Starting a Business Abroad as an Expat: The Venezuela Case

Published on January 17, 2026 and written by Cyril Jarnias

The idea of starting a business abroad is increasingly appealing to expatriates. In this context, Venezuela is intriguing: a largely untapped market, colossal natural resources, low labor costs, but also political instability, recent hyperinflation, degraded infrastructure, and high security risk. This country is simultaneously one of the most challenging business environments in the world… and one where the potential return can be spectacular for a well-prepared entrepreneur.

Understanding the Terrain: A High-Risk, High-Reward Economy

Venezuela remains first and foremost an oil power. It has the world’s largest proven oil reserves and significant reserves of gas, gold, iron, bauxite, and diamonds. Historically, over 80% of exports came from oil, with a GDP that exceeded $460 billion in the early 2010s.

Yet, in recent years, signs of stabilization have appeared. The strictest controls have been relaxed, de facto dollarization facilitates transactions, some non-oil sectors have returned to growth, notably commerce and services. In 2024, non-oil activity reportedly grew by about 3.9%, and private industrial production by nearly 17%.

For an expatriate entrepreneur, this means a context reserved for profiles capable of assuming a very high level of risk, with a long-term horizon, strong local connections… and a tolerance for political and monetary volatility.

Choosing Your Legal Structure: S.A., S.R.L., Branch, or Representative Office?

The Venezuelan Commercial Code provides for several legal forms. The choice will depend on your sector, the project size, the need for local partners, and your risk appetite.

Main commercial forms

The two most common vehicles for foreign investors are the Public Limited Company (S.A. or C.A.) and the Limited Liability Company (S.R.L.).

Form	Main Characteristics	Indicative Capital*	Shareholding / Liability
Sociedad Anónima (S.A. / C.A.)	Stock corporation, most common for significant projects	In practice often very low (approx. 20,000 VES ~ $60), but registries may require more	Minimum 2 shareholders, liability limited to contributions
Sociedad de Responsabilidad Limitada (S.R.L.)	Quota company, suited for small and medium enterprises	In practice around 10,000 VES (~ $30), sometimes more depending on the registry	Quotas held by partners, transfer often subject to unanimous agreement
General Partnership	Partnership of individuals	Variable	Unlimited and joint liability of partners
Limited Partnership	General/limited partners	Variable	General partners with unlimited liability, limited partners limited to their contributions

*Amounts in bolivars are very volatile; registry authorities often require a capital in practice much higher, sometimes quantified in dollars for certain sectors (several thousand USD).

Branch, subsidiary, or representative office?

A foreign group can also choose an implantation without creating a classic subsidiary:

– A branch is an extension of the parent company. Legally, it is not a separate entity: the parent company remains directly responsible for the branch’s debts. It must still be registered in the Venezuelan commercial registry.

– A representative office is limited to non-profit activities (prospecting, promotion, monitoring, coordination). It cannot invoice or collect local revenue. It is a tool for market testing.

– A subsidiary remains the cleanest solution to operate fully, sign contracts, hire, and raise local financing.

“Foreign,” “Mixed,” or “National” status

Venezuelan law distinguishes companies according to the proportion of foreign capital:

Category	Share held by non-residents	Main Consequences
Foreign company	> 49% of capital	Considered foreign investment, subject to specific registration
Mixed company	Between 20% and 49%	Intermediate status, some public policies may be differentiated
National company	< 20%	Treated as local, even if governance is de facto foreign

This classification has implications for access to certain regimes or the political perception of the project. In practice, many expatriates choose to partner with trusted local partners to position themselves as “mixed” or “national” companies, while very carefully defining voting rights and shareholder agreements.

Establishment Procedures: From Name Reservation to Tax Registration

Creating a company in Venezuela involves juggling several administrations: registries, notaries, tax authorities, social security, municipalities. The procedure may seem heavy, but it is structured.

