This document provides an overview of key factors for setting up a business in Mexico, including:
1) Legal forms such as Corporations (Sociedad Anónima), Limited Liability Companies (Sociedad de Responsabilidad Limitada), branches, subsidiaries, and joint ventures.
2) Registration and establishment requirements including registering the constitutive instrument with the Public Registry of Commerce and obtaining necessary permissions.
3) Auditing requirements for entities operating in Mexico including requiring an annual audit of financial statements by an independent certified public accountant.
Regulations that Affect Microfinance Institutions in Central America
El Salvador introduced a dollarization law that made the US dollar the official national currency, replacing the colón. This created challenges for microfinance institutions (MFIs) as they had to convert loan balances and accounting to dollars. It also risked fueling inflation through price speculation and creating fiscal problems for the government. The law's implementation generated costs for MFIs to adjust financial systems and educate clients on the currency changeover.
Doing Business in Mexico: Compliance Implications of the Pact for MexicoEthisphere
This document summarizes a webcast on business compliance implications of reforms in Mexico. It discusses reforms in anticorruption, energy, and telecommunications. For anticorruption, it notes stalled legislation and risks of low enforcement. For energy, it outlines the opening of the oil sector to foreign firms and compliance provisions in contracts. For telecommunications, it discusses allowing foreign investment and risks of mergers and acquisitions. Throughout, it provides strategies for companies to mitigate compliance risks like training and cultural considerations for acquired firms. Speakers from AT&T, Halliburton and Baker & McKenzie address these topics.
1.Liquiditya.The current ratio is a liquidity ratio that measures .pdfanuragperipheral
1.Liquidity
a.The current ratio is a liquidity ratio that measures a company\'s ability to pay short-term and
long-term obligations. To gauge this ability, the current ratio considers the total assets of a
company (both liquid and illiquid) relative to that company’s total liabilities.The formula for
calculating a company’s current ratio, then, is:
Current Ratio = Current Assets / Current Liabilities
b.cash flow from operations to current liabilities
Operating Cash Flow Ratio = OperatingCash Flow/Current Liabilities
The operating cash flow ratio is not the same as the operating cash flow margin or the net income
margin, which includes transactions that did not involve actual transfers of money (depreciation
is common example of a noncash expense that is included in net income calculations but not in
operating cash flow). The operating cash flow ratio is also not the same as EBITDA or free cash
flow.
Because working capital is a component of operating cash flow, investors should be aware that
companies can influence the operating cash flow ratio by lengthening the time they take to pay
the bills (thus preserving their cash), shortening the time it takes to collect what\'s owed to them
(thus accelerating the receipt of cash), and putting off buying inventory (again thus preserving
cash).
2.Solvency
1.debt to equity
Debt/Equity Ratio is a debt ratio used to measure a company\'s financial leverage, calculated by
dividing a company’s total liabilities by its stockholders\' equity. The D/E ratio indicates how
much debt a company is using to finance its assets relative to the amount of value represented in
shareholders’ equity.
The formula for calculating D/E ratios can be represented in the following way:
Debt - Equity Ratio = Total Liabilities / Shareholders\' Equity
2.debt to assets
Total debt to total assets is a leverage ratio that defines the total amount of debt relative to assets.
This enables comparisons of leverage to be made across different companies. The higher the
ratio, the higher the degree of leverage, and consequently, financial risk. This is a broad ratio that
includes long-term and short-term debt (borrowings maturing within one year), as well as all
assets – tangible and intangible.
Total debt to total assets=Short term Debt+Long term debt/Total Assets
3.Profitability
a.return on assets
Return on assets is the ratio of annual net income to average total assets of a business during a
financial year. It measures efficiency of the business in using its assets to generate net income. It
is a profitability ratio.
The formula to calculate return on assets is:
ROA = Annual Net Income/Average Total Assets
b. return on equityThe amount of net income returned as a percentage of shareholders equity.
Return on equity measures a corporation\'s profitability by revealing how much profit a company
generates with the money shareholders have invested.
ROE is expressed as a percentage and calculated as:
Return on Equity = Net Income/Shareholder\'.
Legal guide to do business in Colombia 11ProColombia
This document provides a summary of key aspects of government procurement in Colombia in 12 points:
1. Government contracting requires objectivity and principles of transparency, free competition, and equality.
2. Foreign bidders can participate without restriction and may receive national treatment under certain trade agreements.
3. All bidders must register in the Unique Registry of Proponents, except foreign bidders without a Colombian branch.
4. Bidders must provide bid and performance bonds with some exemptions.
5. Private investors can submit private initiative projects for public-private partnerships.
It then discusses the scope of procurement laws, parties to contracts, grounds for impediment and incompatibilities
The private equity market in Mexico presents exceptional opportunities for investment. Several factors contribute to this, including macroeconomic stability, improvements to the legal framework, abundant investment opportunities, and growing private equity activity. If recommendations to establish a local limited partnership structure and allow pension funds to invest in private equity are implemented, it could fuel rapid growth in the Mexican private equity industry over the next 5 years, similar to growth seen in other markets. European and US investors would be wise to pay attention to private equity managers in Mexico to capitalize on this opportunity.
This document discusses differences in political economies between nations. It begins by defining political economy as the interdependent relationship between a nation's political, economic, and legal systems. It then examines key aspects of these systems, including political structures like democracy and collectivism, economic models like market and command economies, and legal frameworks like common law. The document suggests these factors influence a country's level of economic development and notes political stability, well-defined property rights, and democratic regimes tend to be most conducive to long-term economic growth. In the end, it emphasizes managers must consider various risks when evaluating a foreign market's overall attractiveness as an investment site.
The Dodd-Frank Wall Street Reform and Consumer
Protection Act was signed into law in 2010 and ushered
in an overhaul of the US financial regulatory system so
sweeping that many of the regulations needed to fully
implement the law are still evolving in 2012. Enacted in
response to a financial crisis described as the “worst since
the Great Depression,” this massive piece of legislation
contains 16 titles, comprises 2,319 pages in its original
form, and calls for regulators from 22 separate federal
agencies to conduct dozens of new studies and create
hundreds of new rules.
