For many foreign investors, it is a dream to establish branches in a market full of opportunities such as Latin America. And it is no surprise that with the passage of time, markets that have been depreciated have been able to re-emerge within a lot of financial uncertainty. This is due to the fact that several entrepreneurs around the world have taken advantage of these opportunities, positioning their products and services in countries such as Venezuela. Such is the case of the Brazilian food industry, which found a space to market its products despite the financial crisis, as has been the case of the "Order Now" application, which managed to establish branches in several Latin American countries. In this sense, today we will talk about what a branch is, and what are its functions and benefits.
What is a branch?
A branch is a legal vehicle for companies registered outside of one country to operate legally in another. In this case, branches are commercial establishments without a legal entity, which operate under the regulations stipulated by their parent company. Therefore, any change must be made through an act issued by the parent company, to be executed by the persons in charge of the branch in Venezuela.
This is an ideal option for all those foreign investors who want to transfer their profits directly to international banks. In this way, the company does not lose control of its image, products, customer service, finances, among others.
What are the functions of a branch office?
The functions of a branch in Venezuela range from financial and social to legal. In this sense, the branch, in addition to following the guidelines of the parent company, will provide solutions to the different scenarios of the Venezuelan market.
Among these functions we have:
- Analyze the market, geographically and demographically.
- Design an expansion plan that adjusts to market realities.
- Establish the modality and methodology of work with prior authorization from the head office.
- Organize the human resources department.
- Maintain the quality standards established in the brand's manuals and regulations.
- To be accountable at the economic, legal, social and business levels according to the objectives established by the parent company.
How to establish a branch of a foreign company in Venezuela?
Previously, we have reviewed 3 tips for domiciling a foreign company in Venezuela, y How to domicile the branch of a foreign company in Venezuela?. So it is no longer a secret that this is a procedure that can be done quickly and effectively. To do this you need to have a team of lawyers with experience in the area, which will allow you to follow the step by step to domicile the company in the country.
How to successfully operate a foreign branch in Venezuela?
As Venezuela has a volatile financial market, it is advisable to have a broad understanding of its legal context. Therefore, once the business model is analyzed, we can see what a branch is and if this model adapts to the needs of the business. So the study of the industry where your business is framed is fundamental to minimize risks. This has made it possible for different multinationals to continue marketing their products within the national territory.
To trade successfully, we recommend that you have a good understanding of the industry in which you want to trade, as well as keeping track of and analyzing market changes. This type of information will help you develop better trading strategies, which can turn risks into strengths.
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