LEGAL ASPECTSOF DOING BUSINESS IN

LATIN AMERICA

Second Edition

S"

DENNIS CAMPBELLGeneral Editor

CHRISTIAN CAMPBELLEditor

JURIS

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Table of Contents

Argentina

General Introduction ARG-1

Establishment of Enterprises ARG-2

Acquisition of Enterprises ARG-6

Acquisition of Realty ARG-8

Taxation ARG-9

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AnguillaIntroduction AIA-1

Establishment of Enterprises AIA-2

Acquisition of Enterprises AIA-6

Acquisition of Realty AIA-9

Taxation AIA-11

Customs Regulation A1A-13 5"

Currency Regulation, Capital and Profit Transfer, and Investment &

Incentives AIA-16 S

Competition Law AIA-18

Intellectual Property Protection AIA-21

Employment Law AIA-24

Banking Law AlA-27

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LEGAL ASPECTS OF DOING BUSINESS IN LATIN AMERICA

Argentina(continued)

Customs Regulation ARG-11

Currency Regulation, Capital and Profit Transfer, InvestmentIncentives ARG-12

Competition Law ARG-14

Intellectual Property Protection ARG-17

Employment Law ARG-19

Banking Law ARG-20

Insurance Law ARG-23

The BahamasIntroduction BHS-1

Establishment of Enterprises BHS-3

Acquisition of Enterprises BHS-4

Acquisition of Realty BHS-6

Taxation BHS-11

Customs Regulation BHS-15

Currency Regulation, Capital and Profit Transfer, and InvestmentIncentives BHS-16

Intellectual Property Protection BHS-17

Employment Law BHS-19

Banking Law BHS-23

Conclusion BHS-24

BarbadosIntroduction BRB-1

Establishment of Enterprises BRB-2

Taxation BRB-16

TABLE OF CONTENTS

Barbados(continued)

Customs Regulations BRB-22

Currency Regulations and Investment Incentives BRB-24

Agency, Distributorship, and Franchising BRB-25

Competition Law BRB-29

Consumer Protection and Product Liability BRB-30

Intellectual Property Protection BRB-34

Employment Law BRB-40

Shipping Law BRB-46

Banking Law BRB-48

BermudaIntroduction BER-1

Professional Services BER-4

International Business Vehicles BER-6

Typical International Business Transactions BER-12

Insurance and Reinsurance Companies BER-19

Bermuda Aircraft Registry BER-22

Intellectual Property BER-24

Commerce BER-25

Performing Arts BER-26

Property Transactions BER-27

Foreign Investment BER-27

Bolivia

Introduction BOL-1

Codes and Main Legislation BOL-9

Establishments and Corporations BOL-19

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Bolivia(continued)

Reorganization and Bankruptcy BOL-25

Bills of Exchange, Promissory Notes, and Checks BOL-27

Conciliation and Arbitration BOL-31

Investment Incentives, Competition Laws BOL-32

Intellectual Property Protection BOL-33

Banking Law BOL-36

Taxation BOL-40

Environmental Legislation BOL-43

Customs Regulations BOL-43

Labor Laws and Social Security BOL-44

Other Relevant Civil and Commercial Law Issues BOL-48

Courts and Judicial Organization BOL-49

Criminal Code BOL-52

BrazilIntroduction BRA-1

Establishment of Enterprises BRA-6

Forms of Investment BRA-13

Acquisition of Real Estate BRA-16

Foreign Trade and Currency Exchange BRA-18

Labor Law BRA-20

Taxation BRA-24

Legal Framework for Foreign Investment BRA-42

TABLE OF CONTENTS

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|British Virgin IslandsIntroduction BVI-1

Taxation BVI-7

Customs Regulation BVI-8

Currency Regulation Capital and Profit Transfer, Investment BVI-13

Competition Laws BVI-15

Intellectual Property Protection B VI-16 •§

Labor Law BVI-20 |

Banking BVI-23

Cayman IslandsCurrent Climate for Foreign Business CAY-1

The Legal System CAY-3 jr

Form of Enterprise for the Foreign Business Interest CAY-5 g.

Land CAY-13 f

Off-Shore Business CAY-17

Regulation of Foreign Business CAY-42

Local Business CAY-43

Regulatory Environment CAY-44

Labor Aspects CAY-48 gc

Chile s

Introduction CHL-1

Types of Business Organizations CHL-5 ^ ^

Foreign Exchange Regime CHL-9

Regime on Exports CHL-12

Labor Law CHL-15 ?

