Moving part of or all of a manufacturing operation to a foreign country requires a well-planned expansion strategy and a thorough analysis of any pros and cons it may involve. It also requires a broad knowledge of procedures, regulations, and permits required for a foreigner to register a business in the target country. At best, it is only time consuming; but experience tells us that it may also prove to be far more expensive than originally expected. This is why many manufacturers considering to move part or all of their business to Mexico usually resort to shelter companies.
Shelter companies are legal entities, fully established and registered with the Mexican government, offering foreign manufacturers a quick way to begin operating in the country without having to set up a legal presence here, and without any legal liability in Mexico, yet reaping all the benefits.
Among the many benefits of using a shelter company is the fact that you can begin operations within a shorter time frame, operate under your own name, establish your own rules and policies, and at all times oversee all manufacturing processes so that they fully meet your standards. The shelter company will help your operation by head hunting, screening, and hiring the necessary labor while complying with labor laws and other labor-related issues.
The shelter company will also locate and lease or purchase the necessary facilities for your operation. They will register with local, state and federal governments as importers-exporters, so that you can import your raw materials and technology, and later export or market the finished products. In other words, it will not only ease your company’s way into the country, but will also play an important role in seeing to its success.
However, not all operations are compatible with the shelter company route. If you are interested in learning more about the possibilities of expanding your business into Mexico, please visit our website at www.labormx.com or give us a call at your convenience. We will be glad to help you achieve your goal.