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1.2. Forms of Investing in MexicoForeigners who wish to engage in economic and commercial activities in Mexico can doso through the incorporation of a Mexican company or by investing as partners or shareholdersin existing Mexican companies.Foreign entities can also become established in Mexico through branches or representativeoffices.40C H A P T E R I I1.2.1. Investment in Mexican companiesAny foreign individual or company can become a partner or shareholder of a Mexicancompany without needing any permission, provided such company does not engage inactivities in which foreign investment is restricted or excluded.In the case of newly created Mexican companies, it is sufficient to include the CalvoClause in their bylaws. When foreigners wish to invest in companies already incorporatedwhose bylaws contain a clause excluding foreigners, such clause must be substitutedfor by a Calvo Clause and the SRE notified of such a change.1.2.2. Direct investment by foreign entitiesEntities legally incorporated abroad can become established in Mexico through differentforms, depending on the activities in which they will engage in the country:a) Commercial operations. Foreign entities intending to engage routinely in commercialactivities in Mexico can become established in national territory as a branch oran income-earning representative office. In both cases they must obtain authorizationfrom the Secretary of Economy (Secretaría de Economía, SE) and register withthe Public Registry of Commerce (Registro Público del Comercio).These foreign entities legally established in the country may engage in all typesof business activity and commercial operations, except with regard to those activitiesin which foreign investment is restricted or excluded under the LIE;b) Intermediary operations. Foreign entities may also establish a non–income earningrepresentative office when their only purpose is to have an entity in Mexico thatprovides informational services and promotes the activities, products, or servicesthat the foreign company provides abroad.For foreign entities to establish a non–income earning representative office, anauthorization from the SE is also required, but it is not necessary to register it inthe Public Registry of Commerce.A non–income earning representative office does not engage in commercialoperations and its only purpose is to put the foreign company in contact withclients in Mexico. Any contracts resulting from such contact must be executeddirectly by the foreign company with the Mexican clients. Furthermore, it is the