During the past years manufacturing has changed completely, with the pandemic the companies started to rethink their manufacturing strategies. Consequently, they started to search for a reduction of costs, time, diversification and stability of supply chains and risk minimization.

The abovementioned led to nearshore manufacturing in Mexico as a more attractive approach.

What is Nearshore manufacturing?

Nearshoring means transferring your operations across national borders to business operations in another country that is in proximity, with a relatively small difference in time zone and reduced cultural differences. All in order to be more cost-effective and save more time.

Nearshore manufacturing in Mexico started to increase around 2015, when labor wages in China started to increase, this strategy continued in the following years and became more attractive due to the COVID-19 pandemic.

Due to supply chain shortages, delays, higher transportation costs, companies started to look for establishing operations closer to home, to minimize costs and risks.

Additionally, considering the increase of maquiladoras, a growing number of highly-skilled workers, 13 FTAs with over 40 different countries, Mexico has become an excellent option for nearshore manufacturing.

Altogether, Mexico has positioned itself as one of the main destinations for foreign investment when it comes to manufacturing. This is due to multiple factors such as low production costs, its strategic geographic location, economically active population, and government incentives such as the maquiladora program (IMMEX).

Benefits of Nearshoring

Shorter Supply Chain and Reduced Transportation Costs.

Basically, one of the main benefits of nearshoring is a reduction of shipment time for the finished goods to reach its destination. A faster and flexible shipment also comes along a reduction in freight costs.

Furthermore, through nearshoring, the company can reach supply chain stability, while avoiding big delays and higher risks in the arrival of materials that come from a long distance.

Also, Mexico counts with important industrial clusters and well established regional supply chains from the following important industries in Mexico: automotive, aerospace, medical devices, electronics, among others.

Improved Communication and Travel

When facilities operate in similar time zones, communication is easier. It also reduces response time, compared to a facility with a 12-hour difference, which avoids strains and delays.

Furthermore, by nearshoring, traveling becomes more simple, avoiding long distance flights, and being able to arrive at the facility faster and in a short notice.

Low cost of skilled labor

Additionally, the high availability of low costs qualified labor, continues to be one of the main advantages that manufacturers see when operating in Mexico. Labor costs a for manufacturing workers are significantly lower in Mexico than in the United States.

Access to the global market

Furthermore, Mexico is considered one of the countries with the most free trade agreements (FTAs) in the world, establishing itself as a trading partner with more than 50 countries, with agreements that reach Europe, South America, Asia and Africa. Therefore, due to the benefits this FTAs offer, companies abroad can have access to significant cost savings while manufacturing in Mexico.

 Government Programs

There are several government programs that foreign companies can benefit from, which include tax exemptions such as the IMMEX Program.

The IMMEX Program together with the VAT and IEPS Certification allows Mexican manufacturers who export their products within a set period, to “temporarily” import materials and production assets without having to pay value added tax (VAT).

Is your company planning to establish manufacturing operations in Mexico?

If you are interested in nearshoring or have any questions regarding manufacturing in Mexico, contact us.

Mexcentrix is a shelter company that can help you start operations in as few as 30 business days.  Through our shelter services your company can start operation in Mexico reducing legal risks and liability, with full compliance and maximizing cost savings.

 If you company is considering starting operations in Mexico and benefit from the competitive labor costs, it is important to learn the basics of the Mexican Federal Labor Law, some of the key regulations and workers’ rights.

 What is the Mexican Labor Law?

The “Mexican Federal Labor Law (Ley Federal del Trabajo)” states the laws that concerns to the workers in Mexico.

This Law governs labor relations between employers and workers, establishes the existence of a contract and the employment relationship between the employer and employee.

For the worker it represents a document that grants labor rights and gives clarity in regard to, among others:

• Specific obligations in the employment relationship between the employer and employee.
• Working hours.
• Place and time where the workday start.
• Payment days.
• Rules to prevent working risks.
• Permits and licenses.
• Disciplinary measures and their application.
• The benefits you receive for your work: salary, breaks, vacations, social security, law and additional benefits.

Working contract

Employment contracts are required in Mexico, among the most common are the following:

• Indefinite period contracts: Of the most used in Mexico. It is one that establishes a working relationship in which there is no term of duration. To be considered an employment relationship for an indefinite period of time, it must exceed 180 days.
• Definite period contracts: set for specific periods of time. In this, the duration of the contract is expressly written in the document.
• Seasonal contracts: This type of contract serves those labor relations that are developed for an indefinite period, but to perform discontinuous tasks.

