Latin America can be a somewhat complicated region for multinational companies in regards to compliance with corporate regulations, state legislation and bureaucratic obstacles. Companies seeking to invest and operate in Latin America face substantial amounts of administrative processes that can impact on time, money and resources. This impact is multiplied by the need to comply with laws that are often difficult to interpret and are applied inconsistently.
Keep reading to learn how a local partner can ensure you comply with local and international legislative requirements through the provision of professional corporate secretarial services.
What are the Advantages of Doing Business in Latin America?
Latin America has important assets for their commercial relations with the world, such as improvements in their macroeconomic indicators, reduction in poverty and unemployment, having a large and diverse pool of natural resources, increasingly educated population and a high number of Regional Trade Agreements (RTA’S).
The strategic global importance of the region is growing. At the same time, Latin America remains a region of diverse opportunities. Most countries in the region today have a reliable democracy, with most of them having a responsible management of macroeconomic, monetary and fiscal policies.
There has been sustained economic growth over the past decade with the region showing economic stability and recovery capacity (proven post the 2007-2008 Global Financial Crisis).
In addition, Latin America has 15% of the world’s oil reserves, large mineral reserves, a quarter of the world’s arable land and a third of its drinking water. All these vast resources offer a diverse array of commercial opportunities in Latin America.
The Complexity of Commercially Operating in Latin America?
Different studies have classified jurisdictions throughout Europe, the Middle East, Africa, Asia-Pacific and the Americas according to how complex they are to do business from a regulatory and compliance perspective.
While some Latin America countries are still dealing with complex business processes and procedures as a result of previous governments who were not welcoming of foreign participation, other countries have welcomed investment. Countries such as Peru, Mexico, Chile and Ecuador have elected governments over the past years who have been ‘pro-investment’, and as such, have made a welcoming business environment for those interested in operating in the region.
Need For Corporate Secretarial Services in Latin America?
Despite recent efforts to simplify doing business in Latin America, there are still complexities and complications when operating in the reason. This is amplified when companies are new to the region and have limited knowledge of local law and regulation.
For this reason, it is recommended to work with a local partner who can support business operations through the provision of corporate secretarial services. These services can include the following:
- Maintaining electronic copies of statutory registers
- Drafting documents for annual general meetings
- Ensuring statutory returns are submitted
- Drafting corporate documents
- Corresponding with local authorities
Doing Business in Latin America? Need Local Support?
Doing business in Latin America can be somewhat complex without the right guidance and support. Given the depth of business opportunities throughout the region, it is no surprise that smart businesses are setting up offices in Latin America.
Biz Latin Hub has offices in all key Latin-American jurisdictions supported by a team of local and professional experts that can help you to successfully operate in the region. Reach out to the Biz Latin Hub CEO and Co-Founder, Craig at [email protected]
Unsure of the tax and accounting requirements in Latin America? Need more information? See the link below for more information.