Though companies can use several legal frameworks when establishing manufacturing operations in Mexico, working under the shelter system is the quickest, easiest, and most cost-effective way to get started and take advantage of competitive Mexico labor rates for most businesses. Setting up under the shelter system eliminates the risk and lowers the investment of time and money this process implies compared to the other legal frameworks available, such as establishing a stand-alone operation, finding a joint venture partnership, or acquiring an existing operation.
One of the main advantages of working with a provider of shelter services in Mexico is that it eliminates the liability and risk associated with non-compliance with Mexican laws and regulations.
This is especially important in regard to labor laws contained in various pieces of federal and state legislation, including Federal Labor Law, Social Security (IMSS) regulations, and National Workers’ Housing Fund Institute regulations (INFONAVIT), as well as a variety of related regulations.
When working under this model, the shelter company takes care of all administrative functions for setting up your business, including setting competitive regional Mexico labor rates, human resources and labor matters, meeting all social security and tax obligations, enrolling workers on the social security platform, and making payments for employer-employee contributions in a proper and timely manner.
Another advantage of working with a shelter provider is that they work with you to design benefits packages to find and retain the right talent for your operations. With the competitiveness in the Mexico manufacturing labor market, companies must offer attractive Mexico labor rates and benefits that are on par with what is being offered in the specific region and industry where they are operating to have a committed workforce. This includes benefits required by law and additional benefits such as cafeteria, transportation, and family events, among others.
Fortunately, international and US companies manufacturing in Mexico can work with a company like American Industries to take advantage of this shelter model designed to facilitate the legal establishment of foreign companies and attract investment in the country. If you are interested in finding out more about how American Industries can help your company and the advantages of working under a shelter program, reach out today to schedule a call with one of our business development specialists.