Due diligence in Bolivia is the best way to ensure the safety and security of your business operations in the country.
Future business executives should be aware of the challenges they may face when doing business in Bolivia, such as the local legislation, market behavior, and appropriate risk management.
Undertaking due diligence processes will significantly improve your ability to make informed decisions when doing business in Bolivia. These processes provide business owners with critical information about companies and partners, including an extensive analysis of financial, legal, labor information, or even environmental practices.
Understanding due diligence in Bolivia
Processes for due diligence in Bolivia for market entrants include in-depth investigations to analyze the profitability of expanding a new business. Collected information helps to evaluate the risks that executives may face. A local third party can carry out the appropriate market research to give comprehensive and knowledgeable feedback to the company.
Both parties can operate under a confidentiality and exclusivity agreement to undertake this work. With the information gathered from due diligence research, executives can understand potential strategies, liabilities and contingencies to enter the market.
Why is due diligence important in Bolivia?
Bolivia’s economy has grown considerably in the last few years due to the extraction and export of natural gas, silver, zinc, and soy. It is the fourth-largest natural gas producer and the eighth oil producer in Latin America.
Likewise, Bolivia has signed numerous trade agreements that attract thousands of foreign investors. However, there are still legal gaps that make it difficult to identify and penalize illegal activities known as “laundering of illegal profits.”
Although the country’s government is working on its legislation to ensure transparency within its industry, performing a due diligence process in Bolivia is the best way to safely invest in companies that comply with all the local law requirements.
Aspects to investigate
Performing a process of due diligence in Bolivia involves mainly the investigation of a company’s accounting and commercial departments to detect any internal deficiencies. Nevertheless, other aspects of due diligence include:
Technological infrastructure
Administration
Labor
Legal compliance
Environmental practices.
This process includes a detailed collection of official documents regarding shareholders, beneficiaries, and corporate structure. It also inquires if a company has been penalized before and the reasons behind this.
Engage with local providers to undertake due diligence in Bolivia
If you are thinking of incorporating a company in Latin America, learn how our due diligence, investigation and other back-office services can be useful for successful operations in the Latin American region. We control, identify, and reduce risk by answering important questions you may have.
Biz Latin Hub offers a full range of professional market entry and back-office services, including company formation and legal representation in Latin America. Contact us to start your business in Bolivia.
As informações fornecidas aqui não devem ser interpretadas como orientação ou aconselhamento formal. Consulte um profissional para sua situação específica. As informações fornecidas são apenas para fins informativos e podem não abranger todas as leis, padrões e práticas recomendadas pertinentes. O cenário regulatório está em constante evolução; as informações mencionadas podem estar desatualizadas e/ou podem sofrer alterações. As interpretações apresentadas não são oficiais. Algumas seções baseiam-se nas interpretações ou pontos de vista de autoridades relevantes, mas não podemos garantir que essas perspectivas serão apoiadas em todos os ambientes profissionais.
La información que aquí se ofrece no debe interpretarse como orientación o asesoramiento formal. Por favor, consulte a un profesional para su situación específica. La información proporcionada tiene únicamente fines informativos y es posible que no recoja todas las leyes, normas y mejores prácticas pertinentes. El panorama normativo está en continua evolución; la información mencionada puede estar obsoleta y/o sufrir cambios. Las interpretaciones presentadas no son oficiales. Algunas secciones se basan en las interpretaciones o puntos de vista de las autoridades pertinentes, pero no podemos garantizar que estas perspectivas se respalden en todos los entornos profesionales.
The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
Legal Team Bolivia
Legal Team Bolivia is the Biz Latin Hub leading experts on doing business in Bolivia The Team writes on the news, doing business, law, and changing regulations. The team are experts in corporate law, Administrative law, Employment law, Immigration law and legal advisory services. Read more about them here. You can contact Legal Team Bolivia via our "contact us page".
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