India–LATAM Trade Structuring Opportunities: How International Companies Can Connect Two Growing Markets
Trade between India and Latin America is developing into an increasingly important commercial corridor.
India LATAM trade structuring is therefore becoming increasingly relevant for businesses looking to establish trading relationships, investment platforms and joint ventures between the two regions.
Indian companies are expanding beyond their traditional markets, while Latin American businesses are looking toward Asia for suppliers, technology, investment and new customers.
India LATAM Trade Structuring: A Growing Cross-Border Opportunity
India's commercial relationship with Latin America and the Caribbean (LAC) is considerably larger than many businesses realize.
According to India's Department of Commerce, total Indian trade with the 43 countries it classifies within the Latin America and Caribbean region reached approximately USD 39.19 billion during FY2024–25, comprising:
India–LAC Trade FY2024–25 | Value |
Indian exports to LAC | USD 15.17 billion |
Indian imports from LAC | USD 24.02 billion |
Total trade | USD 39.19 billion |
The relationship is also highly complementary.
India exports significant quantities of manufactured and value-added products to the region, including pharmaceuticals, agrochemicals, vehicles, automotive components, machinery, textiles and other industrial products.
Latin America, meanwhile, supplies many of the commodities required by Indian industry, including minerals and ores, vegetable oils, crude petroleum, copper, gold, coal and agricultural products.
India Exim Bank has also identified opportunities for deeper cooperation in areas including critical minerals, renewable energy and green hydrogen, agribusiness and agritech, digital and financial technologies, and infrastructure.
This creates opportunities not only for large multinational corporations but also for mid-sized businesses, distributors, investors and international trading groups.
Where Are the Main India–LATAM Opportunities?
The opportunity differs significantly depending on the direction of trade.
Indian Companies Expanding into Latin America
For Indian companies, Latin America can provide access to large consumer markets, natural resources and growing demand for competitively priced manufactured products and technology.
Potential sectors include:
Pharmaceuticals and healthcare products
Automotive parts and vehicles
Industrial machinery
Chemicals and agrochemicals
Information technology and software
Telecommunications and electronics
Renewable-energy equipment
Consumer products
Financial and digital services
Brazil is particularly significant, but opportunities also exist across markets such as Mexico, Chile, Colombia, Peru, Argentina, Panama and the wider Central American and Caribbean regions.
Latin American Companies Trading with India
The commercial relationship works in the opposite direction as well.
Latin American exporters can use India as a major market for commodities and industrial inputs, including:
Copper and other minerals
Lithium and critical minerals
Agricultural commodities
Vegetable oils
Energy products
Wood and forestry products
Food products
Precious metals
India's manufacturing base and large domestic economy create substantial long-term demand for many resources abundant in Latin America.
Why Corporate Structuring Matters in India–LATAM Trade
Consider a simplified example.
An Indian business may manufacture products in India but sell them through distributors in Brazil, Chile, Colombia and Panama.
Another group might source minerals or agricultural commodities in Latin America for customers or related companies in India and other Asian markets.
In both situations, management needs to determine:
Which company should enter into the international contracts?
That decision affects much more than the name appearing on an invoice.
The corporate structure may influence:
International contracting
Banking and payment processing
Ownership of overseas subsidiaries
Joint ventures
Investment flows
Currency management
Trade financing
Risk segregation
Future investors
International expansion
A properly designed structure should therefore reflect the actual commercial activity rather than simply selecting a jurisdiction because it offers low incorporation or maintenance costs.
Structure 1: International Trading Company
One possibility is establishing an international company that acts as the contracting entity for cross-border transactions.
A simplified structure could look like this:
Depending on the business model, the international company might enter into sales contracts, coordinate suppliers and customers, receive international payments and manage regional commercial relationships.
This can be particularly relevant where a business is serving customers across several countries rather than entering only one Latin American market.
However, the structure must have genuine commercial rationale. Transfer pricing, taxation, customs rules, permanent establishment exposure and economic-substance considerations should all be reviewed before implementation.
Structure 2: International Holding Company
Businesses making longer-term investments in Latin America may require a holding structure rather than a pure trading structure.
For example:
A holding company can provide a central ownership platform for several foreign subsidiaries or investments.
This can potentially simplify:
Group ownership
Capital contributions
Future acquisitions
Disposal of investments
Shareholder arrangements
Consolidation of international subsidiaries
Admission of new investors
The appropriate jurisdiction depends heavily on applicable tax treaties, Indian regulations, local LATAM tax rules and the commercial substance of the structure.
Structure 3: Joint Venture Platform
India–Latin America opportunities do not always involve one company entering another country independently.
Joint ventures can be particularly relevant where an Indian company contributes manufacturing capacity, technology or products while a Latin American partner contributes distribution networks, local expertise or market access.
An international company may then act as the joint venture vehicle.
For example:
A properly drafted joint venture structure can establish rules governing:
Ownership percentages
Voting rights
Board representation
Capital contributions
Profit distributions
Intellectual-property rights
Transfer of shares
Deadlock mechanisms
Exit arrangements
International financial centres are frequently considered for these structures because they can provide familiar corporate legislation and flexible shareholder arrangements.
Structure 4: Regional Investment Platform
Companies planning multiple investments may establish an international platform before making individual investments.
For example:
This approach can be useful when management expects the international portfolio to expand over time.
Instead of holding each overseas investment directly from the operating business in India, the group may create a dedicated international investment layer.
Whether this is appropriate depends on Indian outbound-investment regulations, tax considerations and the jurisdictions in which the underlying investments are located.
Which Jurisdictions Can Be Considered?
There is no single "best" jurisdiction for India–LATAM trade.
Different jurisdictions serve different purposes.
