What are the options for stating operations in Mexico?
Which one is the fastest alternative fulfilling all Mexican laws?
There are three main ways for a company to operate in a manufacturing location in Mexico:
- Contract manufacturing is preferable for operations that require limited man hours, experience cycle demand, and do not require direct control over production quality.
- Stand Alone subsidiaries may be the best alternative for organizations with high control requirements.
- The Shelter or Outsourcing Management is the option of choice for companies that are seeking to start operations rapidly in order to best leverage their own competencies by outsourcing non-core management functions to a trusted partner.
What kinds of companies are best suited for using a Shelter
or Outsourcing Management Solutions?
- All kinds of companies can outsource management solutions.
- A Shelter is flexible and offers a tailor-made solution, so they can meet any specific needs.
- Our clients come from a big array of industries and sizes.
- From companies that provide jobs to 1,000 employees to mid-size manufacturers with little or no prior international experience and 20–30 employees. They could come from the medical, aerospace, construction, metal mechanic, plastics, electronic, automotive, IT, alternative energy and even design industries.
How long does it take to start an operation under a Shelter?
- An operation under a Shelter can start immediately because the Maquiladora-IMMEX permits and legal aspects are already set.
- It is like an umbrella of opportunities.
- The Shelter provides crucial administrative services like HR, Accounting, Customs and Traffic, and Mexican PR, that in turn gives you the freedom to dedicate your time to your operations.
- It's a set package ready for you.
How does a Shelter work?
Onilog S.A. de C.V. are responsible of:
Human Resources: we help our clients to develop the salary and benefits policy considering the market standards, as well as recruitment, selection & hiring processes, file employees' integration and document control, labor relations, personnel services, immigration permits, etc.
Accounting: accounting services, Mexican entity compliance, general ledger, payroll, accounts payable, etc.
Traffic & Customs: imports coordination with Mexican and American customs brokers, BOM packing list entry, monitoring of shipment through customs, update of IMMEX program (former Maquila) when needed, Mexican customs compliance.
Our clients are responsible of everything related to production and quality. For instance, supply the machinery and equipment, raw material (direct and indirect), product specifications, engineering, technical support, etc.
All this process works on a pass through cost open book policy without a markup. Some of the typical expenses are salaries and benefits, facility lease, utilities such as water, electricity, natural gas, and telecom services, as well as Mexican purchases.
How does a Shelter bill to its clients?
The Shelter charges its customers for costs incurred in Mexico, such as payroll, utilities, facilities, customs fees, transportation costs, and Mexican purchases, in a pass through open book basis without mark up; and the Shelter charges a fee.