Benefits of Engaging a Mexican Law Firm
The decision to hire a law firm in Mexico comes from the realization that you need an advisor who is intimately familiar with both local and national business laws and regulations. An American lawyer, for instance, may not be well-versed in regulations concerning real estate in Puerto Vallarta or the process of company incorporation in Mexico.
Hiring a full-service law firm that has local attorneys who know the ins-and-outs of operating a business in Mexico gives you the upper hand when it comes time to settle a corporate dispute, review a foreign investment application, or address any other hurdle that the Mexican legal system may throw at you . Most of the major business centers in Mexico are in the central parts of the country, so if you’re doing business in Guadalajara, Puerto Vallarta, Cancún or Cabo San Lucas, you need a local firm that understands the region.
Familiarity with a country’s culture can make all the difference when closing a deal. For example, if you’re a company in the U.S. who has never worked with Mexico before, you might think the doing business in Mexico is quite similar to in the United States. But don’t be fooled; Mexican business culture is vastly different. Understanding the cultural faux pas of a different country can help you make a better impression while negotiating a deal or navigating local business systems/reporting standards.
Practice Areas of Mexican Law Firms
Mexican law firms typically boast a vast array of practice areas designed to meet the needs of their clients. Common in-house practices include corporate law, immigration, intellectual property, labor law, and international trade. Many lawyers have an expertise that enable them to develop a niche practice, such as legal services related to high net worth individuals, family concerns, sanctions, environmental law, real estate, and intellectual property. Not surprisingly, many Mexican law firms have international networks of partners that allow them the flexibility to deliver a high quality of service and dedication to their clients. In corporate law, this firm area of focus for most law firms in Mexico, specialists help clients handle the following matters: In immigration, the law firms advise foreign citizens in petitions for naturalization and residence visa assistance. They also handle business sponsor cases in relationships with the Mexican National Immigration Institute (INM). For example: For real estate matters, the law firms assist buyers or sellers with due diligence, local laws, international laws, title insurance, and purchase agreements. They also counsel on financing, leasing, construction, and land use, as well as tax considerations for non-Mexicans. Intellectual property services are offered in patent and trademark application procedures, exclusion requests before the Mexican Institute of Industrial Property (IMPI), customs assistance, opposition proceedings and actions for infringement of rights on the basis of unfair competition. They may also pursue litigation in the IP sector. In the international trade area, many firms choose to represent clients seeking U.S. exporter certificates. Some may offer customs monitoring and enforcement, as well as compliance strategies to help importers comply with Mexican law and reduce the risk of complicated audits.
How to Choose the Optimal Mexican Law Firm
When considering legal representation in Mexico, potential clients have a wide range of factors to ponder to ensure that they select the right firm for their unique needs. One fundamental is firm reputation, industry experience and monetary success. Client reviews are another area of research to dig into. Other aspects, such as language capabilities, can also play into your final decision. While most Mexican law firms employ bilingual attorneys, others take language capability a step further, and offer Spanish classes or in-house translation services to clients when necessary.
For firms specializing in highly technical areas of law, such as intellectual property or employment law, industry expertise is crucial for effective legal counsel. Your particular legal needs should dictate your attorney selection. For example, if you need representation for an intellectual property issue, you will want to choose a firm with the right technical know-how for successful legal direction in this nuanced area of the law.
Mexico has a number of well-respected law firms with strategic analyzes of the market. A simple online search for "Mexico law firms" will yield the top firms according to a host of criteria. To identify the law firm in Mexico with the right qualifications for your legal representation, you must weigh these considerations and how they apply to your situation.
Leading Mexican Law Firms in the Rankings
Mexico is home to an array of highly prestigious law firms known for their exceptional services and commitment to client success. Through awards, accolades, and notable client feedback, they have distinguished themselves as leaders in the Mexican legal market.
Band 1 Baker McKenzie was the first law firm to establish a presence in Mexico in 1959 and has built a reputation as the most internationally known and largest law firm in Mexico. Its 78 Mexican of counsel lawyers represent multinationals of all sizes and address unique regional needs with local knowledge. The firm’s clients include World Bank, Apple, IBM, Coca Cola, Repsol, and Alibaba, among many others. Managing Partner Javier Corzo says"On any given day, we are making an enormous impact to ensure that our clients can do business easily and safely in Mexico."
Chambers and Partners’ ranking of their Employment practice in Band 1 acknowledges their depth of experience, with clients separately noting its large team and solid levels of service. "Baker McKenzie is able to mobilise a big team. It has a good on-the-ground presence," say interviewees. They also recognize Baker McKenzie’s structuring expertise and its ability to advise in Spanish and English on complex issues.
