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How to Incorporate a Company in Guatemala

by Team Central America | Apr 11, 2020

Find out the steps to incorporate a company in Guatemala, a rising hotspot for expanding multinationals in Central America. Guatemala is the third largest country in Central America, with just over 108,000 square meters. The country possesses a richness in natural wealth, and is a valuable hub for international trade, with access to the Caribbean Sea and the Pacific Ocean. The country also has a land connection with economic giant Mexico and is connected with the rest of Central America through a cultural history that dates back to around 2000 BC. Guatemala’s connection between its seaports and container terminal presents clear international trade opportunities for businesses operating from for this country. Incorporating a company in Guatemala is therefore an important consideration to make when expanding to Central America. Steps to incorporate a company in Guatemala Generally, there are 6 key steps to incorporate your company in Guatemala. 1. Seek advice from local market entry and legal experts Before expanding a business, it’s important to establish a road map or market entry strategy. Before expanding a business, it’s important to establish a road map or market entry strategy. Seek advice from local legal and market entry experts to incorporate a company in Guatemala, in order to ensure you can set up and begin operations in full compliance with the law. These experts will help you choose the most appropriate pathway to expansion for your business needs. Appointing a legal representative Companies in Guatemala require a Legal Representative to act on their behalf on...

How Do I Form an NGO in Panama?

by Legal Team Panama | Apr 2, 2020

Discover how to form a non-governmental organization NGO in Panama. Panama is an exciting country with many opportunities to do business, including for those focused on non-profit activities. Operating an NGO supports the development of Panama’s economic, social, and other landscapes. The economy itself has shown consistent, positive growth year on year, reflecting a healthy environment for new NGO operations. The Panamanian government guarantees certain benefits to support non-profit foundations or associations working to develop communities and benefit the country. Entities like the US Embassy in Panama have worked with local NGOs in this context. What is an NGO in Panama? Panama's economy has shown consistent, positive growth year on year, reflecting a healthy environment for new NGO operations. To be able to understand the process to incorporate an NGO in Panama, it’s important to understand the structural and governance characteristics of this legal entity. The NGO in Panama can be a public or private entity with the essential characteristic of being a non-profit association. The statutes of an NGO cannot stipulate ways to generate income by themselves. Panama’s Constitution allows the incorporation of any association insofar as its operations are considered to align with public order and morality. Private, non-profit NGO entities need to acquire a legal status before the Ministry of Justice. Steps to form an NGO in Panama The process to incorporate an NGO in Panama can take several months, and is broken down into 5 essential steps:...

What are the 6 Key Steps for Company Formation in Mexico?

by Legal Team Mexico | Feb 7, 2020

It is imperative that investors know and understand the 6 key steps of company formation in Mexico in order to successfully begin commercial activities within the Mexican economy. Mexico is widely cited to become a top-ten economy in the world within the next decade. Over recent decades, Mexico has become an increasingly low risk, high growth economy providing an attractive environment for business. This is attributed to consistent GDP growth, weak peso, expansion of the middle class, and an increase in security and safety. These factors have allowed for domestic business growth, whilst at the same time attracting international investment. In June 2019, Mexico’s FDI reported a record-breaking surplus of USD5.1 billion. These factors contribute to a surge in foreign investment for investors eager in doing business in Mexico. The biggest obstacle is that many foreign investors are unsure where to begin. Understand the process for company formation in Mexico to effectively and efficiently begin commercial activities in the country. Do I need a Legal Representative to form a company in Mexico? Mexican law mandates that foreign investors must appoint a legal representative in Mexico. Mexican law mandates that foreign investors must appoint a legal representative for their company formation in Mexico. A Legal Representative is an individual who is either a Mexican national or a foreigner with the legal right to work in Mexico, who will represent and act on behalf of the company. They will also be responsible for communicating between government organizations and private...

