DOING BUSINESS IN VENEZUELA
Since 2003, Healy Consultants has assisted our Clients effectively and efficiently with i) Venezuela company incorporation ii) business license registration iii) corporate bank account opening iv) immigration related solutions v) work space solutions and vi) employment strategies.
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Advantages and disadvantages
Advantages of Venezuela company registration
- Only one director and one shareholder are required to incorporate a company in Venezuela and no minimum share capital is required. Our Clients will furthermore not need to travel in order to complete the engagement;
- A foreign owned company can invest in every business sector without restriction;
- The privacy of foreign investors is well respected in Venezuela, as there is no public company register disclosing shareholders’ and directors’ details.
Disadvantages of Venezuela company registration
- Our Clients should expect to pay a whopping 65% tax on net profits in Venezuela including i) corporate tax of up to 34% ii) VAT on sales of 12% iii) fuel tax of up to 50% of fuel expenses and iv) employer’s social security contribution of 17% of gross salaries;
- Venezuela-based businesses must cope with plenty of red tape and frequent government interventions. Venezuela company incorporation takes more than 144 days and processing of licenses more than 10 months; Venezuela leans toward a socialist economy since 1999 and is ranked as the world’s 14th most inhospitable country for running a business;
- Our Clients feel unsafe running a business in Venezuela, as its suffers from i) the world’s 5th highest murder rate ii) the world 2nd highest crime-related business costs and iii) high political instability, with violent protests in 2013/14;
- If required, Healy Consultants can assist our Client recruit quality local employees;
- Our Clients won’t be able to hire skilled workers in Venezuela, as only 13% of the workforce hold a university degree;
- Inflation in Venezuela has reached a record 61% in May of 2014; consequently, investors are faced with escalating business costs;
- The official language in Venezuela is Spanish therefore all official business documents are written in Spanish and foreign investors are faced with translation costs and waiting times.
- Time to incorporate: Twenty weeks
- Cost to set up: US$42,820
- Minimum capital: US$4
- Physical office required: Yes
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 34%
- Corporate tax base: Worldwide
- Shelf companies: Available
- Main company type: SRL