If you’ve evaluated expanding your operations into Mexico, chances are you’ve come across the term “shelter service provider.” But what does that actually mean? And why are so many manufacturers choosing this model over going it alone?
This article walks you through exactly how the shelter model works, what it is, what it’s not, and why it may be the fastest, safest, and most cost-effective way to launch production in Mexico.
What Is a Shelter Service Provider in Mexico?
A shelter service provider is a legal and operational partner that allows foreign manufacturers to establish operations in Mexico without having to form a standalone Mexican entity. Instead of going it alone, companies operate under the shelter provider’s existing legal framework or under a new entity created by the provider specifically for their use. This structure has existed for decades, originating in the 1980s as a government-sanctioned way to encourage foreign investment and job creation without subjecting newcomers to the full burden of legal incorporation.
The result? Foreign manufacturers can get up and running faster, more compliantly, and with less operational risk.
Shelter providers typically manage administrative, legal, and regulatory compliance functions. In many cases, they also support real estate, site development, workforce recruitment, and other non-core manufacturing services. This allows manufacturing companies to focus on what matters most: producing high-quality goods, serving their customers, and scaling operations.
Executive takeaway: This is not contract manufacturing. You maintain full control over your process, workforce, and intellectual property. The shelter model simply removes the friction involved in operating legally and effectively in Mexico.
At the Heart of the Shelter Model: IMMEX
To understand how Mexico's shelter program works, you need to understand IMMEX.
IMMEX (Industria Manufacturera, Maquiladora y de Servicios de Exportación) is a Mexican government program that allows manufacturers to temporarily import raw materials, components, and equipment into Mexico without paying general import duties and, in many cases, VAT upfront—provided the finished goods are exported and the operation is paired with the proper ancillary certifications.
Shelter providers either:
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Give you immediate access to their existing IMMEX-certified entity, or
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Set up and operate a new IMMEX-qualified entity on your behalf, while you retain control over production
This is the legal backbone of the shelter model. It is what enables companies to manufacture legally, avoid duties on most imported production materials, and qualify for significant cost savings from day one.
Important: IMMEX Doesn’t Eliminate All Duties
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IMMEX applies to most materials, components, and equipment used in export manufacturing, but not all.
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Certain sectors, like textiles and apparel, may still face tariffs based on HTS codes, even under IMMEX.
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Items unrelated to production typically fall outside IMMEX protection.
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Customs Processing Fees (DTA) and sector-specific rules may still apply.
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If finished goods aren’t exported within required timeframes, duties and VAT may apply retroactively.
What About VAT (IVA) in Mexico?
Value Added Tax (IVA) is a 16% tax applied to most goods and services imported into or consumed in Mexico. Even under IMMEX, VAT is due at the time of import unless the company qualifies for Certificación IVA/IEPS, which allows for exemption at the border.
Some shelter providers already hold this certification and can extend the benefit to your operation immediately. Others may not, requiring you to go through the full application process yourself—tying up working capital and delaying operational efficiency.
Executive takeaway: IMMEX helps avoid duties on most goods. But avoiding VAT upfront requires an additional certification—not all shelter providers can provide it.
Bottom Line: IMMEX Is the Foundation—But Not All Shelter Models Are the Same
If you’re expanding your manufacturing into Mexico, whether using a shelter or not, IMMEX is the foundation. But not all shelter providers handle IMMEX the same way:
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Some allow you to operate under an existing IMMEX-certified entity
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Others may form a new IMMEX entity for your company
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Many can offer both options depending on your goals
It’s equally important to ask what ancillary certifications they can provide access to. This may include:
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VAT certification (IVA/IEPS)
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Participation in OEA (Authorized Economic Operator) programs that help fast-track customs clearance or enable the importation of restricted materials
Executive takeaway: Understand the timeline, costs, and scope of access your shelter provider offers, especially regarding IMMEX structure and additional certifications.
The Muscle of the Shelter Model: Services
If IMMEX is the foundation of the shelter model, then the services your provider delivers are the operational muscle that powers your plant forward. These aren’t just extras, they’re the infrastructure that allows your team to stay focused on production, quality, and growth.
While service offerings vary, here’s what a comprehensive shelter provider like Tetakawi typically delivers:
Labor Management
Hiring and retaining workers in Mexico isn’t just about finding talent—it’s about doing so in full alignment with labor law, union requirements, and evolving workforce expectations.
A qualified shelter provider manages:
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Workforce recruitment and pre-screening
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Payroll processing, benefits, and social security compliance
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Labor law and union negotiations
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Workforce data tracking (absenteeism, turnover, productivity)
Import & Export Administration
Operating under IMMEX brings benefits, but it also adds complexity. Shelter providers help you stay compliant while moving goods quickly and cost-effectively across borders.
Services typically include:
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IMMEX program setup and management
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Importer/exporter of record designation
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Customs declarations and logistics coordination
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Cross-docking and bonded warehousing where applicable
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VAT exemption tracking and reconciliation
Facilities Management
Running a plant in Mexico involves more than leasing a building. From utilities to maintenance to security, shelter services cover the day-to-day infrastructure your team needs to stay operational.
