There are several ways of how a company get establish in Baja California. The main ones are to settle down by themselves, to look for a manufacture subcontract, or to contract a Shelter company of administrative services.

Some of the main advantages when establishing their operation of manufacture in Baja California are:

1. The foreign companies can acquire properties and have control of the 100% of their operations.
2. Proximity with California, USA (We are a same region).
3. The foreign companies are free to buy or to rent properties in Mexico.
4. Great availability of manual labor.
5. It found stable and competent labor a force.
6. Competitive costs of manual labor.
7. Greater production per working hours (48 hrs. workable for week).
8. Potential sales in Mexico.
9. Stable political climate.
10. Registry in program PROSEC (Import of raw materials no available in Mexico with competent tariffs).
11. Option to work in Mexico and to live in the United States.

Considerations:

Some of the important facts that a company should considered before installing its operations is the site selection, cultural differences and professional support (lawyer, counter, custom brokers, among others). All the legal requirements must be accomplished.

Stand alone

While establishing your own company all the legal responsibility is acquired. The company must hire all the administrative positions. This option is mostly chosen by middle or big size companies. The State Government through the Secretariat of Economic Development will serve as a liaison between Government offices and the company, to support all the process. 

Subcontracting

If subcontracting, direct investment in Mexico is not required, there are no long term liabilities. This is an easy and fast way to start operations because it only requires a simple purchase order.

Most of the times, the client provides the machinery, specialized equipment, raw materials, product and quality specifications. If necessary the client will also provide technical support. The quality of the product and legal responsibility in Mexico is assumed by the subcontractor. 

Billing options are: per piece price, per hour worked and cost plus. Finished product is quoted F.O.B. client facility.

Shelter Program

Shelters operators serve as a guide for services such as: accounting, taxes, payroll, project administration, customs, human resources and all the administrative aspects of the company.

Besides, Shelter operators provide: counsel for site selection and all kind of red tape for import and export permits, assistance in direct labor selection (technical and managerial personnel), among others.