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Why are Foreign Companies Choosing to Do Business in Uruguay?

Why are Foreign Companies Choosing to Do Business in Uruguay?

Find out the benefits and incentives to do business in Uruguay in 2020. Despite turbulent economic times in Latin America due to COVID-19 restrictions, Uruguay remains an increasingly popular destination for expanding businesses. Uruguay is a small country with approximately 3,500,000 inhabitants. It is a founding member of Mercosur and for the last decade its political and economic stability has attracted the attention of foreign investors seeking to incorporate a company and do business in Uruguay. In Uruguay, foreign direct investment (FDI) has reached record levels, making the country one of the top receivers of FDI, in terms of GDP in South America. This growth in foreign investment is associated to its attractive free zones, free trade agreements, as well as its participation in Mercosur, ALADI and other regional blocks. Doing business in Uruguay is promising in 2020 given its pro-investment policies. Doing business in Uruguay The country has a pro-investment policy that eliminates restrictions on the use of foreign capital, allowing for free movement of capital and bank secrecy. In September 2019, the creation of a new legal entity, a Sociedad Anónima Simplificada, or SAS, sought to boost business in Uruguay. This new structure minimizes the costs of incorporation, streamlines the process of creating companies in Uruguay by promoting the use of digital platforms in all phases of the process, and allows companies already incorporated in the country to transform their legal entity to a SAS. Laws that promote business in Uruguay The Uruguayan...

Why Foreign Companies Should Hire Staff Through a PEO in Mexico

Why Foreign Companies Should Hire Staff Through a PEO in Mexico

Foreign companies should consider hiring staff through a Professional Employer Organization or ‘PEO’ in Mexico during their expansion process. Mexico has become one of the hot growth spots for Foreign Direct Investment (FDI), boosting new commercial activity. This is due to the many benefits and opportunities for doing business in Mexico, supported by comprehensive trade deals between its North American counterparts. With that being said, there are challenges and uncertainty that companies will face when expanding. One example of this is hiring staff in Mexico before establishing a physical presence in the country. It’s important for companies to have local sales executives on the ground to start growing their market presence and brand awareness, and building relationships. Each country has its own strict requirements and regulations when it comes to employment. Combined with a language barrier for English speakers, this can be a complex step for foreign companies. A PEO can help reduce these challenges and make expansion possible. Options for expansion: company formation or PEO in Mexico In Mexico, it’s required by law that each employee is hired by a Mexican-based employer, leaving a foreign company with two options for expansion: forming a company or hiring staff through a Professional Employer Organization (PEO). Company formation can be a costly and at times stagnant process. There’s a greater level of risk involved with a larger financial investment. The second option is using a trusted, local PEO in Mexico. This option allows companies to hire staff through a...

Steps to Create / Set-Up a Branch of a Foreign Company in Argentina

Steps to Create / Set-Up a Branch of a Foreign Company in Argentina

Argentina is one of the largest economies in Latin America and is currently undergoing an economic transformation that will promote sustainable economic development and integration into the global market. With Argentina's vast natural resources in energy and agriculture, the country also has many opportunities to expand in manufacturing sub-sectors and innovative services in high tech industries. More and more foreign investors are looking at Argentina as an attractive place to invest and set up their companies. However, to do business in Argentina you don't necessarily have to form a new company. This article will outline some of the advantages of establishing a branch of a foreign company in Argentina.  Argentina - What Is a Branch Office in a Foreign Country? A branch office is very simple to define but may be more difficult to understand. It is simply any affiliated location to a company or business entity, that is not the head office, meaning that it is the head office that carries all legal responsibility. Despite being exempt from legal responsibility, a branch must have its own capital, its own legal representative and its own legal address and list of shareholders. The cost of setting up a branch of a company in Argentina is between USD$400-500 and must be done before the Public Registry of Commerce. Branch office registration requirements To establish and register a branch of a foreign company in Argentina you will need the following documentation: 1. Qualification Report: This must be issued by a local notary or lawyer. Their signatures must be certified by one...

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