This Substance of the Standard was prepared by MHM’s
Professional Standards Group to provide a timely update
of the regulations issued through March 31, 2012 — and
those that are expected in the months to come — so you
can prepare for the challenges that lie ahead.
Regulations that Affect Microfinance Institutions in Central America
El Salvador introduced a dollarization law that made the US dollar the official national currency, replacing the colón. This created challenges for microfinance institutions (MFIs) as they had to convert loan balances and accounting to dollars. It also risked fueling inflation through price speculation and creating fiscal problems for the government. The law's implementation generated costs for MFIs to adjust financial systems and educate clients on the currency changeover.
Doing Business in Mexico: Compliance Implications of the Pact for MexicoEthisphere
This document summarizes a webcast on business compliance implications of reforms in Mexico. It discusses reforms in anticorruption, energy, and telecommunications. For anticorruption, it notes stalled legislation and risks of low enforcement. For energy, it outlines the opening of the oil sector to foreign firms and compliance provisions in contracts. For telecommunications, it discusses allowing foreign investment and risks of mergers and acquisitions. Throughout, it provides strategies for companies to mitigate compliance risks like training and cultural considerations for acquired firms. Speakers from AT&T, Halliburton and Baker & McKenzie address these topics.
1.Liquiditya.The current ratio is a liquidity ratio that measures .pdfanuragperipheral
1.Liquidity
a.The current ratio is a liquidity ratio that measures a company\'s ability to pay short-term and
long-term obligations. To gauge this ability, the current ratio considers the total assets of a
company (both liquid and illiquid) relative to that company’s total liabilities.The formula for
calculating a company’s current ratio, then, is:
Current Ratio = Current Assets / Current Liabilities
b.cash flow from operations to current liabilities
Operating Cash Flow Ratio = OperatingCash Flow/Current Liabilities
The operating cash flow ratio is not the same as the operating cash flow margin or the net income
margin, which includes transactions that did not involve actual transfers of money (depreciation
is common example of a noncash expense that is included in net income calculations but not in
operating cash flow). The operating cash flow ratio is also not the same as EBITDA or free cash
flow.
Because working capital is a component of operating cash flow, investors should be aware that
companies can influence the operating cash flow ratio by lengthening the time they take to pay
the bills (thus preserving their cash), shortening the time it takes to collect what\'s owed to them
(thus accelerating the receipt of cash), and putting off buying inventory (again thus preserving
cash).
2.Solvency
1.debt to equity
Debt/Equity Ratio is a debt ratio used to measure a company\'s financial leverage, calculated by
dividing a company’s total liabilities by its stockholders\' equity. The D/E ratio indicates how
much debt a company is using to finance its assets relative to the amount of value represented in
shareholders’ equity.
The formula for calculating D/E ratios can be represented in the following way:
Debt - Equity Ratio = Total Liabilities / Shareholders\' Equity
2.debt to assets
Total debt to total assets is a leverage ratio that defines the total amount of debt relative to assets.
This enables comparisons of leverage to be made across different companies. The higher the
ratio, the higher the degree of leverage, and consequently, financial risk. This is a broad ratio that
includes long-term and short-term debt (borrowings maturing within one year), as well as all
assets – tangible and intangible.
Total debt to total assets=Short term Debt+Long term debt/Total Assets
3.Profitability
a.return on assets
Return on assets is the ratio of annual net income to average total assets of a business during a
financial year. It measures efficiency of the business in using its assets to generate net income. It
is a profitability ratio.
The formula to calculate return on assets is:
ROA = Annual Net Income/Average Total Assets
b. return on equityThe amount of net income returned as a percentage of shareholders equity.
Return on equity measures a corporation\'s profitability by revealing how much profit a company
generates with the money shareholders have invested.
ROE is expressed as a percentage and calculated as:
Return on Equity = Net Income/Shareholder\'.
Legal guide to do business in Colombia 11ProColombia
This document provides a summary of key aspects of government procurement in Colombia in 12 points:
1. Government contracting requires objectivity and principles of transparency, free competition, and equality.
2. Foreign bidders can participate without restriction and may receive national treatment under certain trade agreements.
3. All bidders must register in the Unique Registry of Proponents, except foreign bidders without a Colombian branch.
4. Bidders must provide bid and performance bonds with some exemptions.
5. Private investors can submit private initiative projects for public-private partnerships.
It then discusses the scope of procurement laws, parties to contracts, grounds for impediment and incompatibilities
The private equity market in Mexico presents exceptional opportunities for investment. Several factors contribute to this, including macroeconomic stability, improvements to the legal framework, abundant investment opportunities, and growing private equity activity. If recommendations to establish a local limited partnership structure and allow pension funds to invest in private equity are implemented, it could fuel rapid growth in the Mexican private equity industry over the next 5 years, similar to growth seen in other markets. European and US investors would be wise to pay attention to private equity managers in Mexico to capitalize on this opportunity.
This document discusses differences in political economies between nations. It begins by defining political economy as the interdependent relationship between a nation's political, economic, and legal systems. It then examines key aspects of these systems, including political structures like democracy and collectivism, economic models like market and command economies, and legal frameworks like common law. The document suggests these factors influence a country's level of economic development and notes political stability, well-defined property rights, and democratic regimes tend to be most conducive to long-term economic growth. In the end, it emphasizes managers must consider various risks when evaluating a foreign market's overall attractiveness as an investment site.
The Dodd-Frank Wall Street Reform and Consumer
Protection Act was signed into law in 2010 and ushered
in an overhaul of the US financial regulatory system so
sweeping that many of the regulations needed to fully
implement the law are still evolving in 2012. Enacted in
response to a financial crisis described as the “worst since
the Great Depression,” this massive piece of legislation
contains 16 titles, comprises 2,319 pages in its original
form, and calls for regulators from 22 separate federal
agencies to conduct dozens of new studies and create
hundreds of new rules.
