Currently, many foreign businessmen are interested in the Venezuelan market due to the current opportunities offered by our economy. The interest of foreign capital seeks to strengthen and modernize the Venezuelan industry in different sectors. For that reason, in the last months several foreign companies have consulted us about the development of their business concepts in Venezuela and the legal viability of the same, since they are being motivated by the opening to foreign investment in the country, and the opportunities and economic benefits offered by the national market. In that sense, today we will explain how to domicile the branch of a foreign company in Venezuela.
What is a branch of a foreign company?
The branch of a foreign company in Venezuela is a commercial establishment that belongs to a company registered in a foreign country. This means that the branch does not constitute a legal entity different from the parent company or company of origin. It is different from a franchise, since the latter belongs to a third party, which is in charge of acquiring the rights to use the trademark and work under the same commercial system.
Therefore, it is important to analyze in advance the reality of the brand in the country, and thus be able to determine whether it is better to act as a network of branches, franchises or subsidiaries with foreign trusteeship. Thus, the advice of a legal team specialized in the market where you want to operate is vital for the chosen model to be successful.
How to domicile a branch of a foreign company in Venezuela?
Foreign companies can operate legally in the country, through domiciliation under the Venezuelan legal system. In other opportunities we have already talked about how to invest through a foreign company in Venezuela. So we remind you that in order to make the domiciliation, the foreign investor must have the constitutive documents of its company and enter into an agreement where the domiciliation of the foreign company in the Venezuelan territory is authorized.
Next, the shareholders or directors of the foreign company must have a person to represent them in our country. This representative will be responsible for managing and legally processing everything related to the organization in Venezuela. Likewise, it is recommended to have or be advised by a legal team that can manage the permits, certifications and any other requirement necessary to operate in the Venezuelan industry and market.
Benefits of domiciling a branch of a foreign company in Venezuela
Unlike franchises, branches share the same benefits of the other businesses with which they share ownership. That is to say, if a company based abroad intends to operate within the Venezuelan territory without losing the international legal status. It can do so through domiciliation of a foreign company in VenezuelaThis procedure is the most attractive for foreigners and commercial operations remain under the same international legal structure.
For this reason, once these alternatives are understood, the following is promoted foreign investment in Venezuela without registering a new corporate form. Being possible the recognition of international associations, which operate commercially within the national territory. One of the main benefits is the repatriation of commercial profits.
The only thing that the branches of foreign companies in Venezuela must take into account is that they must comply with the Venezuelan legal framework and with the tax duties that are acquired at the moment of domiciling in the country.
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.