Working hours and Overtime

According to Article 61, the maximum length of a labor day is eight hours during the day shift (48 hours per week), seven hours in the night shift (42 hours per week) and seven and a half hours when mixed (45 hours per week).

• Day shift: This 8-hour shift can take place between 6:00 a.m. to 8:00 p.m.
• Night shift: This 7-hour shift can take place between 8:00 p.m. to 6:00 a.m.
• Mixed shift: This 7.5 -hour shift is a mix between the shifts abovementioned and cannot exceed 3.5 hours worked at night.

Overtime pay rate applies one the employee exceeds the above-mentioned working hours per shift. The first 9 hours of overtime are paid at twice the normal base salary rate. For any overtime going beyond 9 hours per week, employees must be paid at triple their normal base salary rate.

Minimum Wage 

Pursuant to Article 85 of the Labor Law, no worker in Mexico may be paid less than this legal minimum wage. Currently, the minimum daily wage in Mexico is $207.44 pesos in most areas of Mexico, except in the Northern Border Zone where the minimum wage corresponds to $312.41 pesos per working day.

Although the aforementioned are the established minimum wages, a common and recommended practice is to pay above the minimum wage in order to attract qualified workers and reduce turnover.

Social security

The first step in order to hire employees is to register your company with the social security institute as an employer known as IMSS (Instituto Mexicano del Seguro Social), which covers, among others: work accidents, retirement and survivor pensions, disability, sickness, and other medical benefits, maternity care, child care and other social services.

Vacation and holidays

All employees are entitled to twelve days of vacation in their first year. They receive two additional days each year until completing 20 days of vacation. Followed by two additional days of vacation every five years of service.

The paid national holidays in Mexico are the following:

a) January 1 New Year’s Day.
b) February 5 Constitution Day.
c) March 21 Birthday of Benito Juárez.
d) May 1 Labor Day.
e) September 16 Independence Day.
f) November 20 Revolution Day.
g) December 1st Presidential Inauguration Day (occurs every six years).
h) December 25, Christmas Day.
i) Others determined by federal and state electoral laws to allow citizens to vote (generally on Sundays).

Are you looking to start operations in Mexico? 

If your company is considering to nearshore or offshore to Mexico, in order to benefit from the competitive labor costs in Mexico, it is important to count with all the relevant information regarding the Mexican labor Laws for your decision-making process.

One of the main advantages of working with a shelter company is that your company will get all the expertise, advice and guidance from professionals who understand fully the labor law in Mexico and its implications.

Are you interested in learning more about how to operate in Mexico and how Mexcentrix can support you with a successful start and running of operations? Contact us for a free consultation today

There are different models in which a foreign company can operate in Mexico, including the shelter program, and the following ones:  

• Standalone: The foreign company creates a new entity in Mexico, with total control of all operations and total independence from third parties.  
• Joint Venture: There is an equal partnership between a Mexican manufacturer and a foreign company. Within this model, the foreign company faces more risks and liabilities than a shelter business model.  

• Shelter: A company is hired by another to manage all administrative and legal tasks,  while the client maintains full control and can focus on its core business.  
• Contract manufacturing: A company is hired by another to produce goods or provide a service; the company does not have full control and oversight of production and quality assurance. 

The Shelter Program

The shelter model started in Mexico in the 1980s as a response to an increase in foreign direct investment.  Shelter companies help foreign companies in reducing their risk, liabilities and financial exposure associated with entering into Mexico directly.  

Overall, this model still offers exposure, costs, and risks reduction. As the shelter company acts as the legal entity of record in Mexico for all compliance-related matters.

Also, the foreign company is exempt from permanent establishment in Mexico and can get immediate access to the IMMEX Program, among others.

The shelter company will take care of all the back-office operations and all administrative tasks while letting the foreign companies focus on its core business.  By these means, the foreign company can focus on production, quality control engineering, inventory, sales as well as the many other production-related aspects of the business.  

How does the shelter program work?  

A shelter company can help since the startup and pre-operational phase, with business case, feasibility studies, cost analysis, site selection among others.  

Secondly, once the company has found the best space solution and has obtained its permits and licenses, we will assist with a successful launch and run of operation of its plant in Mexico.   

After the company has consolidated its operations, they can evaluate if they would like to stay under the full shelter or to absorb some administrative tasks.

Which includes absorbing one department such as foreign trade, tax, or human resources among others, while letting the shelter company keep doing the rest.  