Typical incorporation process

Even though actual timelines vary by city, sector, and registry workload, the classic scheme includes the following steps:

1. Choice of form and shareholders Determination of the type of company, share capital, distribution of shares, and governance (directors, auditors, signing powers).

2. Reservation of the corporate name with SAREN The Autonomous Service of Registries and Notaries (SAREN) controls name uniqueness. Reservation generally costs between $10 and $30.

3. Drafting of bylaws and deed of incorporation A local lawyer prepares the bylaws (corporate purpose, headquarters, capital, management rules) and the deed of incorporation. Fees for this phase often range between $500 and $1,500, and up to several thousand dollars for complex structures.

5. Registration at the Commercial Registry (Registro Mercantil) The official registration of the company is done with the competent registry. Registration fees vary around $100 to $300. At this stage, mandatory accounting books (journal, ledger, inventory) are also registered.

6. Publication in a legal gazette A notice of incorporation must be published in a commercial gazette or specialized newspaper for several consecutive days.

7. Tax registration (RIF) with SENIAT The Servicio Nacional Integrado de Administración Aduanera y Tributaria issues the tax identification number (RIF). The procedure generally takes between one and three days.

8. Municipal licenses and zoning compliance The municipality issues the business license, after verifying zoning compliance of the premises. Annual license fees often vary between $500 and $3,000.

10. Specific sectoral permits Depending on the sector (health, agri-food, finance, mining, energy…), additional authorizations are required (Ministries of Health, Agriculture, Industry, Environment, etc.).

In practice, some sources mention an overall timeframe of 1 to 2 weeks for simple incorporation at the registry, while others estimate that a complete establishment with all licenses can take 4 to 6 months. For an expatriate, it is essential to plan for a margin in cash flow planning.

Typical startup costs

If we add up the different cost items (legal fees, notary, taxes, licenses, office rent, accounting), the initial bill can be significant for an expatriate wanting to establish seriously.

Expense Item	Indicative Range (USD)
Lawyer & consulting fees for incorporation	2,000 – 7,000
Notary and registration fees	100 – 500
Tax assistance fees (RIF, VAT)	500 – 2,000
Sectoral licenses and permits	5,000 – 15,000
Office rent (Caracas, per month)	starting from 350–1,500, up to 25,000 for prime
Accounting setup, initial audit	1,000 – 5,000
Total entity setup cost (estimate)	10,000 – 25,000, or more for regulated sectors

Some studies suggest much higher figures for sophisticated setups (over $40,000 in some cases). It is therefore prudent to budget generously, especially if financing environmental impact studies, industrial standard compliance, or lengthy lease negotiations are required.

Navigating Taxation: Rates, VAT, Dividends, Social Charges

The Venezuelan tax system rests on several tiers: national taxes on income and value added, municipal taxes on economic activity, parafiscal contributions for science, sports, or the anti-drug fight, as well as a wealth tax.

Corporate income tax

Resident companies (incorporated or domiciled in Venezuela) are taxed on their worldwide income. Non-residents are only taxed on their Venezuelan-source income, with specific rules for permanent establishments.

The base scale is progressive and expressed in Tax Units (TU):

Taxable profit bracket	Rate
Up to 2,000 TU	15 %
2,001 – 3,000 TU	22 %
Over 3,000 TU	34 %

Specific, higher rates apply to certain sectors:

– 40% for banks, financial institutions, insurance and reinsurance companies.

– 50% for oil activities (exploitation, refining, transport, purchase for export).

– 60% for mining income related to royalties.

Companies must file an annual return within three months after the fiscal year-end. Large taxpayers designated as “special” by the tax authorities also have monthly prepayment obligations.

VAT and other levies

Venezuelan VAT is set at 16% for the standard rate, with a reduced rate of 8% for certain goods and services, and a 0% rate for exports. A 15% surcharge applies to luxury goods and services, bringing the total rate to 27%.

