A graphic titled "Doing Business in Latin America" from Biz Latin Hub. It features a map of Latin America in blue and gray tones, with a dark mountainous background.

Successful market entry in Latin America – how to do it?

This is a region of the world that has traditionally been overlooked, with business often focusing on markets in Asia, the United States, and Europe. However, market entry in Latin America stands out as an intriguing possibility for many firms, big and small, who are weighing up the options of international expansion.

Partly, that’s precisely because the area has been overlooked for so long and is therefore relatively new ground for international investement, whether that’s through company formation or simply seed capital. Market entry in Latin America tends to be relatively hassle free, although you may find some unusual differences in ways of doing business.

That’s where Biz Latin Hub steps in. We can make market entry in Latin America as smooth as possible for you and our ongoing back office services can help keep you compliant in the long term. Not only that, but with a network of 18 dedicated local offices across the region, we can help you expand further too, offering company formation services all across the region.

How and why to enter the Latin American Market? 

A map of Latin America real estate showing prices per square meter in various cities. Prices range from $896 in Lima to $3,045 in Santiago. The map includes the Biz Latin Hub logo and contact information. The source is Ria Di Tello-Zonoprop (September 2021).
A larger middle class means options for market entry in Latin America

With a US$4.8 trillion economy, over 600 million citizens and a growing middle class, Latin America represents an attractive market for both foreign investment and company expansion.

With over (12%) of the world’s land mass, there is a lot on offer, including open and transparent financial markets, attractive incentives for companies to invest, an abundance of natural resources (coal, copper, oil, gold etc.) a ready supply of human talent, well developed infrastructure, and at a low market entry cost, when compared to European and North American Markets.

Now is the perfect time to look to Latin America for investment whether that be through international trade or company formation and full market entry.

How to undertake market entry in Latin America?

Infographic titled "Tech Talent in Latin America" by Biz Latin Hub. It highlights that the region boasts 650 million people and 260 million professional students. VC investments in LATAM surged from $500M in 2014 to $14.8B in 2021. Contact details at the bottom.
Market entry in Latin America requires workers

Broadly there are five key steps to undertaking market entry:

  • Understand the Marketplace – Confirm the market opportunity and determine potential clients.
  • Analyze the Operating Environment – Understand the local financial, legal and social regulations / dynamics.
  • Develop Market Entry Plan – Confirm the required inputs, such as financial, human talent, infrastructure, service support etc.
  • Establish – Local company formation, opening local bank accounts, tax registration, hiring of local staff etc.
  • Entry – Commence engagement with potential clients.

Once you’ve selected an attractive market and undertaken market entry, it is important to ensure that the local operations are provided with sufficient support and investment to ensure success.

Note: A key failure of many companies entering new markets is that they skip the “Establish” step, whereby they rely on winning new clients through regular visits by staff based in other countries, which in many cases proves ineffective and does not lead to the desired business outcomes.

Within the Latin American context and for business development, new clients are often won through regular engagement, personal relationships and by the company showing a clear commitment to the local marketplace, all achieved through establishing a formal presence within the country. This is often the most common mistake made by companies entering the local market, whereby they:

  • Fail to hire local staff
  • Decide not to register a local entity
  • Avoid the cost of renting a local office space.
Bar chart titled "Nearshoring in Latin America: biggest potential beneficiaries" showing potential increase in goods exports (% of GDP). From left to right: Belize 2.68%, Costa Rica 5.20%, nearshoring in the Dominican Republic 3.60%, El Salvador 4.10%, Guyana 7.31%, Honduras 5.25%, Mexico 4.50
Nearshoring is an interesting avenue for mrket entry in Latin America

How can Biz Latin Hub help you with market entry in Latin America?

We at Biz Latin Hub specialize in helping foreign companies navigate the complexities of doing business in Latin America. We provide the complete suite of back-office services required to enter the Latin American Market, including Market Entry Services, Accounting and Financial Services, Immigration Services, Legal and Commercial Services, Administration Support and Recruitment Services.

By combining our group knowledge and expertise, we have proven time and time again that we are able to effectively offer cross-frontier services to companies wishing to start and/or grow their business within Latin America. 

Each client’s requirements are profiled and we develop a full package of services that allow the company to operate and grow within, what is often described as a complex and difficult marketplace. Unlike other entities, we provide a full suite of back office services, ensuring quality and for client needs.

We have a presence in more than 18 different jurisdictions in Latin America and the Caribbean.

Contact us now to discuss your business needs, or read about our team and expert authors.

A visual representation of BizLatin Hub's services, including Company Formation, Legal Services, Accounting & Taxation, PEO & Recruitment, Bank Account Opening, Tax Advisory, and Visa Processing (covering various visa types in New Zealand). Website and contact email are at the bottom right.
Biz Latin Hub services can help with market entry in Latin America

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.
Craig Dempsey
Craig Dempsey

Craig is a seasoned business professional in Latin America. He is the Managing Director and Co-Founder of the Biz Latin Hub Group that specializes in the provision market entry and back office services. Craig holds a degree in Mechanical Engineering, with honors and a Master's Degree in Project Management from the University of New South Wales. Craig is also an active board member on the Australian Colombian Business Council, and likewise also active with the Australian Latin American Business Council.

Craig is also a military veteran, having served in the Australian military on numerous overseas missions and also a former mining executive with experience in various overseas jurisdictions, including, Canada, Australia, Peru and Colombia.

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