Bussines owners planning to expand their company into a foreign country will encounter a variety of situations that require a careful decision-making process, plus time and money. The use of Directorship Services in Latin America from an external provider can help you meet all of the necessary requirements and needs to successfully expand your business into a new market.
One of those needs is to appoint a Director or Manager who has the legal right to represent the company wherever it will be established. However, the details of this process may vary depending on the country you are expanding. Therefore, there are several reasons why a company entering Latin America might consider engaging directorship services.
We discuss the importance of directorship services in Latin America.
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What are directorship services in Latin America?
Directorship services involve all activities regarding the process of recruiting a Director or Manager, and defining the responsibilities of this person to execute the company’s front-office activities successfully and legally. Directorship services also include the replacement of this director, if necessary.
A foreign company can either seek, interview, and hire a local manager or director on its own or retain a local back-office services provider who is able to take responsibility for this process. With the latter option, a back-office services provider can reduce the burden and challenges the company faces, as they have legal capacity to manage the company’s business in the local market successfully.
Directorship services in Latin America are wide-ranging. The most basic is to simply recruit a Director to manage your expanding company. In this case, a back-office services provider can carry out the necessary steps to appoint the director, such as drafting the relevant shareholders’ meeting minute and corresponding acceptance letter.
A provider of directorship services can also be in charge of all the Director’s activities as well. In this case, the director will be the back-office services provider itself. Therefore, it will appoint a person to draft the documents, contracts, and agreements that should be signed on behalf of the expanding company.
Improve the efficiency of the day-to-day in your local branch or subsidiary
The most typical corporate vehicles for a company to expand abroad are a subsidiary or a local branch. Either way, directorship service providers enable the expanding company to keep up-to-date with administrative tasks it may find challenging to deal with.
Through efficient, fast, and clear professional correspondence, a provider of directorship services will be in charge of communicating, requesting and executing certain day-to-day management activities for the local branch or subsidiary. Some of these activities include requesting permits or filing taxes, as well as opening bank accounts or even issuing invoices and other accounting-related activities.
These activities might require the granting of powers of attorney in order to sign certain documents, such as contracts. Certain registrations before local authorities require the signature of the directorship services provider as well. This service will make more efficient this process as well.
Optimize utilities through Directorship Services
A probably more compelling reason to engage local directorship services is the need to know the local market in order to optimize revenue. A directorship services provider might probably know better the local market (or recruit someone that does) in order to advise and lead the decisions and activities that will optimize any expanding company’s revenue in the new market it has entered to.
Do not overlook this revenue optimization strategy through knowledge. Nowadays, market diversification and specialization demand for management professionals that know very closely the industry they are working in. Directorship services providers allow for an easier and more thorough search of such professionals.
Avoid fines and legal problems by staying compliant
Complying with local laws and regulations is paramount in order to successfully expand abroad. Directorship services allow not only for the efficient and timely execution of day-to-day activities but also for complying with legal obligations related to taxes, environmental protection, accounting, and more activities that depend on decisions of a local director. A local directorship services provider will certainly be able to foresee a tax and legal obligation calendar and, consequently, act timely in order to comply with local requirements, laws, and regulations.
Find a Directorship Services provider who understands the local market
In order to benefit from the advantages of engaging a directorship services provider, it is paramount to find one who has the expertise and knowledge of the local market. At Biz Latin Hub, our presence in more than 17 countries in Latin America ensures we carry the expertise and knowledge to support expansion in all key markets in the region.
Its highly-qualified and diverse professionals will allow your company to successfully expand in a new market by optimizing revenue, complying with local laws and regulations, and staying up-to-date with all managerial and administrative tasks. Contact the team at Biz Latin Hub for personalized assistance with your query.
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The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
