THE SHELTER PROGRAM CONCEPT
Understanding the laws, regulation and compliance required in any Country can be costly, time consuming and have a major long term impact on the Manufacturing Country if not followed correctly. Working with a local expect with a track record is key to ensuring your first step into Mexico is solid. CPI’s Shelter Program offers a full service option and is designed for companies interested in the set up of a manufacturing plant in Mexico (Specially in the Baja California’s Mexico border region) in the most cost effective and timely manner with limited exposure in Mexico.
It allows the Manufacturing Company to make all of the decisions in regards to site selection, personnel, vendors and setup of the production facility utilizing CPI’s guidance, existing infrastructure and Administrative Team. The primary benefit of working under this scenario is the ability to enjoy the benefits Mexico has to offer, without having ownership of the legal entity in Mexico.
The Manufacturing Company keeps full control of its manufacturing process, therefore maintaining control over its manufacturing operation. The Manufacturing Company provides the equipment, raw materials, production process and controls and ERP systems.
Depending on the Manufacturing Company’s objectives, time-frame and budget you can choose to start under the following programs:
CPI’s Turnkey Shelter Program provides an existing operating model where the Manufacturing Company has an arm-lengths relationship with the Mexican entity and is able to setup as quickly as 30 – 90 days, all depending on the required tenant improvements and import/export permits required.
Under this program CPI offers an IVA Certified Mexican Entity that already has the existing permits required and allowing the Manufacturing Company to start its operations immediately.
The overall benefits of this program are:
- Mexican Entity Name is already set
- Benefit Program is set allowing for set salary cost structure
- Use of IVA Certified Mexican Entity
- Quick Start Up Date
- Can be used in the interim while transitioning to any other of CPI’s Program’s
CPI’s Independent Shelter Program allows for CPI to setup a New IVA Certified Mexican Entity exclusively for the Manufacturing Company. The Manufacturing Company is involved in the decision making of the setup of the Mexican entity, without having ownership of the legal entity in Mexico. The cost are greater than CPI’s Turnkey Shelter Program and is recommended for Manufacturing Companies with over 100 employees.
The time-frame for the setup of the Mexican entity can take 2 months and then the requirements must be met to become an IVA Certified Mexican Entity, preventing an immediate start up if the tax exemption is desired.
- Selecting the name of the Mexican Entity
- Participating in establishing the Benefit Package per local market conditions
- Working in a stand-alone entity from the inception allowing for a smooth transition to our Independent Corporation Program
CPI ADMINISTRATIVE SERVICES TO SUCCEED IN MEXICO
CPI's services are designed to ensure your facility operating at peak performance with minimal cost and full compliance with Mexican regulations and laws. CPI has expertise and offers Administrative Services in the following areas: