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New Legal Entity in Paraguay: Simplified Shares Company (EAS)

New Legal Entity in Paraguay: Simplified Shares Company (EAS)

Find out about the new legal entity in Paraguay - the EAS, or Simplified Shares Company - and what this entity can offer business owners entering the market. The EAS in Paraguay was established through Law No. 6480/2020 and is an excellent tool for business development in Paraguay. Paraguay is one of the most underrated jurisdictions in Latin America for doing business. The country has demonstrated astonishing annual rates of economic growth, averaging around 4% between 2015-2017 and increasingly diversifying market opportunities, including blossoming agricultural, service and mining sectors. Although it is enticing, it can be difficult to do business in a country where one does not fully understand local law and regulations. With the purpose of encouraging entrepreneurs to enter the market, and reduce bureaucracy, the Paraguayan government has encouraged simplification in the creation of legal entities.  Recently, Paraguay introduced the Empresa por Acciones Simplificadas (EAS), otherwise known as a Simplified Shares Company entity for business. While the law establishig this entity has yet to fully enter into force, this move to open the business environment in Paraguay is promising for foreign executives looking to expand into the country. 6 key characteristics of the Simplified Shares Company (EAS) in Paraguay The Empresas por Acciones Simplificadas (EAS) in Paraguay was established through Law No. 6480/2020 and is an excellent tool for business development in Paraguay. As a Simplified Shares Company, the entity’s main characteristics and innovations to benefit...

May 2020 Regulatory Update: Bolivia, Colombia, Costa Rica, Panama, Paraguay

May 2020 Regulatory Update: Bolivia, Colombia, Costa Rica, Panama, Paraguay

Our senior legal and accounting experts deliver monthly updates on regulatory and other changes in their respective countries in Latin America. Find out regulatory changes occurring across Latin America that may impact you and your business. Extension for Registry of Commerce renewal in Bolivia Bolivia's response to the COVID-19 includes an extension of the deadline for commercial renewal with the Registry of Commerce. In Bolivia, the government’s response to the COVID-19 pandemic has included an extension of the typical deadlines for companies to provide certain documents to government agencies out to 29 May. These documents include: Annual Financial Statements,the company’s Annual Report 2019, andIncome Tax Declaration. As such, the deadline for commercial renewal with the Registry of Commerce (Registro de Comercio) will be rescheduled. The official due date is pending confirmation from government officials. Colombia reduces contributions from employees and employers In Colombia, Decree 558 of 2020 reduced the required pension contributions from employers and employees in order to increase business cash flow and disposable income for individuals. This is part of Colombia’s overall initiative to prevent mass job loss. These pension contributions are reduced from 16% to 3% - 2.5% from employers and 0.5% from employees). Other Decrees and Circulars announced by Colombia during their COVID-19 Pandemic response include: Circular 021: outlines options for flexible working arrangements, and options to take vacations in advance to avoid further layoffs.Circular 022: confirms...

What is a Compliance Officer for an NGO in Peru?

What is a Compliance Officer for an NGO in Peru?

Forming an NGO in Peru requires a range of legal aspects, such as the nomination of a compliance officer. NGOs in Peru must create an internal compliance system with a Compliance Officer. This is a part of the work culture of an NGO in Peru and the organisation must enforce it. Find out about requirements for NGOs in Peru to work with a Compliance Officer. What is the compliance system for an NGO in Peru?  The main task of a compliance officer in an NGO in Peru is to ensure the organisation works ethically. A compliance system prevents corruption inside a company resulting in either direct or indirect benefit. The characteristics of a comprehensive compliance system for an NGO in Peru are: The general board and general management should be the main supporters of this system.Its implementation must function as a system that goes through the different business units.A compliance must take as a basis: values, promises and commitments of the organization. In addition to that, it must be measurable in order to confirm compliance.It should be considered that the company’s evaluation is carried out in the future. It is very important to put this comprehensive risk management model into effect in NGOs, since this involves identifying the most critical risks. Some organizations may apply international standards. What does a Compliance Officer do in an NGO in Peru? The Peruvian government established Decree Law N° 1352 of the Law N° 30424, which regulates the administrative liability of legal entities against transnational active bribery. The scope of application includes...