This Substance of the Standard was prepared by MHM’s
Professional Standards Group to provide a timely update
of the regulations issued through March 31, 2012 — and
those that are expected in the months to come — so you
can prepare for the challenges that lie ahead.
This document analyzes the impact of state public debt laws on fiscal performance in Mexican states. It provides background on decentralization in Mexico and the origins of state debt laws following the 1995 economic crisis. The author compiled data on when each state enacted a debt law and the stringency of the laws. Preliminary results without controlling for other factors show states had larger deficits in years without debt laws, but this effect disappears when the model controls for year fixed effects. The paper aims to empirically study how debt laws impacted state fiscal behavior in Mexico from 1993-2002.
This article provides a general overview of current trends in relation to the implementation and financing of P3 infrastructure projects in Colombia, Mexico and Peru, three Latin American countries currently attracting a large volume of investment.
Efforts are underway to reduce corruption in Mexico and Brazil, two of the largest and most dynamic economies in Latin America. While Mexico has yet to enforce its anti-corruption laws, Brazil has taken corruption more seriously in the wake of "Operation Car Wash" and the resulting fallout. Going forward, increased scrutiny of corrupt practices seems inevitable in both countries. Companies that focus on compliance now will be better positioned to thrive long-term in these emerging markets.
The book review summarizes Paul Collier's book "The Bottom Billion" which focuses on the approximately 58 countries constituting one billion people that have been left behind and are not experiencing economic growth and prosperity. Collier is concerned with the future of these "bottom billion" people across 58 countries that make up 20% of the world's population but are not participating in the global rise of the middle class. The book examines the challenges facing these countries and populations that have been excluded from the overall positive trajectory of most of the world in the 21st century.
Risk Trends - Parkview Newsletter September 2010ugulvadi
The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Act") was signed into law on July 21, 2010 to address the causes of the financial crisis. The Act introduces increased regulation of banks and other financial institutions to prevent future crises and ensure taxpayers are not forced to bail out firms that are "too big to fail". It also aims to protect consumers, reform executive compensation, and bring transparency and accountability to the financial system. However, some question if the Act will truly prevent future crises or simply react to the most recent one.
The document summarizes Mexico's new Anti-Corruption Law, which aims to crack down on corruption in public contracting. It applies to both Mexican and foreign individuals and companies involved in federal procurement. The law establishes harsh fines and debarment from future contracts for corrupt acts like bribery. It also uniquely extends liability to Mexican companies and citizens for corrupt acts committed abroad. The Public Comptroller Office will investigate complaints and impose sanctions, with no option to appeal sanctions. The law brings Mexico in line with international anti-corruption standards and aims to reduce the billions lost annually to corruption.
This document provides a summary of a conference on development, foreign direct investment, and investment treaties in Latin America. The conference brought together economists, lawyers, political scientists, and policymakers from around the world.
The key conclusions from the conference included that laissez-faire economic policies are not always the best for growth, that foreign investment should support national development goals rather than be pursued as an end, and that investment treaties need reform to better balance investor protections with policy flexibility for governments. Presentations covered topics like the history of globalization and development strategies, trends in foreign investment, challenges of investment treaties, and case studies from investment arbitrations. Overall, the conference highlighted the need for more balanced and nu
The document discusses how hedge funds have come to hold 30% of Puerto Rico's public debt. It traces the history of sovereign debt markets, from obligations between nations to the involvement of private creditors and hedge funds. Puerto Rico's debt is attractive to hedge funds because, unlike US municipal debt, it lacks a clear framework for restructuring, leaving hedge funds in a strong position to collect full payment. The document examines why Puerto Rico is in a unique position that exposes it to hedge fund influence.
After Sarbanes-Oxley, companies must embrace strong internal control frameworks and the tenets of corporate governance. The Sarbanes-Oxley Act of 2002 was passed in response to accounting scandals and aimed to increase transparency and accountability in financial reporting. However, it did not define the role of internal auditors in ensuring corporate governance goals. Repeated corporate failures show that voluntary guidelines are insufficient and that mandated internal control frameworks with independent governance are needed to prevent recurring issues stemming from human behaviors like greed, rationalization, and pride.
This document provides a summary of key aspects of government procurement in Colombia:
1. Government contracting in Colombia requires objectivity, free competition, transparency and other constitutional principles. Foreign bidders can participate without restriction and may receive national treatment under certain trade agreements.
2. All individuals and legal persons wishing to bid, including foreigners, must register in the Unique Registry of Proponents (RUP), except foreign entities without a Colombian domicile or branch. Bidders must provide bid and performance bonds with some exceptions.
3. Private initiatives can submit public-private partnership projects, with economic support from public entities not exceeding 30% of the budget for investment projects. Non-profit entities can also contract with
This document discusses political economies and how the political, economic, and legal systems of a country interact and influence each other. It covers key aspects of these systems including political ideologies like collectivism and individualism; forms of government like democracy and totalitarianism; economic systems like market, command, and mixed economies; and legal systems like common law, civil law, and theocratic law. The document also discusses how these various systems can differ between countries and impact things like property rights, corruption, intellectual property protection, and product safety/liability.
The document summarizes the Bank Employees and Assets Declaration Law, which aims to curb corruption in the banking sector by requiring bank employees to declare all assets upon employment and annually. It outlines the law's provisions, including mandatory disclosure of assets and income, offenses for noncompliance or falsification, and penalties such as imprisonment, fines, and asset forfeiture. The document recommends strict enforcement of the law through an independent regulatory body to increase transparency and integrity in the banking system.
Legal guide to do business in Colombia 03ProColombia
This document provides an overview of corporate regulations for doing business in Colombia. It discusses the most commonly used legal entities for foreign investment, which include commercial companies like simplified stock companies and branches of foreign companies. The key steps for incorporation include drafting a document of incorporation, registering with the local Chamber of Commerce, appointing directors and obtaining a National Tax Registry number. Foreign investors are not required to have a local partner to do business in Colombia. Incorporation of an entity is generally a simple process that does not require prior government approval except in special cases.