British Virgin Islands (BVI)
BVI companies are widely used internationally for holding companies, investment structures and joint ventures.
Their corporate flexibility can make them suitable where investors from several jurisdictions require a neutral corporate platform.
BVI structures may therefore be considered for:
Joint ventures
Investment holding
Special-purpose vehicles
International group structures
A BVI company should not, however, be selected automatically. Banking, tax treatment, substance, reporting obligations and the regulations applicable to the shareholders must be considered.
Panama
Panama can be particularly relevant when the commercial strategy has a Latin American dimension.
Its geographic position, international business infrastructure and longstanding role in regional trade can make Panama worth considering for companies coordinating business across Latin America.
Potential applications can include regional trading operations, investment holding and commercial coordination, depending on the underlying activity.
Nevis
Nevis LLCs provide flexible membership and management arrangements and can be useful for certain privately held international structures.
They may be considered for investment vehicles, joint ventures or privately owned international businesses where the LLC format fits the commercial requirements of the participants.
Other International Jurisdictions
Depending on the transaction, jurisdictions such as the Bahamas, Seychelles, Samoa and Belize may also be considered.
The relevant question should never simply be:
"Where is it cheapest to incorporate a company?"
The more important question is:
"Which jurisdiction best supports the actual transaction, ownership structure, banking requirements and long-term international strategy?"
What About Hong Kong?
Hong Kong can be highly relevant to Indian businesses expanding into Asia or establishing broader international structures.
However, a Hong Kong company should not automatically be inserted between India and Latin America merely because Hong Kong is an international financial centre.
The structure should have a genuine reason to exist.
For example, Hong Kong may make sense where the group also conducts substantial Asian operations, maintains Asian suppliers or investments, or requires a regional Asian holding or operating platform.
For a business focused exclusively on India–Latin America trade, other structures may sometimes be more appropriate.
Trade Agreements Also Matter
Corporate structuring does not replace trade-agreement analysis.
India already has preferential trade arrangements with parts of Latin America, including the India–MERCOSUR Preferential Trade Agreement and the India–Chile Preferential Trade Agreement.
Businesses should therefore evaluate:
Product classification
Country of origin
Applicable tariff preferences
Customs requirements
Local import restrictions
Existing or future trade agreements
Using an intermediary company does not automatically change the origin of goods or create entitlement to preferential tariffs.
This distinction is particularly important when designing international trading structures.
Banking Should Be Considered Before Incorporation
A technically sound corporate structure can still fail commercially if the company cannot obtain appropriate banking or payment facilities.
Banking feasibility should therefore be considered before establishing the structure.
Banks and financial institutions may examine:
Ultimate beneficial owners
Countries of operation
Expected transaction volumes
Source of funds
Major customers and suppliers
Nature of goods or services
Contracts and invoices
Physical operations
Expected currencies
Economic substance
A company expected to process significant India–LATAM trade should therefore be designed around a credible and documentable business model.
Tax and Regulatory Issues Cannot Be Ignored
International structuring should not be confused with tax avoidance.
Indian companies and residents considering overseas entities must evaluate applicable Indian regulations, including outbound investment requirements, foreign-exchange rules and tax consequences.
Likewise, the relevant Latin American jurisdiction may impose local taxation, withholding taxes, customs duties, transfer-pricing requirements or permanent-establishment rules.
International structures may also be subject to:
Common Reporting Standard (CRS) requirements
Beneficial ownership reporting
Economic substance rules
Accounting requirements
Annual financial reporting
Transfer pricing
AML/KYC requirements
Professional tax and legal advice should therefore accompany corporate structuring where appropriate.
A Practical India–LATAM Structuring Checklist
Before establishing an international company, businesses should be able to answer several fundamental questions:
What products or services will be traded?
Which countries are involved?
Who are the suppliers and customers?
Where are the ultimate beneficial owners located?
Which entity will sign contracts?
Where will goods physically move?
Where should payments be received?
Which currencies will be used?
Is trade financing required?
Will the structure own foreign subsidiaries?
Will outside investors or joint venture partners participate?
What annual transaction volume is expected?
What tax treaties or preferential trade agreements may apply?
What substance will the international company have?
Can appropriate banking facilities realistically be obtained?
Only after these questions have been considered should the jurisdiction and entity type be selected.
The Opportunity Between India and Latin America
India LATAM trade structuring is likely to become increasingly important as commercial relationships between the two regions deepen. India and Latin America have highly complementary economies.
India offers manufacturing capacity, pharmaceuticals, technology, engineering expertise and a rapidly expanding consumer and industrial market.
Latin America offers commodities, energy, agricultural resources, critical minerals and large developing consumer markets.
As these commercial relationships deepen, companies will increasingly need corporate structures capable of supporting trade, investment and joint ventures across both regions.
For Indian and Latin American businesses, the opportunity is therefore not merely where to trade, but how to structure that trade efficiently and sustainably.
How VISS Can Assist
V. I. Services & Solutions Limited (VISS) assists international clients and professional intermediaries with the establishment and administration of international corporate structures.
Depending on the business model, VISS can assist with:
International company formation
Holding and investment structures
International trading companies
Joint venture vehicles
Registered agent and annual maintenance coordination
Corporate documentation
Banking and payment account assistance
Multi-jurisdictional structuring coordination
The appropriate structure depends on the countries involved, ownership, expected transactions, banking requirements and intended use of the company.
Businesses considering trade, investment or joint ventures between India and Latin America can contact VISS for an initial review of the corporate structure and suitable jurisdictions.
V. I. Services & Solutions Limited
This article provides general information only and does not constitute legal, tax, investment or regulatory advice. Appropriate professional advice should be obtained for the jurisdictions involved.
