Legal Frameworks for Operating in Mexico under a Shelter program:
Which Option is Right for Your Company?
Foreign companies in the aerospace, automotive, electronic, medical, home appliance, furniture, and any other industry, can establish operations under the Shelter program using one of the following frameworks depending on your needs.
Not incorporated: Under this framework, you can operate in Mexico completely under the umbrella of a certified Shelter provider’s legal entity. This means you do not need to create a legal entity in Mexico (you won’t be incorporated in the country); you will issue invoices from your headquarters abroad to clients, and can sell your products anywhere in the world. When delivering in Mexico, you can do business through virtual transactions, provided that your Mexican clients do not request an official Mexican tax invoice or factura.
What options do you have if your Mexican clients require an official Mexican tax invoice or factura?
Not incorporated + Mexican legal entity for sales: This framework allows foreign companies operating in Mexico certified Shelter provider’s legal entity to still issue invoices from your headquarters abroad to clients anywhere in the world or in Mexico that do not request a facturaand also to issue this official Mexican tax invoice for part of your production due to requirements from one or several of your clients in Mexico. This is done by creating a sales entity in Mexico for sales purposes, which the certified Shelter provider can also manage. This allows you to run manufacturing operations under the Shelter program, with all the benefits this provides.
By operating under American Industries Certified Shelter Administrative Services, you will obtain the following benefits:
Quick start-up (in as few as 9 weeks)
Operate exempt from VAT on temporary imports of raw material, machinery and equipment, and supplies. (This is only possible with a AAA IVA/IEPS (VAT) certified Shelter provider like American Industries.)
Operate exempt from VAT on local expenses.
Hassle-free administrative operation. American Industries is responsible for all administrative risks and liabilities (fiscal, customs and labor).
Trouble-free customs, import, and export transactions under American Industries’ customs certification.
Significant cost savings due to American Industries’ economies of scale in purchasing of indirect material.
Access to top of the line IT systems.
You will receive a client manual (documented service portfolio) with ISO 9001 certification. This ensures you have a clear understanding of the scope of services and a smooth operating relationship.
By working with American Industries, you can rest assured that everything will be taken care of and that our services will always be tailored to meet your specific needs.
If you would like to learn more about starting up operations in Mexico or have questions about our administrative services packages, don’t hesitate to reach out today.
By Isaías Rivera | Marketing & Business Development Director | American Industries Group®
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