Registering a company in Latin America is a very attractive option for many investors, entrepreneurs, and business owners from all around the world. The business incorporation process depends on the country, but in most of them, it is necessary to have a Legal Representative in order to carry on with the process in order to register the company.
In this article, we’ll answer some of the most common questions surrounding Legal Representation in Latin America, as well as some of the requirements and how Easyco can help you!
What is a Legal Representative?
A Legal Representative is a person that represents the company locally. Furthermore, having a Legal Representative is a requirement to register a company in all Latin American countries, hence its importance. The Legal Representative of a company in LATAM can hold the position of General Manager (or similar, depending on the country) and it’s going to assume commitments and make decisions that benefit the company
However, the Legal Representative always works closely with the owners of the company, in order to decide the best actions for the business, to achieve its goals and objectives.
Who can be a Legal Representative in Latin America?
These are some of the general requirements to be the Legal Representative of a company in Latin America. Keep in mind that these requirements can change depending on the country
Be 18 years or older.
Be a citizen of the country or a foreigner but must have a local legal address and valid immigration status.
In some countries, a foreigner can also be appointed as Legal Representative.
What are the functions of a Legal Representative?
A Legal Representative is granted powers and his/her authority is limited to the exercise of the necessary acts for the proper management of the company. Likewise, the representative of a company can assume decisions of the company he represents, both internal and external. These decisions are manifested through certifications.
These are some of the functions of a Legal Representative:
Complete processes at the Public Registry and other authorities.
Open the corporate bank account.
Act as the first form of contact for government authorities.
Fulfill local statutory requirements.
Execute the orders given by the board of directors or shareholder’s meeting.
Safeguard the proper function and operations of the company.
Enter into and execute the actions and contracts needed to develop all the activities of the company he/she represents.
It is important to remember that a Legal Representative acts on behalf of the company’s owners, so its actions are always regulated and limited to their desires, objectives, and goals. Also, it is important to take into account that the Legal Representative holds responsibility for the company’s operations, and it is the first point of contact for communication and information requests from government agencies.
When to appoint a Legal Representative in LATAM?
You must appoint a legal representative at the beginning of the company registrationprocess in the company bylaws. You can also change the legal representative at a later time via a modification of the company bylaws through a public deed that is submitted to Public Registries. The way to appoint a Legal Representative is through a Power of Attorney or POA.
In what countries do I need to appoint a Legal Representative?
Currently, a Legal Representative is required in all countries where you would register a company. Easyco has coverage in the following countries:
What is a Power of Attorney?
A Power of Attorney (POA) is a document that gives legal authorization to a designated person. In a company, the owners, shareholders, or partners, grant this authorization to a Legal Representative, so he/she can act on behalf of them.
Each Power of Attorney is unique and must be prepared for each specific case since it needs to be very specific and detailed in how much power is the Legal Representative going to have. The best way to elaborate a Power of Attorney is with a local registered lawyer in the country you want to incorporate. The Power of Attorney also needs to be notarized.
At Easyco, we have a team of lawyers in all countries that can help you with this step.
Easyco and Legal Representation in Latin America: What to expect?
Do you want to establish a business in Latin America but do not have a team currently? No more bumps in the road, Easyco provides Legal Representation services as part of your company registration compliance. Easyco corporate experts bring a proven track record of Legal Representation kept to high standards, helping you with your company requirements and business formation in all Latin American countries.
Would you like to register a company in Latin America?
At Easyco, we make company formation in Latin America easy; our team of corporate experts has vast experience helping companies and individuals register their business in LATAM, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM and makes business registration easy by providing a hassle-free online company registration experience. Start your company in Latin America today!
Easyco also provides additional services to guarantee your company’s compliance, which includes: