.

5. Redefinition of Beneficial Owner.

• A beneficial owner is now defined as any person holding more than 25% of direct or indirect ownership (previously 50%).
• The concept is aligned with the terms “ultimate beneficiary” and “actual owner.”

6. Record-Keeping Obligations.

• The retention period for documentation is increased from 5 to 10 years.

7. Mandatory Training.

• An annual training program is required for key personnel, including management and compliance officers.

8. Changes to the Sanctions Regime.

• The requirement of intent is eliminated for certain violations, allowing sanctions for negligent omissions that were not timely corrected.
• The Ministry of Finance and Public Credit (SHCP) may alert the competent authority in case of compliance deficiencies, particularly regarding notaries and public brokers.

 

At VAHG, we are ready to help our clients adapt to this new regulation. We are committed to providing ongoing advice while identifying and mitigating risks that may affect their businesses. Our legal services cover a range of areas, including:

 

✅ Review and update of internal policies.

✅ Identification of beneficial owners.

✅ Preparation of compliance manuals.

✅ Specialized training for your team.

✅ Preventive legal advice and response to regulatory requirements.

 

In case you need advice, please contact any of our Compliance & Due Diligence Lawyers:

 

Elvia Ríos Saldaña | Partner

Compliance  & Due Diligence

+52 (33) 38171731  Ext 228 | erios@vahg.mx

 

Luis Andrés Estrada Intriago | Senior Associate Compliance & Due Diligence +52 (33) 38171731 Ext 224 | lestrada@vahg.mx

Fernando Hernández de la Torre | Associate Compliance & Due Diligence +52 (33) 38171731 Ext 237 | fhdelatorre@vahg.mx

 

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.

Joint Ventures in Mexico: Opportunities and Relevant Trends in 2025

Joint Ventures have been, for several years, the ideal vehicle to carry out business in Mexico and the world. The reason for this is because this agent is a facilitator to achieve a strategic association between two or more parties seeking to develop a common project or company with lucrative purposes, sharing the risks and benefits derived from its execution. This type of contract is often used to facilitate entry into new markets, especially when one of the parties is foreign.

In such cases, the foreign entity may contribute innovative technology or business practices, while the domestic party contributes business relationships, local expertise and regulatory compliance. This synergy enhances the competitive advantages of both parties and enables sustainable growth.

The parties involved may contribute capital, labor, assets, know-how, experience or other valuable resources to the joint venture.

Key elements for establishing a Joint Venture in Mexico

To structure an effective and legally sound Joint Venture in Mexico, it is essential to consider the following aspects:

• Written contract detailing the terms of the collaboration.
• Precise identification of the parties involved (individuals or legal entities).
• Purpose and scope of the project, including activities, duration and territory of operation.
• Defined contributions: capital, technology, infrastructure, etc.
• Clear governance, with rules for joint management and decision-making.
• Dispute resolution mechanisms to avoid protracted conflicts.
• Specialized legal advice, key to structuring a solid and tailor-made alliance.

A well-designed Joint Venture can be the difference between a successful collaboration or a source of conflict.

Current outlook and opportunities in 2025

According to a recent study cited by the international news agency Reuters, capital raised for startups in Latin America grew by 26% in 2024 versus the previous year, outpacing the growth seen in Europe (7%), and contrasting with the 34% drop in Southeast Asia.

By 2025, financing for Latin American startups is expected to continue to rise, driven by a young population, accelerated digitalization and an increasingly sophisticated investment environment, according to the report by Mexican entrepreneurship network – Endeavor and the private equity firm Glisco Partners. However, challenges remain, such as the low participation of late-stage local funds and global volatility.

Three key trends identified so far in 2025

• Increasing use of venture debt and mixed rounds combining equity and financing.
• Expansion of secondary markets, with an estimated 60% growth, facilitating liquidity for early – stage investors.
• Growing acquisition of employee stock ownership plans, although less than 20% of startups currently implement them.

In Mexico, the financial technology sector continues to lead the investment volume, while real estate technology startups and software companies register the highest growth rates. Mexico, along with Argentina, was one of the main destinations for venture capital in Latin America in 2024, highlighting deals with startups such as Clip and Justo.

Joint Ventures as an expansion strategy

Companies are no longer looking for a supplier, but for a strategic partner. Joint Ventures allow aligning objectives, sharing resources and facilitating expansion in regulated sectors or in complex local environments, where market knowledge is essential.

