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

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

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.

In the current context of increasing globalization, international labor mobility is today an undeniable reality. Mexico, as a country receiving foreign talent, has established a legal framework aimed at regulating the hiring of non-national staff, seeking to balance the opening to global talent with the safeguarding of local employment.

The hiring of foreign personnel in Mexico must be carried out in strict compliance with the regulatory framework, which establishes specific limits and conditions to protect national employment and ensure compliance with applicable labor and immigration provisions. This framework is mainly regulated by the Federal Labor Law and the Immigration Law, together with its regulations.

In accordance with Article 7 of the Federal Labor Law, in all the companies established in Mexico, at least ninety percent of the workers must be Mexican. The remaining percentage -up to ten percent- may be occupied by foreign staff, as long as they perform executive, technical or specialized positions. This limit is not only quantitative, but also qualitative, since the law prohibits hiring foreigners for roles that can be filled by Mexican workers. In addition, foreign workers are required to train Mexican personnel in the jobs they perform, in order to promote the knowledge transfer and skills.

In the immigration area, in order for a foreigner to work legally in Mexico, he/she must have an immigration status that authorizes him/her to do so. The hiring company must be registered with the National Immigration Institute (INM) and submit a formal job offer to initiate the visa process.

In addition, there are strategic sectors, such as national security, energy, mining and certain public areas, where the legislation requires employees to be Mexican citizens by birth.

It is essential that companies carefully evaluate each foreign profile they wish to incorporate, ensuring that their hiring is fully justified by the required specialization. Failure to comply with these provisions may result in administrative sanctions, fines and even the cancellation of immigration permits.

At VAHG, we have a multidisciplinary team specialized in labor and immigration matters, which provides comprehensive advice to domestic and foreign companies to plan and execute their international hiring in a legal and strategic manner. We are convinced that regulatory compliance is not only a legal obligation, but also a key competitive advantage in the management of global talent.

**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.

April 26, 2025 marks World Intellectual Property Day, a date that seeks to raise awareness of the importance of protecting creativity and innovation. This year, we focus on the relationship between Intellectual Property and Music, a sector that is deeply affected by copyright protection.

Music is a form of artistic expression that has been an important part of human culture for centuries. From the creation of a melody to the production of an album, music is the result of the creativity and effort of many individuals. However, Intellectual Property Protection is essential to ensure that music creators are fairly compensated for their work.

Intellectual property in music refers to copyright, which protects the original creation of a musical work. This includes the composition, lyrics, recording and production of a song. Copyright ensures that music creators have control over how their work is used and that they receive fair compensation for its use.

The protection of Intellectual Property in Music is pivotal to the Music Industry. Artists and music producers depend on the sale of their works for a living, and piracy and lack of copyright protection can discourage the creation of new musical works. In addition, Intellectual Property Protection is also important to ensure that music creators receive fair compensation for the use of their work in different contexts, such as digital rights management systems (DRM systems) and online music streaming platforms.

In the digital age, Intellectual Property Protection in Music is more important than ever. Music can be easily shared and distributed online, which can make it difficult for music creators to control how their work is used. However, there are many tools and technologies available that can help protect Intellectual Property in Music, such as DRM systems and online music streaming platforms above-mentioned.

In short, Intellectual Property and Music are closely related. Copyright Protection is essential to ensure that music creators are fairly compensated for their work and that the music industry remains viable. On World Intellectual Property Day, it is important to remember the importance of protecting creativity and innovation in music and other sectors.

For more information regarding the protection of musical works and copyrights in general and our legal services related to Intellectual Property, VAHG’s Intellectual Property team is at your service.

**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.

April 23, 2025 is World Book Day, an emblematic date that seeks to promote reading, writing and access to culture. However, behind this celebration there is a fundamental issue that deserves to be highlighted: copyrights.

Copyrights are those that protect the Intellectual Property of the creators of literary, artistic and musical works, among others. These rights ensure that authors receive fair compensation for their work and that they can control how their work is used.

The relationship between World Book Day and Copyright is close. The celebration of books seeks to promote the habit of reading and the creation of new works through writing, but without copyright protection, many authors would not be able to make a living from their work. Piracy and lack of Copyright Protection can discourage the creation of new works and harm authors who depend on their work for a living.

