There are different models a foreign company can operate in Mexico, such as a stand alone operation, joint venture, shelter and contract manufacturing. While each model has its advantages and disadvantages, the shelter model is one of the most used by foreign companies, as it allows you to minimize risks and liabilities while maximizing productivity and allowing you to start operations easily and as fast as possible.
What is a shelter company ?
A shelter company is a service provider that enables a foreign corporation to operate in Mexico, reducing their risk, liabilities and financial exposure associated with entering into Mexico directly.
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, VAT and IEPS Certification among other certifications.
Who can use a shelter company in Mexico?
Small and large companies within the manufacturing and services sector, who are looking to start operation in Mexico through a risk mitigation approach.
Additionally, the Shelter program allows companies to do business in Mexico without having to officially register or incorporate a legal entity in the country.
Main administrative functions which a shelter company takes care of.
Shelter companies in Mexico, can support to the foreign companies in important administrative business tasks such as:
Advantages of using a shelter service provider.
- Quick Start-up
Working with a shelter supplier can remove many of the common barriers to starting a business. For example, in Mexcentrix we count with qualified personnel and expertise to get your operations up and running in as few as 30 business days.
In addition, shelter companies, count with up-to-date information on labor availability, industrial facilities availability and opportunities, potential risks that could impact your operations among others.
Lastly, a shelter company already counts with IMMEX Program and VAT and IEPS certification. This can drastically reduce the time it takes to obtain permits, and the resulting cash flow impact is far less than if you started from scratch.
- Cost Reduction
Shelter companies provide the same services to multiple companies, the resulting economies of scale reduce the cost of the services passed on to their customers.
In addition to being able to benefit from tax incentives programs such as PROSEC, Rule 8th, IMMEX Program and VAT and IEPS Certification.
- Experienced personnel
A shelter company allow you to have access to a team full of experienced professionals since day one. In addition to having access to local data and information regarding your industry, labor costs and availability, and recommendations based on years of experience with various industries.
- Scalability
Furthermore, as the company operations grow, increasing its production capacity and foreign trade operations, the shelter company will respond with additional staff for carrying out operations efficiently, as well as provide you with options on real state opportunities, suppliers among others.
The shelter company is also in charge of making sure all positions required by the client for the growth/ expansion are covered effectively and in a timely manner.
- Compliance
Additionally, shelter company can ensure you are being 100% compliance with Mexican laws and regulations.
Different types of shelter companies in Mexico.
- Pick and Choose Shelter Services: Companies that do not only offer a full shelter , but a list of services to choose from based on your needs.
- Full Shelter Service: These companies do not own the property or offer its own real state solution, but provide full administrative services such as: HR, tax and accounting, foreign trade, among others.
- Real Estate Companies that Offer Shelter Services– Companies who own the properties they offer to their clients together with the shelter services. In some cases, it is mandatory you rent or buy one of their properties in order to be able to receive their administrative services.
- Contract Manufacturing with Shelter Services– Are typically subcontracted manufacturing services for a specific project that can also provide additional shelter services, or companies who offer both shelter services and contract manufacturing independently.
Mexcentrix offers full shelter services and pick and choose shelter services.
We adapt to the specific needs of each client and are flexible in regards to the services you can choose from our complete service catalogue.
Looking to start operations in Mexico ?
Contact us for more information on the shelter model. Reduce costs and risks with Mexcentrix’s shelter services.