Company Formation In South America – Openaeuropeancompany

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Build Your South American Business with Right Structure:

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Limited Liability Company (LLC / SRL / LTDA)

Limits personal liability of owners

Can have one or more shareholders
Easy to scale and attract investment
Requires local registration and tax compliance
Often the most flexible and popular choice

Corporation (SA / S.A.)

This is ideal for larger businesses or those seeking outside investment

Separate legal entity from shareholders
More complex governance structure
Suitable for raising capital or going public
Requires board of directors and shareholder meetings

Sole Proprietorship

Common in: Peru, Colombia, Ecuador
Ideal for: Freelancers and solo entrepreneurs

Simple to set up and operate
Low cost and minimal regulations
No separation between personal and business liability
Not ideal for high-risk or scalable ventures

Branch Office (Sucursal)

This is best for foreign companies entering the South American market

Not a separate legal entity
Parent company is liable for local operations
Requires local representative and registration
Useful for testing new markets

Partnership Structures (Sociedad Colectiva / Sociedad en Comandita)

This is best for small businesses with multiple founders

Can be general or limited partnerships
Partners may have shared or limited liability
Best for ventures built on trust and active management

Company Registration in South America

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Happy Clients Make us Happy

We were unsure about the formation of our company, but they have made the entire company setup process so much easier and stress-free. Their experts took care of everything with true professionalism

These guys are amazing. Not even a single time did I feel that they were not there. Whatever I wanted to ask, they were there to help even after the company was formed. Their ongoing advisory service is amazing.

Company setup was surely difficult, but they knew their stuff, and their help with tax registration and everything was invaluable.

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FAQs

Why should I consider starting a company in South America?

South America offers rapidly growing markets, rich natural resources, and increasing digital adoption. Countries like Chile, Colombia, and Brazil provide exciting opportunities for startups, import/export businesses, and foreign investors.

Which South American countries are most business-friendly?

Some of the top choices for foreign entrepreneurs include:

Chile – known for ease of doing business and tech startups
Uruguay – politically stable, with tax incentives
Colombia – fast-growing economy and investor-friendly reforms
Paraguay – low taxes and affordable labor

Can foreigners fully own a company in South America?

Yes, most South American countries allow 100% foreign ownership of companies. However, local requirements (e.g., local representative or address) may vary by country.

What types of companies can I register with?

While it depends on the country, common types include:

Limited Liability Company (LLC)
Corporation (S.A. or S.A.S.)
Branch Office
Representative Office

Do I need a local partner or director?

Some countries (like Brazil or Argentina) may require a local legal representative or fiscal address. In others, like Chile, foreigners can fully control the company with remote options.