How To Establish a Mexican Manufacturing Company: A Comprehensive Guide
It’s a common misconception that manufacturing in Mexico is only for large companies with plenty of resources. The truth is that small and medium-sized businesses can also establish Mexican manufacturing operations. Mexico is a quickly developing country with plenty of opportunity for manufacturing. In this article, we review the most vital considerations when establishing a Mexican manufacturing company. We cover everything from finding land for your factory and what permits you need to hire employees and find reliable suppliers.
Tacna is a leading service provider helping companies establish their Mexican manufacturing operations. We hope that by reading this comprehensive guide on establishing a Mexican manufacturing company, you will be able to make an informed decision about whether or not it is suitable for your business.
Process of Establishing a Mexican Manufacturing Company
The process of establishing a Mexican manufacturing company can be broken down into three main steps: selecting land, obtaining the necessary permits for your factory, and finding reliable suppliers. After you have finished those first two steps, hiring employees will be one of your following considerations.
We recommend that when looking for land to use as a site for your factory, it is best to find an area with easy access to roads or railroads (to transport goods) and close enough, so they are not too congested with traffic and noise pollution. You may want to consider areas outside Mexico City or in states like Jalisco because there are fewer industrial zones there which mean less competition among manufacturers. Tacna has extensive experience locating ideal sites on behalf of clients.
One of the first steps to establishing a Mexican manufacturing operation is obtaining all necessary permits from local authorities, and Tacna’s permitting team can help navigate Mexico’s confusing regulatory environment.
You’ll need to find suppliers that can produce superior goods at competitive prices. Tacna has extensive experience working directly with manufacturers like yours and can help find high-quality suppliers that can meet your needs.
Finding Land and the Right Permits to Build on It
The first step in getting ready for building a factory is finding land. There are many available commercial building plots in Tacna, ranging from larger parcels to smaller ones.
However, before you put any bills down on potential sites, your business will need permits which often take months, if not years, to obtain depending on how complex they are (e.g., compliance with environmental standards). We advise our clients who want their factories up and running sooner rather than later to plan and factor in the time and money required for any permitting process.
Also Read: 7 Signs Your Company Needs a Mobile App
Work Visas for Your Employees and Suppliers
It’s possible to hire Mexican workers without a work visa, but it is not easy.
The company must provide the worker with food and shelter, which significantly increases operational costs for small businesses that are just starting up or have limited capital. The business must also pay into social security and public health insurance funds during this period before they can apply for a tax ID number; all of these details should be outlined in any agreement you make with your employees about their employment at your company. It might crack like a lot to take on when first starting, but if you’re looking to establish long-term relationships with suppliers, then this could serve as an advantage down the line!
A work permit will allow both nationals and foreigners from outside North America to work in Mexico.
To establish themselves, they need to create legal entities that set the parameters of their business and provide them with credibility and visibility within the Mexican government and internationally.
So now you know how to establish a Mexican manufacturing company. You should be all set and ready for your big project, but if it feels overwhelming or confusing at any point along the way, don’t hesitate to reach out to us so that we can help! We are an experienced team of marketing professionals who have helped many other companies like yours take their business from the start-up phase into successful international brands. Reach out today, and let’s get started on making your dreams come true!
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