In this regard, it is essential that copyrights are respected and protected. Authors must receive fair compensation for their work, publishers and distributors must ensure that works are published and distributed legally.

On World Book Day, it is important to remember the importance of Copyrights and its role in promoting creativity and culture. By respecting and protecting these rights, we can ensure that authors continue to create works that inspire, educate and entertain us.

Summarizing, World Book Day and Copyrights are closely linked. The Protection of Copyrights is fundamental to promote creativity and culture, and it is important to respect and protect them in order to ensure that authors continue to create works that enrich us.

For more information regarding the protection of Literary Works and Copyrights in general and our related legal services, the Intellectual Property team is at your service.

**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.

Antidumping is a set of measures that a country adopts to prevent foreign products from being sold at prices below their real value or cost of production in the local market and, that cause damage to national production. This phenomenon is known as “dumping”.

When a company or country is found to be dumping, the affected country may apply anti-dumping measures. These measures may include additional import duties or tariffs on imported products sold at unfairly low prices. The purpose is to protect local producers and ensure more balanced trade.

Governments are entitled according to WTO Rules to take action against dumping in order to protect their domestic production. The WTO Agreement focuses on how governments may or may not respond to dumping; it establishes disciplines for anti-dumping measures and is often referred to as the “Anti-Dumping Agreement”.

The legal definitions are more precise, but, broadly speaking, the WTO Agreement authorizes governments to take action against dumping when genuine (“material”) harm is caused to the competing domestic industry. In order to take such action, the government must be able to demonstrate that dumping exists, calculate its magnitude (how much lower the export price is compared to the price in the exporter’s home market), and show that the dumping is causing damage or threatening to cause it.

According to Dr. Oscar Cruz Barney, in his article “The Constitutional control of antidumping resolutions and the panels of Article 1904 of the North American Free Trade Agreement”, under Mexican law, unfair International Trade Practices are considered the importation of goods under conditions of price discrimination or grants in the exporting country, either the country of origin or place of provenance, causing damage to a domestic production of identical or similar goods.

In 2025, antidumping measures have gained relevance in Mexico due to increasing trade tensions and the need to protect the domestic industry from unfair practices. The Ministry of Economy has initiated several anti-dumping investigations against imports from countries such as China and the United States. For example, at the beginning of February, Mexico’s Ministry of Economy announced on Thursday that it had initiated an anti-dumping investigation into imports of cartonboard from China. Furthermore, on February 26, U.S. chassis producers requested the relevant U.S. government agencies to conduct investigations to impose anti-dumping and countervailing duties on imports of chassis and sub-assemblies from Mexico, Thailand and Vietnam. On March 3, Mexico initiated anidumping investigations on imports from China of thermoplastic rubber, hot-rolled steel, micro-steel and fertilizers.

Imports from Mexico are alleged to be dumped at a margin of 32.37%, imports from Thailand are alleged to be dumped at a margin of 234.06% and imports from Vietnam are alleged to be dumped at a margin of 304.68%. In addition, Imports from Mexico and Thailand are also alleged to be unfairly subsidized by their respective governments.

The U.S. Department of Commerce and the U.S. International Trade Commission are expected to initiate formal preliminary stage investigations of imports from the three countries by March 18, 2025. Investigations typically last more than a year and could result in the imposition of duties on imports from the countries.

These measures agree with the imposition of 25% tariffs on Mexican exports by the US government and the tightening of the Donald Trump administration’s trade policy.

According to the preliminary resolutions published in the Official Gazette of the Federation, there is evidence that Chinese products have been subjected to price discrimination, which would have caused harm to the domestic industry. Several Mexican companies filed complaints and requested the intervention of the Ministry of Economy, according to La Crónica. An investigation was also initiated into imports of hot-rolled steel from China and Vietnam.

VAHG helps clients manage the risks they may face around the increasing complexities of Mexico’s international trade regulations, especially in the areas of tariffs and anti-dumping measures. Our Firm aims to serve companies navigating these challenges, helping them comply with legal regulations while maximizing their trade opportunities and growing their businesses. We have the support of experts in various international legislations to ensure that Mexican companies can compete on equal terms in the global marketplace, while protecting their interests on issues of unfair practices such as dumping.

