As we saw in our special report “Recovery to Rediscovery: Capitalising on a Changed Private Equity Landscape“, LATAM is one of the preferred destinations for investment from the United States (91% of North America-based fund managers surveyed said they intended to invest in the region before 2026). And it’s easy to see why.
Latin America is a region full of opportunities for companies looking to begin the process of international expansion (according to ECLAC data, expected regional growth in 2021 = 5.2%), but the South American continent also holds many complexities and challenges.
Of all the administrative, bureaucratic, and corporate processes involved in internationalisation, setting up payroll management in a new country is possibly one of the most intricate and demanding. And it is, without a doubt, one of the processes that can have the most impact on the organisation.
Prior knowledge of the cultural and legislative specificities of processes like registration, termination, or the types of existing contract, can be a distinct advantage.
Our guide for international payroll management in Latin America seeks to shed light on some of the issues that present headaches for companies undergoing internationalisation.