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How can companies navigate the legal aspects of reshoring in Mexico?

NovaAdmin · January 17, 2024 ·

Yes, there are government incentives in Mexico to encourage reshoring. These incentives are aimed at attracting businesses to bring their manufacturing operations back to Mexico. There are some challenges, as the legal aspects of reshoring in Mexico are often times complex. Some common government incentives include:

  1. Tax Benefits: The Mexican government may offer tax incentives, such as reduced corporate taxes or tax exemptions, to companies that choose to reshore manufacturing. These legal aspects of reshoring in Mexico can contribute to significant cost savings for businesses.
  2. Subsidies: Companies reshoring to Mexico may be eligible for subsidies to help offset various costs associated with the relocation. These subsidies could cover expenses related to infrastructure development, workforce training, or technology investments.
  3. Customs and Duties Exemptions: To facilitate reshoring, the government may provide exemptions or reductions on customs duties for importing equipment, machinery, or raw materials. This helps lower the initial investment and operational costs for businesses.
  4. Regulatory Support: Mexico may offer streamlined regulatory processes and administrative support for companies engaged in reshoring. Simplified procedures can expedite the setup and operation of manufacturing facilities.
  5. Infrastructure Development Assistance: The government may provide assistance for infrastructure development, including support for building facilities, improving transportation networks, or upgrading utilities. This infrastructure support enhances the overall business environment for reshoring companies.
  6. Workforce Training Programs: To ensure a skilled labor force for reshoring companies, the government may implement workforce training programs. This helps address any skill gaps and ensures that the local workforce is well-prepared for the specific needs of reshored industries.

Legal aspects of reshoring in Mexico can be daunting. It's advisable for companies considering reshoring to Mexico to conduct thorough research, consult with local authorities, and take advantage of these incentives to make the reshoring process more economically attractive and feasible.

About NovaLink

As a manufacturer in Mexico, NovaLink employs a unique approach that transcends the traditional model of shelter production. More than just the location of your manufacturing, we would like to become a partner in your manufacturing in Mexico. You will be able to relocate or initiate manufacturing for your company in Mexico in a low-cost labor environment with very little delay or up-front costs. Find out how we can help you by handling the manufacturing process.

There are NovaLink facilities in the border cities of Brownsville, Texas, Matamoros, Mexico, and Saltillo, Mexico.

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