For more information regarding our professional services, our International Trade and Antidumping Practice Partners are at your service.

Oscar Cruz Barney | Senior Partner

International Trade & Antidumping

+52 (33) 38171731

**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.

This 2025 we commemorate the 60th anniversary of the International Convention on the Elimination of All Forms of Racial Discrimination (ICERD).

On December 21, 1965, the United Nations General Assembly adopted the International Convention on the Elimination of All Forms of Racial Discrimination (ICERD) through Resolution 2106 (XX), marking a global effort to eradicate racism. As the first of the UN’s core international human rights treaties, ICERD laid the groundwork for future human rights advances. Its commitment to the elimination of racial discrimination and the promotion of equality sustains the ongoing struggle against racist ideas and practices in all areas, with the aim of fostering global understanding and unity, free of racial segregation.

The United Nations General Assembly reiterates that all human beings are born free and equal in dignity and rights and have the potential to contribute constructively to the development and well-being of their societies. In its most recent resolution, the General Assembly also emphasized that any doctrine of racial superiority is scientifically false, morally condemnable, socially unjust and dangerous and must be rejected, along with theories that attempt to determine the existence of separate human races.

This International Day against Racial Discrimination invites us to reflect on the progress achieved in the fight against discrimination in all its forms, while at the same time it is setting new challenges for today. It is a time to reaffirm our commitment to equality and to continue our efforts to eliminate racism by ensuring equal treatment for all people.

At VAHG, we are committed to foster an environment where differences are respected and all voices are heard, where every member of our Firm feels valued, listened and respected.  Each of us has a moral responsibility to be an ally and to act against any act of discrimination by fostering an inclusive environment, free of prejudice and discrimination.

Commitment to racial equity is not only a moral responsibility, but also an opportunity to strengthen human capital and promoting innovation within our Firm. Recognizing, valuing and advocating diversity in our teams is key to building fairer, more productive and resilient work environments.

2025 is a pivotal year for the global pursuit of gender equality and women’s empowerment focused on Law Firms. The theme of the International Women’s Day 2025 campaign is “Accelerate Action.”

Collectively, we can accelerate action for gender equality and reflect on the progress made and challenges we women still face especially in the legal professional field in Mexico.

In this context, it is essential to accelerate initiatives aimed at promoting gender equality at all levels of the legal profession. The legal profession has historically been dominated by men, which has resulted in an environment where women have had to struggle to be heard and to gain access to leadership positions, equal pay, policies that favor work-life balance, as well as training and awareness programs that contribute to a more inclusive and discrimination-free environment.

The need to accelerate action as a message on this day highlights the importance of adopting quick and decisive measures to achieve gender equality, such as fostering mentoring programs and support networks within law firms to help young women starting their careers in the legal sphere, which will help them access better opportunities and prepare them for leadership roles in the future.

We recognize the strategies, resources and activities that positively impact the advancement of women in our Firm in order to have a fairer and more equitable environment for them to be fulfilled in their working lives. We still have a long way to go but we are aware that “Accelerating Action” will ensure that women have a voice and are heard in strategic committees for their professional development and that a culture of respect and trust is permanently promoted.

Mexican Inventor’s Day: The Importance of their role in the advancement of Technology

Every February 17, Mexico celebrates the Mexican Inventor’s Day, a date dedicated to recognize the talent and creativity of those who, with their ingenuity, have contributed to the technological and scientific advancement of our country. This celebration was established in honor of the birthday of Guillermo González Camarena, the illustrious Mexican engineer who invented the Trichromatic Sequential Fields System, one of the bases for color television transmission.

Origins and Significance of the Celebration

Mexican Inventor’s Day has been officially commemorated since 1993, when several institutions and organizations related to Intellectual Property in Mexico promoted this date to highlight the importance of national inventors. Guillermo González Camarena, born on February 17, 1917, was a pioneer of engineering in the country and his legacy has inspired generations of Mexican scientists and technologists.