How long should a foreign company stay under the shelter scheme?  

There is no specific duration of the shelter model and it may vary according to the needs of the foreign company. The main idea is for our clients to stay under the shelter program as long as it makes sense according to its business case and strategy. Therefore, companies can decide to leave the shelter model at any time or to remain indefinitely.  

Moreover, the shelter model has evolved along with the industry and government regulatory reforms since the 1980s.

It is still one of the most popular business models to start operations in Mexico, due to the different advantages the shelter model has to offer: 

• Lower investment and operating costs 
• Faster start- up 
• Economies of scale 
• Ensure 100% compliance with mexican regulations.  

• Reduced Mexican legal exposure 

Looking to start operations in Mexico ? Contact us for more information on the shelter program and the benefits Mexcentrix has to offer to your company. 

Historically, Foreign Direct Investment (FDI) has been one of the most important factors for Mexico. Since January 1, 1994, with the entry into force of the North American Free Trade Agreement (NAFTA), and further on with the entry into force of the Agreement between Mexico, the United States and Canada, the T-MEC or USMCA, it has been possible to observe not only a greater integration in the North American region, but also the transformation of the export sector in Mexico, the creation of jobs and the attraction of investments in the manufacturing sector.  

Moreover, during the 24 years of NAFTA, although Mexico was not benefited in all sectors included in the agreement, it is considered that in terms of foreign direct investment attraction especially in some economic sectors, Mexico benefited the most.

This success is attributed to multiple aspects, from Mexico’s strategic geographic position, which had facilitated land, port, air and rail connectivity and logistics with North, Central and South America, to low labor costs, high availability of qualified labor, low industrial costs,  developed infrastructure (according to ministry of communications and transport Mexico counts with more than 400 thousand kilometers of highways, 27 thousand kilometers of railroads, 77 airports, 117 port) ,availability of suppliers, among others. 

While it is true that these are some of the reasons why Mexico became an attractive destination for foreign direct investment, Mexico is still a strategic place for trade and investment, for the additional following reasons: 

1. Mexico is among the countries with the largest number of Free Trade Agreements in the world. 

     Mexico currently has a network of 14 Free Trade Agreements with 50 countries (FTAs), 30 Agreements for the Promotion and Reciprocal Protection of Investments (APPRIs) with 31 countries or administrative regions and 9 agreements of limited scope (Economic Complementation Agreements and Partial Scope Agreements) within the framework of the Latin American Integration Association (ALADI). 

Furthermore, the free trade agreements give Mexico access to over 60% of the world´s domestic product. Furthermore, this economic opening, has been crucial to diversify Mexico’s trade relations with the world and thus boost the country’s economic growth. 

     2. Mexico is one of the largest countries and economies in the world.

Based on data provided by the World Bank in    2021; Mexico is among the fifteen largest economies in the world and is the second largest economy in Latin America. In view of this data, the Mexican market represents a great potential market, in addition to its rich favorable geography and abundant natural resources. 

     3. Mexico offers programs and decrees that encourage foreign investment in the country. 

At the Federal level,  Mexico offers programs and decrees to encourage foreign investment in the country, among which the following stand out: 

• IMMEX Program

Is an instrument which allows the temporary import of goods that are used in an industrial process or service , to produce, transform or repair foreign goods imported temporarily for subsequent export , without paying the general import tax , VAT and countervailing duties.  

• PROSEC 

The Sectorial Promotion Programs (PROSEC) are an instrument aimed at legal entities that produce certain merchandise, through which they are allowed to import various goods with a preferential ad-valorem tariff (General Import Tax) to be used in the elaboration of specific products, regardless of whether the goods to be produced are destined for export or for the national market. 

• DRAWBACK Program 

The objective of the Drawback Program is to return to exporters the value of the general import tax paid for imported goods or supplies that are incorporated into export merchandise, imported merchandise for repair or alteration, or merchandise that is returned in the same state. 

Therefore, global companies can take advantage of the incentive programs offered by the Mexican government. While at the same time share the best practices of experience in other countries, as well as the values they advocate, including competition, ethics and the promotion of diversity, which is why Mexico has been committed for years to facilitate and provide the right conditions for multinational companies to benefit from Mexico´s advantages.  

If your company has future plans to invest in Mexico, Contact us for a free consultation. 

