A reliable solution for due diligence & risk mitigation in Mexico.

Verifying a company’s legal status is the first step in risk mitigation. This is done by consulting Mexico’s Public Registry of Commerce via its electronic platform, SIGER. While this system is publicly accessible to any Mexican citizen with an RFC, interpreting the corporate documents, identifying red flags, and understanding the implications requires legal expertise. Our firm obtains the official records to confirm the company’s legal incorporation, active status, shareholders, and authorized representatives, providing a clear analysis to prevent fraud and ensure you are dealing with a legitimate entity.

A standard credit report often only reflects a company’s payment history with banks. Our legal due diligence provides a far more comprehensive picture of risk. We investigate a company’s fundamental legal health: its corporate structure, litigation history in Mexican courts, hidden liabilities, and the status of its key assets. This approach uncovers legal and operational risks that a simple credit score would completely miss, giving you a true assessment of your potential partner’s stability.

Our free company verification is an introductory search designed to confirm a company’s basic legal existence. We consult the Public Registry of Commerce (SIGER) to verify if the company name you provide is legally registered and currently active. This initial step helps you filter out fraudulent or non-existent entities immediately. For a deeper analysis, our comprehensive packages investigate shareholders and legal representatives, and can also search for other corporations they are involved in, uncovering potential risks associated with complex corporate groups.

No, the investigation is completely confidential. Our entire process is designed to be discreet, and the subject of the investigation is never notified. We gather intelligence from public domain sources, such as court dockets, public registries of commerce, and property records. Accessing these government-run databases does not trigger any alerts or notifications to the investigated party. Your relationship with your client or debtor remains unaffected while you gain the strategic insights you need.

A company’s litigation history is a powerful predictor of its future behavior. Our nationwide search of Mexican court records reveals if a company is habitually involved in lawsuits, either as a plaintiff or defendant. This uncovers hidden liabilities and a pattern of non-compliance that financial statements alone cannot show. It helps you distinguish between a reliable partner and one that may create legal and financial problems for you down the line.

Our turnaround time is tailored to the depth of the investigation. A standard Corporate Risk Analysis, which includes legal verification and a nationwide lawsuit search, is typically completed within 5 business days. More Comprehensive Due Diligence that involves multi-state asset searches or on-site verifications may take 10-15 business days. We always provide a precise timeline upfront with our proposal so you can plan accordingly.

Our goal is to empower you to act with confidence. If our investigation uncovers risks, we provide a clear analysis of what those risks mean for your business. This allows you to make an informed, data-driven decision. You might choose to negotiate for stronger security (like a promissory note), adjust your credit terms, or prudently decline the transaction. The report gives you the leverage and foresight to protect your interests before committing capital.

Yes, securing transactions is a key part of our service. Due diligence identifies the risk; our legal support helps you mitigate it. Based on our findings, we structure robust credit agreements that are fully enforceable under Mexican law. This includes implementing simple but powerful legal instruments like a pagaré (promissory note), which offers a privileged and faster path in court, or more complex contracts like a trust (fideicomiso) to hold collateral. We help you move from simply assessing risk to actively securing your transaction.

Yes. Investigating a company’s assets is a critical part of assessing its financial stability and your ability to collect on a debt. Our services include searching public registries to identify real estate owned by a company or its principals. We then verify the title and determine if the properties are unencumbered or already have liens or mortgages against them. This information is vital for securing your credit or investment and understanding what assets are available for potential recovery actions.

Yes. Our services extend across the entire Mexican Republic. Key investigations, such as verifying a company’s legal status in the Public Registry of Commerce (SIGER) and searching federal court records for lawsuits, are conducted on a nationwide basis. For asset investigations like real estate, we have the capacity and local networks to conduct searches in any of Mexico’s 32 states, providing comprehensive coverage no matter where your potential partner is located.

Credit management is the strategic process of maximizing sales while minimizing the financial risks of selling on credit. In Mexico, it’s not just an accounting function; it’s a vital line of defense. It involves three key stages: 1) conducting proper due diligence to decide if a customer qualifies for credit, 2) structuring legally sound sales documents to secure the transaction, and 3) implementing an effective strategy to collect payment. A strong credit management process is essential for protecting your cash flow and ensuring profitability.

HMH Legal strengthens your credit management process at every stage.

• Before the Sale: Our due diligence and investigation services provide a clear picture of your customer’s stability, capacity, and character. We go beyond simple credit scores by verifying corporate identity, searching for lawsuit histories, and investigating assets to uncover hidden risks.

• During the Sale: We structure robust sales contracts and implement legal instruments like the pagaré (promissory note) or other guarantees or security devices to ensure your credit transactions are secure and fully enforceable in Mexican courts.

• After the Sale: If an account becomes past due, we act as your recovery arm, initiating professional amicable collection efforts or, when necessary, decisive legal action to recover your outstanding debt.

No, direct access is not possible for foreign entities. Mexico’s credit reporting system operates under a strict, legally mandated consent model. Only the subject of the report (the individual or company) can request their own Reporte de Crédito Especial. Therefore, the standard procedure for a foreign creditor is to request that the Mexican entity pulls its own report and provides it to you as part of your due diligence process. This requires their full cooperation.