Added to this are:

– customs duties (generally 5 to 35%) and a 1% import tax;

– a municipal tax on economic activity (a percentage of turnover);

– a mandatory contribution to science, technology and innovation (0.5 to 2% of gross turnover);

– a contribution to sports development (1% of net profit) and to the National Anti-Drug Fund (about 1% of operating profit);

– a wealth tax of 0.25% for individuals and legal entities exceeding a very high asset threshold.

Dividends and capital gains

Dividends distributed by a Venezuelan company are subject to a particular regime. The applicable rate depends on the business sector of the distributing company:

Activity of the distributing company	Dividend tax rate
General activity (excluding oil/mining)	34 %
Oil activity	50 %
Mining activity (royalties)	60 %

These rates generally apply via withholding at source at the time of distribution. Dividends from foreign companies received by a Venezuelan resident are taxed at a rate of 34%, with a possible foreign tax credit for taxes paid abroad.

Social charges and labor law

The labor force costs, nominally, much less than elsewhere in Latin America, but mandatory social contributions and benefits must be factored in:

– employer social security contributions: between 9 and 11% of salary;

– INCES contributions (vocational training): about 2% of payroll for companies with more than five employees;

– housing contributions (BANAVIH);

– mandatory 13th-month bonus (aguinaldo) equivalent to one month’s salary;

– paid leave: starting at 15 days after one year of seniority, plus additional days with seniority;

– standard work week: 40 hours over five days, with strict regulation of overtime.

Labor law requires, in principle, that 90% of staff be Venezuelan nationals, and caps foreign employee compensation at 20% of the total payroll. However, adjustments are possible for sectors requiring foreign expertise.

Visa, Residence, and Investor Path for Expatriates

Working and operating legally in Venezuela requires having the right immigration status. Several categories of visas exist for foreign entrepreneurs and investors.

The business visa (TR-N)

For occasional stays related to meetings, negotiations, prospecting, the TR-N business visa is the basic tool. It is, in principle:

– valid for one year,

– with multiple entries possible,

– allowing cumulative stays of up to 180 days during the period.

It does not allow one to be an employee of a local entity, but it covers representation, negotiation, and coordination activities.

Work visas (TR-L) and short-stay visas

To carry out salaried work in Venezuela (including as a director of a local subsidiary), one generally needs a TR-L work visa, or a short-stay work visa (90 days) for temporary assignments.

Obtaining a TR-L is based on two steps:

1. Work permit from the Ministry of Labor. 2. Visa from the immigration services (SAIME), based on this permit.

The salary must meet a regularly updated minimum threshold. After five years of continuous residence under a work visa, the foreigner can in principle apply for permanent residence.

The investor visa (TR-I): a key path for the expatriate entrepreneur

For an expatriate who wants to set up a business with substantial investment, the investor visa (TR-I) is often the most coherent path. The main points are as follows:

Close family members (spouse, children under 18, parents, in-laws) can obtain a family visa (TR-F) linked to the investor visa.

Obtaining the investor visa requires demonstrating:

– the reality of the investment project (invitation letter from the Venezuelan company, company documents, approval of the investment by the competent body like SIEX or the International Center for Productive Investment);

– the lawful origin of the funds (bank statements, notarized certificates);

– the absence of a criminal record and a medical certificate.

Banks, Accounts, and Currency Management: A Structuring Puzzle

The Venezuelan banking system remains deeply marked by the crisis, exchange controls, and past hyperinflation. Even if some controls have been relaxed, opening and managing an account, especially as a foreigner, requires preparation.

Difficulties accessing local accounts

In theory, non-residents can open an account in a Venezuelan bank, but in practice:

– many institutions require a cédula (national ID card) or residence permit to open an account;

– expatriates report having tried unsuccessfully for years due to not being citizens;

– more flexible conditions sometimes exist for foreigners sponsored by a local company or holding a work/investor visa.

For a company, opening a business account generally requires:

– the registered deed of incorporation and bylaws,

– the RIF (tax identification),

– identification documents of shareholders and directors,

– proof of address and, sometimes, bank references.