The document outlines plans to establish an international business office in Coahuila, Mexico. The office will develop a real estate and financial business offering investments to Mexican and American clients. The goals are to initially establish effective processes, start generating profits, gradually consolidate the business, and over the long term carry out successful real estate investments and consolidate real estate business in Mexico. A SWOT analysis identifies strengths like experience in the US market, weaknesses like being a new enterprise, and opportunities like potential real estate growth in certain Mexican regions.
Rodrik_Feasible_Globalizations
FEASIBLE GLOBALIZATIONS
Dani Rodrik1
Harvard University
July 2002
Introduction
We want economic integration to help boost living standards. We want democratic
politics so that public policy decisions are made by those that are directly affected by them (or
their representatives). And we want self-determination, which comes with the nation-state. This
paper argues that we cannot have all three things simultaneously. The political trilemma of the
global economy is that the nation-state system, democratic politics, and full economic
integration are mutually incompatible. We can have at most two out of the three. It follows that
the direction in which we seem to be headed—global markets without global governance—is
unsustainable.
The alternative is a renewed “Bretton-Woods compromise:” preserving some limits on
integration, as built into the original Bretton Woods arrangements, along with some more global
rules to handle the integration that can be achieved. Those who would make a different choice—
toward tighter economic integration—must face up to the corollary: either tighter world
government or less democracy.
During the first four decades following the close of the Second World War, international
policy makers had kept their ambitions in check. They pursued a limited form of
internationalization of their economies, leaving lots of room for national economic management.
Successive rounds of multilateral trade negotiations made great strides, but focused only on the
most egregious of the barriers at the border and excluded large chunks of the economy
1 I am grateful to Michael Weinstein for very helpful suggestions.
2
(agriculture, services, “sensitive” manufactures such as garments). In capital markets,
restrictions on currency transactions and financial flows remained the norm rather than the
exception. This Bretton Woods/GATT regime was successful because its architects subjugated
international economic integration to the needs and demands of national economic management
and of democratic politics.
This strategy changed drastically during the last two decades. Global policy is now
driven by an aggressive agenda of “deep” integration—elimination of all barriers to trade and
capital flows wherever those barriers may be found. The results have been problematic--in terms
of both economic performance (relative to the earlier post-war decades) and political legitimacy.
The simple reason is that “deep” economic integration is unattainable in a context where nation
states and democratic politics still exert considerable force.
The title of this essay conveys therefore two ideas. First, there are inherent limitations to
how far we can push global economic integration. It is neither feasible nor desirable to
maximize what Keynes called “economic entanglements betw ...
This document discusses two crosscutting concerns that pose major obstacles to human rights and development in the Philippines: 1) Corruption in government transactions. Corruption is pervasive and siphons resources, undermining social services for the poor. The current administration is taking steps to promote transparency and accountability to reduce corruption. 2) The need to strengthen legal frameworks and agencies to more effectively monitor, report, prevent and prosecute graft and corruption at all levels of government. Addressing these institutional issues is paramount to protecting human rights and enabling development.
This document provides an overview of opportunities for doing business in Mexico. It summarizes Mexico's population size, GDP, economic growth rates, and sectors with foreign investment opportunities such as manufacturing, automotive, aeronautics, chemicals, electronics, food and beverages, textiles, agriculture, and science and technology. The document also outlines cultural dos and don'ts for operating successfully in Mexico, such as building relationships, observing holidays, and understanding regulations. It positions Global BMT as able to guide foreign companies through business and cultural issues in Mexico.
Legal Guide 12 Government Procurement.pdfProColombia
This document provides a summary of key aspects of government contracting in Colombia. It outlines that foreign investors can participate without restriction in selection processes for government contracts. National treatment is granted to bidders from countries with which Colombia has trade agreements. All individuals and companies wishing to bid, including foreign entities with a Colombian branch, must register in the bidders registry. Private initiatives can be submitted for public-private partnership projects, with certain limits on public funding. The document provides an overview of contracting laws and principles, parties involved, and grounds for impediment and incompatibility.
Financial Sector Performance and Conceptual FrameworkAtif Ahmed
This document provides an overview of the financial services sector and related concepts. It discusses the history of the sector and how technology has changed operations. The future outlook is uncertain given recent market collapses. It also defines primary and secondary markets, debt and equity, and money and capital markets. Additionally, it outlines different types of financial regulations and describes the US financial industry and subsectors. Finally, it analyzes Pakistan's economic growth rate, inflation rate, and tax-to-GDP ratio over the past decades.
This document analyzes the impact of state public debt laws on fiscal performance in Mexican states. It provides background on decentralization in Mexico and the origins of state debt laws following the 1995 economic crisis. The author compiled data on when each state enacted a debt law and the stringency of the laws. Preliminary results without controlling for other factors show states had larger deficits in years without debt laws, but this effect disappears when the model controls for year fixed effects. The paper aims to empirically study how debt laws impacted state fiscal behavior in Mexico from 1993-2002.
This article provides a general overview of current trends in relation to the implementation and financing of P3 infrastructure projects in Colombia, Mexico and Peru, three Latin American countries currently attracting a large volume of investment.
Efforts are underway to reduce corruption in Mexico and Brazil, two of the largest and most dynamic economies in Latin America. While Mexico has yet to enforce its anti-corruption laws, Brazil has taken corruption more seriously in the wake of "Operation Car Wash" and the resulting fallout. Going forward, increased scrutiny of corrupt practices seems inevitable in both countries. Companies that focus on compliance now will be better positioned to thrive long-term in these emerging markets.
The book review summarizes Paul Collier's book "The Bottom Billion" which focuses on the approximately 58 countries constituting one billion people that have been left behind and are not experiencing economic growth and prosperity. Collier is concerned with the future of these "bottom billion" people across 58 countries that make up 20% of the world's population but are not participating in the global rise of the middle class. The book examines the challenges facing these countries and populations that have been excluded from the overall positive trajectory of most of the world in the 21st century.