How to Form a Limited Liability Company (LLC) in Paraguay

by Legal Team Paraguay | Jan 23, 2020

Foreign companies expanding to Paraguay may choose to form a Limited Liability Company (LLC), due to the familiarity of the entity type with that of their home country. In Paraguay, an LLC is called a Sociedad de Responsabilidad Limitada, or SRL. There are several steps to form a Limited Liability Company in Paraguay. Expanding companies will also need a few key components to go through this process, including support from an experienced legal services provider operating locally. Characteristics of a Limited Liability Company (LLC) in Paraguay Like many LLC entity types in other countries, Paraguay’s Sociedad de Responsabilidad Limitada offers protection of personal assets from company liabilities or debts. Like many LLC entity types in other countries, Paraguay’s Sociedad de Responsabilidad Limitada offers protection of personal assets from company liabilities or debts. The Limited Liability Company in Paraguay is therefore a popular choice for foreign investors expanding into the country. This entity type also allows full foreign ownership, and requires a minimum of one director, two shareholders and US$1 share capital (though note this requirement may change if you plan to carry out import or export activities). These conditions make the LLC in Paraguay a more accessible business structure for foreigners. Steps to open your LLC in Paraguay 1. Draft and Sign a Power of Attorney Paraguayan corporate law states that companies must have a Legal Representative to act on their behalf for legal matters. This person must have sound knowledge of local legal compliance...

6 Mistakes to Avoid When Doing Business in Latin America

by Team Latin America | Jan 22, 2020

Latin America should be on your radar when considering your next destination for doing business. There are numerous consumers markets waiting to be explored with new and innovative goods and services. While Latin America may not be the easiest region to do business in, the potential benefits far exceed the costs. We have put together our top 6 mistakes to avoid when doing business in Latin America. It could save you committing some costly mistakes, and emphasize what areas might require more attention than you previously thought. 1. Not localising your product and services when doing business in Latin America Localisation is key. What country are you planning to do business in Latin America? Be specific as you will need to research the market. Your target demographic in Colombia may be very different to its counterpart in Peru. Remember: Latin America isn’t one country, and localising your product or service needs to reflect that. Every country has a different history, cultural norms and language. In order for your customers to feel like you’re addressing their needs, you need to understand who they are. Market research will be your best friend here. If you’re currently operating in another market, figure out how you might need to differentiate your current business model so you can tailor your offering to address specific in-country issues. For example, health-focused startups in Brazil have addressed serious inadequacies within the Brazilian public healthcare system through innovative and accessible technology platforms. You can’t afford to oversimplify product and...

Legal Requirements to Start a Business in Colombia

by Legal Team Colombia | Jan 7, 2020

Colombia has one of the most agile legal systems in South America when it comes to starting a business. With an emphatic government agenda to encourage foreign investors and entrepreneurs into the country, institutional support to start a business in Colombia is strong. Being within the top three of the index of ease of doing business in Latin America in international rankings, the effort of the Colombian government to encourage foreign investment to boost the economy has yielded positive results. In this article, our experts outline the local legal procedures that you must follow if you are interested in starting a business in Colombia. Key steps to start a business in Colombia With an emphatic government agenda to encourage foreign investors and entrepreneurs into the country, institutional support to start a company in Colombia is strong. There are several formal legal steps to starting your business in Colombia. Make sure to get assistance and advice from a local legal expert in the country, to ensure you comply with all corporate law and accounting requirements. 1. Draft and sign Power of Attorney The first step to start your business in Colombia is to draft and sign the Power of Attorney (POA) document for your legal representative. In the event that the shareholders and the legal representative are not in Colombia, a power of attorney must be drafted in order to sign the bylaws, and submit them to the Chamber of Commerce. If the shareholders are foreign persons or companies, the Colombian government will request additional documents from abroad. Both the...

Steps to Incorporate a Company in the Dominican Republic

by Team Central America | Jan 5, 2020

Businesses expanding into Central America and the Caribbean should consider the prospects of the various economies available for them to base themselves. It's become more popular in recent times to incorporate a company in the Dominican Republic, due to a number of economic and strategic factors. The country is located in the heart of the Caribbean Sea, which surprises its visitors with its beautiful beaches of white sand and blue waters. Surrounded by the sea, it is one of the countries with the greatest tourist influx in the area, offering entertainment activities, luxury accommodation, lush nature, historical landscapes and striking business opportunities. The country has a wide cultural, geographic and natural diversity, direct flights from the United States, Europe and Latin America. It has a size that slightly doubles the size of New Jersey and is more similar to the territorial size of Costa Rica. We outline key steps to incorporate a company in the Dominican Republic. Incorporate a company in the Dominican Republic Choose the Dominican Republic when doing business in the Caribbean; its strong economy and natural diversity offer many opportunities for investors, and favorable living conditions. When incorporating a company in the Dominican Republic, there are 6 main steps to follow. It’s important to first understand what kind of legal entities are available for your business. Following that, you’ll need to prepare formal constitution and other documents, and register with the local authorities. 1. Establish the initial size, objective and capital of the company...