Getting Started with Shelter Services in Mexico
1 min Read
- Insider
- Labor & Economics
- Manufacturing in Mexico
Is your company thinking about starting a new manufacturing operation or moving production to Mexico? If so, working with a shelter services provider is the easiest and most cost-effective way to set up a factory in Mexico. In this article, we will discuss what you need to know before getting started with a shelter company in Mexico.
Definition of Mexico’s IMMEX Shelter Program
First things first – what are shelter services in Mexico? To put it simply, Mexico’s shelter service program allows a foreign company to conduct business in Mexico via a “shelter” provider. This provider manages the many administrative and legal tasks relating to the business while allowing the foreign company to focus 100% of their efforts on production related activities.
More specifically, the shelter company serves as the legal entity and employer of record in Mexico for all compliance-related concerns. It also maintains relationships with local business partners such as labor unions, suppliers, customs departments, government entities, and many others.
Additionally, companies who choose to operate in Mexico with the help of a shelter services provider are exempt from permanent establishment in Mexico.