The world is more connected than ever, and mining technology and service companies are no exception. As they expand their reach globally, they need to follow their clients to new markets, from a copper mine high in the Andes to the icey cold winters of Northern Canada. When exploring new markets, it’s the classic “chicken or egg” dilemma: You want to see success before committing to the expenses of a local operation, but as soon as you start generating revenue, the risk of being classified as a PE increases.
All companies and foreign shareholders operating in Chile (Latin America) require a local legal representative that is liable for the companies’ activities. The role is an important part of operating in the region and it has some very important legal and practical considerations that are important for companies to understand.
It was previously time consuming and complicated to incorporate a company, particularly for foreign companies that were looking to enter the market. This changed in 2017 when a new corporate vehicle was introduced known in Spanish as Sociedad por Acciones Simplificada (“SAS”).
It is not always exciting to think about but how we grant powers and structure companies from a corporate governance perspective but it plays an important role in how we protect the foreign shareholder and ensure the local entity is operating to the highest standard.
Chile uses electronic invoicing but many companies do not know that they only have 8 days to reject an invoice. If an invoice is not rejected then it can be used as evidence that a service was provided even when it was not.
It is important for international companies to understand how contracts and specific clauses are dealt with in each country they are operating in. We provide a practical guide to clauses in Peruvian contracts.
Over the last 10 years, the Ax Legal team has helped many companies to enter and to operate in Peru. We have put together a comprehensive guideline of the relevant steps, timeframe and some of the important requirements needed to be completed when incorporating a company in Peru.
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