How Shelter Services Work in Baja California

For many US companies, the idea of incorporating a Mexican entity, dealing with Mexican labor law, and navigating tax codes (SAT) is a non-starter. Enter the Shelter Service model.

What is a Shelter?

A Shelter Service Provider (like the ones we partner with) acts as your legal "umbrella" in Mexico. They are the legal employer of record and the importer of record. You retain full control over your production process, quality, and supply chain.

Why Choose a Shelter?

• Speed to Market: You can be operational in as little as 90 days. Forming a standalone Mexican corporation can take 6-12 months.
• Immediate Certification: Shelter companies already possess the coveted "IVA Certification" (VAT Certification), allowing you to import raw materials and machinery without paying 16% VAT upfront.
• Reduced Liability: The Shelter assumes the labor and legal liability. You focus on making great products.

The Cost Structure

Shelters typically charge a management fee (often a pass-through plus a markup or a per-head fee). While slightly more expensive than a standalone operation in the long run, the speed and risk reduction make it the preferred entry mode for 80% of foreign manufacturers in Baja.