If you want to minimize your risks, you have the option of operating under a shelter. This means that the foreign company has no legal presence in Mexico, and a Mexican-owned entity sets up the operations and manages the trade compliance for said company. A shelter company actsis like a business partner, handling all set ups and operations so as to easeare handled making the processes and minimize risks easier.
Lower cost of Skilled Labor
The cost of labor in Mexico is significantly lower than the US. By moving operations to Mexico you can access a skilled and well educated workforce at a lower cost. In addition, Mexico features a strong focus on industrial education, including training centers and technical schools for various industrial trades, as well as excellent university programs for engineering.
Reduction of Operational Costs
Companies looking to move or establish their businesses in Mexico can enjoy reduced operational costs in a number of essential areas, including industrial space, office space, materials, supplies, food, lodging, and more.
Mexico’s close proximity to the United States offers numerous great benefits. Plants can be placed only hours away from the border, allowing companies greater flexibility with their manufacturing operations. Additionally, both countries operate with similar business practices and standards, allowing you to keep the same business plan with little to no modifications.
Mexico also boasts an extensive transportation network. With over 16,000 miles of railroad coverage, 59 international airports, 16 deep water ports and 176,000 miles of highways, products can be transported easily and cheaply.
Many foreign businesses find that Mexico is a great host for their operations and investments, as the country features a number of simple and well-established procedures that make the moving process a smooth and speedy process.
Moreover, Mexico gives you complete control of your operations, with the only requirement being that companies have a representative in the country.
Expanding your market to Mexico and other countries
As Mexico is the largest Spanish speaking country in the world, establishing your operations in the country also offers great opportunities for distributing your products there as well.
Mexico also gives you access to other countries due to its duty-free trade agreements. These agreements include over 45 countries in which products can be imported and exported duty-free.
Patent and trade secrets protection
The Reciprocal Promotion and Protection of Investments Act (RIPPA) provides protection to foreign companies against theft and false branding involving patents and trade secrets.
Mexico’s maquiladora program offers tax benefits to foreign companies looking to expand their business and bring their operations to Mexico. The deferment of taxes applies when they import raw goods, materials and equipment. For finished goods, the tariffs are lower.
Operating under a Shelter Company