Risk Trends - Parkview Newsletter September 2010ugulvadi
The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Act") was signed into law on July 21, 2010 to address the causes of the financial crisis. The Act introduces increased regulation of banks and other financial institutions to prevent future crises and ensure taxpayers are not forced to bail out firms that are "too big to fail". It also aims to protect consumers, reform executive compensation, and bring transparency and accountability to the financial system. However, some question if the Act will truly prevent future crises or simply react to the most recent one.
The document summarizes Mexico's new Anti-Corruption Law, which aims to crack down on corruption in public contracting. It applies to both Mexican and foreign individuals and companies involved in federal procurement. The law establishes harsh fines and debarment from future contracts for corrupt acts like bribery. It also uniquely extends liability to Mexican companies and citizens for corrupt acts committed abroad. The Public Comptroller Office will investigate complaints and impose sanctions, with no option to appeal sanctions. The law brings Mexico in line with international anti-corruption standards and aims to reduce the billions lost annually to corruption.
This document provides a summary of a conference on development, foreign direct investment, and investment treaties in Latin America. The conference brought together economists, lawyers, political scientists, and policymakers from around the world.
The key conclusions from the conference included that laissez-faire economic policies are not always the best for growth, that foreign investment should support national development goals rather than be pursued as an end, and that investment treaties need reform to better balance investor protections with policy flexibility for governments. Presentations covered topics like the history of globalization and development strategies, trends in foreign investment, challenges of investment treaties, and case studies from investment arbitrations. Overall, the conference highlighted the need for more balanced and nu
The document discusses how hedge funds have come to hold 30% of Puerto Rico's public debt. It traces the history of sovereign debt markets, from obligations between nations to the involvement of private creditors and hedge funds. Puerto Rico's debt is attractive to hedge funds because, unlike US municipal debt, it lacks a clear framework for restructuring, leaving hedge funds in a strong position to collect full payment. The document examines why Puerto Rico is in a unique position that exposes it to hedge fund influence.
After Sarbanes-Oxley, companies must embrace strong internal control frameworks and the tenets of corporate governance. The Sarbanes-Oxley Act of 2002 was passed in response to accounting scandals and aimed to increase transparency and accountability in financial reporting. However, it did not define the role of internal auditors in ensuring corporate governance goals. Repeated corporate failures show that voluntary guidelines are insufficient and that mandated internal control frameworks with independent governance are needed to prevent recurring issues stemming from human behaviors like greed, rationalization, and pride.
This document provides a summary of key aspects of government procurement in Colombia:
1. Government contracting in Colombia requires objectivity, free competition, transparency and other constitutional principles. Foreign bidders can participate without restriction and may receive national treatment under certain trade agreements.
2. All individuals and legal persons wishing to bid, including foreigners, must register in the Unique Registry of Proponents (RUP), except foreign entities without a Colombian domicile or branch. Bidders must provide bid and performance bonds with some exceptions.
3. Private initiatives can submit public-private partnership projects, with economic support from public entities not exceeding 30% of the budget for investment projects. Non-profit entities can also contract with
This document discusses political economies and how the political, economic, and legal systems of a country interact and influence each other. It covers key aspects of these systems including political ideologies like collectivism and individualism; forms of government like democracy and totalitarianism; economic systems like market, command, and mixed economies; and legal systems like common law, civil law, and theocratic law. The document also discusses how these various systems can differ between countries and impact things like property rights, corruption, intellectual property protection, and product safety/liability.
The document summarizes the Bank Employees and Assets Declaration Law, which aims to curb corruption in the banking sector by requiring bank employees to declare all assets upon employment and annually. It outlines the law's provisions, including mandatory disclosure of assets and income, offenses for noncompliance or falsification, and penalties such as imprisonment, fines, and asset forfeiture. The document recommends strict enforcement of the law through an independent regulatory body to increase transparency and integrity in the banking system.
Legal guide to do business in Colombia 03ProColombia
This document provides an overview of corporate regulations for doing business in Colombia. It discusses the most commonly used legal entities for foreign investment, which include commercial companies like simplified stock companies and branches of foreign companies. The key steps for incorporation include drafting a document of incorporation, registering with the local Chamber of Commerce, appointing directors and obtaining a National Tax Registry number. Foreign investors are not required to have a local partner to do business in Colombia. Incorporation of an entity is generally a simple process that does not require prior government approval except in special cases.
The document outlines plans to establish an international business office in Coahuila, Mexico. The office will develop a real estate and financial business offering investments to Mexican and American clients. The goals are to initially establish effective processes, start generating profits, gradually consolidate the business, and over the long term carry out successful real estate investments and consolidate real estate business in Mexico. A SWOT analysis identifies strengths like experience in the US market, weaknesses like being a new enterprise, and opportunities like potential real estate growth in certain Mexican regions.
Rodrik_Feasible_Globalizations
FEASIBLE GLOBALIZATIONS
Dani Rodrik1
Harvard University
July 2002
Introduction
We want economic integration to help boost living standards. We want democratic
politics so that public policy decisions are made by those that are directly affected by them (or
their representatives). And we want self-determination, which comes with the nation-state. This
paper argues that we cannot have all three things simultaneously. The political trilemma of the
global economy is that the nation-state system, democratic politics, and full economic
integration are mutually incompatible. We can have at most two out of the three. It follows that
the direction in which we seem to be headed—global markets without global governance—is
unsustainable.
The alternative is a renewed “Bretton-Woods compromise:” preserving some limits on
integration, as built into the original Bretton Woods arrangements, along with some more global
rules to handle the integration that can be achieved. Those who would make a different choice—
toward tighter economic integration—must face up to the corollary: either tighter world
government or less democracy.
During the first four decades following the close of the Second World War, international
policy makers had kept their ambitions in check. They pursued a limited form of
internationalization of their economies, leaving lots of room for national economic management.
