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.
When foreign companies enter the Latin American market, partnering with a local distributor is often a practical and efficient entry strategy. However, this strategy also introduces a layer of complexity—especially when it comes to protecting intellectual property. One of the most effective ways to safeguard your IP in these relationships is through a well-structured distribution agreement.
Over the past few years, Latin America has quietly become a hot spot for technology suppliers looking to grow. As industries across the region modernize, there’s a real appetite for solutions that boost efficiency, improve safety, and support sustainability goals.
For companies serious about servicing the Chilean market, incorporating a local entity is a crucial step. However, many foreign companies struggle with understanding the process, the required documentation, and the legal intricacies involved.
When I first set foot in Latin America over a decade ago, I was mesmerized. The region’s vibrant culture, dynamic markets, and immense business potential captivated me. Yet, while companies were eager to enter the region, I was surprised by how many failed. They struggled to navigate an unfamiliar business environment, often stumbling over their own missteps while overlooking critical legal, commercial, and cultural differences.
When companies begin operations in Chile, they often start with a small local team. Given the geographic distance and significant time differences between Chile and head offices located in other countries, local staff often operate with minimal day-to-day oversight. One common oversight in the early stages of incorporating an entity in Chile is neglecting corporate governance. However, the way powers are granted in the beginning can significantly impact the company’s operational efficiency and the protection of foreign shareholders.
One of the key factors for foreign mining suppliers to succeed in Brazil is establishing a local presence. In a market as complex and large as Brazil, simply selling products from abroad is often not enough. Having a physical presence in the country is essential for building trust, providing timely support, and ensuring long-term success in the mining sector.
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