Hiring in South America – What are your options?

A growing middle class and rising economy makes hiring in South America an attractive option for American businesses. In addition to a large employee pool, Latin America has more than 600 million citizens and its middle class is continuing to mature. These factors create a satisfactory market for companies interested in their next global expansion opportunity.Study Spanish in South America
This all sounds great, but put on the brakes before you start hiring in South America. You cannot simply hire an employee under a US employment contract. Below we list the options you have for beginning operations with in-country contractors in your target market.
Setting Up a Foreign Subsidiary in South America
Before hiring an employee in a foreign country, a company needs to establish itself through a subsidiary or branch. Creating a subsidiary used to be the only option in the past, which was a huge burden for companies interested in global expansion. If a company decides to go this route, it’s a capital investment and can take months to complete. Despite its downfalls, companies must be legally incorporated in the country if they want to hire local employees.