If you are looking for a property to rent in Mexico, specially an industrial building, you need to consider 5 key points before choosing one.

  • Size.
  • Physical location. Is it in an industrial park?
  • Logistic facility with connectivity to the main train lines that run North to South of Mexico.
  • Infraestructure: You must verify if the property has:
    • Electric power substation.
    • Water supply.
    • Sewage and drainage networks.
    • Undergrown communication system.
    • Natural gas.
    • Security stations.
    • Good enclosure.
    • Landscaping.
  • Environmental protection.

 

Steps to leasing an industrial building in Mexico:

  1. Choose the type of property. Industrial property is generally divided into three categories: warehouse property, manufacturing property, and flex (mixed use) property.
  2. Search online for property listings. Search online to find listings on many real estate websites, or directories of industrial parks in Mexico.
  3. View multiple properties in person. Even after extensive viewing online, you should always examine properties in person.

 

Evaluating rent terms:

  1. Ask about hidden expenses.
  2. Know your rental obligations.
  3. Research about the industrial park where is the warehouse.

 

Be secure about every aspect of the warehouse you are looking for and choose the best option.

Are you looking new locations to expand your business? Are you sure that the country chosen is the best option to invest?

Already Third World countries have challenges like range from poor accountability and transparency, high levels of corruption and the concerns for security problems in its financial sector and absence of human resources and supplies as food , health or education are growing.

 

According with International Monetary Fund, Third World countries “face formidable challenges when they attempt to establish efficient tax systems. First, most workers in these countries are typically employed in agriculture or in small, informal enterprises. As they are seldom paid a regular fixed wage, their earnings fluctuate, and many times are paid in cash, “off the books.” The base for an income tax is therefore hard to calculate. Nor do workers in these countries typically spend their earnings in large stores that keep accurate records of sales and inventories”.

 

Also, according to the 2015 Resilience Index, by FM Global (international commercial and industrial insurance company), countries as Tajikistan, Egypt, Pakistan, Jamaica, Honduras, Dominican Republic, Nicaragua, Mauritania, Kyrgyz Republic and Venezuela score very poorly on economic factors: GDP per capita, political risk and oil intensity.

More businessmen are considering Mexico as the best country to invest. It’s market size, international competitive, and strategical position are attractive to doing business, also it is the first Latin American member of the Organisation for Economic Cooperation and Development (OECD) and it has 11 agreements covering 44 countries with a potential market access of up to 60% of the world’s GDP.

Even some First World countries have risk of terrorism, worsening perceptions of infrastructure, quality of local suppliers, being vulnerability to natural hazards: wind, floods or earthquakes.

Click here to know more about the Mexican industrial parks and its advantages.

Doing business in Mexico may be a challenge if you don’t know everything about the country so read here some situations you could suffer at arriving to Mexico.

 

  • Poor adaptation to the Mexican business culture
    Mexican businessmen usually have entrepreneur relationships beyond business . They tend to base their entrepreneur relationships in links, friendship and appreciation. So often they close negotiations in cocktail reunions, mealings or meeting families reunions. In Mexico is common to enjoy social environment beyond business office which is less common in foreign business environment.
  • Time range
    Not estimating the average time to start operation in your strategic planning according your resources and bureaucratic processes could delay the beginning of activity in Mexico.  
  • Distribution channel bad chosen
    In Mexico, don’t knowing the distribution channels can be a failure business factor, also don’t evaluating providers, don’t estimating logistic times and procedures  will affect shipping products to customers.
  • Dependent Mexico
    Mexico depends closely for actions done by USA about politics and economy, so don’t considering possible scenarios in Mexican business environment could be a risky factor.
  • No costs balance
    In Mexico the costs of infrastructure and manpower are low compared with other countries as USA or China but if you don’t know tax regulations or you don’t contract a CPA then your business will have a negative impact in the costs of your processes.
  • Getting wrong CPA
    In Mexico there are many financial accountant but only few are certificated specialists by the Mexican Institute of Public Accountants (Instituto Mexicano de Contadores Públicos, IMCP). So underestimating the importance of a CPA or choosing the wrong financial accountant can be dangerous to your business.
  • Wrong landing
    In México there are more of 250 industrial parks, which are platforms to have best operations and business control. Don’t considerate the landing of your business into an industrial park could bring you logistic problems, bad business relationships and wasting time.

 

Before starting a business in Mexico, be sure that you have the correct information, even it that includes a reliable translator when you will sign a contract.

In Mexico, the contract is the most important piece to start a business. Click here to know what aspects you must verify in a legal mexican contract.

Thinking about moving to Mexico?

Mexico has become one of the most attractive investment countries for industries in the world so if you want to have a work team in Mexico you will need legal, financial and accounting counselling provided by a shelter service.

A shelter service is flexible and offers you an adaptable and custom solution to establish your business in Mexico.

 

You need the correct information to make a soft transition from your project concept to operation stage. This stage is a crucial moment for the success of your Mexican operation.
Mexico has different business environment so the shelter service you are going to choose must offer you these key points to work in without risks:

    1. Legal: Be secure about the structure that your project needs from the legal incorporation to the type of contracts that you will require in Mexico.
    2. Immigration: Advice on the design over the HR structure and its estimated cost.
    3. Environmental: Advice over the different permits and systems that must be established before starting production, sales, Warehousing or any other specific activity related to your business.
    4. Accounting: The specific Mexican rules and the legal requirements needed to be fulfilled in order to meet fiscal obligations.
    5. International trade:  Mexico has a complex network of international trade agreements that  can benefit your business. You need advice over the best strategy to follow in order to fulfill your clients needs and your desired business model.

 

Choose the shelter service according to your needs, which provide you qualified employees and secure the required visas for your japanese employees.

Contact a world class team of advisors who will help you to ease through all the legal, taxing and accounting processes in Mexico, so you can only focus in what are you good: doing successful business.