Multi-currency, dollarization, and offshore solutions

In a country where the official currency, the bolívar, lost 99.9% of its value in a few years, de facto dollarization is very advanced. Transactions in USD or euros are widely used in large cities. However, several constraints must be considered:

– often significant gap between the official exchange rate and the parallel market;

– legal risks related to using unofficial channels or holding large sums in cash;

– low reliability of some domestic banking services (outages, lack of liquidity, technical restrictions).

– a local account in bolívars (and possibly in foreign currency, if possible) for day-to-day operations, salary payments, local charges;

– offshore accounts or accounts in more stable jurisdictions to secure excess cash flow, invoice international clients, and manage foreign currency receipts;

– possibly, international fintech solutions (Wise, Payoneer, multi-currency online banks) to facilitate cross-border payments, as long as sanctions and compliance rules are respected.

The use of cryptocurrencies (USDT, USDC, Bitcoin, etc.) has grown strongly as a means to circumvent banking restrictions and protect against inflation. Estimates mention over $40 billion in annual flows via crypto for payments or transfers in Venezuela. For an expatriate, this can be an interesting cash management tool, provided they master the compliance risks, volatility, and the authorities’ perception.

Sectoral Opportunities: Where Can an Expatriate Create Value?

In such a complex context, not all sectors are equal. Some areas require massive capital and very fine political relations (oil, large-scale mining, banking). Others are more suited to expatriate entrepreneurial initiatives, especially in services, digital, agri-food, or tourism.

A still very primary economy… but a dominant service sector

The structure of Venezuela’s GDP illustrates these contrasts well:

Sector	Estimated share of GDP	Share of employment
Agriculture	≈ 5 %	≈ 10.6 %
Industry (incl. oil, manufacturing)	≈ 37.2 %	≈ 18.5 %
Services	≈ 51.7 %	≈ 70.9 %

For a foreign entrepreneur, the priority is to identify niches where:

– solvable domestic demand exists (dollarized middle class, private companies, export);

– local supply is insufficient or obsolete;

– dependence on the State and public enterprises is limited.

Promising sectors for an expatriate

Several areas appear particularly promising:

1. Information technology and digital services The country has a pool of developers, engineers, and designers, many of whom already work remotely for foreign clients. The startup ecosystem is structuring around fintech, payment solutions, blockchain, cybersecurity, digital marketing, UX/UI design. An expatriate can create:

2. Agri-food, cocoa, tropical fruits, fishing The country still imports nearly 60% of its food, even though it has fertile land and a climate favorable to many crops (corn, rice, coffee, cocoa, bananas, vegetables, livestock, coastal fishing). Opportunities exist in:

– contract farming of premium cocoa, tropical fruits, shrimp for export to Europe or North America;

– agro-food processing (higher value-added products from local raw materials);

– agricultural inputs and technologies (irrigation, greenhouses, agri-tech).

3. Tourism and hospitality Despite security alerts, the country still boasts spectacular landscapes: Andes, Caribbean beaches, islands, Amazon, tepuis. In the medium term, an improved political climate could revive tourist demand. Upstream, entrepreneurs can:

4. Health, education, private services The public health and education system is in great difficulty. A solvent clientele turns to private solutions for teaching, vocational training, telemedicine, specialized clinics, drug supply. Indian or multinational companies already operate in pharmaceutical distribution. An expatriate can consider:

– technical or managerial training centers,

– e-learning platforms adapted to local constraints,

– private medical services targeting companies (check-ups, occupational medicine, telemedicine).

5. Logistics, warehousing, distribution The deterioration of infrastructure and import restrictions create strong demand for efficient internal logistics services, warehouse management, temperature-controlled distribution, and flow optimization between ports (La Guaira, Puerto Cabello, Maracaibo) and major urban centers.

Special Economic Zones and incentives

To attract investments in certain strategic territories (La Tortuga, Paraguaná, La Guaira, Nueva Esparta…), the government has created Special Economic Zones offering advantageous regimes, notably for:

– export-oriented projects (full reimbursement of profit tax during the first four years of activity);

– operations requiring imports of inputs (full reimbursement of customs duties on re-exported components).

