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What are the Types of Legal Entities in Guatemala?

What are the Types of Legal Entities in Guatemala?

In order to set up a business, it is important to understand the types of legal entities in Guatemala. Central America has become a place for foreign multinationals interested in doing business across North and South America. Central American countries have a lot to offer to foreign and local companies, such as tax benefits, special economic zones, and access to the Atlantic and Pacific Oceans. Guatemala maintains a number of free trade agreements for businesses to obtain certain benefits for the sale of products within the region. Expand into Guatemala by establishing a company with the right legal entity for your business. We give a general summary of the types of companies or legal entities in Guatemala that you can choose from to do business, and most essential elements of these. Types of Legal Entities in Guatemala A Limited Liability Company is known as Sociedad de Responsabilidad Limitada in Guatemala, and can be formed with up to 20 partners. There are several different types of legal entities in Guatemala to incorporate your company. Each legal entity offers different conditions and governance structures to suit varying business needs. The legal entity you choose will influence the amount of capital to invest, economic activities to be carried out, how many shareholders you will have, and other factors. The most common types of legal entities that are usually used to establish a company are included below. Limited Liability Company (Sociedad de Responsabilidad Limitada) The Limited Liability Company (LLC), or Sociedad de Responsabilidad Limitada in Guatemala can...

How To Employ a New Zealand Worker From Abroad

How To Employ a New Zealand Worker From Abroad

There are a wealth of reasons why more firms are choosing to do business in New Zealand. An extremely lucrative export industry built on impressive agriculture and services sectors is just one of the areas seeing increased investment. Furthermore, as the easiest country in the world to do business, the government is open to foreign trade and the political environment is stable and easy to navigate. If you’re considering expanding down to the small Pacific nation, you may want to hire a staff member. However, if you’re based overseas, it is possible to hire staff without first establishing a legal entity in New Zealand. This is a less risky option to test the market before setting up a new office. Read on to find out how you can hire a New Zealand national for your business, from abroad, by using an International PEO. What is an International Professional Employer Organisation? An International Professional Employer Organisation (PEO) provides outsourcing solutions for human resources. PEO provides business payroll services, human resources support and legal and tax employee requirements. A PEO co-employs your staff member as specified in their contract. The PEO’s specific responsibilities are dictated through a client service agreement. The staff’s business continues to maintain control over everyday business activities and operations, with the human resources responsibilities outsourced to the PEO. Step 1: How can a PEO employ a New Zealand worker from abroad? An International PEO can help you employ a New Zealand national to work for your company while you’re operating...

Why Should Companies Establish a Branch Office in Australia?

Why Should Companies Establish a Branch Office in Australia?

Businesses looking to expand their organizations internationally may first consider markets such as Europe, the United States or Latin America, but Australia is another territory that has seen a rise in foreign direct investment (FDI) as more and more organizations understand its potential. Indeed, FDI hit a record-breaking AU$60,499 million in 2017, a figure that is set to be beaten or at least equaled as we head into 2019 with more businesses jumping onboard. However, rather than setting up shop and establishing an entirely new business in Australia, it may be advantageous to establish a brand office that connects to your existing business. This option serves as the ‘best of both worlds’, allowing you to enter into the territory and access its people and market, whilst maintaining a core business under the same umbrella. Australian Branch Office - Access To Market and Its People Foreign investors are constantly looking for new opportunities to spread the word about their products and services and take them to new markets. Australia is in many ways one of the most exciting and dynamic markets in the world. Not only has it enjoyed unprecedented GDP growth and stability for decades, but it’s home to a growing middle-class citizenship which is perfect for businesses hoping to sell luxury products and services to the mass market. With low inflation levels and an impressive banking system, the country also boasts trading relationships with partners across Latin America, Asia, and the Middle East, which can be utilized from a branch office in the country. Indeed, Australia can...

