After a complicated 2020, 2021 presents us with new challenges, ventures and opportunities, which we can only achieve if we adequately prepare to manage risks, by identifying, mitigating and preventing tedious, preventable and unnecessary penalties, damages and setbacks.
Given this, it is important that we do not neglect the various obligations that companies have towards third parties -either the Public Administration or private entities- particularly those that have specific deadlines and whose non-observance could lead to the imposition of penalties, damages and setbacks to the company.
Obligations before the Public Administration such as guaranteeing the timely declaration and payment of taxes, keeping the Boards of Directors or Final Beneficiaries updated in the mercantile registers -some Central American countries are already demanding this-, ensuring the validity of the powers of attorney that the company has granted, the status of the judicial and administrative processes, or the labor and social security benefits and obligations, to mention some routine situations.
But there will also be other more delicate obligations –that affect the nerve of the operation of a company– before government institutions, such as being prepared to the expiration dates of operating licenses, submitting the reports that a license may require, import permits, registrations and licenses of intellectual property rights such as trademarks or patents, the payment of annual fees for the provision of a service, among others. In short, you shall know the nature of the operation of your company and will be able to imagine what type of government procedures should be ready to.
Likewise, there will also be obligations against third parties (private) with whom we have relationships and which must be pending, such as keeping the representatives before the banks updated, the validity of the insurance policies, the obligations regarding leases, payment of debts with third parties, suppliers and clients, among others.
Therefore, to make sure that the company is properly prepared to face its legal and contractual obligations that it has prepared for this 2021, it is important to identify them through a Due Diligence exercise that allows it to organize its resources and comply with the requirements, in order to provide the relevant attention to each of these obligations. This exercise will help prevent unnecessary penalties, damages, and setbacks.
In the same way, the Due Diligence will not only serve to prevent risks to the operation through compliance, but will also be a positive exercise that will allow the company to consolidate its presentation to potential investors.
At CENTRAL LAW we have an experienced team of lawyers who will be able to advise you in the most diligent and integrated way to meet the needs that your company will have in 2021.
If you require more information in this regard, you can contact CENTRAL LAW at the following email address: info@central-law.com
Avil Ramírez Mayorga
Associate
CENTRAL LAW
Nicaragua
