Canadian Companies Turn to Shelter Services in Mexico for Strategic Expansion

Shelter services in Mexico provide invaluable support for companies in Canada seeking to expand their operations or establish a presence in the country. These services offer a range of benefits and address the unique needs businesses encounter when entering a new market or navigating the Mexican business landscape. 

Whether it’s streamlined regulatory compliance or cost-effective infrastructure solutions, shelter services in Mexico empower Canadian companies to focus on their core competencies–all while minimizing risks and optimizing their chances of success.

Types of Mexican Shelters

There are different types of shelter services in Mexico, and each offers a different level of support and assistance. Here’s a quick overview:

Manufacturing Communities

These providers operate in dedicated industrial parks and offer comprehensive shelter services. Having your company in any of these communities means it will benefit from superior customer service, economies of scale, and access to amenities like medical centers. 

Full-Service Providers Without Real Estate Ownership

These providers offer a complete range of shelter services but do not own real estate. Instead, they collaborate with local landlords to meet the real estate needs of their clients. They excel at providing extensive support, but the responsibility for securing suitable properties often rests with the client.

Startup Shelter Companies

Startup shelter companies focus solely on the initial phase of setting up operations, which means that their involvement is temporary. The manufacturer assumes full control after a certain period.

Contract Manufacturers

Contract manufacturers specialize in offering value-added services, such as dedicating workers to specific projects. They may also provide other specialized services tailored to the unique requirements of their clients.

Real Estate Companies

Real estate companies primarily focus on the rental and sale of industrial properties in Mexico. They may also offer value-added services, but their service offerings are usually less extensive compared to other shelter service providers.

‘Cafeteria-Style’ Providers

These unique companies allow manufacturers to choose customized shelter service packages from a select list of specific or niche offerings. This flexibility can be advantageous for companies with highly specific service requirements.

Key Benefits of Shelter Services in Mexico

Smooth Market Entry

When opening a manufacturing company in a new country, you’ll have to familiarize yourself with local laws, tax policies, permits, and compliance requirements–but expert shelter services can eliminate the need for this. 

You’ll work with experts who have in-depth knowledge of the Mexican business landscape and can guide you thoroughly through the entire setup process. This means you can get your company up and running in only one to three months instead of six to eight months. 

Cost Savings 

The costs of setting up a company in Mexico independently can be quite substantial. Using a shelter service like Tetakawi can often lead to significant savings compared to doing it completely on your own. While the exact monthly costs and percentage savings vary, Tetakawi is able to make the process of setting up a business in Mexico more affordable for many companies.

Risk Mitigation and Compliance

Independently setting up a company in Mexico exposes you to legal risks. Authorities may question you and charge you under laws and policies that you don’t even know exist. 

Working with a shelter service company eliminates that possibility, because shelter service companies have in-depth knowledge of local labor laws, environmental regulations, tax requirements, and customs procedures. They take measures to safeguard your company from any legal action.

Access to Local Networks and Resources

Shelter providers in Mexico have established networks and partnerships with local suppliers, service providers, and industry associations. This grants businesses access to a wide range of resources and connections that can facilitate market expansion and growth. 

Whether it's accessing local supply chains, finding reliable vendors, or connecting with potential customers, shelter services can provide valuable introductions and networking opportunities. 

Opportunity to Focus on Core Competencies

By availing of a shelter service, companies can offload non-core functions and administrative tasks to the shelter provider. This allows businesses to focus on their core competencies and strategic initiatives.

Shelter providers can handle administrative, legal, and operational tasks, such as payroll management, HR functions, accounting, and logistics. This frees up valuable time and resources for companies to concentrate on product development, sales and marketing, and overall business growth.

Who Should Use Shelter Services in Mexico?

Any Canadian business can benefit from shelter services in Mexico–there’s no geographical or industry-relevant limitation. However, entrepreneurs belonging to certain areas may benefit more from shelter services in Mexico than others. 

For example, small- and medium-sized enterprises and startups based in Quebec or Windsor can particularly benefit from a shelter service in Mexico. These places observe strict laws and regulations when it comes to setting up companies, while the legalities are much more lenient in Mexico.

Similarly, it is much easier and cheaper to hire experts of various niches and industries in Mexico than in Vancouver or Toronto, where there is limited availability of skilled professionals and costs of living are higher.