What is a shelter service in Mexico and how does it work?

A Mexican shelter service is a legally established Mexican company that acts as the importer of record and employer of record for a foreign manufacturer operating in Mexico. The shelter holds the IMMEX (PITEX) permit that authorizes duty-free import of materials and equipment for export production. The US client company retains full operational control — directing production, managing quality, and controlling their supply chain — while the shelter handles all Mexican legal, tax, HR, payroll, IMSS social security enrollment, customs administration, and government compliance. The client never forms a Mexican legal entity.

How long does it take to start manufacturing with a shelter service?

Using an established shelter service, a US manufacturer can begin production in Mexico in 90–120 days: 2–3 weeks for site selection and facility evaluation; 1–2 weeks for shelter agreement execution and IMMEX program enrollment; 3–4 weeks for facility preparation and equipment installation; 2–3 weeks for workforce recruitment, screening, and training; 2–3 weeks for pilot production runs and quality validation. By comparison, establishing a standalone Mexican S. de R.L. de C.V. corporation requires 6–12 months for SAT registration, IMSS enrollment, INFONAVIT compliance, IMMEX permit approval, and labor contract establishment.

Who legally employs the workers under a shelter service?

Under the shelter service model, the shelter company is the legal employer of all production workers in Mexico. The shelter manages hiring, firing, payroll, IMSS (Mexican social security) contributions, INFONAVIT (housing fund) deductions, profit-sharing (PTU), vacation premiums, Christmas bonuses, and compliance with Mexican Federal Labor Law (LFT). The US client company selects and directs workers but has no direct labor legal liability. This is the single largest risk reduction benefit of the shelter model — Mexican labor law litigation is entirely the shelter's exposure, not the foreign client's.

What are the costs of a shelter service in Mexico?

Shelter service fees typically consist of: (1) a per-employee-per-month management fee ranging from $150–$350/employee/month depending on services included and employee count; (2) a direct pass-through of actual Mexican payroll costs (wages + mandatory benefits at ~30–35% of base wage); and (3) facility lease (typically market rate for the industrial park, passed through without markup). Some shelters charge a flat percentage of labor payroll (8–15%). Total overhead including shelter fees averages $1.50–$3.50/hr per direct labor employee above raw payroll cost. This is more expensive than a standalone operation at scale (500+ employees) but provides significant value for operations under 300 employees.

How Shelter Services Work in Baja California

Understanding the shelter model: the fastest, lowest-risk way to start manufacturing in Mexico.

For many US companies, the prospect of incorporating a standalone Mexican S. de R.L. de C.V., navigating unfamiliar federal labor courts, and managing SAT tax codes is a complete dealbreaker. This is exactly where the Shelter Service model excels.

What is a Shelter?

A Shelter Service Provider is a legally established Mexican corporation acting as your importer and employer of record, handling all administrative, HR, and tax compliance, while you retain 100% control over production and quality.

The shelter operator essentially places a proactive corporate umbrella over your factory floor, reducing legal exposure to zero.

Why Choose a Shelter?

Foreign manufacturers overwhelming choose the shelter model because it slashes market entry timelines from 12 months down to 90 days, grants immediate VAT tax exemptions, and eliminates catastrophic Mexican labor law liability.

Operational Dimension	Shelter Model	Standalone Entity
Setup Timeline	90 - 120 Days	6 - 12 Months
Legal Liability	Zero (Absorbed by Shelter)	100% Client Liability
VAT Certification (IVA)	Immediate Use	12+ Month Wait Period

The Cost Structure

Shelters charge a fixed management fee, often ranging from $150–$350 per employee monthly, representing a highly efficient variable cost that is significantly cheaper than hiring internal Mexican HR, legal, and customs compliance teams.

The standard inclusions generally cover:

Recruitment: Sourcing, screening, and hiring assembly line workers.
Payroll Administration: Calculating complex IMSS, INFONAVIT, and severance allocations.
Customs (Pedimentos): Legally importing raw materials duty-free.
Facility Leasing: Securing Tier-1 real estate on behalf of the client.
EHS Compliance: Ensuring full localized environmental and safety protocol adherence.

How Shelter Services Work in Baja California

What is a Shelter?

Why Choose a Shelter?

The Cost Structure

Evaluate Your Landed Cost