The Inventor’s Role in Technological Development

Inventors play a fundamental role in the economic and social development of a nation. Throughout history, technological advances have been driven by individuals who, through research and experimentation, have found innovative solutions to everyday problems. In Mexico, figures such as Manuel Mondragón, inventor of the Mondragón semi-automatic rifle in the 20th century, or Luis Ernesto Miramontes, co-inventor of the birth control pill in 1951, have left an indelible mark on world science and technology.

Nowadays, with the arrival of artificial intelligence, automation and digitalization, inventors continue to be key players in the technological revolution. The creation of new technologies allows the development of emerging industries, the optimization of production processes and the improvement in the quality of life of the population.

The Value of Intellectual Property in Mexico

The protection of inventions and creations through Patents and Intellectual Property Rights is a fundamental pillar to foster innovation. In Mexico, the Mexican Institute of Industrial Property (IMPI) is the entity in charge of granting patents and safeguarding the rights of inventors. A patent not only recognizes the work of those who develop an innovation, but also encourages investment in research and advancement, allowing inventors to capitalize on their creations so that they can be useful on a large scale.

Nevertheless, Mexico faces challenges in the area of intellectual Property. The number of patents registered by Mexicans remains low compared to other countries. Factors such as lack of funding, bureaucracy and a poor culture of Intellectual Protection make it difficult for many inventors to bring their creations to market. That is why the celebration of Mexican Inventors’ Day seeks not only to pay tribute to those who have transformed history with their discoveries, but also to raise awareness of the need to strengthen mechanisms to support innovation and patent registration.

Conclusion

Mexican Inventor’s Day is a date of recognition, but also an opportunity to reflect on the importance of ingenuity and creativity as engines of progress. History has shown that Inventors are fundamental in the development of more advanced and sustainable societies. Fostering the culture of Innovation and the protection of Intellectual Property is an essential task for Mexico to continue generating technological advances with global impact.

On this February 17, at VAHG we celebrate Mexican Inventors, whose talent and dedication continue to drive the future of our country. With our experience in Industrial Property matters, we are able to provide specialized attention in patent protection and technology development. In case you need advice, please contact any of our Intellectual Property Attorneys.

The real estate market in Mexico is growing year after year. The year 2025 promises to be no exception, since a positive outlook is perceived in which this type of investment will continue to grow, both from domestic and foreign investors.

Investing in Real Estate, according to experts, is one of the smartest and safest decisions that can be made. This type of investment generates capital gains in the medium and long term, as well as protection against inflation, offering a constant profitability. The Ministry of Economy confirms that real estate can generate yields of up to 30% in the first year, which makes this sector an attractive financial refuge.

According to a study conducted by HelloSafe, a platform that compares financial products, revealed that 40.4% of Mexicans trust in investing their money in Real Estate. Likewise, financial institutions confirm that certain advantages of investing in Real Estate include the following:

• Low volatility: Real Estate is a low volatility investment due to the fact that there is always demand for housing.
• Security: Investing in Real Estate is a safe strategy, since demand is always increasing, as it is a basic necessity.
• Capital Gain: Properties have capital gain due to the increase in real estate prices.
• Recovery: The market recovers, that is, when the economic cycle starts to turn around, people who bought at a lower price due to the economic crisis can always benefit from the high part of the cycle and thus benefit their investment.

By 2025, the General Director of the Mexican Association of Real Estate Fibers (AMEFIBRA) reported that Real Estate Companies will invest $652 billion pesos in the construction of low-income and vacation housings, hotels, offices, industrial buildings and shopping centers in Mexico. This confirms that the Real Estate Sector in the country represents an approximate 15% annual growth, between challenges and opportunities for the construction of homes, industrial buildings, hotels, shopping centers and other sectors.

At VAHG we structure and implement tailor-made real estate strategies, facilitating the client’s review, audit, regularization, negotiation for the acquisition and/or transfer of real estate by individuals or companies, domestic or foreign, providing comprehensive counseling to ensure the most efficient option from a legal and tax perspective. We offer accompaniment from the preliminary stage to the conclusion of the matter, coordinating the participation of financial institutions, trustees, local or federal authorities, providing the option of formalizing the structure chosen before the attestation of our Notary Public.

**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.