Simplify Manufacturing in Mexico with a Shelter Partner: Here’s How

There’s a learning curve when manufacturing in any foreign company, but in Mexico, there’s a unique advantage offered through the support and expertise of its shelter companies.

A shelter services company provides a seamless transition to manufacturing in Mexico, helping to reduce the risk and liability for U.S. and other foreign companies. Rather than being required to set up their own legal entity, manufacturers can work under a shelter that handles all administrative functions necessary to launch production.

It’s the safest and most efficient way to do business and provides manufacturers the benefits of Mexico manufacturing without hassle. This cost- and time-saving solution provides:

Legal and Tax Compliance

Shelter companies are familiar with Mexico’s labor laws, local compliance requirements, and cross-border trade regulations. Therefore, manufacturers don’t have to worry about navigating these complex areas alone.

A shelter also has all the permits and licenses required to operate which grants immediate VAT savings for manufacturers and prevents delays in the setup process.

Human Resources and Recruiting

From securing technical talent to handling payroll, and more, shelter companies alleviate the headaches of managing HR functions. This includes delivery of employee benefits, training, and compliance with labor laws. This also involves support for employee retention, severance, and growth opportunities.

Industrial Site Selection

Securing a manufacturing facility is the first step when manufacturing in Mexico. Shelter companies assist with site selection based on a manufacturer’s unique production needs and lease ready-to-use facilities complete with utilities, security, and other amenities and construction necessities.

How Shelter Services Streamline the Setup Process

Through comprehensive shelter services tailored to specific business goals, manufacturers can make a smoother transition and launch production quicker than if they were to establish a standalone entity.

By having all administrative departments and managed services already in place, they can expect a setup timeline of three to four months compared to the six or seven months it would take to set up a new legal entity.

Additionally, with expertise in Mexico’s customs and trade regulations, a shelter company also streamlines the import/export process, which helps to reduce production delays and enhance supply chain efficiency. This allows manufacturing leaders to focus their attention on production and processes.

Moving from a Shelter to a Standalone Entity

Having the support of a local shelter partner minimizes risk and liability, reduces costs, and allows manufacturers to stay nimble as they set up and sustain production in Mexico.

Once production begins, the shelter partnership continues with flexible strategies to grow and scale effectively. IVEMSA maintains a 15-year average customer retention, though manufacturing partners always have the option to branch off as their own standalone entity.

If and when this time comes, we support the move with a shelter graduation process to ensure there are no disruptions during the transfer. From the beginning, all shelter services and recommendations are always based on what’s best for each business.

Finding the Right Mexico Manufacturing Partner

Manufacturing in Mexico for the first time can feel overwhelming. We are here to simplify the transition.

Contact our team to discuss your production goals and see if a partnership with IVEMSA will be a good fit.