Globalization, economies of scale, the collaborative economy, high internet connectivity, startups and everything more that will come about is destined to change the paradigm of doing business globally. Latin America is experiencing a new design of client expectation, including a western ‘’quick-response’’ attitude. These renovated client expectations will change the way of doing business in Latin America, requiring all existing companies to adapt or be left behind. This includes companies showing innovation and improving their business models, with the essential goal to guide their service provision towards the satisfaction of the client.
In this vein, ‘One-Stop Partners‘ are created. These partners fulfill comprehensive solutions to the challenges that come with global expansion strategies, where speed, communication, and reliability are key points of attention. When expanding your operations abroad, having several specialized third parties to provide you with business services is often complicated and in no way streamlines operations. For instance, you decide that you want to expand your commercial operations to Colombia. Using a traditional model, you first would need to contact a group to conduct an in-depth market study to determine the feasibility of your product. Then, based on this, you would need to find a lawyer to incorporate a local company on your behalf. Once the company is incorporated, you will need a legal and accounting firm to ensure corporate compliance and to manage all accounting and taxation requirements. Imagine having separate service agreements for the provision of all these services – a nightmare. So, what is the solution to this problem? Working with a local partner who can provide all the required services, in-house and under one agreement.
The expansion of operations abroad is becoming more accessible to firms around the world. This applies to both large firms and to SME’s.
Value of a Local Partner when Expanding to Latin America – What services can one-stop partners provide?
In general, the number and types of services depend on the company. However, the general concept is that an innovated local partner can provide all-inclusive and integrated solutions for the needs of companies that intend to expand into a new country. Leading companies in this type of niche offer a wide range of packages including commercial representation, business incorporation, accounting and tax services, legal services, due diligence, recruitment/hiring, and immigration support.
A common vision companies share is the flexibility of services and the intention to provide real solutions to common expansion problems. Their modern way of doing business includes the understanding that customer satisfaction is crucial. For that reason, services are designed to meet personal needs and to optimize customer’s experience.
Commercial Representation in Latin America
Commercial representation is one of the most transcendental services a one-stop partner can offer with respect to businesses expanding to Latin America. Crucial services include the validation of market opportunities, product feasibility studies, establishing the best market route strategy and leveraging existing business relationships to develop the business. Overall, commercial representation services are an optimal solution for your market entry strategy. These services can save you money and time, which will allow you to focus on developing your product and service in the marketplace.
Establishing a Business in Latin America
Once the business opportunity has been validated and the decision has been made to penetrate the market, it is time to develop and evaluate the best business strategy for your new market. The logical next step, in most cases, is to formally establish a legal entity in the desired country or countries. Whether you create a new company or open a foreign branch office of your existing company, a specialized third party can support you to establish your commercial presence.
Once you have successfully entered the market, you will need to ensure that your company remains compliant with local authorities. Corporate compliance varies throughout Latin America, however, it is vital that companies understand their corporate obligations and the respective countries minimum statutory requirements. Working with a local partner will give you peace of mind in knowing that your company will remain in good standing with local governmental authorities, for example, with the national tax authority.
Accounting and legal requirements are very specific within Latin America, and each country varies slightly. Therefore, a local all-around expert who can ensure your company’s complete corporate compliance will serve as a useful resource, allowing you to focus on growing your core business.
Recruitment and Hiring
The best teams are made up of dedicated and motivated staff. A one-stop partner that understands your business vision, mission and core values can help you to find and hire the best staff. It is therefore advisable to work with a partner who can help you with the recruitment and hiring process. Depending on your business, you may choose to expand globally and hire staff through an international PEO solution or through the formation of a local entity which is then used to hire staff.
Legal Support and Immigration
When doing business abroad, it is unlikely that you will have no legal complications. Labor agreements, commercial contracts, and corporate obligations are day-to-day issues when operating in Latin America. Without a deep understanding of the local business environment, you may run into legal issues.
Having a trusted lawyer is key to transforming your business into a success and can provide you with guidance on current in-country regulations and legislation. During the initial stages of operations, outsourcing your legal work is both a smart and economic choice. Additionally, if and when you decide to bring in foreign skills and experience, you will need immigration support.
Do you need local corporate support in Latin America?
If you interested in expanding your operations abroad, then you should work with a local partner who can facilitate your expansion. Biz Latin Hub provides the ‘’one-stop’’ service you need. Our teams have local experience and a global perspective – the perfect combination to support your expansion.
If you are interested in expanding your business abroad and are unsure of the first steps, reach out to our team here for personalized support.