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3 tips for domiciling a foreign company in Venezuela

After the recent announcements issued by the Venezuelan government, where it is stated that shares of public companies will be offered to the stock market. A new panorama has been formed that fills with investment hopes for these companies that have great infrastructure deficiencies. The market has reacted with interest to these measures, so it is expected that this will lead to a positive impulse for the country's economy. Let's remember that in previous articles we have already shared the keys to understanding foreign investment in the country. So in this opportunity, we will give you 3 tips to domicile a foreign company in Venezuela.

1- Learn about the Venezuelan legal, financial and social context.

One of the first things that any foreigner who wants to invest in any industry in Venezuela should do is to learn about the legal, financial and social context in the country. For this, it is important to establish alliances or relationships with national companies that contribute with their experience in the sector.

Although the Venezuelan economy is stagnant due to a strong economic crisis, there are financial strategies that have allowed many Venezuelan entrepreneurs to achieve success. In these cases there are several experiences that should be studied, such as the case of the plastics manufacturing industry, the food industry, the chemical industry, and others that have managed to succeed in this context. In this way, the foreign investor will be able to familiarize himself with the Venezuelan business culture, something that is advisable to handle before domiciling a foreign company in the country.

2- To turn to a team of lawyers who are experts in the incorporation of foreign companies in Venezuela.

As a result of international sanctions, it is necessary to have a very broad understanding of the Venezuelan legal context. Therefore, relying on a team of lawyers with different specialties guarantees compliance with legal and tax obligations. It is very important to keep in mind that while doing business in the current Venezuelan and global context is not easy, it is not impossible either.

With the recent relaxations in the oil industry, it is expected that little by little joint ventures or private capital companies can be integrated to help develop the infrastructure, while at the same time benefiting other markets energetically. Therefore, if the investor does not have the certainty or security to invest in Venezuelan territory, we recommend that before making any decision, he/she should talk about his/her idea with a specialized legal team. They will be able to show you the pros and cons of establishing this type of business in the country, and how you can mitigate the risks related to it.

3- Implement a compliance program in the company.

One of the fundamental tips when domiciling a foreign company in Venezuela is to implement a regulatory compliance program. Although these programs are not a requirement to domicile a foreign company in Venezuela, they are an international endorsement for other investors to have confidence in your business.

Compliance programs function as certifications, operations manuals and other mechanisms that establish constant inspections of a company's legal, financial and administrative procedures. To carry them out successfully, it is necessary to integrate all business units under the same vision and work culture. Because these programs function as prevention and inspection mechanisms to rectify criminal conduct or operations within the organization.

If you would like more information or need advice on this and other issues of criminal and commercial law, do not hesitate to contact us at contact us at. We also share with you our social networks so that you can keep updated on the legal topics that are in trend: Instagram, Facebook, Twitter y Linkedin.