Social Security CHL-20 |

vi LEGAL ASPECTS OF DOING BUSINESS IN LATIN AMERICA

ColombiaIntroduction COL-1

Legal System COL-2

Establishing a Business COL-3

Commercial Entities COL-5

Business Entities Liquidation & Arrangements with Creditors...COL-9

Regulation on Foreign Investment COL-16

Exchange Regulations COL-18

Imports and Exports COL-20

Contracts COL-21

Civil and Commercial Guarantees COL-31

State Contracts COL-32

Project Finance COL-38

Capital Markets COL-43

Taxes COL-46

Social and Labor Legislation COL-53

Environmental Law COL-62

Telecommunications COL-66

Intellectual Property Rights COL-69

Mergers and Acquisitions COL-76

Costa RicaIntroduction CRI-1

Establishment of Enterprises CRI-2

Taxation CRI-7

Industrial Incentives CRI-9

Currency Exchange Regulations CRI-10

Legal Residence CRI-H

Banking Law CRI-11

TABLE OF CONTENTS VII

Dominican RepublicIntroduction DOM-1

Establishment of Enterprises DOM-1

Acquisition of Realty DOM-8

Taxation DOM-10

Distributorship DOM-16

Customs Regulations DOM-21

Currency Regulations, Capital and Profit Transfer, and InvestmentIncentives DOM-23

Competition Law DOM-28

Intellectual Property Protection DOM-29

Employment Law DOM-36

Banking Law DOM-40

EcuadorIntroduction ECU-1

Incentives for Production ECU-5

Obligations and Contracts ECU-10

Agency ECU-11

Commercial Activities ECU-12

Trademarks ECU-14

Patents on Inventions ECU-14

Price and Quality Control ECU-15

Commercial Companies ECU-15

Taxes ECU-23

Administration of Justice ECU-27

Labor Law ECU-31

Alienship, Migration and Diplomacy ECU-36

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£1 SalvadorIntroduction ESL-1

Business Organizations ESL-3

Contracts and Secured Transactions ESL-11

Property and Secured Interests ESL-12

Currency Control Regulations ESL-13

Import and Export ESL-13

Immigration ESL-15

Antitrust ESL-17

Foreign Investment ESL-19

Taxation ESL-20

Bankruptcy ESL-22

Employment ESL-23

Environmental Law ESL-31

Fishing Rights ESL-31

Financial System ESL-32

Energy and Telecommunications Laws ESL-34

Alien Acquisition of Real Estate ESL-35

Agency and Distribution ESL-35

Transportation Law ESL-38

Intellectual Property ESL-41

Dispute Resolution ESL-46

GuatemalaIntroduction GTM-1

Establishment of Enterprises GTM-1

Acquisition of Enterprises GTM-6

Acquisition of Realty GTM-8

TABLE OF CONTENTS

Guatemala |(continued) *

Taxation GTM-10

Customs Regulation GTM-13

Currency Regulations, Capital and Profit Transfer, and InvestmentIncentives GTM-15

Competition Law GTM-19

Intellectual Property Protection GTM-20 «gD

Employment Law GTM-22 o

Banking Law GTM-26

Guyana ^ -*-Guyana in Profile GUY-1

The Legal System GUY-3 jf

The Court System GUY-4 \

International Relations GUY-4 I

The Economy GUY-5

Investment Framework GUY-10

Starting Up a Business GUY-13

Taxation GUY-18

Employment Law GUY-21 •

Intellectual Property Protection GUY-23 \

Appendix I GUY-24 S

Appendix II GUY-25

Appendix III GUY-27

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HondurasIntroduction HND-1

Establishment of Enterprises HND-2

Acquisition of Enterprises HND-6

Acquisition of Realty HND-8

Taxation HND-10

Customs Regulation HND-13

Currency Regulations, Capital and Profit Transfer, and InvestmentIncentives HND-15

Competition Law HND-17

Intellectual Property Protection HND-18

Employment Law HND-20

Banking Law HND-27

JamaicaIntroduction JAM-1

Establishment of Enterprises JAM-2

Banking Law JAM-12

Taxation JAM-15

Customs Regulation JAM-19

Investment JAM-21

Antitrust Law JAM-22

Intellectual Property Law JAM-25

Conclusion JAM-30

MexicoIntroduction MEX-1

Establishment of Enterprises MEX-2

Acquisition of Enterprises MEX-5

TABLE OF CONTENTS

IMexico E

(continued)