Mexico is a country that highly depends on foreign trade, it has signed 13 free trade agreements (FTA) with 50 countries, therefore, mexican products have preferential access to the main markets worldwide that represents more than 50% of world GDP. The above mentioned makes Mexico an attractive country for manufacturing for a subsequent export, mainly in the automotive and electronic industries, Mexico plays a fundamental role in exports.

According to data from banco de Mexico, in 2020 exports of goods and services form Mexico totaled more than 400 billion dollars, equivalent to 47% of the national GDP, with Mexican production fully integrated into global value chain. Mexico ranked  as the 11^th exporter and 13^th importer worldwide in 2020, according to the World Trade Statistical Review 2020 prepared by the World Trade Organization (WTO).

Mexico Exports

According to INEGI data in September 2021, exports totaled USD $41,680 million. In general, the. Main exported products are the following:

• Vehicles

The export of cars in Mexico has been increasing each year and represents 11% of the country´s total exports, Mexico is the 5^thlargest exporter and manufacturer of specialized and heavy vehicles and of automotive parts (making up 7% of total exports). United States and Canada receive the largest number of exported light vehicles from Mexico.

• Oil

Around 48% of the national oil production is exported, its main destination is United States, but it also supplies to Canada, China, Japan, New Zealand, Australia, and Germany.

• Minerals

Mexico occupies currently the 9th place in regards to exports of copper worldwide. Due to Mexico’s natural resources, different countries such as Canada, Germany, the United States, Japan, and Spain have been investing in this sector.

Source: (Trading Economics, 2020)

Mexico Imports

In September 2021, imports from Mexico totaled USD $44,078.46 million. In general, the main exported products are the following:

• Autoparts

The most imported goods in 2020 were autoparts with a value of USD$ 22 billion in 2020, and mainly imported from United States, China, Japan and Germany.

• Electrical and electronic Components

Within the second most imported category are electronic integrated circuits with a value of 18.8 billion, which main countries of origin are Malaysia, China, Taiwan and South Korea. Other relevant goods imported within this sector are:  telephones, computers, data processing machines, machinery parts, electrical wires and cables among others. 

• Petrleum Oil

The third most imported category in 2020 was composed by oils of petroleum or bituminous materials which more than 90% is imported from United States.

Mexico receives refined oil form the United States, as it cannot meet its demand and turns to foreign refined oil, since the Mexican economy is highly dependent on oil to run its industries and assembly plants.

Source: (Trading Economics, 2020)

The manufacturing industry in Mexico has widely promoted exports and both have helped drive the growth of the economy in Mexico. The forecast for the next few years is that exports will continue to grow.

Are you thinking of investing in Mexico?

If your company is interested in investing in Mexico and importing or exporting from our country, consult our foreign trade services, we facilitate your operations and guarantee 100% compliance with the obligations, and we use our knowledge of Mexico´s trade agreements in an effective strategy for your business, significantly reducing costs and streamlining logistics.

Sources:

• Data Mexico. (2021). Mexico. Retrieved from https://datamexico.org/en/profile/geo/mexico
• Trading Economics. (2020). Mexico Exports by Category. Retrieved from https://tradingeconomics.com/mexico/exports-by-category
• Trading Economics. (2020). Mexico Imports by Category. Retrieved from https://tradingeconomics.com/mexico/imports-by-category
• WTO. (2020). Mexico. Retrieved from Trade Profiles: https://www.wto.org/english/res_e/statis_e/daily_update_e/trade_profiles/MX_s.pdf

The Survey on the Economic Impact Generated by COVID-19 on Enterprises (ECOVID-IE) in its third edition 2021 estimates that, out of 1,873,564 businesses in Mexico, 85.5% indicated to be impacted economically due to the pandemic. (INEGI, 2020), in addition to the impact of a decrease in foreign direct investment (FDI) as companies considering investing in Mexico, decided to postpone it.   

As before mentioned,  the pandemic impacted greatly in Foreign Direct Investment (FDI), in which according to UNCTAD World Investment Report 2021, in 2020 flows of foreign direct investment worldwide fell by one third. Specifically Mexico, was more resilient compared with the rest of Latin America with a drop of 15% (UNCTAD, 2021). In Mexico FDI in 2020 concentrated in manufacturing including automotive industry, computer and electronic parts, machinery and equipment and medical equipment and supplies.  

Nevertheless, FDI has started to recover worldwide, and companies are setting eyes in Mexico again as a nearshoring strategy, to take advantage of shorter supply chain, lower labor costs, Mexico’s free trade agreements, strong protections in intellectual property rights,  among others. 

