When you make the decision to expand your business globally, it can be one of the most beneficial decisions that you make as a managing director. Where you decide to expand depends on a number of factors, such as the industry you’re in and the workforce you need. Expanding to Latin America (LATAM) presents a number of incentives for both the local economy and your business, providing you with a skilled workforce and an opportunity to expand your employee’s horizons. But when expanding to LATAM, what do you need to know?
With increased geographical advantages, a growing middle class and more economic stability, LATAM is becoming an attractive place for a number of businesses to expand to. It can be an exciting yet stressful experience managing your human resources (HR) as you move; you need to make sure everything is above board, you’re adhering to labour laws and your staff who have moved with the business have settled well. Here at Payroll Worldwide, we are your fully comprehensive HR and payroll department in Latin America, helping with staff mobility, setting up payroll and recruitment. If you’re ready to make the move to LATAM, read our helpful article below.
The Best LATAM Countries for Business Expansion
All Latin American countries have their strengths when it comes to establishing a business. Some have more secure settlement opportunities, whereas others have better “ease of business” ratings. Chile has a great ‘ease of business’ rating, with the ‘Ease of Doing Business Report 2019’ ranking them number 56. They have recently incorporated an electronic system for contract enforcement, allowing employees to make complaints online. Uruguay also set an example worldwide as an exemplary place to do work; they’re the leading country in LATAM in democracy, press freedom and peace. If you’re looking to do business in Latin America, Uruguay could be the best place for a quiet life.
Mexico is a popular country for foreign investors and tourists alike. Its large population and growing middle class make it an attractive place to settle, and being a part of NAFTA allows it to have free trading capabilities with the largest countries in the world. Also, Costa Rica has one of the best environmental policies globally, set up by the country’s centre-left ‘Citizens Action Party.’ If your business ranks its green credentials as being completely paramount, Costa Rica has 99.63% of its electricity generated from green sources as of 2019.
Untapped Markets
Emerging countries across the world and in Latin America offer the most opportunity for businesses, as the middle classes and their need for various products and services grow. Business opportunities in these countries may offer little to no Western brand competition, making it a great place to enhance your appeal and business prowess. With a wide range of countries in LATAM to choose from, businesses can choose their settlement based upon their needs and company goals.
Here at Payroll Worldwide, we can help your business expand in LATAM, helping you run your payroll software and taking care of various HR tasks. From helping your staff acquire the relevant work visa to employing people and getting them onboarded, you can view our extensive list of services here.
Trade and Economic Stability
Brazil, Uruguay, Argentina and Paraguay make up Mercosur, the fourth largest trading bloc in the world. With a GPD of over $3 trillion, this particular trade region offers great business opportunities and fast-growing markets in Latin America. The United States and Canada also have great trade links with Mexico (USMCA), so expanding to Mexico for most businesses makes strategic sense.
For any business, expanding to a country with economic stability is incredibly important. If you’re considering expanding to LATAM, Mexico, Peru and Chile are just some of the countries that generate 40% of all Latin America’s GDP. They have stable, healthy economies, perfect for expanding your business and establishing a healthy environment.
The Best Talent for your Business
The people in Latin American countries are incredibly diverse, providing all businesses who expand there with a rich talent pool and great employee candidates. Often, workers are highly educated, and can provide knowledge and talents that candidates from other parts of the world may not possess. All businesses need an exceptional team of people to thrive in the world, and it all starts with where you choose to expand.
If you’re looking towards Latin America, consider Payroll Worldwide for all your payroll service and HR needs. We can help you navigate the ins and outs of employment and labour law in Latin America, providing a smooth transition for all businesses looking to expand. If you would like to find out more, please drop us an email at hello@payrollworldwide.com, give us a call on 07469 892524, or you can fill out our online form here.
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