While both are official Sociedades de Información Crediticia (SICs) regulated by Mexican financial authorities, they have different market positions. Buró de Crédito (owned by TransUnion) is the older, larger incumbent with the most extensive historical data from traditional lenders like major banks and department stores. Círculo de Crédito (owned by Experian) is a newer player that has expanded its data sources to include non-traditional lenders like FinTechs, microfinance institutions, and certain utility companies, often focusing on promoting financial inclusion. For due diligence, a report from Buró de Crédito is typically seen as the baseline for established credit history.

The report provides a detailed summary of an entity’s credit history, including:

• General Information: Name, addresses, and tax ID (RFC).

• Credit Account Summary: A list of all credit lines (mortgages, car loans, credit cards, etc.), including the lending institution, credit limit, and current balance.

• Monthly Payment Behavior: A historical log showing if payments were made on time, with delays (1-89 days late), or major defaults (90+ days late).

• Inquiry Log: A record of which lenders have pulled the entity’s report in the last 24 months.

Crucially, it lacks information on assets, litigation history, corporate structure (shareholders/directors), regulatory standing, or reputational issues. It is a financial tool, not a comprehensive legal or operational risk assessment.

An unwillingness to provide a credit report is a significant red flag in itself. Your next step should be to engage a third-party firm for an independent due diligence investigation. While this won’t grant you access to the official SIC report, it can uncover other critical financial and legal indicators. Such an investigation typically includes nationwide lawsuit searches, verification of corporate records with the Public Registry of Commerce (to confirm legal representatives and structure), and checks for liens or judgments against known assets, providing an alternative and often more comprehensive view of the entity’s overall risk profile.

A client asked us to investigate a potential buyer who was represented by an individual claiming to be the owner. Our initial corporate search revealed that this individual was neither a shareholder nor a legal representative and had no authority to act for the company. Furthermore, while the buyer’s new company had no lawsuit history, an investigation into its actual shareholders uncovered a long track record of litigation and prior failed businesses. This simple investigation exposed the high risk of fraud and allowed our client to decline the transaction, saving them from a significant potential loss.

Agricultural lending in Mexico requires “Forensic Due Diligence”—a level of investigation far beyond standard credit reports. The public records in Mexico are often incomplete, outdated, or simply false. Here’s what you must verify before you wire funds:

1. Corporate & Authority Verification

• Is the company real? (Physical inspection of premises)
• Does the signer have specific powers to sign negotiable instruments (Títulos de Crédito)? A “CEO” title alone means nothing in Mexico.
• Are there other companies at the same address? (Shell company red flag)

2. Land Classification (The 51% Problem)

• Is this private property (governed by Civil Law) or ejido land (governed by Agrarian Law)?
• If ejido: Is the borrower a legitimate rights holder, or did they fake residency (simulated avecindamiento)?
• If private: Was it recently converted from ejido? Check for “Zombie Liens” that can void the title decades later.

3. Lien & Litigation Search

• RUG Search: Are there prior security interests on the crops or equipment?
• RPP Search: Are there mortgages on the land?
• RAN Search: Are there agrarian claims or assembly disputes?
• Court Records: Is the borrower already facing lawsuits?

4. Water Rights Audit

• Is the CONAGUA concession current?
• Cross-check with CFE electricity bills to prove water usage (the “Electric Cross-Check”)
• Under 2025 reforms, water doesn’t transfer with land—plan for reassignment

5. Supply Chain Audit

• If financing a packer/aggregator: Do they have enforceable contracts with their growers?
• Can growers “side-sell” the harvest to competitors?

Case Study: In May 2025, we uncovered a fraud where a borrower had already transferred 88% of his shares to associates before signing the loan. The investor assumed his 50-page contract was sufficient. Our “Ghost Audit” would have caught this in days.

For the complete forensic due diligence checklist and case studies, read: Agricultural Financing in Mexico: Guide for U.S. Lenders.

According to the Atlas of Social Property in Mexico 2024, 51% of Mexico’s national territory is social property—ejidos and communities governed by Agrarian Law, not Civil Law. This is not a marginal issue; it is the geographical reality of Mexican agribusiness.

Why It Matters for Lenders:

The Production Paradox: The most valuable agricultural regions have the highest ejido concentrations:

• Michoacán (avocados, berries): 48.7% social property
• Jalisco (berries, greenhouses): 40.2% social property
• Sinaloa (tomatoes, corn): 66.4% social property

Your First Due Diligence Question: Does the borrower present an Escritura Pública (Public Deed) registered in the RPP? Or a Certificado Parcelario registered in the RAN? These are mutually exclusive. If you search the wrong registry, you’ll find nothing—and assume (incorrectly) that the title is clean.

The Digital Mirage Warning: The RAN has an online database, but it’s often months behind the physical files. Secure diligence requires a physical review of the Carpeta Básica at the state delegation.

For the complete land classification framework and registry search protocols, see Section 2.2 of: Agricultural Financing in Mexico: Guide for U.S. Lenders.