Successive rounds of multilateral trade negotiations made great strides, but focused only on the
most egregious of the barriers at the border and excluded large chunks of the economy
1 I am grateful to Michael Weinstein for very helpful suggestions.
2
(agriculture, services, “sensitive” manufactures such as garments). In capital markets,
restrictions on currency transactions and financial flows remained the norm rather than the
exception. This Bretton Woods/GATT regime was successful because its architects subjugated
international economic integration to the needs and demands of national economic management
and of democratic politics.
This strategy changed drastically during the last two decades. Global policy is now
driven by an aggressive agenda of “deep” integration—elimination of all barriers to trade and
capital flows wherever those barriers may be found. The results have been problematic--in terms
of both economic performance (relative to the earlier post-war decades) and political legitimacy.
The simple reason is that “deep” economic integration is unattainable in a context where nation
states and democratic politics still exert considerable force.
The title of this essay conveys therefore two ideas. First, there are inherent limitations to
how far we can push global economic integration. It is neither feasible nor desirable to
maximize what Keynes called “economic entanglements betw ...
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Financial Sector Performance and Conceptual Framework
Doing Business In Mexico
1. Doing Business in México
This document describes some of the key Railroad tracks, however, have had practically no
commercial and taxation factors that are relevant development in decades.
on setting up a business in Mexico.
Digital communication networks allows Mexico be
1. BACKGROUND in great level to satisfy any national and
international necessities.
Brief description of Mexico.
Mexico is a democratic republic; it has 31 states and 2. CHOICE OF LEGAL FORM
a Federal District. The executive power is elected
every six years. Legal frameworks are established through statutes,
the General Mercantile Societies Law and other
In Mexico there are 120 million inhabitants who are applicable special laws.
mainly concentrated in the big cities. Mexico City,
the capital, has 21 million inhabitants. Corporations are constituted through a public
Spanish is the official language; almost 97% of the instrument which creates a juridical personality.
population is catholic. This public instrument is notarized and registered
before the Public Registry of Commerce.
Mexican economy.
Mexico has two main sources of wealth: oil and The society’s legal representative acts on behalf of
tourism which represents almost 30% of the Gross the entity with a notarized power of attorney
Domestic Product (GDP). The manufacturing granted by the shareholders.
industry (maquiladoras) is significant, and commerce
and services are continuously growing. Any of the societies mentioned below may be
constituted with fixed or variable capital.
The average inflation for the last few years has been
less than 4% annually. The fiscal year coincides with the calendar year.
The official currency is the Mexican peso and the 2.1 Limited Liability Company (Sociedad
most convertible currency is the US dollar. The de Responsabilidad Limitada)
exchange rate has been very steady in the last 5
years: around 12 pesos per one USD. As with the S.A., the S. de R. L. is one of the most
widely used for doing business in Mexico.
Infrastructure
A broad border with United States allows Partners are responsible up to the amount of their
continuous traffic to and from production and contribution, unless they are part of the Board of
consumption centers. Ports located on the coasts Directors or be Statutory Auditors.
have enough infrastructures to deal with
international trade.
De la Paz, Costemalle DFK,SC es una entidad legal autónoma e independiente que forma parte de DFK Internacional.
2. 2.2 General Partnership 2.8 Subsidiary
Not in use in Mexico. They are constituted using the before mentioned
form, and operate as legal societies constituted in
2.3 Limited Liability Partnership Mexico.
Not in use in Mexico. 2.9 Public Limited Company
2.4 Limited Partnership A public entity is that which trades on the security
exchanges. Any society which is solvent may quote
Not in use in Mexico. in the security exchange issuing obligations or
special shares series fulfilling provisions in the Law.
2.5 Branch or representative office.
In Mexico, a public entity is constituted with the
A branch and a representative office can operate in Mexican government participation of up to 51% of
Mexico only if their offices are registered before the the capital stock when the society’s activity is
Public Registry of Commerce; constitutive strategic for Mexican’s development or 100% of
instrument, by laws (estatutos sociales), powers of the capital stock when the society’s activity is
attorney, must be authenticated by authorities of fundamental for Mexico. In both cases,
their home country, in Spanish (or accompanied by stockholders can only be Mexican individuals or
an official Spanish translation), protocolized before societies with a charter restricting foreigner
a Notary Public here in Mexico. investors.
One must apply to the Ministry of Foreign Affairs to 2.10 Joint Venture
obtain permission to carry out transactions in
Mexico. This is an association that can be between
individuals, businesses or a mix of them. Same
Each year the entity must present and publish its rules, rights and obligations apply to all its
Balance Sheet audited by an independent certified signatories.
public accountant.
The Association in Participation Agreement
This type of entity is not ideal, since it is subjected (Asociación en Participación) is a temporary
to a tax regimen as a corporation constituted association conformed for commercial purposes
according to Mexican law, a subsidiary company is through a contract signed by one or more silent
the best option. partners (“asociados”) who give goods or services
to an active partner (“asociante”), both pursuiting
2.6 Sole Proprietorship a common objective, grants participation in profits
and losses of the business. The active partner will
These societies are prohibited in Mexico. A appear before third parties and the silent partner
company must be formed by a minimum of two will not.
partners, however 99% of capital stock can be
owned by one individual. According to the Mercantile Societies General
Law this association has no juridical personality
2.7 Offshore Legal Entities and acts through the individual who associates,
assumes the responsibilities generated by the
Yearly, the location of offshore countries is contract before authorities, individuals and third
approved. All operations performed with these parties.
countries need to be informed to the authority,
mainly for tax purposes. The associates have no responsibilities in the
before mentioned.
3. However, for tax purposes, the contract does have •Special clauses for setting conditions of partner’s
juridical personality and is subjected to tax law like exclusion, as restriction or termination of share
a mercantile society. sales.
2.11 Sociedad Anónima (S.A.) (Corporation) •The implementation of mechanisms for
agreements achievement among shareholders.
This type of corporation is the most widely used
for doing business in Mexico. Our financial system is 3. AUDITING REQUIREMENTS
based on this corporation type.