The Law for the Promotion and Development of New Enterprises furthermore provides relief for micro-enterprises and startups, such as:

– partial or total exemptions from certain direct taxes for small structures below a turnover threshold,

– exemption from SAREN registration fees,

– access to public financing via a National Entrepreneurship Fund.

Nearly 1.4 million projects are reported to have registered in the National Entrepreneurship Registry, a sign of entrepreneurial dynamism despite the context.

Business Culture: Relationships Before Contracts

Every expatriate who succeeds in Venezuela emphasizes one point: nothing works without solid personal relationships. No PowerPoint presentation, no business plan, however brilliant, replaces human trust built over lunches, visits, and phone calls.

Building trust

Venezuelan culture is warm, expressive, and highly relationship-oriented. In the business world:

– relationships are built between individuals, not abstract companies;

– recommendations and introductions via third parties (embassies, chambers of commerce, local firms, family networks) are decisive for accessing decision-makers;

– family holds a central place; talking about one’s loved ones, sports, food is a good icebreaker.

Initial meetings rarely serve to “close” a deal. They aim rather to sense the person, their seriousness, loyalty, ability to keep their word. The tone is first formal (academic titles, suit, sobriety), then may become more relaxed over subsequent meetings.

Negotiation and decision-making

Negotiations tend to be:

It is commonly accepted that the price can vary by 25 to 35% between the first offer and the final agreement. Therefore, one must plan room for maneuver for concessions and systematically demand compensation for each move.

Company structures remain strongly hierarchical, often family-run. The ultimate decision-maker is at the top of the pyramid, and it can be difficult to reach them without going through influential intermediaries. Subordinates are sometimes reluctant to take responsibility, preferring to refer to superiors.

Etiquette, communication, and codes

In professional exchanges:

– Punctuality: better respected than is often thought in Latin America for business, even if the “hora venezolana” remains a social reality. Arriving on time, or even slightly early, is a mark of respect;

– Greetings: firm handshake, direct eye contact, smile, use of title (Señor, Doctora, Ingeniero + surname);

– Business cards: ideally bilingual, with professional qualifications, presented with the Spanish side visible; they are read attentively before being placed on the table;

– Communication style: very non-verbal, expressive, seemingly non-confrontational. Avoid head-on confrontations, direct criticism, sensitive topics (politics, religion, sexual orientation, the role of the US in Latin America).

Using Spanish, even rudimentary, is a considerable asset for building trust. Many economic actors speak decent English, especially in tech circles, but showing the effort to speak the local language will be immediately appreciated.

Security, Compliance, and Risk Management for Expatriates

No entrepreneurial project in Venezuela should be considered without deep reflection on risk management, both personal and legal/operational.

Personal security and mobility

Official alerts from several countries, including the United States, advise against all non-essential travel to Venezuela. The reasons are known:

– one of the highest homicide rates in the world;

– kidnappings (including occasional involvement of fake police or military);

– armed crime in urban areas, including near banks, ATMs, and shopping malls;

– increased tensions in the border area with Colombia, where armed groups (FARC-EP, ELN, dissidents) involved in drug trafficking, extortion, and territorial control operate.

Concretely, for an expatriate:

Compliance, sanctions, and international law

Venezuela is subject to international sanctions, particularly American ones, focused on certain public entities (PDVSA, Central Bank, political officials, etc.). However, general and specific licenses exist to allow certain types of transactions, notably in humanitarian, telecommunications, health areas or for financial restructurings.

Entrepreneurs from countries applying these sanctions must:

– systematically verify that their partners, suppliers, or clients are not on sanctions lists;

– consult specialized lawyers to structure their financial flows, service contracts, and relations with public or para-public entities;

– document the economic and compliance justifications for their operations in case of subsequent audits.

