Essential steps for company formation in Latin America: A strategic guide for global businesses

Why form a company in LATAM?

Setting up locally creates a separate legal persona for your business, allowing revenue streams, tender participation, and eligibility for subsidies or tax breaks. Recent reforms in many countries have simplified processes for foreigners, often permitting full ownership and flexible structures to reduce administrative burdens.

Strategy 1: Select the optimal entity type

Align your choice with business objectives, ownership model, and local laws. Common structures for foreign investors include:

• Simplified Joint-Stock Company (SAS or similar): Great for flexibility, single-owner setups, low capital requirements, and easy governance. Popular in Colombia, Mexico, Argentina, Peru, Ecuador, and Uruguay.
• Limited Liability Company (SRL, LTDA, or S. de R.L.): Suitable for partnerships, with limited liability and simple management. Widely adopted in Brazil, Chile, Mexico, and Argentina.
• Corporation (SA or Sociedad Anónima): For larger-scale ventures or future public offerings, featuring structured oversight.
• Branch Office: An extension of your parent company without forming a new entity, though registration and a local representative are needed.

Strategy 2: Prepare Core Documentation and Verify Availability

Begin by searching the commercial registry's database for name uniqueness. Develop foundational documents like bylaws, articles of association, or founding acts, should detail:

• Company name and registered address.
• Business activities, classified by standard codes.
• Share capital (frequently nominal in updated systems).
• Ownership information, including ultimate beneficial owners.
• Rules for management, share transfers, and winding up.
  

We provide tailored templates compliant with local norms, handle notarizations, apostilles, and translations to meet transparency requirements.

Strategy 3: Complete the Incorporation Filing

Lodge your paperwork with the appropriate authority, such as a notary public, chamber of commerce, or registry office. This may require authenticated signatures and supporting IDs or powers of attorney.

Once validated, you'll obtain your registration certificate, confirming the entity's legal status. Ongresso manages submissions, communicates with officials, and addresses queries to accelerate approvals.

Strategy 4: Obtain tax identification

Registries typically coordinate with fiscal authorities to issue a tax number (e.g., RUC, NIT, CNPJ, or RFC), enrolling you in the tax system and possibly requiring owner declarations. This identifier is vital for invoicing, employment, and commerce. Our services ensure smooth synchronization with these agencies.

Strategy 5: Set up compliance and operational records

Establish mandatory books like shareholder registers, minute books, and financial ledgers, with potential notarization obligations. Further actions could involve social security registrations, business licenses, or sector-specific clearances. With these in place, your entity is operational-ready.

Strategy 6: Open a local banking facility

Though optional, a regional account streamlines payments and collections but involves strict KYC checks for international firms. Ongresso assists by compiling compliance packages, recommending banks, facilitating meetings, and configuring secure features to improve success rates via our partnerships.

By following these strategies, you create a solid platform for sustainable expansion, minimizing risks and maximizing opportunities. Navigating diverse rules requires specialized knowledge to avoid delays.

Ongresso delivers comprehensive assistance in formation, regulatory adherence, recruitment, and more across Latin America. Leverage our on-the-ground insights for customized, efficient strategies.

Ready to Launch Your LATAM Venture? Contact Ongresso today for expert advice on incorporating in LATAM. Explore https://ongresso.com or schedule a free session to begin your journey.