It might look difficult to open a business in Mexico as a foreign company, but with the help of Tijuana EDC, getting to invest in one of the most promising regions in the world could be easier than previously expected. Moreover, with our strive to create a Trusted Ecosystem of support and development of strategies between local, state, and federal governments, we’ve become a trusted source of information and alliances thanks to being the only IEDC-AEDO accredited organization by the Economic Development Organization in Mexico.
Why do Foreigners want to Do Business in Mexico?
Since Mexico is a part of the North American Free Trade Agreement, NAFTA, there are many benefits to doing business in Mexico, with more competitive wages for skilled workers and lower transportation costs since Mexico is closer to the US and Canadian territories than China or India for example.
The location also ensures faster turnaround time, not to mention the ease of communication and having similar time zones to your distributors.
What Business Opportunities Are in Tijuana?
Tijuana offers a wide range of opportunities from high-tech manufacturing to biotechnology, pharmaceuticals, food processing, automotive, electronics, fashion, clothing, textiles, plastics, construction materials, and more.
Advantages of Doing Business in a Binational Region
The advantages of doing business in Tijuana include the following:
- Geography: The city’s position allows for a perfect and low-cost logistics flow for manufacturing in Tijuana, Mexico.
- Specialized workforce: Tijuana has a unique and high-quality workforce, in which companies are capable of producing parts and products with ISO, the International Organization for Standardization, such as in the electronics manufacturing in Mexico.
- Tax exemption: The maquiladora program turns out to be a great economic plus for any foreign company; the Mexican government offers tax incentives to foreign companies doing business in Mexico. These include a 10% reduction in corporate income taxes (CIT) and a 15% reduction in personal income taxes (PIT).
- Binational Region of Tijuana & San Diego: We present you with the powerful Binational Region that generates millions of jobs and promotes economic development in both countries.
- Business Opportunity: Starting a business in Mexico is a popular choice among investors looking to enter Latin America, with low operating costs and ease of access to markets in the United States and Canada are major driving factors.
- Business environment: According to the National Survey of Ocuppation & Employment (ENOE), Tijuana is the highest-ranking city in Mexico in employment opportunities, with only a 2% unemployment rate, ranking higher than the national average of the United States (3.9%), opening the possibilities of having a good balance of Talent Acquisition and Talent Retention if your company comes to Tijuana.
- Business structure: The most popular entity types in Mexico are the Corporations (Sociedad Anonima or “S.A”) and the Limited Liability companies. Both are popular for bringing an economic benefit or tax reduction to their companies.
- The S.A is a legal form of business that allows individuals to own shares in a company without being personally liable for its debts. In addition, it provides protection from creditors for shareholders who do not have access to other sources of credit.
The economic development in Mexico: The World Bank categorizes Mexico as an “upper middle income” nation. Mexico’s $1.076 trillion gross domestic product (GDP), as of 2020, made it the fifteenth-largest economy in the world in terms of the nominal gross domestic product while placing it on the thirteenth spot in terms of purchasing power parity (using constant 2017 international dollars).