Accounting, audits, and documentation

Documentary rigor is valuable insurance in an environment where the tax administration can decide to intensively audit certain taxpayers:

– obligation to keep accounting books (journal, ledger, inventory) and retain them for at least ten years;

– mandatory appointment of an auditor for companies, responsible for monitoring the production of annual financial statements;

– significant penalties for not keeping books (fines calculated based on multiples of the Central Bank’s reference exchange unit).

For an expatriate, relying on a recognized local firm (like a Big Four or a firm member of international networks) is an investment that strongly limits risks, especially for sensitive subjects like VAT, withholding at source, transfer pricing, or flows with tax-privileged jurisdictions.

Finding a Premises or Office: Overview of the Market in Caracas

The choice of physical location is another strategic parameter, particularly in Caracas, the main economic center.

Office rental offers range from small spaces under 20 m² to floor plates over 600 m² in modern towers. Rents are generally quoted in dollars.

Type of premises in Caracas	Approximate area	Monthly rent (USD)	Neighborhood
Small office space	~19–45 m²	350 – 1,200	El Rosal, Bello Monte
Medium office	~55–150 m²	500 – 1,800	Chacao, Las Mercedes, CCCT
Full floor plate	360–600 m²	3,500 – 25,000	La Castellana, Chacao, corporate towers
Large fitted complex	>1,000 m²	7,000 and up	corporate zones east of the city

Listings often highlight:

For an expatriate starting out, it may be more relevant to opt for: solutions adapted to their specific needs, particularly regarding housing, taxation, and integration into the host country.

– a coworking space (like Impact Hub Caracas, other centers listed on platforms like Coworker);

– a small furnished office in a business center including reception, meeting rooms, and shared administrative services.

This allows for reducing fixed costs, gaining flexibility, and integrating faster into a local network of professionals.

Establishment Strategy: Test, Secure, Then Accelerate

Creating a company in Venezuela has nothing to do with launching in a stable economy. It is essential to adopt a progressive logic, in several phases.

1. Remote exploration and local partnerships Before traveling, it is possible to:

– test the market through studies, online surveys, pilot collaborations with local freelancers or service providers (e.g., in IT or marketing);

– identify a trusted partner (law firm, chamber of commerce, local consultant) who will act as a “guide” in the administrative and relational landscape.

2. Lightweight establishment: EOR, representative office, coworking Rather than immediately creating a subsidiary with a large team, an entrepreneur can:

3. Formalization: company incorporation, investor visa, bank accounts Once the model is validated and a sufficient revenue stream established, comes the time to:

– incorporate an S.A. or S.R.L., carefully choosing the capital structure between foreign and local partners;

– submit an investment plan that will pave the way for a TR-I visa for the expatriate founder;

– organize a multi-jurisdiction banking structure to secure cash flow.

4. Scaling up: industrialization and diversification With a solid foundation, the company can:

– invest in heavier facilities (factory, warehouse, shared service center);

– extend its activities to other regions of the country, potentially benefiting from Special Economic Zone incentives;

– explore export synergies to other Latin American markets via the country’s geographic position (Caribbean access, Panama Canal, Brazil and Colombia).

At each stage, the critical element remains risk management. This involves:

– diversifying revenue sources (local and foreign clients, contracts in foreign currency and bolívars);

– maintaining sufficient cash reserves in hard currency outside the country;

– conducting regular compliance and security reviews.

In Conclusion: A Market for Ultra-Resilient Entrepreneurs

Creating your company in Venezuela as an expatriate is far from a “turnkey” project. It is an endeavor reserved for highly seasoned profiles, capable of combining:

In return, the country offers something rare: the possibility to build strong positions in markets far from saturation, to access a solid technical human capital, and to participate in the reconstruction of an economy with extraordinary natural resources.

For an expatriate ready to adopt a prudent strategy, to test progressively, to surround themselves with the right local partners, and to think long-term, Venezuela can become much more than a risky bet: a unique entrepreneurial laboratory.