Notes on shelter services in Mexico
Starting to do business in a new country is not an easy endeavor. Legal incorporation, tax matters, human resources’ management, cultural differences and language are only some of the elements which play key roles in the success of any business start-up in a new country.
Duly advised by professional Mexican legal counsel, foreign companies may negotiate and formalize tailor-made shelter or service agreements, pursuant to which a foreign company may receive specialized services from a shelter service provider that supplies a Mexican company or legal entity under which it may operate. This structure effectively provides a form of “shelter” to the foreign company allowing it to operate in Mexico, as well as the local business advice required for a smooth start-up of operations. In most cases, the shelter service provider may assume a significant portion of the new business’s administrative functions, including human resources management, treasury, and even certain operational aspects of the business.
The variety of arrangements is unlimited. Through these types of agreements and the business advice and input of a top-quality legal team working together with the experienced service provider, foreign companies may rely on an experienced multi-cultural staff and reduce the risks involved in the management of a business start-up operation in a new country. Consequently, the foreign company’s team may fully concentrate on its core business.
Through a shelter arrangement, a foreign company may start to do business in Mexico even without incorporating a Mexican subsidiary, avoiding bureaucracy and saving time and costs during its start-up operations, since the entity under which it may operate in Mexico is already incorporated and ready to start. In this way, the foreign company may directly benefit from permits, licenses, and tax programs already issued or processed in favor of the shelter company, such as IMMEX, PROSEC, or DRAWBACK. Accordingly, the shelter company is the entity directly subject to the permits and regulatory requirements applicable to operating in the country, and it is the Mexican service provider who handles such filings and procedures, without the foreign company having to concern itself with them.
When properly structured and professionally formalized, these shelter agreements allow the foreign company to assume full legal and operational control of all aspects of the Mexican entity upon the expiration of a previously agreed term, at which point the business will be fully operational and on track, and the shelter’s internal team in Mexico will be experienced in the business’s local practices and culture.
Through the proper legal structure and the negotiation of a tailor-made service agreement, practically there is an open-end of options and possibilities. All combinations are possible.
Some of the industries that may benefit from this business model include the maquiladora industry, automotive, electronics, logistics, energy, financial services, retail, food and beverage, biotechnology, among other industries. Another key benefit of this model is that it allows foreign companies to test the market and assess the viability of their business in the country before committing to a long-term investment. This model is particularly useful for companies seeking to evaluate the potential of their products or services in a new environment, as it provides them with time to adjust their operations and strategies to the Mexican market.
The complex legal issues arising of a business start-up require the advice of a professional and sophisticated legal team: working closely and in coordination with an experimented legal firm in Mexico is the best start towards an efficient management. Risks and business go hand in hand; however, some of the risks involved in a new business venture may be efficiently managed through a shelter services agreement.
February 2026.
This article was originally written in 2001 by Jaime Treviño and updated in February 2026 by Emilia Cardona. Please send any questions or comments to info@jata.mx. The original author is the Managing Partner of JATA – J.A. Treviño Abogados and the Resident Partner of the firm’s Houston office, and may be contacted at jtrevino@jata.mx. The co-author who updated and supplemented this article is a Senior Associate at JATA and may be contacted at ecardona@jata.mx. JATA is a Mexican law firm with offices in Monterrey, N.L., Mexico, and Houston, Texas.
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