3.1 Requirements and Thresholds
The responsibility of the shareholders is limited to
the amount of their contribution, with the Tax audit - enterprises fulfilling any of the
exception made of the legal representative or the following three requirements are subjected to the
members of the Board of Directors and the Board compulsory tax auditing whose results are filed
of Oversight. with tax authorities in May of the following year:
To constitute this type of corporation at least two •Revenues greater than US $ 2.6 million
individuals are required. •More than 300 workers
•Assets greater than US $ 5 million
2.12 Trust / Foundation
Financial audit – medium, large companies, all
Trust can only be formed with authorized Trust financial institutions, as well as public and state
Houses. institutions are usually audited and reported to its
government body.
Foundations (Instituciones de Asistencia Privada)
are born with the aim of perpetuity. They are ruled Special audits – local authorities, social security
by local entities (Junta de Asistencia Privada). and housing institutions force certain companies
to be audited for special purposes.
Civil societies are organizations whose partners
contribute work and resources toward an 4. TAXATION
economic result with no commercial speculation.
Their regulations are included in their bylaws and The most significant taxes caused according to the
the Civil Code. Included in this type of societies are amounts collected are income tax; value added tax
professional, cultural and social services. and the new business flat tax.
2.13 Sociedades Anónimas Promotoras de Taxes caused by societies
inversión (SAPIs)
4.1. Corporation Taxes
It´s a new corporate model that the objective is
attract capital and investors. It has also been the Business Flat Tax
kind of entity of choice for hungry-for-public-
funding companies targeting the stock market. An allternative minimum tax now called “Impuesto
Empresarial a Tasa Única” IETU (Business Flat
This new legal figure allows: Tax). This new tax shall be paid by Mexican-
•More freedom for the company to have a single resident entities and individuals on their
document that regulates its shareholder’s relation, worldwide income received as compensation for
instead of having the bylaws and multiple contracts the sale of goods, for independent services
between them. rendered and for leased goods. Non-residents
•Modalities on how shares may be issued. with a permanent establishment in Mexico shall
also be subject to this tax.
4. The tax shall be determined on a cash-flow basis 4.3 Dividend Payments
at a rate of 17.5%. As a transition, a 16.5% rate
will be applicable in 2008 and 17% rate will apply Dividends are tax free when the society paid taxes
in 2009. The alternative minimum tax shall be previously. Otherwise, income tax needs to be
determined on an annual basis, with monthly integrated by gross up.
estimated payments. The basis of the alternative
minimum tax for almost all taxpayers shall be 4.4 Branch Profits Tax
determined by subtracting all deductions from the
aggregate taxable income. Same rules as Corporation Tax apply
Income Tax. 4.5 Personal Income Tax
All entities revenues, cash, goods, services, credit Mexican Income Tax Law taxes individuals’
or any other type, including those obtained abroad revenues obtained from the following concepts:
are taxed according to income tax law. Its
maximum rate is 30%; as such it is applied to some •Wages and subordinated personal services
activities and for corporate tax. Individuals pay this •Business and professional activities
tax with a progressive table from 0% to 30%. •Leases
•Sale of assets
The fiscal losses of preceding years are subjected •Purchase of assets
to the following provisions: •Interest revenue
•Prizes
•They will be decreased of tax profits only in the •Dividends
following ten years. •Other
•Tax losses will be updated with inflation factors.
•When the taxpayer is entitled to deduct tax Besides authorized deductions for each individual’s
losses and fails to do so, the right to deduct the taxed revenues there are personal deductions
amount not decreased shall be forfeited. described below:
•The right to deduct tax losses cannot be
transferred in the case of a merger; it can only be •Medical and hospital fees
transferred when corporations divided. •Funeral expenses
•Donations
Tax on Cash Deposits (IDE) •Interests on mortgage loans
•Complementary contributions to the retirement
It is calculated at a 2% rate on the deposits made plans
in cash to an account maintained with Mexican •Allowances major medical expenses insurance
financial institutions, and which will be applicable •Compulsory school transportation
when the aggregate deposits exceed MXN
$25,000 in each month. The tax shall be collected
by the institutions receiving the deposits, who A deduction of fiscal losses is authorized only to
shall issue the corresponding certificates of individuals with revenues from business activities
withholding to the taxpayers. in the following terms:
Asset Tax Law •Fiscal losses are compensated against taxable
profits of the next ten years
It is was abrogated January 1, 2008 •Tax losses shall be updated according inflation
factors
4.2 Small companies’ rate •When a taxpayer who is entitled to deduct fiscal
loss in a fiscal year and fails to do so, the right to
Small businesses are limited and not geographically deduct the amount not compensated for, shall be
centered in big cities. (See below paragraph forfeited.
“Incentives and Development Programs”).
5. 4.6 Capital gains tax Study under the international rules, a trusted
database is searched and applicable items are
This revenue is tax exempted until realized when compared under the “arms’ length” principle.
earnings is computed and tax caused is paid.
The above has higher enforcement with
4.7 Land tax international related parties.
Possession of real estate is taxed based on the
government estimation of value. 5. Allowances
4.8 Value Added Tax 5.1 Depreciation
VAT is applied to the value increased through the Financially, depreciation is made according to the
productive chain, taxing the ultimate price of goods assets’ useful life. For tax purposes the common
and services that is paid by the final consumer. practice is to apply the maximum rates authorized
by tax laws which generally anticipate expenses.
All individuals and entities engaging in the activities
listed below are required to pay Value Added Tax: 5.2 Investment allowance
•Sale of assets Sporadic investment facilities are declared to
•Rendering of independent services promote investment (domestic and foreign) in
•Grant of temporary use or sale of assets certain non developed or damaged regions and
•Import of goods or services cities.
Taxpayers have the right to deduct the VAT payable 5.3 (Tax Credits) Incentives and
by them when purchasing goods or services development programs
corresponding to the main activities of their
business. In general terms, investment incentives in Mexico
are as follows:
4.9 Sales Tax •Importation of raw materials and machinery and
equipment used for production of goods for
Not applicable as the VAT is a federal tax in export, free of tariffs and taxes.
