Law for the Promotion of the Competitiveness and Economic Development of Baja California (Pass by the State Congress on June 10th, 2005)
I. Tax Free Benefits given to new and established companies that:
A) Exhibit a new, expansion or technological investment projects*.
They may be rewarded with a:
25 to 100% exemption on the Payroll Tax, during a period of 1 to 5 years.
20 to 50% exemption on the Water Connection System Fee.
* The following aspects evaluate the investment project:
Number of jobs, incorporation of students in the production processes as well as disable and 60+ year-old people.
Quality of jobs.
Amount and origin of the investment.
Amount invested in technology.
National and Local Suppliers.
Market access.
Place of establishment.
B) Reuse or treat 100% of their water consumption, with a 30% exemption from the monthly payment as long as the company reuses or treats the water.
C) Hire disable or 60+ year-old people, with a 100% exemption in the Payroll State Tax as long as they are hired.
II. Non-Tax Benefits:
A) Public Infrastructure. - There is a public fund (FOINFRA) to support public infrastructure required for the establishment or expansion of strategic companies.
B)Enterprise Development. - Direct support for small and medium enterprises in:
Training
Specific Consulting
Financial aid
Information regarding statistics, economics and data for the decision-making process.
Articulation of programs, products, tools and actions in order to increase their competitiveness
C) Assistance. - An investment promoter will be assigned to your project to serve as a liaison between your company and the governmental federal, state, and municipal offices.
D) Market Access. - The Secretariat of Economic Development in coordination with other authorities will support small and medium companies in different markets by:
Providing technical assistance to companies with high exportation possibilities
Promoting their products in national and international fairs and shows.
Additional Non-tax Incentives
One-stop Information Desk
The Secretariat of Economic Development through its officers will serve as your one-stop information desk that will provide any necessary assistance, help with paperwork, and serve as liaison with local businessmen, Industry Chambers and organizations related to your project. In addition, The Secretariat of Economic Development can assist you in the site selection.
License Fees
Assistance during negotiations with Municipal Government regards any license and/or permission fee that your company might need, in order to start operations in our State.
How to do successful businesses in Baja California? Seminar
The Secretariat of Economic Development will provide a free and custom-made legal, accounting, customs seminar, in order to resolve many of your questions, related benefits and requirements of doing businesses in Mexico.
Personal Assistance
The State Government of Baja California will assign an Investment Promoter to assist you in the complete life span of the project. The Promoter will give you a tour trough the main cities, its industrial parks and main businesses areas.
Independent Consultant
The Secretariat of Economic Development will serve as a liaison with local consultants.
Workers Training Benefit
Payment for up to 2 months of 1.5 Minimum Daily Wage for workers training. The Mixed Training program is provided by the National Employment Service, and consists in supporting the new employees with a scholarship while in training. The courses will last from 1 to 2 months between six and eight hours daily, and must be 70% practical and 30% theoretical. Each group must have more than 10 people.
Using this program you will save time and money searching for qualified hand labor. The company will increase its productivity, being the most important benefit, the cost saving on the payment of wages while training the employees.
An agreement must be signed and an authorization of the National Employment Service is required, which is a government agency that helps companies for free to fulfill their employees’ requirements. The company will make the training courses program according its requirements; however, if the company needs any help, the National Employment Service can support you.
