OPERATION EASE

The time and procedures to open a business, as well as to get construction permits are critical factors for international business success. Likewise, efficiency at international trade procedures are key to take advantage of the opportunities when participating in global business. At the same time, in case of closing a company, the optimal recovery of the investments facilitates the decision making process, since it reduces any risk.

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In Mexico, an investor needs only 8 procedures in order to open a company. This number is significantly lower than in Germany, Brazil or India.

In Mexico a business can open in 8.4 days, while in China and Brazil 22.9 and 79.5 days are needed, respectively.

 

Workforce and operation costs

Aside of labor costs, other factors that affect operation costs (and the companies’ profitability) are the corporate tax rate and the number of tax payments (which implies administrative costs). Mexico observes advantages in these concepts.

Mexico offers significant savings in labor force costs compared to other potential investment locations in America, Europe or Asia. Transferring operations from US to Mexico may generate savings in labor force costs.

 

In fiscal matters, Mexico has significant savings compared with India, China and Brazil. Companies with productive activities in China could benefit with a 15.2% tax rate reduction by transferring operations to Mexico.

In Mexico requires only six tax payments per year, ranking above countries such as Brazil, USA and India.

Freight costs

Besides the lower freight costs, a smaller distance implies savings on transit inventory and on stock inventory. It also gives great capability to respond to unexpected changes in market conditions.

Days of maritime transportation to the main consumer and distribution centers

DESTINATION CITIES

COUNTRIES OF ORIGIN

Nueva York Los Angeles Rotterdam Yokohama Shanghai
Germany 9.8 22.2 0.8 31.7 29.6
Brazil 13.1 19.9 14.5 31.9 30.1
China 28.7 15.9 28.9 2.8 -
Colombia 6.5 8.4 14.4 21.5 23.5
Korea 14.6 27.7 29.9 2.3 1.3
USA - - 9.8 13.4 15.9
India 26.4 25.8 21.9 12.6 10.5
MEXICO 5.4 3.7 14.0 16.9 19.4
Poland 10.5 23.1 1.7 32.6 30.5
Turkey 13.7 25.2 8.7 24.1 22.1

 

 

 

Mexico is located in between the main global consumer markets. It shares a border with the United States of more than 3,000 km; has quick access to the European market through the Atlantic Ocean and to the Asian market through the Pacific Ocean.