If your company has or intends to have connections with other countries, you may have already had doubts about banking structuring and how to make an international remittance between companies, what bureaucracy is involved in the process and how long it takes. Learn more in this article!
A Latin American company may have various reasons to have relationships with foreign countries, whether due to the expansion of its business to new markets or the search for new investors. At this moment, many doubts may arise regarding the structuring of the company abroad and available financial services, such as international remittance.
If the entrepreneur decides to explore new markets, there are various paths to structuring, depending on the country where the business will be established. If the idea is, for example, to seek foreign funds willing to capitalize on the company, a common way to make this partnership possible is to create an offshore structure.
In both cases, it will be necessary to have a bank account and the possibility of making transfers between countries. Although this process used to be time-consuming and bureaucratic, there are currently solutions that allow for the opening of accounts and international transfers in a simple way. Continue reading to learn more!
Latin American companies in global expansion
As you learned, having an offshore structure is one way for your company to have relationships with foreign stakeholders. Offshore is the term that defines a company located outside its country of origin or place of operation and is widely used by startups in Latin America as a gateway to relationships with investors and other players in the innovation ecosystem worldwide.
This is necessary because investors tend to be unsure of investing directly in politically and economically unstable countries, such as Brazil and other places in Latin America. With the offshore structure, the company establishes itself in a new country, often with tax advantages, without ceasing its Brazilian operation.
A practical example is an offshore structure established in the Cayman Islands. If the startup is raising funds with American funds, it is common to have a second company incorporated in the United States. The Latin American operation remains active, usually, but is linked to this new holding.
Another scenario is a Brazilian company that has decided to start operating in the United States with the aim of exploring new markets and taking advantage of generating revenue in a currency stronger than the real or the peso.
Global bank account for Latin American companies
In both situations, in an offshore structure for raising funds or if the company is going to expand its operations, it is necessary to have a banking solution that solves the main needs of the Latin American business.
Opening a bank account in a foreign country is a process known for bureaucracy. However, new solutions, such as Trace’s, allow Latin American entrepreneurs to have a banking structure in a simplified way.
Global Banking offers account opening in the United States and the Cayman Islands, as well as integrated exchange, which allows the company to move funds between countries with ease and agility. That is, the user can manage their funds and make international remittance in one place.
International transfer between companies: how long does it take?
An international transfer between companies, before Trace’s solution, could take a few months, as well as being expensive. However, with Global Banking, a business with an account open in the US or Cayman Islands can transfer funds to Brazil on the same day. The rates are also the lowest on the market!
International remittances at Trace can also be hired individually, without the need to open an account, if the entrepreneur only needs this service. Some of the advantages are: pre-fixed spread, follow-up with specialists, and free paralegal services. The team is prepared to take care of the entire transfer process, from origin to Brazil.
To learn more about Trace, discover our solutions and find out how we can help your business!
