Turnkey Employment Solutions in Mexico: Q&A
Q: Can we hire employees in Mexico without opening a legal entity?
Yes, there are multiple turnkey employment models in Mexico for easily and quickly build a workforce with a local partner, without the need to open a legal entity.
👉 How to Hire Talent in Mexico without a Legal Entity
👉 EOR vs Entity Setup: Which is Right for you?
👉 How to Set up a Legal Entity in Mexico
Q: What are the legal requirements to hire employees in Mexico?
Mexico has a labor law that is aimed at protecting worker rights, including minimum legal benefits, employment contracts with severance, and strict collective bargaining (union) regulations.
👉 Labor Law in Mexico [2025] - Download the free e-book
👉 Doing Business in Mexico: Labor Costs & Feasibility
Q: Can we access tax incentives or IMMEX benefits if we’re hiring staff?
Yes, the IMMEX program has a modality for exporting services from Mexico with tax incentives. This makes it attractive for companies in North America to access top talent in Mexico for their corporate operations.
👉 An Overview of the IMMEX Program in Mexico
👉 Build a Nearshoring Service Hub in Mexico: Tax Incentives
👉 How Nearshoring is Driving Growth in Shared Services
Turnkey Employment in Mexico: Success Case Studies
Explore different ways companies have utilized turnkey employment solutions in Mexico to grow and optimize their North American operations.
Mindfacturing®: Prodensa's Turnkey Employment Solution in Mexico
Mindfacturing® by PRODENSA is a turnkey employment model that allows clients to hire talent in Mexico via a binational Employer of Record (EOR) solution.
Benefits of Mindfacturing® in Mexico
- Simplified Operations PRODENSA manages all HR and administrative functions using proven expertise, allowing companies to focus on core activities without worrying about local compliance.
- Cost-Effective No need for establishing a local entity, which reduces entry barriers and operational costs. Economies of scale in HR services provides additional value.
- Talent Pool Quick access to Mexican talent pool.
- Quick Market Entry Enables companies to quickly hire and deploy staff in Mexico, speeding up the process of market entry and operational setup.
Limitations of Mindfacturing®
- Limited Functions The economic activities performed by the employees must be eligible for the program; this model is not suited for all business functions.
- Efficiency Threshold Establishing your own administration and legal entity might become more efficient and cost-effective once certain expense thresholds are reached.
Hiring in Mexico via a U.S. Contractor
Through PRODENSA's Mindfacturing® model, companies can engage with a Mexican Employer of Record (EOR) service to legally employ staff in Mexico without establishing a local entity. This setup allows companies to have employees in Mexico who perform tasks beneficial to operations primarily conducted outside of Mexico. The employees are hired under full legal compliance, creating a scalable structure for office functions.
How to Use Turnkey Employment Services in Mexico
Imagine a U.S.-based tech startup that needs a team of software developers but wants to avoid the complexity and cost of setting up a branch office in Mexico. By using Mindfacturing®, the startup can hire a team in Mexico, where PRODENSA manages all HR and administrative functions just like an extended HR department, without the startup needing a physical or legal presence in Mexico.
With all of PRODENSA's turnkey operational models, there are benefits and limitations.
Beneficial For:
- Industry Suitability Startups and small businesses looking to test the Mexican market. Specific for: IT development, accounting and administration, R&D, consulting firms, digital marketing agencies.
- Particularly Appropriate for: Tech companies, professional services, and engineering/design fields.
Not Suitable For:
- Local Service Requirements Operations that require on-site service or interaction with Mexican legal entities.
- Business Process Outsourcing (BPO) Clients requiring to outsource entire business functions to a 3rd party, including supervision and KPI responsibilities.
Are you ready to build a functional team in Mexico for your corporate operations?
Contact us to explore Prodensa's flexible turnkey employment solutions in Mexico, and how they can provide you the scalable route to build and future-proof you talent operations.
