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Manage Business Risks With Due Diligence in Ecuador

Manage Business Risks With Due Diligence in Ecuador

When doing business in Ecuador, managing your business risks with due diligence is essential to achieve success. Entrepreneurship in a new market entails facing different barriers. These include linguistic or cultural barriers, as well as lack of local market understanding or know-how. Buying existing companies or partnering with locals are key ways to mitigate these challenges and obtain support for navigating an unfamiliar market.  However, it is essential to protect yourself in Ecuador by conducting exhaustive due diligence controls on the companies and people your business works with. This process minimizes the risk in a transaction by conducting detailed and independent analyses. Here we outline information about due diligence in Ecuador and how to manage your commercial risks. Due diligence to prevent money laundering in Ecuador The Financial and Economic Analysis Unit of Ecuador defines due diligence as developing a set of actions, in the most efficient and diligent way possible, to adequately know your clients. As a result, your company can know who, due to their activity or condition, is more likely to conduct money laundering, finance terrorism or be part of other crimes. As a new investor in the country, it is important to take into account the sector that you enter. The regulatory body of the sector is the one in charge of reviewing procedures for preventing money laundering locally. Why is it important to conduct due diligence in Ecuador? Due diligence in Ecuador lowers your risk of partnering with companies that have questionable backgrounds and...

When Does an NGO in Costa Rica Need Anti-Money Laundering Policies?

When Does an NGO in Costa Rica Need Anti-Money Laundering Policies?

Non-governmental organizations or NGOs in Costa Rica must take into consideration anti-money laundering policies, and how they should apply them to their organizations to comply with local legal requirements. Find out the related legislation and relevant groups supporting anti-money laundering for NGOs in Costa Rica and Latin America, and how you can protect your organization. Policies to fight money laundering in Costa Rica Anti-money laundering policies supervise the movement of capital in Costa Rica. Since 1988, Costa Rica has been working on security against drug trafficking and other activities arising from illegal acts. In that same year, the "Law on Narcotic Drugs, Psychotropic Substances, Drugs for Unauthorized Use and Related Activities ” (Law 7093) was created to fight criminal acts that affect the social coexistence, development, and quality of life of its citizens.  This Law is constantly modified and strengthened. Today it includes specific coverage regarding "money laundering and financing terrorism". Following these modifications in the law, its articles, regulations, and other dictated guidelines, the law now supervises the movement of capital in the economy. It seeks to ensure that illegal movements are exposed, such as the flow of capital from doubtful origins and destinations. Do NGOs need anti-laundering policies? NGOs in Costa Rica should have a policy against money laundering. Their policies are dependant on their line of business and the means by which they manage their income. Even if the legal entity is classified as a Non-Profit...

Why Get an Entity Health Check in Australia?

Why Get an Entity Health Check in Australia?

Getting an entity health check in Australia is a vital step before incorporating a company in the country.  As it becomes an exciting destination for foreign investors, Australia offers a favorable business environment, promoted by a dynamic and competitive economy. Thus, an entity health check will allow you to access critical information to understand the risks and opportunities when doing business in Australia.  In this article, we will explain what an entity health check is and how beneficial it can be for your company.  What is an entity health check in Australia? An entity health check in Australia calculates potential risks and challenges for a business. An entity health check in Australia is the best way to identify and calculate the risks and challenges executives may face when expanding their business in the country. It relies on a due diligence process to determine whether a company is fully compliant with local regulations or not.  In the same way, an entity health check refers to a detailed professional investigation that examines a company’s legal and accountancy data, human resources processes, and environmental practices to calculate future contingencies.  Evaluating legal, financial and other aspects An entity health check may vary in terms of extension, scope, and depth. It can include legal information but also commercial and financial records. A basic entity health check should cover the following aspects: Basic company details such as the name, commercial address, type of industry, and shareholdersLicense numbers, operational...

