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Publish date: - Category: Maquiladoras in Mexico

Maquiladora Operating Models: Shelter Companies in Mexico

Doing business requires knowledge, strategy and good advice. When owning a company, options should be carefully analyzed in order to make a smart decision. Therefore, if you are thinking of the maquiladora operating models and the benefits you could get from them, let us introduce you to the world of shelter companies in Mexico.

Why Operating Models?

Mexico is a great country to do business. The growth opportunities offered by it are based on a strategic business structure that benefits the country as well as foreign investors. One of the opportunities that provide many advantages is the maquiladora model, which–in a nutshell– consists of foreign companies setting up their businesses in Mexico in order to process raw materials.

But there is not just one way to be part of the maquiladora program. The operating models to manufacture in Mexico determine to what extent a company intervenes in the processes of its new plant. There are four basic types: shelter, direct ownership, subcontracting and joint investment.

What Is A Shelter Company?

maquiladora-operating-models-shelter-companies-in-mexico

Shelter companies are lawfully established entities with all the necessary permits to manufacture and offer production to a foreign company. This model basically follows an outsourcing model; foreign companies only hire administration and manufacturing services, but do not worry about the production process.

The shelter company model should be part of the IMMEX program, which gives companies the exemption of taxes and duties as long as they import raw materials to process and export them as finished goods.

Is The Shelter Model Better For Me?

The benefits of a shelter company are many. Despite not being part of the manufacturing process, you can monitor every detail of it, as well as set your own guidelines and regulations, operate under your name and get the products that you expect. Deciding if the shelter model is better for you depends on the intervention you wish to manage at the manufacturing plant.

If you want to get to know more about this operating model and analyze it in order to do it right, contact the experts. At Tijuana EDC, we have all the knowledge to guide you towards the best decision for your company. Contact us and decide if shelter companies in Mexico are the solution.