Acquisition of Realty MEX-9

Taxation MEX-11

Customs Regulation MEX-16

Competition Law MEX-20

Currency Regulation, Capital and Profit Transfer, and Foreign >

Investment MEX-25 "8

Intellectual Property Law MEX-29 g'

Employment Law MEX-34

Litigation and Arbitration MEX-38

Conclusion MEX-41

NicaraguaIntroduction NIC-1

Establishment of Enterprises NIC-2

Acquisition of Enterprises NIC-6

Acquisition of Real Estate NIC-7

Taxation NIC-7

Customs Regulation NIC-9

Capital and Profit Transfer and Investment Incentives NIC-12

Competition Law NIC-14

Intellectual Property Law NIC-17

Employment Law NIC-19

Banking Law NIC-25

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PanamaIntroduction PAN-1

Investment Principles and General Considerations PAN-3

Investment Framework PAN-5

Direct Sales PAN-8

Purchase by a Foreign Corporation of Business in Panama PAN-9

Incorporation PAN-11

Tax PAN-17

Antitrust, Consumer Protection, and Unfair Trade Practices PAN-24

Intellectual Property PAN-26

Employment Law PAN-29

ParaguayIntroduction PAR-1

Forms of Enterprise PAR-1

Banking PAR-5

Labor Law PAR-6

Social Security PAR-8

Taxes PAR-8

Investment Incentives PAR-12

Aliens PAR-13

Foreign Exchange PAR-13

Law of Contracts PAR-13

Judiciary Power PAR-14

TABLE OF CONTENTS x l j |

Peru IIntroduction PER-1

Legal System PER-1

Establishing a Business PER-2 ^

Foreign Investments PER-5

Imports and Exports PER-10

Contracts PER-11 j?

Securing Performance of Obligations PER-13 a

Concession Contracts and Public Services PER-14

Banking Regulations PER-15

Tax Regime PER-16

Social and Labor Legislation PER-18

Competition, Antitrust, and Unfair Competition Law PER-20 H

Intellectual Property PER-21 *9

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Trinidad and Tobago 5

Introduction TTO-1

Investment Principles and General Considerations TTO-2 *-—"""

Forms of Direct Investment TTO-8

Establishment of Enterprises TTO-10 w

mAcquisition of Enterprises TTO-13 g*

aAcquisition of Real Estate TTO-15 2Agency, Distributorship, Leasing, and Franchise

Arrangements TTO-18

Taxation TTO-20 i * - *

Customs Regulation TTO-25

Investment Incentives TTO-28 £Investor Protection in Bankruptcy Proceedings TTO-30 §

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Trinidad and Tobago(continued)

Intellectual Property Protection TTO-32

Labor Law TTO-36

Appendix: Useful Contact Information TTO-39

The Turks and Caicos IslandsIntroduction TC-1

Forms of Business Enterprise TC-5

Banks and Banking TC-14

Insurance TC-15

Intellectual Property TC-16

Business and Residence Requirements TC-16

Land Purchases TC-16

Customs, Foreign Trade, and Currency Exchange TC-17

Labor TC-17

Taxation TC-19

United States Virgin IslandsIntroduction USV-1

Government and Business USV-2

The Economy USV-2

The Legal System USV-3

Business Organizations USV-3

Taxation USV-6

Special Business Incentives USV-14

Appendix USV-17

TABLE OF CONTENTS x v

iUruguay s

Introduction URU-I I

Labor Legislation URU-2 j

Social Security URU-2

Expatriates URU-3

Types of Companies URU-3

Corporations URU-3 £°!5

Branches URU-6 S5'

Limited Liability Companies URU-7

Other Types of Companies URU-9

Foreign Investment URU-10

Promotional Program URU-10

Free Zones URU-109ft

Exchange Control URU-10 w

Taxes URU-11 g

VenezuelaIntroduction VEN-1

Foreign Investments VEN-4

Debt for Equity Swaps VEN-7 as

Transfer of Technology VEN-8 STe

Exclusion from Application of Foreign Investment and Transfer *of Technology Regulations VEN-11

Corporate Aspects VEN-11

Labor Law VEN-11 ^ ^

Taxation VEN-13

Foreign Trade VEN-16 9

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