Steps to Create / Register a Foreign Branch Office in Ecuador

Steps to Create / Register a Foreign Branch Office in Ecuador

Great resources, an educated workforce, multiple opportunities and a quite frankly beautiful country; Ecuador has the potential to become one of the most important Latin American economies to invest in. Qualities like these are motivating a lot of small, medium and large companies to turn their attention to Ecuador in order to establish commercial operations, often in the form of a foreign branch office. From worldwide corporations to new software startups; all of them have experienced the amazing benefits that doing business in Ecuador provides. The Ecuadorian government understands the importance of opening up to the world and attracting foreign investment (FDI), and as such, has made extensive efforts to change the landscape of the Ecuadorian business world. Ecuador's trade agreement with the European Union (EU), the re-adoption of bilateral investment treaties with several countries and the expedition of the production promotion law that includes vast benefits to new investments in Ecuador are clear examples of Ecuadorian intentions to bring investment and economic growth to its market; now is the best time to make investments into Ecuadorian business. Registering a Branch Office in Ecuador is one of the best ways to take advantage of the benefits that this great country offers. Continue reading to learn about the requirements and process in opening a foreign branch office in Ecuador. Requirements to Open a Foreign Branch Office in Ecuador The process of registering a branch office in Ecuador can be slightly complex and long due to a great number of requirements....

Foreign Branch Office vs Local / Independent Company in Peru

Foreign Branch Office vs Local / Independent Company in Peru

Peru is one of the most attractive destinations to do business in Latin America and therefore lures foreign companies and investors to engage in commercial activities in the region. It is becoming easier to enter and operate within the Peruvian market due to national policy that facilitates investment in the region. Additionally, barriers that restrict foreigners to enter the market are getting torn down. There are a variety of different ways to establish operations in Peru. It may be through working with a local distributor, engaging a local Peruvian PEO service provider or through establishing a company. In this article, we will shed light on the difference between foreign branch offices and local/independent companies in Peru. Both can be attractive options depending on your business objectives and requirements in the region.  Doing Business in Peru - Branch Office vs Local Company  Thanks to a very stable economic output with an annual GDP growth of 3.47% (World Bank Group, 2018), Peru became the fastest growing economy of Latin America primarily because of a large number of private investments, consumption and government spending. Peru’s main economic industries are the mining and manufacturing sector, while also being an essential exporter of agricultural products. In addition, approx. 4 million tourists visit Peru annually, identifying the strength of the tourism sector, and the business opportunities available for both locals and foreigners. This converts tourism into one of the most important service exports of the country, reaching a record amount of US$8.000...

Foreign Branch Office vs Local Company in El Salvador?

Foreign Branch Office vs Local Company in El Salvador?

The emerging economy of El Salvador has converted itself into an attractive commercial jurisdiction for the investors who are looking to start a new business or expand their business activities into the country. There are ample business opportunities in the region, however, first, the company must choose which type of company establish.  For the establishment of a Company in El Salvador, there are different types of legal entities to choose from. For example, you can choose to incorporate a new local company or you may choose to establish a foreign branch office. Both options offer advantages and disadvantages; you must look for the one better suits your business model and objectives in the region.  In this article, you will learn more about the differences between a foreign branch office company and a local company in El Salvador.  Legal Differences: Branch Office vs Local Company in El Salvador There a variety of different types of local companies, including the Limited Liability Company and the Public Limited Company. The latter is the most commonly used by foreign investors. Foreign branch office companies in El Salvador are considered a legal entity that is not entirely separate from the parent company, called the 'Casa Matriz´ in Latin America. In this article we identify the principal characteristics of each of these legal entity structures: Company Name Local Company: Most names can be the chosen as long as they are not already taken by another company; the name of the company will follow by the words “Sociedad Anomina” (S.A.) if you choose a Public Limited...

How to Create a Branch Office of a Foreign Company in El Salvador

How to Create a Branch Office of a Foreign Company in El Salvador

As the economies of Central America begin to grow, unexplored business opportunities present themselves; this is true for El Salvador. Since the Salvadoran Civil War finished in 1992, the country has experienced great advances socially, politically and economically. This has had a positive impact on FDI in the region. When foreigners being commercial operations, specifically the incorporation of a company in El Salvador, they have (2) options. Formation of a local legal entity (i.e a local El Salvadorian company) The establishment of a branch office company Both of these options are attractive depending on your business needs in the region.  Usually, the incorporation of a Company in El Salvador is not difficult, but for Branch Offices, the incorporation process is slightly more complicated. This is even more true for foreigners who try to complete all process related to the incorporation without the support of a local company.  Keep reading and learn the process involved with the registration of a Branch Office of a Foreign Company in El Salvador APPOINT A LOCAL LEGAL REPRESENTATIVE The first step in the incorporation process is to appoint a legal representative for the Branch Office. This person must be a permanent residence in El Salvador; it could be a Salvadoran citizen or a foreign person with residence in the country. This person must have the sufficient faculties to perform every necessary procedure related to the incorporation of the Branch Office, including: Act on behalf of the company before all local authorities Register the company capital with the Ministry...

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