3 Crucial Latin American Countries to Start a Business In
The national governments of many Latin American countries have been pushing for more international engagement. Latin America is a very ‘open to business’ environment. It is welcoming of international investors looking to break into the local markets.
Whether you are seeking employment services, company formation, payroll services, or benefits administration, NNRoad can help navigate your business through the different markets of Latin America to suit your global expansion strategy.
Keep reading to learn of three crucial Latin American countries to do business in.
A. Open a Tech Company in Mexico
Mexico has the second largest economy in Latin America. Mexico’s labor laws favor workers and doing business in Mexico means having an expansive reach as it the twelfth largest exporter in the world.
Here are a few reasons why you should invest in Mexico:
Free Trade Agreements
- 46 countries hold numerous free trade agreements with Mexico, more than any other country in the world. Mexico has the E.U-Mexico Trade Agreement, Japan-Mexico Economic Partnership Agreement, and the North American Trade Agreement, just to name a few. Businesses based in Mexico will have major engagement with some of the most powerful economies in the world.
Business-Friendly Infrastructure and Policies
- The government has put in efforts to improve national security and help attract foreign direct investment (FDI) and promote domestic growth. In 2018, the government announced a $43 billion USD infrastructure program focused on projects to improve transportation around the nation.
Fintech (Financial Technology) Market
- Mexico is the second-largest market for young tech companies in Latin America. Numerous tech jobs have emerged making hiring in Mexico ideal for foreign employees. Mexico’s Fintech Law allows foreign start-up fintech firms to easily enter the market. Guadalajara is dubbed the “Silicon Valley of Mexico” and is now home to more than 600 tech companies.
B. Taxation in Panama
Those who may not know Panama’s employment laws will be surprised to learn that it is a unique country which is economically free and a hub for local and international entrepreneurs. Written labor contracts are not required, but are highly recommended for businesses looking to hire.
These are a few reasons why Panama should be your next business destination:
Panama Tax Laws
- Businesses often incorporate their company in Panama due to its territorial system, where income that is earned outside of the country is free from income taxes. Panama is the ideal offshore tax location that allows multinational businesses to maximize profits and reduce the amount of taxes they pay.
Easy Market Entry
- In Panama, you can register a business within two weeks. Business owners or investors do not need to physically be in the country during or after the incorporation process. Directors, shareholders, and company officers can be of any nationality when registering the business in Panama and can live in any other country in the world.
- Due to low barriers for entry into Panama, it has become a hub for many entrepreneurs and expat workers. The Panama Canal also makes the country a strong location for international trade. Both of these key aspects have contributed to a thriving start-up community in Panama, making it a prime choice for international business.
C. Hiring Employees in Argentina
Argentina has gone through great lengths to improve their economy and is now welcoming foreign investment.
Here are a few key points that make Argentina an ideal place to expand your business:
Argentina’s Young Workforce
- Argentina has a large, young, and highly educated population. The population sits at over 45 million people with a high percentage of individuals completing secondary education. Another advantage for foreigners considering investing into Argentina is that it has some of the highest rates of English and Spanish speakers in Latin America.
- Being a member of the trade agreement, MERCOSUR, comes with several benefits. In terms of international trade, it gives access to 3 countries and numerous associate countries with reduced barriers to trade and limited taxes.
- The Argentine government has a strong commitment to the environment through the creation of renewable energy projects in a variety of sectors. Sectors like agriculture, automotive, and oil and gas are all sectors that are expected to grow in the future and are welcoming investment from foreign experts in those fields.
NNRoad understands the local nuance of the Latin American market. We’re here to guide you towards global expansion.
To learn more about how expanding your business internationally can benefit your business, check out our 5 Benefits to Expanding Your Business Internationally to better prepare you for your journey towards market entry.