From my daily work as Regional Director of a Latin American law firm, I have identified five essential keys that every company should consider when establishing operations in the region.
1. Always Have a Clear Plan
In addition to the strategic plan and a well-defined organizational chart for the business projection, it is essential to establish the main objective.
This allows for:
-
More accurate identification of where to begin.
-
Clear definition of which steps to prioritize.
2. Review Tax and Social Security Obligations
Tax and social security aspects must be aligned with the strategic plan.
-
Poor management in this area can compromise any project.
-
A proper review enriches the plan and may even modify the initial route.
-
Decisive factors include:
-
Tax benefits.
-
Double taxation treaties (OECD resource).
-
Free trade zone regimes in countries like Costa Rica, Guatemala, and Panama.
-
3. Operational Guidance from the Outset
The support of a specialized legal advisor is essential from the very first moment.
Key early decisions include:
-
Type of company (business law).
-
Powers of the legal representative.
-
Minimum number of employees.
-
Hiring of foreign personnel (immigration law).
-
Opening of bank accounts.
-
Trademark protection (intellectual property).
4. Operating Permits
Each country in the region requires specific permits to operate.
-
While some similarities exist, variations are significant.
-
Being aware of these requirements in advance helps avoid costly delays and sanctions.
5. Labor and Immigration Advisory
This is a crucial aspect, especially when transferring managers or specialized technical staff.
-
Work permits must be obtained from the first day.
-
Regional labor regulations are usually “pro-employee”, which makes preventive and ongoing legal support even more important (Latin American labor law).
A Strategic Hub in the Continent
Our region remains privileged, offering:
-
A strategic location in the center of the continent.
-
Easy access by air and sea.
-
Exceptional climatic conditions that make it an ideal hub for international companies.
Ready to Establish Your Business in the Region?
If you wish to expand your operations in Latin America or start a new project, please do not hesitate to contact us; we will be pleased to assist you.
Author: Eugenia Víquez, Director of GLC LEGAL
director@glclegal.com
