According to NAFTA Works, a website published by Mexico’s Ministry of the Economy’s NAFTA office, Mexico will reduce the time to “open a new business” from 30 days to 2 hours under its new Fast Opening Business System (FOBS).  A June 22, 2009 NAFTA Works press release claims that the FOBS program will, in connection with such time reduction, reduce the number of new business regulatory requirements from 16 to 3.

Other than the limited information provided above, the press release did not discuss the specific ways in which FOBS would achieve its ambitious objectives; accordingly, I remain skeptical, but hopeful, that FOBS will function as advertised.

One of the most significant problems in finalizing the formation of a new business entity in Mexico is the lengthy time period required for the Public Registry of Commerce in the jurisdiction of formation to issue the registered copy of the formation deed, which can take up to 2 months or longer.  Although a certification from a Mexican Notary Public that the deed is in the process of registration in the Public Registry is generally sufficient evidence for third parties and other governmental agencies that the entity has been formed, upgrade of the information management systems at the Public Registries that would expedite the formation deed registration process is a much-needed reform.