DARE - Because Entrepreneurs Do

Making it in Monterrey, Mexico

In 2003, when Rajiv and Thomas, both in their late 30s, chalked out a plan to visit Mexico, they had no idea that their holiday trip would lead them to discover the business potential of Monterrey, the capital city of the northeastern Mexican state of Nuevo León.

Co-founders of an India based software development firm, they were thrilled to observe the country’s commercial potential and experience the friendly and open business climate that has helped Monterrey evolve into an enormous industrial and commercial centre.

Booming Economy
Monterrey was recognised by Fortune magazine, in December,1999 as the best place in Latin America to do business.

Today, 13, 251 companies in Monterrey produce 9.4 percent of Mexico’s manufactured products and 30% of Mexico’s manufactured exports. Monterrey accounts for about 95% of the State of Nuevo Leon’s GDP and 8.6% of Mexico’s GDP.

Blessed with a strong steel industry, Monterrey is often called “the Pittsburgh of Mexico”. Major conventions are held often in the city, making it a perfect place to network with people from Mexico and Latin America.

The country’s free trade agreement policy is a great boost to this city’s economy.

Two airports, railway links, over 35 modern industrial parks and a modern, high tech convention and exhibition centre are all results of this city’s commercial success.

Why Monterrey?
Monterrey has much to recommend it. Global corporations have located here because of the quality of life, ease of conducting business, and access to an educated population with a relatively high standard of living. The city has modern housing facilities for the working class as well as plush residential neighbourhoods for executives. It offers a very high-ranked medical infrastructure and great connectivity with an efficient transport system. It is one of the most important education centres in Mexico and Latin America, with over 30 universities.

Business Benefits
1) Monterrey’s close proximity to the US border has augmented the city’s immense potential as a business hub. Monterrey has 12 flights daily linked with U.S. cities.
2) Monterrey’s strongest per capita income comes from its educated, skilled labour force.
3) It is a favourite location for electronic companies because the city enjoys a strong local sourcing base.

Indian Companies in Monterrey
Several major Indian companies thrive in Monterrey. Sasken, a software development company was the first to enter Monterrey’s market. Thereafter, Aricent, Infosys, Wipro, Mind Tree have expanded their operations in Monterrey. This has helped them to cater to their USA or Canada based clients and also build a market for their products in the emerging markets of Mexico and Latin America.

Check list for Companies
• Zoning: You need to check with the Monterrey Planning Division to make sure that your business meets the Zoning Code requirements. Certain areas of the city have been designated for Commercial and Industrial Use.
• Use permits: Fast food restaurants, businesses providing live entertainment, and those with late hours of operation adjacent to residential areas need to get Use Permit to operate. Use Permits enable the City to review and control their operations.
• New construction: Construction of a new building or an addition to an existing building requires approval of the Architectural Review Committee and building permits.
• Building permits: A proposed business project should meet the current building code and fire safety requirements. Approval can be sought from the Building Safety Division for all new constructions and from the Fire Marshall.
• Obtaining business license: Apply to the Finance Department of Monterrey to get a business license. You should have a permanent location to get the license. The license fees are based on your estimated receipts for the next year. Business licenses are renewed annually in July each year.

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