What is and how to lift a premises closure?

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The closing of a business in Mexico is an act carried out by the competent authorities. It consists of ordering the suspension of the activities of the commercial establishment, either partially, temporarily or permanently. Its causes are many and are found in Article 7 of the Regulations of Commerce and Services of each entity.

If you have had your business closed and want to know how to lift the sanction, read on because today we will tell you everything you need to know.

What is the closing of a mercantile establishment?

In Mexican law, the closing of a mercantile establishment is an administrative act imposed by the authorities on businesses when they do not comply with the provisions of the Law. The authorities that may close a mercantile establishment are:

Civil Protection
The Federal Commission for the Protection against Sanitary Risks (COFEPRIS).
The Tax Administration Service (Servicio de Administración Tributaria, SAT)
Municipalities
The Health Protection Agency (AGEPSA)
Mexico City’s Environmental and Territorial Planning Attorney’s Office (PAOT)
The Institute of Administrative Verification (INVEA)

Why do they close a business? Main reasons

There are many reasons why the authorities proceed to a partial, total, temporary or definitive closure, which are defined according to the severity of the infraction and the establishment. In general, these are:

Not having an operating license. If your business operates without a license, or it has lost its validity, the authority could close your business.
Not having an opening declaration.
Exceeding the surface area of the establishment. Whether with its construction or with the furniture, it obstructs the street and you do not have the permit to do so.
Not complying with civil protection guidelines. To operate your business you must comply with the requirements of the civil protection program, otherwise you could be fined and/or closed.
Selling tobacco products and alcoholic beverages to minors.
Carrying out an activity other than that authorized in the operating license, or in the opening declaration. Likewise, if changes are detected in the operating conditions of the establishment or premises.
Not respecting the operating hours, or not complying with activity restrictions (such as in the case of the “dry law”).
Not having parking spaces corresponding to the business, this in the businesses that apply such provision.
Not having their corresponding health authorization.
Carrying out activities that violate health provisions and represent a danger to health.
Establishments that endanger the health of people due to repeated violations of the precepts and provisions of the Administrative Code of their entity.
In cases where, after the reopening of the establishment, activities continue to be carried out that represent a danger to health, whether of employees, customers or the general population.
If potentially dangerous activities are carried out, or which by their nature put the health of the population at risk.
In the event of repeating the sanctioned activity for the third time, the establishment is permanently closed.

What must the authority present to carry out an inspection?

In the event that an inspector visits your business, he/she must have a specific inspection order for your premises, otherwise he/she may refuse the inspection. This order must have the name of the premises, address, date of issue with day and time of business for the inspection, name of the business owner, reason for the visit, name of the inspector and this person must be identified with an official credential.

What documents must the inspector submit when proceeding with the closure of an establishment?

In the event that the inspection is carried out and closure is proposed, the authority must prepare a report detailing the circumstances, causes and defense options, which may be:

A document presenting the documentation that shows that the business complies with the requirements to operate, and requesting that they be given the opportunity to complete what they have not complied with or remedy the damages.
Promote an amparo trial or a nullity trial to demand that the closure and fine be invalidated, and that the business can continue operating normally.

It is important to mention that the suspension of the business will be fully valid while the trial is in progress.

What to do when your business is closed?

If your business was closed, you are probably wondering how to remove a closure seal and what you can do to resume daily activities.

Well, the first thing is to verify that the corresponding authority that carried out the verification visit has brought an official document clearly indicating which are the sanctioned activities.

Once you have detected the reason why you received the sanction, the next step is to make sure you comply with the requirements of the authorities for a subsequent verification visit. Once this is done, file a document with the authorities that imposed the closure and bring all the documentation that proves that you are complying with the civil protection, inspection or health safety rules.

If you must take longer, for example, if you are operating without a license required for your business functions, you should request in your letter the opportunity to remedy and complete the requirements you have failed to meet.

Have more information

Now, if you realize that you have complied with all the requirements of the authorities and that your business was still closed, or that the closure is not lifted after having presented the corresponding evidence, we recommend that you hire a lawyer specializing in commercial matters.

Your lawyer will help you file an amparo lawsuit or a nullity lawsuit, where the closure issued by the corresponding authorities is invalidated, so that you can return to normal operations within a period of no more than 15 business days counted from the day after the closure was executed.

However, you should know that while your lawsuit is in process, the suspension will remain valid and you will not be able to break the seals, due to the risk of a fine. So we recommend that you act as soon as possible to avoid wasting time or money.

How long does a business closure last?

The duration of a business closure in Mexico can vary depending on several factors, such as the nature of the violation, applicable local laws, and specific provisions of the authority issuing the closure. A temporary closure could last from 15 business days to several weeks, depending on the severity of the irregularities.

How much is the fine for business closure?

Depending on the activity sanctioned, the equivalent of the fine is between 20 thousand to 50 thousand days of minimum wage at the time the sanction is imposed. In Mexico City, fines vary depending on the Administrative Code of each city.

What happens if a closed establishment reopens?

In case you break or remove the closing seal, the fines could be even higher, and you could even be deprived of your freedom since it is a crime found in the Penal Code.

Have more information

At LEX & CO, insurance lawyers and tax law firm we want to help you. If you were sanctioned with the closure of your business, contact us at 5568401076, email firma.lex.co@gmail.com, through our contact form or WhatsApp.

More than 30 years of experience and a team of lawyers with expertise in extrajudicial collection, foreclosure, claim action and all branches of law endorse us as the best option to help you lift a business closure. Contact us and learn about the art of winning!

Lic. Carlos Figueroa Rodríguez

Carlos Figueroa Rodríguez, attorney at law at Lex & Co. He has more than 10 years of experience in specialized cases involving insurance claims and medical malpractice. He is a graduate of the Universidad Anáhuac and has a Master’s Degree in Constitutional Law and Amparo from the National Bar Association. He also has a Doctorate in Juridical Sciences from the UCI Mexico. Professional license 6577215.