Mitigate Your Business Risks with Due Diligence in Brazil

Mitigate Your Business Risks with Due Diligence in Brazil

Understand how to manage your business risks with due diligence in Brazil. Brazil's favourable conditions for doing business and consumer market size attract many multinational companies looking to expand into Latin America.  Brazil has several legal peculiarities that impact companies' way of doing business that they must be aware of. Additionally, it is important for companies to accurately understand and make informed decisions on the level of risk they face when engaging new partners or contacts, buying existing companies and assets, and hiring staff. In order to invest in a pre-existing company in Brazil, the investor should carry out comprehensive due diligence in Brazil. This means clarifying the legal and financial health of the company, among others. When should I carry out due diligence in Brazil? The purpose of due diligence is to help business owners understand any applicable risks to business activity and make informed decisions about those risks. The purpose of due diligence practices is to help business owners and decision-makers understand any applicable risks to business activity and make informed decisions about those risks that align with the best interests of the company. Executives may choose to undertake certain due diligence processes in Brazil when: Purchasing an existing companyPurchasing company assetsHiring specialized or senior staffPartnering with or contracting an unfamiliar agencyForming other key working relationships with individuals or organizations. Due diligence practices analyze relevant legal, financial, and background information in...

Manage Your Business Risks With Due Diligence in Bolivia

Manage Your Business Risks With Due Diligence in Bolivia

Due diligence in Bolivia is the best way to ensure the safety and security of your business operations in the country. Future business executives should be aware of the challenges they may face when doing business in Bolivia, such as the local legislation, market behavior, and appropriate risk management. Undertaking due diligence processes will significantly improve your ability to make informed decisions when doing business in Bolivia. These processes provide business owners with critical information about companies and partners, including an extensive analysis of financial, legal, labor information, or even environmental practices. Carrying out due diligence will significantly improve your possibilities of making better decisions when doing business in Bolivia. Understanding due diligence in Bolivia Processes for due diligence in Bolivia for market entrants include in-depth investigations to analyze the profitability of expanding a new business. Collected information helps to evaluate the risks that executives may face. A local third party can carry out the appropriate market research to give comprehensive and knowledgeable feedback to the company. Both parties can operate under a confidentiality and exclusivity agreement to undertake this work. With the information gathered from due diligence research, executives can understand potential strategies, liabilities and contingencies to enter the market. Why is due diligence important in Bolivia? Bolivia’s economy has grown considerably in the last few years due to the extraction and export of natural gas, silver, zinc,...

Manage Your Business Risks with Due Diligence in Panama

Manage Your Business Risks with Due Diligence in Panama

Managing your business risk with due diligence in Panama while doing business is a key aspect for having an operational company.  Foreign executives face various challenges when entering in a new country. Language barriers, different legal frameworks and cultural expectations can be difficult to understand. Therefore, business owners choose to buy operational companies to start doing business immediately.  Due diligence in Panama as in other countries offers certainty about operational aspects of the company you’re managing, buying or merging. Undertaking due diligence activities will certify the health of the company and if is convenient for starting a business.  The main objective of carrying out due diligence in Panama is to reduce risks by analyzing the operations of the company and validating they comply with local legislation and institutional authorities. Executives need to consider that a sanction from an institutional authority affects the economic growth of the company and even bankrupt it. Why is due diligence important in Panama? Panama is an attractive country for foreign business due to its diversity, strategic location, and business opportunities. Panama is an attractive country for foreign business due to its diversity, strategic location, and business opportunities. According to the General Comptroller (Contraloría General de la República) in 2019 there were 26,000 registered companies, which represents a 4.6% increase in relation to 2018. Furthermore, there were 299 company merges.  Buying an operational company is a common practice...

Why Use a Legal Representative in New Zealand?

Why Use a Legal Representative in New Zealand?

When expanding your business into New Zealand, you'll find that many regulations and laws differ to your home country. The New Zealand government has made efforts to simplify market entry for foreign businesses. While you're busy managing other business operations, you may find it beneficial to use a legal representative for your company. To ensure you comply with all the relevant legislation and requirements, it’s beneficial to find an in-country expert to act on your behalf. This is especially important for firms that don’t yet have a physical presence in New Zealand. Below, we’ll provide an overview of the benefits of using a legal representative for your business expansion into New Zealand. What is a legal representative? You can think of a legal representative as someone you have appointed to be the ‘legal face’ of your business. This means they can act on behalf of the company. This may be someone within the company, such as an executive director or general manager. However, a legal representative must be over 18, a national of the country, or a foreign national with the right to work and reside in that country. Therefore a company in New Zealand would require a New Zealand national, or foreigner with residency. When choosing to expand your business operations to New Zealand, you may not have any staff or trusted contacts based there. In this circumstance, you would need to appoint a legal representative outside your company who fits the requirements. Your business may eventually grow and you may establish staff members in your chosen country who can obtain...

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