Expanding overseas is an excellent opportunity for your company to test and enter new markets and encourage international growth. Many countries, though, mandate that companies based in other nations set up a subsidiary to operate within their borders.
Suriname, a small and thriving country in South America, requires international companies to incorporate before employing a workforce and operating. This process can be complex, so many employers turn to Globalization Partners and our subsidiary outsourcing services for help.
Surinamese Subsidiary Laws
You can choose the business model you adopt for your subsidiary. This country allows:
- Limited liability companies (LLC)
- Sole proprietorships
- Cooperative associations
- Branch offices
Most companies choose to set up a LLC or sole proprietorship. Keep in mind that certain business models and companies in specific industries require extra documentation, such as a business license or nuisance permit.
Requirements for the Suriname Subsidiary Setup Process
Before your company begins establishing a subsidiary, make sure you have:
- Nationality declarations from the Civil Registry for each company founder.
- Passport pictures and identity cards for each founder.
- A draft of the articles of association.
- A letter from a notary, if founding a LLC.
- Funds to pay all fees and buy accident insurance.
How to Set Up a Subsidiary in Suriname
- Verify that your company name is original. You can complete this step by asking your notary to check the online portal or requesting a name search from the Chamber of Commerce and Industry. The official portal is not available to company founders, so you must consult a notary or Chamber staff.
- Obtain your extract and nationality declaration. Each company founder must request these documents from the Civil Registry.
- Notarize your articles of association. During this stage, you must pay your notary a fee based on the amount of capital you’ve invested in your company. Note that the notary must provide a declaration, so the articles of association have to be in Dutch.
- Apply for company registration. You can complete this step at the Trade Register at the Chamber of Commerce and Industry. At the same time, you must register your company’s approved act with the same entity.
- Register for a tax identification number (TIN). Upon registering your company with the Ministry of Finance, you must fill out a self-assessment form. You can submit the completed form to the tax office.
- Buy accident insurance. You may choose your insurance provider, but you must obtain accident insurance for all employees.
- Obtain your trade license. The Chamber of Commerce and Industry will grant your request through their electronic system.
The Benefits of a Subsidiary
Operating a subsidiary has several benefits. Namely, a subsidiary creates separation between your parent company and international entity, giving both companies more freedom. Your subsidiary can make independent creative decisions and manage its own administrative tasks while promoting your brand.
Unfortunately, setting up a subsidiary involves incurring several expenses. Plus, the new entity is responsible for any oversight when following local and national laws. If your subsidiary’s management makes a mistake, your company may experience penalties such as fines. In the worst case, you could lose your trade license.
The cost and risk associated with getting up a subsidiary create the need for other solutions. At Globalization Partners, we’ve partnered with established companies in 187 countries. When you choose our subsidiary outsourcing services, these connections allow you to expand into a new country without setting up your own business entity.
Contact Our Team
Our support representatives and legal team can provide more information about country-specific subsidiary laws and how we ensure full compliance. Reach out to us today for more information about our Suriname subsidiary outsourcing solution.