How to Form an NGO in Brazil

How to Form an NGO in Brazil

Learn how to form a non-governmental organization or NGO in Brazil. According to the Brazilian NGO association, ABONG, there are now more than 300,000 NGOs in Brazil. If you seek to become one of them, read on to find information about the laws and procedures to from an NGO in Brazil.  The legal status of NGOs in Brazil Roles and responsibilities need to be clearly assigned in an NGO in Brazil. The Third Sector Law, nº 9.790, from 1999, provides the qualification of private legal entities as nonprofit Civil Society Organizations of Public Interest (Organizações da Sociedade Civil de Interesse Público, known as OSCIPs). This law disciplines and establishes the partnerships to be formed with the state and private companies. There are several types of institutions that comprise the Third Sector in Brazil including associations and private foundations.  When an organization exists for more than one year, it can request to be qualified as OSCIP at the Ministry of Justice. This qualification allows an NGO to establish a relationship with the government. This gives the organization access to public resources through a Partnership Agreement (Termo de Parceria). This partnership agreement is a legal document for establishing partnerships between the government and the non-governmental organization. Qualified under this law, an OSCIP can: Experiment with non-profit, new socio-productive models and alternative systems of production, trade, employment, and credit.Produce studies and research, development of alternative technologies and dissemination of information and...

Why Conduct an Entity Health Check for your Company in Argentina?

Why Conduct an Entity Health Check for your Company in Argentina?

Learn about the importance of a entity health check in Argentina in order to keep your company structured and compliant against the requirements of government authorities. Entity health checks in Argentina are increasingly important due to the set of local regulations that describe fiscal responsibilities and corporate compliance in the country, which are constantly changing and updated.When you decide to incorporate a company in Argentina, you should bear in mind that at least once a year you must carry out an entity health check for your company or branch in Argentina. This process is also known as “corporate status verification”. Depending on the activity that the company carries out, it is recommended to carry out these reviews regularly. The hiring of external partners to review the status of your company in terms of corporate compliance in Argentina will protect you from sanctions and allow you to manage the risk of default. What is an entity health check in Argentina? An entity health check is an evaluation of the company where the legal, fiscal and corporate status is evaluated. In general terms, an entity health check is an evaluation of the company where the legal, fiscal and corporate status is evaluated. In order to ensure that the corporate due diligence of your company in Argentina complies with the local laws. Sometimes the directors of a company cannot accurately assess the overall status of compliance or do not have the legal or financial knowledge to understand what the corporate compliance requirements are in Argentina. For this reason, they decide to...

When Do You Need a Legal Representative in Bolivia?

When Do You Need a Legal Representative in Bolivia?

A legal representative in Bolivia is vital for the functioning of a legal entity. The legal representative acts on behalf of the legal entity in order to carry out various regulatory procedures and formalities.  In recent years, Bolivia has managed to maintain a stable economy that favors trade and investment, with sustained growth and low inflation rates. When doing business in Bolivia through a legal entity, make sure to appoint a trusted legal representative in Bolivia. Designation and function of the legal representative If the company is foreign, the legal representative must be appointed through the extension of a Power of Attorney granted by the company owner. When expanding, company owners must appoint the legal representative in Bolivia at the time of incorporation. The legal representative in Bolivia is a person who acts on behalf of the legal entity in order to carry out various procedures and formalities. Therefore, a company's legal representative in Bolivia can assume commitments and make decisions that will be attributed to the legal person (company). If the company is foreign, the legal representative must be appointed through the extension of a Power of Attorney granted by the company owner, in order to represent them in one or more businesses. The Bolivian consulate of the owner's country of origin and the Ministry of Foreign Affairs in Bolivia must legalize this Power of Attorney. What are the requirements to be a legal representative in Bolivia? In order to be appointed as a legal representative in Bolivia, individuals must: be of legal age (18...

What are the Legal Entities in the Dominican Republic?

What are the Legal Entities in the Dominican Republic?

Executives should be aware of the different legal entities in the Dominican Republic in order to choose the right one for their company incorporation. Market observers have recognized the Dominican Republic worldwide as one of the best and top travel destinations for tourists in the Caribbean. However, this island has so much to offer as well for business owners looking to enter the Caribbean region. According to the World Bank, the Dominican Republic has the second-highest GDP figures in the Caribbean. In recent years, we have seen an important increase in foreign direct investment into the Dominican Republic. This takes place specifically in the manufacturing, real estate, export and tourism sectors. This region has also made a name for itself as an appealing hub for foreign businesses through its tax and migration offerings.We provide the most important information about legal entities in the Dominican Republic. Legal Entities in the Dominican Republic for company incorporation Expanding multinationals must incorporate a legal entity in the Dominican Republic as a formal corporate vessel for business. When looking to enter the Dominican Republic, foreign investors are confronted with a choice in terms of what sort of commercial presence they want to have. Expanding multinationals must incorporate a legal entity in the Dominican Republic as a formal corporate vessel for business.Branches and representative offices are viable options for multinational companies. However, the best legal entity must be judged on a case by case basis. Next review the different types of...

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