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Shelter Manufacturing in Mexico: Maquiladora Program for Setting Up Manufacturing Nearshore

Shelter Manufacturing in Mexico: Maquiladora Program for Setting Up Manufacturing Nearshore

This is one of the most common questions we receive and here we are going to provide a concise answer for you. Though there is a cornucopia of details for establishing a maquiladora in Mexico and to reduce production costs by 50%, shelter companies in Mexico exist to manage those details.

The Shelter Services Provider allow foreign manufacturers to work under its existing Mexican corporation under a Maquiladora Shelter Program, where it acts as a “shelter” from legal and financial exposure while having presence in Mexico. The manufacturer plugs-in to the shelter’s already existing infrastructure getting access to it’s IMMEX permit and certifications.

By operating under a Mexican shelter company, you are also contracting an entire team of experts in manufacturing in Mexico so that you can get up and running with lower start-up costs and in a shorter amount of time. The shelter company administrates the manufacturing operation in Mexico ensuring compliance with Mexican laws and tax liabilities while you concentrate on manufacturing. You provide the raw materials, capital equipment and your know-how.

The shelter company supports you with developing a cost savings analysis, finding the right manufacturing location and continued outsourced administrative support in the following areas:

  • Legal Framework: Corporation Set-Up, Permits, Compliance
  • Accounting: U.S. Invoicing, Tax Compliance, Mexico Payables
  • Human Resources: Recruitment in Mexico, Hiring, Payroll Processing
  • International Trade & Compliance: Mexico import/export and logistics
  • Environmental Health & Safety: Ramp Up Compliance, Analysis, Compliance with Audits

Is operating under a shelter company in Mexico the only way to go?

Not at all. It’s just the time-tested way to get up and running quickly with lower start-up costs while minimizing risk and exposure for your company. This is sometimes called a “Mexico soft-landing approach.” That’s the short answer.

We have a paper that outlines the three methods used by US manufacturing companies to get started in Mexico.

Figure 4 Comparing Methods for Getting Started in Mexico

Other popular questions:

CPI’s in-house Librarian is your own personal curator of Mexico manufacturing knowledge. Sometimes you just need the facts and you need them now. Do you have a question you’d like answered?
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