Are you thinking to invest in Mexico?   

Below are some aspects you should consider before investing in Mexico:  

1. Define Business Model Scheme 

One of the most important steps for investing in Mexico is to define the business model scheme. Among the most common schemes are:  

• Standalone: The foreign company creates a new entity in Mexico, with total control of all operations 
• Joint Venture: There is an equal partnership between a Mexican manufacturer and a foreign company. 
• Shelter: A company is hired by another to manage all administrative and legal tasks, while the other company can focus on its core business. 
• Contract manufacturing: A company is hired by another to produce goods or provide a service. 

Furthermore, if company decides to merge with or acquire a growing local company, it important to carry out a due diligence. In order to verify the information about the company to be acquired, obtain useful information to value the purchase, identify potential risks in the deal or investment opportunity, among others.  

2. Feasibility Study 

A feasibility study before investing in a different country is important to assess the viability of the investment, it provides you with information to make data- driven decisions and can be used to create a strategic business plan.  

There are different types of feasibility study, for a example a common study once a company has decided to invest in a country is to decide in which state or area to establish.   Within this study the experts evaluate and compare industrial costs, salaries, availability of skilled labor, public safety levels, logistic costs, connectivity, infrastructure, identification of potential suppliers, among others.  

Furthermore, there are important feasibility studies in regard to supply chain and logistics, or in foreign trade matters such as the importance of compliance with the rules of origin of a foreign trade treaty, when the investment project is focused on exports and looking for cost reduction.  

3. Get expert advice from Shared Business Services in Mexico 

Once you have decided to invest in a foreign country it is important to obtain local advice and guidance as laws and regulations vary per country and so the way business operate.  

A shared services company or shelter company combines a legal framework and comprehensive services to eliminate regulatory and tax burdens for foreign manufacturing investors. The best way to avoid risks, or expensive mistakes, paying expensive fees from different legal and administrative services firms, is to mitigate them through a shelter company.    

In Mexcentrix Shelter we offer a series of tailored professional and management services including: 

• Start-Up & Shelter Program. 
• Human Resources 
• Tax and Accounting 

• Foreign Trade and IMMEX 
• Consulting and Auditing 

If your company has future plans to invest in Mexico, contact us to receive a cost model analysis.   

Sources: 

UNCTAD. (2021). United Nations Conference on Trade and Development. Retrieved from World Investment Report 2021: https://unctad.org/system/files/official-document/wir2021_en.pdf 

INEGI. (2020). INEGI. Retrieved from Survey on the Economic Impact Generated by COVID-19 on Enterprises (ECOVID-IE): http://en.www.inegi.org.mx/programas/ecovidie/#Documentation 

On May 1, 2021, the SAT released through its portal, the “Part Letter Complement”, which must be incorporated into the transfer or entry CFDI that is issued for the transport of goods, with the In order to prove the legal possession of the transported goods and providing information on their origin and destination.

Carta Porte
Rule 2.7.1.9 of the Miscellaneous Fiscal Resolution (RMF) provides for the obligation to add the complement of the Letter of Carriage to the transfer or entry CFDI that is issued for the transport of goods.

According to the tax authorities, the purpose of the bill of lading supplement is to know precisely the information of the goods that are transferred in the national territory, their origin, midpoints, destinations, owners, tenants and operators involved in the transfer of the goods, and likewise its purpose is to combat informal trade and smuggling.

Who should issue the CFDI with Carta Porte complement?

• Companies dedicated to the transfer of goods or merchandise must issue an INCOME type CFDI with a bill of lading complement. The income-type CFDI is issued for the provision of motor transport services, and stated the obtaining of an income for these services.
• The owners of goods or merchandise who act as intermediaries or transport agents and move merchandise or owners of goods and merchandise that move merchandise with their own means, must issue a TRANSFER type CFDI with a bill of lading complement. The transfer-type CFDI is issued to cover the transfer of merchandise within the national territory.

What should the Cara Porte Include?
It must include the following data or information:
-Name and data of the exporter of the merchandise.
-Name and details of the carrier (carrier) of the merchandise.
-Receiver of the merchandise.
-Quantity and description of the merchandise (including type, weight, brand, number of packages or units, etc.).
-Value or price of the products.
-Date of transport and when the expedition is made.
-The place of delivery.
-Place and term in which delivery is made to the consignee.
-Compensation to be paid by the carrier in case of delay, if there is an agreement on this point.
-Transfer taxes.
-Customs information.

Entry into Force

On September 21, 2021, the first anticipated version of the Third Resolution of Modifications to the Miscellaneous Tax Resolution for 2021 (RMF) was published on the Internet portal of the Tax Administration Service, in which the entry into force is modified from September 30 to December 1, 2021.

As of the entry into force, goods or merchandise transport services with an income-type CFDI without a “Carta Porte” supplement will not be deductible because they do not meet the tax requirements for the deductibility of tax receipts.

For more information regarding the subject, please contact us.

There are challenges and uncertainties that companies will face as they expand to other countries. For example, hiring in Mexico, as recruiting personnel in a different country, has its own requirements and regulations when it comes to employment. Combined with language barriers, this can be a complex step for foreign companies.

Therefore, is important to know steps, processes, and regulations when hiring employees in Mexico, to ensure compliance with the Federal Labor Law.

The Mexican Labor Law (Ley Federal del Trabajo)

The Federal Labor Law states the laws that concerns the workers in Mexico and governs labor relations between employers and workers, establishing the employment relationship regulations between the person providing a personal service and the person receiving it.

Furthermore, this Law protects individual guarantees and makes it very clear that no distinction can be made between workers based on race, sex, religious creed, political doctrine, or social status.

Employment Agreement

In Mexico an employment agreement or labor contact is mandatory. There are three types of contract durations: indefinite, project and seasonal.

The labor contract represents a document that grants labor rights and gives clarity in:

• Your specific obligations in the employment relationship between employer and employee
• Hours of entry and exit.
• Place and time where the workday start.
• Days and places of payment.
• Rules to prevent working risks.
• Permits and licenses.
• Disciplinary measures and their application.
• The benefits you receive for your work: salary, breaks, vacations, social security, law, and additional benefits.

Working hours and minimum wage

When considering hiring in Mexico, it is important to have knowledge of the Federal Labor Law, which is very extensive and among other states following:

• According to Article 61, the maximum length of a Labor Day is eight hours during the day, seven hours at night, and seven-thirty hours when mixed. Extra hours must be paid according to article 66, there is a cap in overtime, and the first 9 hours must be paid double and extra hours triple.

• According to Article 85 of the Labor Law, a worker’s salary cannot be less than the minimum wage, and no employee in Mexico can be paid less than this legal minimum wage. Employers in Mexico who do not pay the Minimum Wage may face penalties from the government.

• On January 1, 2021, Mexico’s minimum wage was increased by 15% to 141.70 pesos per workday. The tariff along the Northern Border Zone has been increased to $213.39 pesos per workday, every weekday, for the year 2021.

Vacations and benefits

In Mexico employees are entitled to 6 days of vacation days will increased corresponding to the number of years worked. In addition to the seven national holidays and additional day every six years on December 1^st.

Furthermore, there are important law benefits employers must take into account such as Christmas Bonus, which is mandatory and equivalent to 15 days of wage.

Another benefit for employees, is profit sharing in which a Company must distribute 10% of their pre-tax profits to their employees, after completing one year of operation.

First steps for hiring

The first step for being able to hire employees, is a registering your company before the social security institute as an employer (known in Spanish as IMSS, Instituto Mexicano del Seguro Social).

Lastly, the company must also be registered before tax authorities (SAT).

Hiring Foreign Employees

In Mexico, foreign workers are limited to 10% of a company’s workforce, and the company must be properly registered to hire foreign workers and provide the requisite working visa. All hiring restrictions are eliminated for directors, general managers, and administrators, allowing foreign nationals to fill up to 100 percent of these jobs.

To Directly or Indirectly Employ

Many companies choose to hire personnel through a subsidiary or service agent because complying with Mexican labor and social security law can be difficult. This can limit a foreign company’s exposure and liabilities.

Furthermore, local experience is most time required to know where to find the right person for the job.

Mexcentrix can support your company in the full hiring process, including pre-employment tests, interview, medical exams, reference checks, and registration with authorities, complying 100% with the Federal Labor Law. Contact us.

Derived from the recent reforms to the Federal Labor Law, for the issue of personnel subcontracting or outsourcing; many companies are confused about the scope of these modifications in the outsourcing of various services. The first thing that those companies that intend to incorporate professional services for the provision of specialized services (outsourcing) should know or continue to maintain them in case they already have them in their organization, is the following:

How to adapt to the new reform?

In Mexcentrix you can access a safe and guaranteed specialized service complying with the requirements of the new reform of specialized services in Mexico, for more information contact us.