However, as in any strategic relationship, its success depends on trust, transparency and a shared division. Poor governance or misaligned goals can jeopardize the objective.

A recent example in the beauty sector in Mexico is the alliance between Ulta Beauty and Axo, which announced a Joint Venture to launch and operate the Ulta brand in the country during 2025. This strategic collaboration aims to offer Mexican consumers a wide range of high-quality beauty products, strengthening their position in their respective sectors.

How can we help you?

Our Lawyers have extensive experience advising domestic and international companies in structuring Joint Ventures in Mexico, ensuring regulatory compliance, tax efficiency and balanced operational control.

For more information about our legal services and how we can support your company in the formation of successful Joint Ventures, please contact our Team:

 

Fernando Hernández Gómez | Senior Partner

Compliance & Due Diligence

+52 (33) 38171731  Ext 225 | fhernandez@vahg.mx

 

Elvia Ríos Sldaña | Partner Compliance & Due Diligence +52 (33) 38171731 Ext 228 | erios@vahg.mx

Ana Karen Inzunza Sánchez | Partner Compliance & Due Diligence +52 (33) 38171731 Ext 235 | ainzunza@vahg.mx

 

Luis Andrés Estrada Intriago | Senior Associate

Compliance & Due Diligence

+52 (33) 38171731 Ext 224 | lestrada@vahg.mx

 

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.

With the constant change in the Mexican legal landscape, as a result of the recent reform to the Judiciary, the business sector faces new challenges that require the implementation of new legal strategies, which in turn have to be more practical. Not only is it important to adapt to legal changes, but also to implement preventive legal mechanisms such as Compliance and Due Diligence in order to grow businesses in Mexico and continue to promote the interest of Foreign Investment to put money into them.

In the current context of Mexico, characterized by a dynamic regulatory environment, increased government scrutiny and growing social expectations regarding corporate responsibility, foreign companies face new challenges in investing and expanding operations in the country.

The National Banking and Securities Commission (CNBV), the Ministry of Economy and the Financial Intelligence Unit (UIF) have strengthened their supervision and monitoring processes. This involves a stricter review of corporate structures, origin of funds and business links.

In order to update risk matrices and internal compliance procedures to adequately respond to regulatory audits, it is of importance to use the Due Diligence tool which, mainly, should address 6 (six) main areas of a Company:

1. Corporate: Verification of asset ownership (real estate, machinery); Review of current contracts (customers, suppliers, leases); Pending litigation or administrative proceedings; Compliance with local regulations; permits and licenses; Corporate status: minutes, bylaws, powers of attorney, corporate books.
2. Tax: History of compliance with federal, state and municipal taxes (SAT – Tax Administration Service, IMSS – Mexican Social Security Institute, INFONAVIT – National Workers’ Housing Fund Institute); Review of pending audits or tax credits; Review of income tax returns; VAT; withholdings; Opinion of current tax compliance.
3. Labor: Employment contracts, unions, benefits, labor liabilities; National Workers’ Housing Fund Institute (INFONAVIT); Possible risks due to dismissals; labor lawsuits or illegal practices; Compliance with the Federal Labor Law; IMSS.
4. Financial-Accounting: Audited financial statements; cash flow; accounts payable and receivable; current liabilities; evaluation of hidden or off-balance sheet liabilities.
5. Intellectual and Technological Property: Trademarks; Patents; Software; Confidentiality agreements and know-how protection.
6. Compliance: Environmental and Social Compliance (ESG); Identification of beneficial owners under FATF standards.

At VAHG, our team of Lawyers has the experience to grow your business in Mexico, our legal approach is focused on highlighting the current context of globalization where we can help mitigate risks and provide regulatory compliance that will be critical to the success of our clients’ investments through the development and implementation of regulatory compliance programs, review and adaptation of corporate structures in accordance with new regulations.

 

Fernando Hernández Gómez | Senior Partner

Compliance  & Due Diligence

+52 (33) 38171731  Ext 225 | fhernandez@vahg.mx

 

Elvia Ríos Sldaña | Partner Compliance & Due Diligence +52 (33) 38171731 Ext 228 | erios@vahg.mx

Ana Karen Inzunza Sánchez | Partner Compliance & Due Diligence +52 (33) 38171731 Ext 235 | ainzunza@vahg.mx

 

Luis Andrés Estrada Intriago | Senior Associate

Compliance & Due Diligence

+52 (33) 38171731 Ext 224 | lestrada@vahg.mx

 

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.