Foreign investors can open a SPV company in Mexico. SPV stands for special purpose vehicle, which is designed exclusively for securitization purposes, which can refer to isolating certain corporate assets from other business activities, creating joint ventures and others.
The procedure to incorporate this company type follows the same steps required for company formation in Mexico, but which must abide by specific rules regulating the securitization market. Our team of consultants in company incorporation in Mexico can present the current legislation in the field.
Mexican SPV must abide by numerous rules of law, some of which are the standard legislations all companies must follow, and some of which are applicable only to securitization vehicles, such as SPVs. The main rules of law applicable to this industry are the following:
In order to open a SPV in Mexico, investors must set up a trust, which is the most suitable entity that can be used for securitization purposes in this country. In the case of a trust used as a SPV entity, the following entities must be part of the structure:
After you set up a company in Mexico as a SPV, you must know that you have to follow and implement specific management obligations and to comply with many tax requirements. For all these, you can always address our CPA in Mexico, who has the necessary expertise in the field to represent the interests of your SPV. Below, we present some key characteristics:
A preferential withholding rate of only 4,9% is applied when the securities are registered at a national level. There are also certain categories when there is a tax exemption on the payment of the withholding tax.
Due diligence is recommended for a variety of investments, including when investing in real estate. Our consultants in company formation in Mexico have the necessary legal background for providing this service, but it must be noted that, when investing in a SPV, investors are not legally required to conduct any due diligence. However, it is highly recommended to do so.
The sole obligation to conduct due diligence applies to institutional investors, who must verify the types of assets involved in the SPV, the SPV itself (its structure, rules of incorporation and functioning, etc.) and others. For additional information on how to set up a company in Mexico as a SPV, we invite you to contact our team.