Venturing into a business in Latin America may be difficult today due to the global pandemic, but there are ways to make doing business easier in the region. 

Latin America is one of the fastest-growing regions in the world in terms of technology, business, and economy. It is no wonder that many are trying to venture into different businesses in the region. However, if you are a foreigner, there are legal things you should know to experience ease in doing business in the region.

Here are some of the tips and advice from the managing director and founder of a company that helps different businesses expand in Latin America and to ensure that your business will achieve its goal according to a published article in Forbes.

Choose Your Market Entry Route Carefully

There several options for entrepreneurs in opening up a business in Latin America but expanding it is another crucial step because it is influenced by how your business is governed and the legal obligations you assume. The structure you choose and your business plan should be appropriate. 

Moreover, market entry in Latin America varies depending on the country but here are some common methods you should know:

  • Forming a company or a branch office
  • Hiring staff through a professional employer organization 
  • Exporting directly into the country 
  • Partnering with a third-party provider for support with commercial representation

Some many businessmen and entrepreneurs chose to venture business in Latin America by incorporating in a company but this entails a large-scale investment compared to some other options. 

Know The Legal Requirements For Company Incorporation

If you choose to incorporate a company, you must know the requirements for establishing a company in Latin America.

Foreign businessmen have limitations in the region. These are the most entities that can be incorporated to help you guided in doing business in Latin America.

  • Appoint a legal representative 
  • Prepare the company bylaws in accordance with local legislation
  • Register the company before government authorities (usually a chamber of commerce or public registry) 
  • Obtain tax identification
  •  Open a corporate bank account (to help you keep your assets separate and facilitate business transactions) 

Understand Your Company's Annual Compliance Requirements 

If you have a business from any country in Latin America, it is very important that you know and understands your corporate compliance requirements. This is to avoid penalties and other sanctions that are governed by the government. Violating it may hinder your operation. 

Conduct Regular Entity Health Checks 

This is one of the good ideas that entrepreneurs and businessmen should do while doing business in Latin America. This will help you understand if your company is following the compliance concerning government authorities. This will also mitigate risks that could harm your business. 

If possible and necessary, hire an external auditor to check if your company is paying the tax, labor, accounting, and corporate obligations. 

Register Your Trademark

You have to make sure that your trademark is registered in any country where your business is. This is your legal security that makes your company or your product distinct from other companies. Always remember that trademark is legal protection over the commercialization of your services and products. 

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