Business activity in México is governed primarily by the Ley General de Sociedades Mercantiles and the Código de Comercio. Foreigners may own Mexican companies, commonly structured as S.A. de C.V. or S. de R.L. de C.V., with certain restricted activities (e.g., energy, broadcasting, land near borders and coasts). Companies must be incorporated before a Mexican notary, registered with the Public Registry of Commerce, and comply with accounting and corporate governance obligations. Commercial contracts are generally flexible under freedom of contract, but must observe mandatory provisions regarding good faith, liability, and public policy. Failure to comply can lead to nullity, fines, or shareholder liability in extreme cases.