We’ve spoken previously about the various benefits of expanding to Latin America. It has a great growth market, and has impressive trade ties with neighbouring countries and continents. They value tax compliance, and show impressive feats in economic growth. However, when expanding to LATAM, many foreign investors fall into unhelpful habits which can actually hinder their business growth, although it may seem like the better option. Luckily, there are PEOs and payroll companies who can help.
If you’re looking to do business in Latin America, you’re going to need help from an entity that understands the market. Here at Payroll Worldwide, we can remove entry barriers and facilitate growth in LATAM. We provide payroll and human resources (HR) services to help take away extra worries from countries in LATAM and those wishing to expand. If you’re thinking of growing your business globally, here are some things to consider…
Looking to Big Countries Due to Population
Brazil and Mexico are popular locations for global expansion and mobility due to their size and population amount. This can be a great career move if your products or services fill a much-needed gap, but this isn’t always the case. Mexico is an easy market to enter, but because of this, the competition is a lot richer and fiercer. Businesses that are already established will understand the climate, making foreign businesses feel uneasy. However, smaller countries such as Colombia or Peru could be a great place to start; the learning curve is less expensive, and they could be a great place to showcase your services or products.
Brazil and Mexico are great places to branch out to and expand your business’s horizons, so don’t rule them out just yet. If you are thinking of expanding to these countries, you’ll need an expert agency on hand to make sure you’re as compliant in tax and labour law as possible. Our team understand the LATAM employment market, and can help you make informed decisions.
Thinking You Can Handle Payroll Solo
All businesses need to put their staff on payroll. Through payroll, you can pay your employees accurately, track annual leave and sick days, and keep on top of income tax and social security. If it is not carried out effectively, your staff could end up being paid incorrectly, which can be quite detrimental to your business. There are lots of factors to consider when expanding abroad, and human resource tasks may seem like the last of your priorities. However, they are incredibly important, but there are professional employment organisations (PEOs) who can help.
If you don’t want to handle your payroll, immigration or onboarding solo, you may recruit a HR team, but they may not have a full-rounded knowledge. Turning to a HR outsourcing company can not only keep your processes streamlined and professional, but it is more cost-effective than hiring a team too. To find out more about our services, please visit us here.
Awarding Market Exclusivity to a Singular Distributor
Most markets in LATAM countries are incredibly centralised; between 60 and 90% of activity takes place in the country’s capitals, from Santiago in Chile to Buenos Aires in Argentina. In Colombia, Mexico and Brazil, it is difficult to find an agent or distributor with full national reach. If you’re looking for resellers or distributors in your market, you should contact a few and divide them by region or even sales channel. You cannot afford to wait a couple of years to identify that your distributor was poorly chosen, and competition could actually be healthy for your business.
Latin American markets represent 10% of the world’s gross domestic product (GDP), so they’re a great place to look towards and do business in.
We’re Here to Help
Here at Payroll Worldwide, we’re dedicated to providing expert services to businesses in Latin America and those wishing to expand to the region. We always strive to make your processes as streamlined as possible, leaving you with fewer aspects of your growing business to worry about when moving to a foreign country.
To find out more about tax compliance or payroll, or to receive a consultation, please give us a call on 07469 892524. Alternatively, you can fill out our online form here.