In the 1960s, Mexico’s government started the Maquiladora program that offered special tax breaks to foreign manufacturers to increase exports. The program was a huge success, and Mexico’s geographical location played the most crucial role in this triumph. The Maquiladora program helped Mexico in stabilizing the economy, decreasing unemployment, and creating new business opportunities.
After realizing foreign manufacturers’ vitality, Mexico’s government decided to provide even more relaxations to the investors. In 2006, Mexico’s government officially introduced the IMMEX Program that exempted import duty and VAT on temporarily imported raw materials and tools. The government devised a timeframe in which the imported goods have to be transferred to another IMMEX company or exported out of Mexico. The time frame depends upon the type of finished product, varying from 6 months to 1 year.
Many factors played a vital role in the success of these programs. These factors included the geographical location of Mexico, competent and low-cost workforce, and presence of shelter companies. In this post, we will discuss the significance of shelter companies.
What Is A Shelter Company?
Just like the government of Mexico, professionals of Mexico are very welcoming and facilitating. A shelter company is a legal entity that offers its services to foreign companies to avoid possible risks and potential liabilities. These services help foreign manufacturers to focus on their core operation of manufacturing and production. Shelter companies offer services like human resource management, legal solutions, advising precautions, and much more.
With the help of a shelter company, your company can start operating in Mexico within weeks. Tacna is a well-known shelter company offering professional services for over 38 years.
Benefits of Working with A Shelter Company
Services offered by a shelter company in Mexico allow you to focus on your facility’s production and operations. Shelter companies take care of everything else, including environmental permits, trading laws, customs, and human resources.
1- Saves Time
When you start working with a shelter company, you have to only worry about manufacturing and nothing else. A professional and experienced shelter company makes it possible for you to start working in Mexico within weeks.
2- Human Resource Management
Finding the right people for the right job could be a daunting task in a new place especially. Shelter company saves you from the trouble by taking care of human resource management.
3- Save Resources
When you start your operations in a new place, it utilizes a lot of your resources. You can save these resources by working with a shelter company. Shelter companies working in Mexico for decades know how to do things cost-efficiently.
It requires a lot of time and a legal team to understand and comply with a new place’s laws and regulations. In Mexico’s case, you can work with a shelter company to be carefree regarding the technicalities of compliance.
5- Use of VAT Certification
VAT certification is now necessary if you want to benefit from the IMMEX program, and getting a VAT certification could be challenging. Instead of using your resources, money, and time to get a VAT certification, you can work with an already VAT Certified shelter company.