Facility support typically includes:
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Building maintenance and janitorial services
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Utilities coordination and backup systems
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Physical security and access control
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Site inspections, certifications, and upgrades
Environmental, Health & Safety (EHS)
Mexico has strict EHS standards, and enforcement varies by region and industry. Shelter providers navigate this landscape for you, reducing your risk and supporting long-term compliance.
Support typically includes:
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Environmental permitting and regulatory compliance
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Workplace safety program development and training
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Accident prevention protocols and inspections
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Emergency response coordination
Purchasing & Supply Chain Support
Launching in Mexico means building a local supply chain. Shelter providers support this by helping you find, vet, and manage vendors, especially for non-core or high-frequency purchases.
Services often include:
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Coordination of site-level consumables and materials
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Local supplier discovery and engagement
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Import substitution support
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Onsite delivery and logistics synchronization
Accounting & Fiscal Compliance
Operating under a Mexican legal entity—whether yours or your shelter provider’s—comes with a web of accounting and tax obligations. A full-service shelter provider will handle:
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Electronic invoicing and CFDI compliance
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SAT reporting and monthly declarations
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VAT recovery and audit preparation
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Fiscal reconciliation and transparency
Not All Shelter Companies Are the Same
By now, it’s clear that shelter is not a single product; it’s a framework. And depending on the provider, it can be delivered in very different ways. Some providers offer a narrow menu of administrative services. Others deliver a fully integrated ecosystem, complete with built-in infrastructure, support teams, and on-site services. Some structure everything under one legal entity. Others create new ones for each client.
This is where it becomes important to look not just at the services being offered, but at how they’re delivered, who’s responsible, and how much flexibility you’ll actually have as your operation evolves.
At Tetakawi, we’ve developed multiple models to reflect different entry points and long-term strategies. These include:
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Shared Entity: For companies that want the fastest, most efficient launch using our existing IMMEX-certified structure.
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Independent Structure: For manufacturers that prefer separation, but don’t want to manage the complexity of forming and running their own Mexican entity.
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Launch-and-Transition: For teams that want to start under shelter and gradually internalize functions as they scale.
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Long-Term Shelter: For manufacturers that simply want to focus on making great products, and want an expert to manage the rest.
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Manufacturing Community Model: For companies that want to plug into a fully developed industrial campus with onsite services, shared infrastructure, and a vetted labor pool on tap. This is typically the quickest, mode cost effective, and risk averse way to expand into Mexico.
Shelter vs. Standalone: Which Path Fits Your Strategy?
For some manufacturers, especially those with prior international experience or deep internal teams, going standalone in Mexico may be a better long-term fit. But it comes with longer timelines, more internal complexity, and significantly higher startup risk.
For others, particularly those new to Mexico or looking to scale with speed and focus, shelter offers a smarter path forward.
Here’s how the two models compare:
What Should You Ask When Evaluating a Shelter?
If you're seriously considering launching in Mexico, your choice of shelter partner is one of the most important strategic decisions you'll make. The right questions will tell you whether a provider is just checking boxes, or truly enabling your success.
Here are a few key areas to probe:
Legal & Structure
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Will we be operating under your legal entity, or one created for us?
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Who owns the IMMEX registration and VAT certification?
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Can we transition to a standalone structure later if we choose?
Service Scope & Delivery
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Which services are included? Which are optional?
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Which functions are delivered in-house vs. outsourced?
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Who manages union negotiations and labor inspections?
Visibility & Control
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Will we have access to workforce data, cost breakdowns, and vendor contracts?
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How involved can we be in recruiting, compliance, or vendor selection?
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What governance structure will define how we work together?
Pricing & Risk
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Is pricing based on headcount, square footage, or something else?
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Are there markups on pass-through costs?
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What are the terms for entry and exit?
What the Process Typically Looks Like
Engaging with a shelter provider doesn’t mean handing over the keys on day one. It’s a structured process with clear milestones. Most companies move through it in four steps:
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Discovery Call: Align on goals, scale, requirements, and whether shelter is a viable path.
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Custom Cost Model: We build a Mexico-specific operating cost estimate tailored to your planned headcount, facility size, and wage assumptions.
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Site Visit: You visit the proposed facility or Manufacturing Community, meet with support teams, and assess infrastructure readiness.
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Contract Structuring: If the fit is right, we finalize scope, pricing, compliance structure, and transition pathways.
Once the contract is in place, Tetakawi helps build out your operation. From regulatory filings and facility readiness to recruitment and import processes, our teams execute so you can focus on production.
This due diligence phase typically lasts 2–3 months, depending on company size, internal decision-making culture, and the urgency of your expansion.
Our approach is simple: move at your pace, provide transparent guidance, and support you in making the right decision—whether that leads to Mexico or not, and whether or not shelter is the right model for you.Final Thought
The shelter model isn’t just about speed—it’s about execution. It’s about enabling your team to operate in Mexico without having to master every aspect of Mexican law, labor policy, import regulation, or real estate development.
And when done right, it becomes a competitive advantage.
If you’re exploring Mexico, the best next step is a conversation.
Thinking about manufacturing in Mexico? Download this ebook and start moving your due diligence forward.
