A guide to outsourcing company set-up in South America

Why more companies are choosing expert partners to expand compliantly, quickly, and cost-effectively.

South America continues to rise as a strategic destination for global expansion. With a growing consumer base, favourable trade agreements, and rapidly emerging tech hubs, more and more companies are looking to tap into the region’s potential. For example, Forbes recently featured a U.K. fintech company successfully expanding into South America—a sign of the increasing investor confidence in the region. View the article here.

That’s where outsourcing your company set-up comes in—offering a streamlined, expert-driven solution that reduces risks, ensures compliance, and accelerates your time to market.

In this guide, we break down everything you need to know about outsourcing company set-up in South America—what it involves, how it works, and why it might be the smartest move for your business.

Why set up in South America?

South America offers significant growth opportunities, particularly for industries such as technology, energy, finance, e-commerce, agriculture, and logistics. Here’s what makes the region attractive:

• Expanding Consumer Base: Countries like Brazil, Colombia, and Chile have growing middle classes with increasing purchasing power. This shift drives demand for services, technology, and goods—both imported and locally produced.

• Workforce & Talent: The region boasts a young, educated, and tech-savvy workforce. Countries like Argentina and Uruguay have become talent hubs for developers and digital services, making South America appealing for companies looking to outsource or expand delivery teams.

• Cost Advantages: Operating costs—such as labor, office space, and utilities—are typically lower than in the U.S. or Europe, allowing businesses to grow without inflating overhead.

• Trade Agreements: Many South American countries have free trade agreements (FTAs) with major economies, which can lower import/export costs and simplify cross-border operations.

However, with these advantages come bureaucratic hurdles that can slow you down without the right guidance. That’s why outsourcing your company set-up makes sense.

What does outsourcing your company set-up actually mean?

Instead of assigning internal teams or hiring a patchwork of consultants, outsourcing allows your business to partner with one expert provider like Black Mountain – who manages the entire company set-up process from start to end. This includes:

• Managing legal incorporation
• Handling tax and regulatory registration
• Acquiring local licenses and permits 
• Setting up HR, payroll, and local employment frameworks
• Ensuring compliance with evolving local labor and tax laws
• Acting as your representative on the ground

Think of it as having a local operations manager without the full-time headcount. This approach not only simplifies expansion, it allows you to enter the market fasters, with less financial and legal risk.

Key steps in the outsourced set-up process

Let’s expand each phase of the outsourced set-up journey and what you can expect at each step:

1. Strategic Planning and Market Scoping

Before launching, you need clarity on where and how to expand. This phase includes:

• Country Evaluation: Not all countries offer the same advantages. We help you compare factors such as tax environments, trade agreements, talent pools, and industry-specific regulations.

• Industry Opportunity Mapping: We’ll identify which markets are best suited for your sector. For instance, fintech companies might be drawn to Colombia due to its fast-moving digital economy and open banking regulations.

• Risk Assessment: Political stability, currency volatility, and compliance risks are all evaluated so that your leadership can make informed, low-risk decisions.

2. Entity Formation & Legal Setup

Every country in South America has its own set of entity types, legal structures, and paperwork requirements. Our role includes:

• Choosing the Right Legal Entity: Whether it’s a Limited Liability Company (LLC), Corporation (S.A./S.A.S), or a Branch Office, we help you select the structure that fits your operational and tax strategy.

• Document Preparation & Filing: We prepare incorporation deeds, shareholder agreements, and handle translations, notarisations, and public registrations.

• Local Director Services: Some jurisdictions (like Brazil or Peru) require a local representative or administrator—we can act as or appoint this person compliantly.

• Company Address: We provide a registered address to establish a local presence and receive official correspondence.

This phase can take weeks or even months without local support. With outsourcing, the process is compressed, and potential delays are mitigated early.

3. Tax Registration & Financial Setup

Once legally incorporated, your company must register with local tax and financial authorities. We assist with:

• Tax Identification Numbers: Known by different names—CNPJ in Brazil, RUC in Peru, NIT in Colombia—we register your company with federal and state-level tax bodies.

• Accounting Systems: We implement a bookkeeping and accounting system that aligns with local formats, languages, and tax codes.

• Tax Advisory: Our experts ensure your structure is tax-efficient and takes advantage of incentives. For example, Chile offers R&D tax credits that foreign companies may qualify for.

• Monthly Reporting: We manage ongoing filings for VAT, corporate income tax, social security, and any industry-specific levies.

To learn more about VAT compliance in Latin America click here to read forbes article.

4. Permits, Licenses & Industry Compliance

Certain industries—like food, finance, and pharmaceuticals—require additional licenses to operate. We manage:

• Application Preparation: Gathering required documents, certifications, and compliance statements.

• Government Liaison: We handle all interactions with local ministries, whether it’s the Ministry of Health, Industry, or Trade.

• Ongoing Renewals & Audits: We monitor when licenses need renewing and assist with any surprise inspections or regulatory audits.

Failing to secure proper permits can result in fines, closure, or revoked access to key services like import/export.

5. Banking & Payments Infrastructure

Banking can be especially complex in Latin America due to strict anti-fraud regulations. We help streamline:

• Business Bank Account Setup: We prepare the necessary documentation, introduce you to reputable local and international banks, and manage the application process.

• Signatory & Access Rights: We assist in establishing account signatories, setting up internet banking, and defining approval structures.

• Currency Management: In countries like Argentina where currency restrictions apply, we help you understand capital controls, repatriation limits, and hedging strategies.

6. Recruitment, HR & Payroll Support

Hiring local staff is an essential part of long-term expansion, but it’s also a legal minefield. We cover:

• Talent Sourcing: We identify, vet, and help recruit qualified candidates through local channels.

• Employment Contracts: Drafted in accordance with local labor codes and best practices, including termination clauses, benefits, and working hours.

• Payroll Set-Up & Processing: We manage tax withholdings, social contributions, vacation tracking, and statutory bonuses (e.g. 13th-month pay).

• Employee Benefits: We can help source healthcare plans, pensions, and incentive packages to stay competitive in the local market.

• HR Compliance: Local labor laws change frequently—our ongoing support ensures you’re always aligned.

7. Ongoing Compliance & Governance

Once you’re operating, we continue to support your local compliance. This includes:

• Monthly & Annual Reporting: Submission of tax filings, financial reports, employee declarations, etc.

• Labor Law Monitoring: We keep track of mandatory changes (e.g., minimum wage increases, benefits regulations) and adapt your policies accordingly.

• Audit Preparation: Should the tax authority request one, we help prepare and represent your business through the process.

• Representation & Communication: We act as your point of contact with all local agencies, reducing your need for in-house legal or operations teams.

Why companies choose to outsource this process

Let’s recap the core benefits of outsourcing your company set-up:

• Speed to Market: Avoid months of paperwork, delays, and red tape. We’ve done it before, and we know how to get it done fast.

• Local Expertise: Regulations change constantly. Our on-the-ground experts ensure you don’t miss a beat.

• Cost Savings: Bundling legal, tax, HR, and compliance support can be far cheaper than hiring multiple vendors or building internal teams.

• Peace of Mind: You can focus on your product, your customers, and your growth—knowing that everything behind the scenes is handled.

At Black Mountain, we have supported global companies of all sizes in launching operations across South America, from startups entering for the first time, to large companies expanding across five LATAM markets.

Getting started

If South America is on your expansion radar, our team are here to guide you through the process, mitigate risk, and give your company the best start possible.

Contact us today via our website or schedule a consultation and explore how we can support your international growth.

E: enquiries@blackmountainhr.com