Advantages of Working with a Mexico Shelter Company


Manufacturing in Mexico can be a rewarding yet complex endeavor. It involves legal, tax, and trade compliance, in addition to finding the right facility, recruiting and hiring workers, and setting up all administrative departments necessary to launch production. To alleviate this burden, the majority of foreign operators choose to work with a Mexico shelter company.


A shelter company accelerates the startup timeline by handling all administrative tasks and allowing manufacturers to focus their time and energy on operations. It also minimizes legal risk and eliminates the red tape that often comes with opening a business in a foreign country. In short, working with a shelter helps to streamline the process to create a seamless transition.


Why work with a Mexico shelter company?


When planning operational expansion to Mexico, here are a few of the other advantages that working with a shelter like IVEMSA has to offer.


Minimized tax liability

A shelter company is registered with the IMMEX program and maintains VAT certification. As a result, those working under the shelter are automatically exempt from the 16% VAT on all temporarily imported goods, materials, and equipment needed for manufacturing. Meanwhile, shelter services in Mexico include trade compliance to ensure accurate inventory; thereby, reducing risk of penalty or production delays.


Reduced costs

Working with a shelter also saves on permits and license fees, labor rates in Mexico, and infrastructure expenses. On average, manufacturers can expect to save 30-35% in operational costs. Additionally, there isn’t the hassle and expense of hiring separate consulting teams to fulfill separate HR, accounting, legal, and broker roles. These are all housed under the shelter to work alongside each other for a quicker, more efficient process.


IP protection

As a member of the USMCA, Mexico maintains the required intellectual property protection and privacy for personal information. With technology rapidly advancing and new products and models being sent to market faster, protecting copyright infringement and brand identity is extremely valuable. Since the shelter is special to Mexico, this type of security is fully upheld as per each of its trade agreements.


Faster startup time

One of the many reasons why companies rely on shelter services in Mexico is the reduced time it takes to launch production. It can be achieved in as little as three to four months compared to six or seven months it takes as a standalone entity, which saves on costs and adheres to critical production timelines.


Production control

A shelter company relinquishes complete control to the company regarding processes, equipment, and intellectual property rights. Everything operates per the manufacturer’s guidelines with the support of shelter services along the way. A shelter is also flexible and customizable to grow with a company as they expand to ensure there are minimum disruptions.


When nearshoring to Mexico, why not partner with local experts who have the experience and reputational history in helping foreign manufacturers succeed? IVEMSA has nearly 40 years in the industry with an average 15-year customer retention rate. We provide cost-effective solutions that provide long-term value.


Contact us today to see how we can help you reach your manufacturing goals.

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