If you want to take your company to the international level, you may consider establishing a subsidiary. These entities make it easier to conduct business globally, but the process can be extensive. With Globalization Partners, we offer subsidiary outsourcing to help you sidestep weeks of company registration.
How to Set Up a Venezuela Subsidiary
Before you start the subsidiary process, you need to consider the different company types and which one works best for you. Venezuela has two business types — limited liability and public limited.
A limited liability company is not as common in the area. It requires a minimum share capital between approximately USD 4 and USD 400 and it needs at least one director and shareholder. Public limited companies still require a director and shareholder but don’t require a share capital.
Once you decide upon the company type you want, you have to work through the legal establishment process. You must:
- Approve your company name with the Company Registrar.
- Publish your articles of association in a local paper.
- Register corporate books.
- Obtain a tax ID from National Integrated Service for the Administration of Customs, Duties, and Taxes.
Venezuela Subsidiary Laws
When you establish your subsidiary, you must appoint at least one director and shareholder, regardless of your company type. Your director doesn’t need to be a resident of the country, so you could appoint one of your current employees from your parent company.
Registration also requires your articles of association. This document details how your business will be run, like your company’s process for appointing directors and how you handle financial records.
In Venezuela, the Code of Commerce requires all businesses to file their financial records and books with the Company Registrar You also need to submit all associated audit reports and public accountant reports. These documents should be in Spanish and have approval from your shareholders before submitting them.
Benefits of Setting Up a Venezuela Subsidiary
While setting up a subsidiary takes time and money, it does offer a few advantages. Once you create your business, it will act as a separate entity from your parent company. This presence lets you form an individual business culture that can thrive within the region. Another benefit is that if your subsidiary encounters legal trouble, your parent company won’t be responsible for the liability.
At Globalization Partners, we help you skip the subsidiary process altogether by hiring your employees through our entity. This arrangement allows your international business to get started faster, and it offloads all of the liability onto us. We’ll manage the legal concerns — and if noncompliance ever becomes an issue, we’ll handle the costs.
Other Important Considerations
Time is one of the essential resources you need for your subsidiary setup. Establishing your company in Venezuela can take anywhere from 20 to 25 weeks. It’s crucial to incorporate this time into your setup process so you don’t start conducting business before you’re legally allowed to do so.
Regardless of the company type you register, you will need to pay some processing fees. You should also consider your shared capital if you choose to invest in a limited liability company. Make sure you have the necessary funding before you start the establishment process.
Depending on how you choose to handle your registration, you may end up flying back and forth between your subsidiary location and your parent company. You should also consider these flight costs when you plan for your international expansion.
Let Globalization Partners Help With Your Expansion
You don’t need to spend weeks establishing your company in a new location. Globalization Partners will help you get started right away, so you can focus on growing your company. Want to learn more? Reach out to our team today.