Band 2 Creel, Garcia-Cuellar, Aiza y Enriquez, S.C. ("Creel") is one of the foremost Mexican law firms. It has over 400 professionals and 200 full-time lawyers, including more than 50 partners . Creel has extensive experience and a strong reputation in energy, antitrust, consumer protection, M&As, private equity, venture capital, international arbitration, and civil and common commercial litigation. "They are very strong lawyers and very good people," say clients. The firm provided foreign counsel to Caja Libertad, previously FondeDico, in its sale to Great West Lifeco Inc. by Cisco Systems, Inc., Accenture Global Services Limited, Oracle Corporation, GenCorp Inc., EAP World Services, El Economista, and The Wall Street Journal. It recently represented Orbis, operator and concessionaire of the highest traffic airport in Mexico and Latin America, in the $300 million refinancing of the civil works agreement with the government in connection with Narenda Modi’s visit to Mexico City.
Uría Menéndez "Abogados, S.C." ("Uría Menéndez") is a distinguished firm of lawyers with an international reach. The recipients of four EU-Latin America Rising Stars awards, they have worked on landmark transactions such as ArcelorMittal’s investment in General Motors Mexico. It also advised Iberdrola Renewables and Ceske Energetické Zavody Group in their acquisition of one of Mexico’s largest power-generating companies. "As a Spanish-speaking firm, Uría Menéndez is experienced in providing legal assistance to European companies investing in Mexico."
Notable law firms Sidley Austin LLP, Greenberg Traurig, Hogan Lovells, Von Wobeser y Sierra, and Haynes and Boone, LLP are other prominent legal advisors serving both domestic and cross border Mexican law firms.
Understanding Fees and Costs within Mexico Law Firms
Unlike in the United States, where most lawyers charge by the hour, many practitioners in Mexico, especially those working for the large law firms, generally request pre-payment of fees. These pre-payments can be made on the hourly basis or on a flat fee, depending on the type of work the legal office is going to be doing for you. Some even have a combination of both hourly or flat fee payments. If your legal needs are ongoing, and you are expected to need the services of the lawyer for several years (for instance, when dealing with an investment bank), monthly retainer arrangements are also available. Other arrangements are also possible, depending on the needs of the client and other circumstances.
The Mexican legal system does not allow for contingency arrangements for lawsuits. However, if you are charged with a crime in Mexico, the accused in a Mexican criminal proceeding can take advantage of a contingency arrangement with their defense counsel.
Challenges and Opportunities in the Legal System of Mexico
As a constantly evolving environment, the legal landscape in Mexico presents a multitude of challenges and opportunities for businesses and individuals alike. Recent years have seen landmark legal changes and ongoing reform efforts as the country continues to modernize and play an increasingly important role on the world stage.
One of the main challenges faced by foreign businesses in Mexico more recently has been a lack of legal certainty. With a new administration in place and an ongoing shift in political dynamics, many potential investors were uncertain on the direction the country may head. This year, however, the new government’s administration has published a renewed commitment to several key economic reforms that should provide clarity for businesses and investors alike. Areas focused on include labor, energy, and financial services. Other efforts, such as the establishment of a Foreign Trade Facilitation Committee, should add efficiencies to trade.
While optimism looms, there remains some heavy lifting ahead of the new administration. There has been little hiring to update government positions vacated by the previous administration’s abrupt exit. This will continue to present challenges, as the talent pool is limited both within Mexico and for adequately qualified foreigners willing to move to Mexico. Practical challenges complicate this further , as relocation, even within foreign-owned businesses, are sometimes met with resistance. Another challenge facing businesses are those issues which remain unresolved. With ever-increasing political polarization, businesses might find partisan legislation that may not favor their needs.
Recent developments, however, also present several interesting opportunities, including foreign investments in areas that have historically been closed to foreign investment. For years, the state-run oil industry has been "off-limits" to private industry. In 2013, the Mexican Government passed new legislation opening the country up to private investment and establishing the terms on which the state-run oil industry would be controlled. With additional reforms, the state-run oil industry was opened up to private investment, subject to certain collective bargaining agreements between employers.
In the technology sector, e-commerce is another area where the Mexican Government has taken steps to encourage investment and start-up companies. A new regulatory framework went into effect last year setting forth regulations for the e-commerce industry. These regulations are aimed at protecting the rights of consumers and service providers while creating an environment conducive to continued innovation and entrepreneurship.