How to Create a Successful Company in Latin America

One of the first strategic decisions you must make as an entrepreneur is to choose professionals who ensure the legal and financial stability of your company. Both a specialized business lawyer and an experienced accountant will be your key allies in this process.

Why do you need a specialized lawyer?

• Legal structure: Your lawyer ensures that your business complies with local laws in the region where you operate.
• Contract advice: Creating strong agreements minimizes the risk of misunderstandings with partners or customers.
• Permission Management: A legal expert simplifies the process of obtaining licenses and permits to operate.

The shocking value of a good accountant

• Tax optimization: The accountant will help you take advantage of the tax advantages of countries such as Panama.
• Managing Finances: Control your budgets, income and expenses to avoid financial problems.
• Tax Compliance: You make sure you pay taxes in a timely manner, avoiding penalties.

One of the biggest challenges when starting a business in Latin America is selecting the right business structure. This can determine both your company's operating costs and legal liabilities.

The most common options in Latin America

• Public Limited Company (S.A.): Ideal for large companies looking to issue shares or have greater access to capital.
• Limited Liability Company (S.R.L.): A popular choice among small and medium-sized businesses, with limited liability for their partners.
• Sole Proprietorship: Perfect for entrepreneurs who want to maintain full control of their businesses.

Evaluate your objectives, budget and projections to determine what structure is best for you. Our team at Limitless Legal can advise you on this crucial decision.

Legal requirements vary by country in Latin America, so understanding local regulations is essential to operating smoothly. In general, these are the most relevant points:

Required Documentation

• Articles of association and statutes of the company.
• Tax registration with the country's tax authorities.
• Specific operating permissions depending on the type of your business.

Compliance with Labor Regulations

If you plan to hire employees, be sure to comply with local labor regulations, including contracts, benefits and social security.

The Special Case of Panama

Panama stands out as a business hub thanks to its tax advantages and ease of setting up companies. With Limitless Legal, we simplify the process of complying with Panamanian regulations.

The constitution of your company marks the official start of your operations. Here's a breakdown of the main steps:

Step 1: Define your business purpose

Clarify your company's business to properly draft the statutes.

Step 2: Register with the authorities

Register your business with the appropriate government entity and obtain your Tax Identification Code.

Step 3: Opening a bank account

The next critical step is to manage a bank account, an indispensable requirement in many Latin American countries. This makes it easier to receive payments and manage your finances.

Panama leads as a business destination thanks to its multiple tax and commercial advantages:

• Tax Incentives: In sectors such as technology, logistics and tourism, they offer significant tax reductions.
• Easy access to markets: Strategic location for international businesses.
• Fast constitution: With alliances such as those offered by Limitless Legal, you can set up your company in a few days.

In addition, if you are a permanent resident in Panama, make sure you meet the requirements to maintain your immigration status.