Colombia always had the potential to become a major mining jurisdiction but the mining sector is now completely frozen. There is a high level of uncertainty due to the governments push to reform the mining code, create a state mining company, and new a environmental decree.
Industrial technology companies rely on international markets since they often need to follow their clients to where the projects exist in the world. Working in foreign jurisdictions brings some unique challenges and risks. Permanent Establishment is one of them.
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.
Joint ventures can be useful for foreign companies entering Latin America. Unfortunately, they often do not work out the way companies would hope. There is one stage of the process that can greatly improve the chances of success if it is done properly. Check out our blog this week for some good tips.
Once the Colombian entity is incorporated, the next step is to open the bank account. This is often the most frustrating part for foreign companies given how easy it can be to open a new bank account in other parts of the world. We have provided a fact sheet to help companies understand the most important questions that arise during the bank opening process.
We interviewed Andres Recalde, a Senior Social Strategist that has spent the last 25 years working with mining companies in various parts of Latin America. In our interview, Andres provides his personal insight into what is happening in Peru, his idea about social acceptability rather than social license, and practical tips that exploration companies should consider when engaging with communities.
Incorporating a local company is an important step for companies who are serious about servicing the Colombian market. The issue is that many foreign companies do not know the intricacies of the incorporation process or the documentation that is required from the foreign shareholder. We have provided a practical guide so companies understand the process.
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