Mexico. •The possibility of immediate depreciation of fixed
assets
4.10 Local Taxes •The possibility of purchasing land in some states
of
Local governments can and actually collect special the Republic
taxes on: payroll, education, etc. •Access to venture capital from development
Base is usually 2% on payroll/education, etc or a banks.
minor VAT percent locally defined.
6. EMPLOYMENT
4.11 Tax treaties
Minimum wages are applied with consideration of
Mexico has more than 80 international treaties, geographical areas made up of municipalities and
which means an advantage to foreign investments in states. Minimum wage is the name for the salary a
avoidance of double taxation. worker earns in established geographical areas.
4.12 Transfer pricing rules Salaries are paid weekly for physical work and
biweekly for all others.
All companies in Mexico, dealing with related
parties, need to perform a Transfer Pricing Workers earn an annual bonus and participate in
10% of the profits of the enterprise.
6. 6.1 Social security / unemployment 6.2 Employment of foreign personnel
Social security guarantees the right to health, No aliens are allowed to work in Mexico unless a
medical care, protection of the means of proper work permit is granted by the Secretaría
subsistence, and the necessary social services for de Gobernación (State Ministry).
the workers’ welfare, as well as a retirement
pension guarantied by the federal government 6.3 Medical
when legal requisites are fulfilled. Execution of
social security is the responsibility of public Medical expenses for workers are covered
dependences, federal or local, as well as through social security as described above. As a
decentralized organizations. usual policy, companies pay medical insurance
policy for their officers as well.
The Instituto Mexicano del Seguro Social (IMSS)
is a decentralized public Institution with its own 6.4 Payroll taxes
juridical personality and patrimony, founded in (See above in “Individual Taxes”)
1944, in charge of organization and management
of social security for social and private sectors. No deduction is allowed on minimum wage
personnel.
Social security includes a compulsory and a An increasing rate from 0% to 30% is approved
voluntary regimen. every year as income tax.
Social Security (housing, medical, retirement,
In the compulsory regimen, individuals secured motherhood, nursing, etc) is paid between the
are those who render permanent or eventually State, the employee and the employer.
remunerated and subordinated services to other Altogether personnel taxes for the employer can
individuals or entities, and also to economic units rise up to 2.3 times payroll.
with no juridical personality. Workers should
have as beneficiaries of social security services 7. WITHHOLDING TAXES
the spouse or partner, as well as ascendants and
descendants authorized by law. 7.1 Interest
Compulsory regimen includes insurance for the A flat rate is withheld in the financial institutions
following: and paid on the name of the deposit-holder if the
rate is above certain level.
l. Job risks
ll. Illnesses and pregnancy The financial institution issues a tax certificate to
lll. Invalidity and life be used in the yearly annual return.
lV. Retirement, dismissal by advanced and old age
V. Nurseries and social benefits 7.2 Royalties
As a part of the obligations established in the A flat rate of 10% is calculated on all royalties paid.
Social Security Law, employers must register Special treatment applies to foreign paid royalties.
themselves and their workers in IMSS (see
above), and communicate those who added or 7.3 Dividends
dropped from employments as well as any salary
modifications. No withheld tax is calculated on dividends that
have already paid income tax. If dividends come
Unemployment taxes are non existent in Mexico. from non-income-tax-net-profits, a rate of 29% is
determined, withheld and paid by the entity on
behalf of the shareholder.
7. 8. MISCELLANEOUS Immediate depreciation of investment: the
entities may choose to concentrate in one fiscal
Development programs. Mexico has Programs for year (the first or second) the greater percentage
Export Development as described below: of tax depreciation of fixed assets instead of
applying the rate enacted in fiscal laws. Enterprises
Maquiladoras with temporary imports for located in Mexico City, Guadalajara and
producing export goods (IMMEX): Import of Monterrey, and investments in transportation and
raw material, machinery and equipment, packs and office equipments are excluded this benefit
•Aguascalientes • Cancún • Campeche • Ciudad de México • Chetumal • Guadalajara • Mérida • Michoacán • San Luis Potosí • Villahermosa • Riviera Maya •
crates, fuel, and spare parts with no payment of
tariffs and VAT and other special fiscal benefits, the Facilitated real estate purchases: some state
requirements being: governments evaluating project benefits give
The entity is dedicated to produce non-oil reductions in the price of real estate in order to
merchandise attract foreign investment.
Export 10% of its sales as a minimum or US $
500,000 for importing material for production Financing programs with venture capital:
reported annually. The Banco Nacional de Comercio Exterior
At least 30% of the value of sales destined for (Bancomext) and Nacional Financiera (Nafin) may
export to benefit tax exemption corresponding to temporally participate as minor stockholders in
import of machinery and equipment. (during the the investment projects of enterprises with
validity of the program) foreign capital stock. Once the project progresses
Systemize the inventory processes, registering the the development bank retires from the society,
entrances, decreases and leaves. selling its stock to founding shareholders for the
agreed price in the initial agreement or sell to
High export enterprise (ALTEX): a stricter third parties.
version of IMMEX with more benefits and state and Prepared by: Juan Pacheco
federal governmental supports. De la Paz, Costemalle - DFK, SC
Amended: January 2011
Promotion for specific productive sectors.
(PROSEC).
Imports of raw material, machinery and equipment,
packs and crates, fuel, and spare parts with no
payment of VAT and less amount of duties.
(advalorem) without the obligation of export the
final product.
Drawback: reimbursement of custom duties paid
by production material imported for production of
merchandise destined for sales abroad or required
by export enterprises..
To benefit with this system, the taxpayer should file
the corresponding application before a year has
elapsed after the import of material for production
and within 60 days after the goods were exported.
This document is provided as a general overview of matters to be considered when setting up an overseas business in
MEXICO. It is essential to take advice on specific issues. No liability can be accepted for any action taken or not taken
arising from the information provided
Consultoría •Administración •Fiscal •Legal •Auditoría • Tecnología
For further please contact: De la Paz, Costemalle - DFK México
+52 (55) 3686 2400 Ext. 1315/1317
contacto@delapazcostemalle.com.mx
www.delapazcostemalle.com.mx