Case Study
Client
US-based tech company
Industry
Security cameras and building management systems
Headquarters
USA
Employee Count
Approximately 2,500
Client Background
As demand for its solutions grew globally, this U.S.-based provider of cloud-managed security cameras and building management systems, valued at more than $3 billion, engaged Factum Global to provide vital market intelligence, strategic business, and operational guidance critical to its expansion and establishment of an entity in Mexico. The firm also provided in-market legal advisory services to help the client manage in-country risk and to ensure a smooth entry into the market.
Weighing the Options through Research
Factum Global analyzed various legal entity structures, regulatory considerations, and operational approaches to help the company choose the optimal setup for its needs. Then, the firm provided a comprehensive custom report examining the pros and cons of establishing a subsidiary, compared to using the company’s existing distribution model. Factum Global’s local legal experts weighed factors like tax implications, administrative costs, timelines, and compliance with Mexico’s “Beneficial Owner” regulations requiring disclosure of foreign entity ownership.
Based on the client’s priorities – establishing a direct local presence to enable seamless expansion, while limiting initial outlays – Factum recommended incorporation of a Mexico-based S de RL subsidiary. Their strategic assessment concluded this offered the right balance of control, regulatory adherence, and cost efficiency.
Operational Support
To operationalize this new entity, Factum Global leveraged its partner network in Mexico. Local legal services partners handled many aspects of incorporating the new entity, including drafting bylaws, registering the entity, and securing required licenses.
Meanwhile, Factum Global arranged for a trusted provider to establish a compliant in-country commercial address and tax domicile for the new entity. Factum Global also ensured all “Beneficial Ownership” disclosures were addressed to meet Mexico’s reporting rules.
Global Market Entry
For any U.S. company looking to enter the substantial Mexican market, Factum Global provides invaluable insights and practical support to build a secure, compliant foundation for growth. Its consulting services help technology firms capitalize on new opportunities in Mexico and beyond.
Outcomes
Within two months, the client had a fully functional Mexican subsidiary, allowing the company to import and distribute its products locally. Factum Global’s market intelligence, strategic consulting, and in-country partnerships enabled the smooth establishment of the new Mexican entity.
