How to Register a Company in Guatemala

Guatemala is a country in Central America known as a very popular travel destination for tourists that love extreme sports, trekking, and being in touch with nature. The country has many beaches, waterfalls, and volcanoes, as well as many animals and species that can only be found in that unique region.

Guatemala is also one of the most successful economies in Central America. It has a GDP of $319 billion, which represents the 35% of the GDP (Gross Domestic Product) of the region. Furthermore, its currency, the Quetzal Guatemalteco (Q), has been stable against the American dollar for over 15 years. This makes it a very attractive country for investors and entrepreneurs from around the world.

Are you interested in starting a business in Guatemala? Do you want to know how to successfully register your company? How to register a company in Guatemala? At Easyco we teach you how with a step-by-step guide on the company registration process in Guatemala!

1. Decide which is the right type of company for your business in Guatemala

   The first step in the incorporation process of a company in Guatemala is to decide on which type of company best suits your needs. It is important to have into consideration what the business activity is going to be, the size of the company, the number of partners, and the initial capital contribution each of them are going to make to start operations.

   These are the 2 most common types of companies in Guatemala:

   • Limited Liability Company or Sociedad de Responsabilidad Limitada (SRL): An SRL in Guatemala needs a minimum of 2 partners and a maximum of 20 at the moment of incorporation. This type of company can either have a board of directors or be managed by a single director, who has to be chosen by all the members.

   • A Corporation or Sociedad Anónima (SA): An SA needs a minimum of 2 shareholders at the moment of incorporation. There is no limit on the number of partners a Corporation can have in Guatemala, and the capital contribution of each partner is divided into shares.

2. Appoint a legal representative

   If your shareholders are not present in Guatemala, a Power of Attorney will be required that allows your legal representative to carry out the process locally. This Power of Attorney has to be signed by the corresponding party.
   Also, consider that for foreign shareholders additional documentation will be required.
   All documentation that comes from abroad must be duly legalized and apostilled (if applicable), and these hard-copy documents must be sent to Guatemala. Finally, consider that documentation that is not in Spanish, will require translations to be accepted by the local agencies.
   Although this step might sound cumbersome and time-consuming, it is a standard process to register your company in Guatemala. Nevertheless, there is another way in which you can incorporate Guatemala without completing this step first. Send us a message to learn more.

3. Choose the name of the company

   In Guatemala, it is important to consider that the name of the company has to reflect the nature of the business and the commercial objective. It is also necessary to have at least 3 possible names chosen in case one of them is unavailable or similar to other companies names.

4. Prepare and notarize the Articles of Incorporation of your company

   Once you’ve chosen the name of your company, it is time to prepare the Articles of Incorporation of your company in Guatemala. This document must include all the information about the business, legal representative, capital, etc.

   The Articles of Incorporation must include the following information:

   • Name of the company

   • Legal representative information

   • Share capital information

   • Registered office address

   • Management structure

   • Extinction and liquidation detail plan

   It is recommended that the Articles of Incorporation are reviewed by a local lawyer to make sure the information is complete and ready to be submitted to a Public Notary.

5. Pay the incorporation fees at the Banrural

   Once the Articles of Incorporation are notarized, they must be submitted to the Mercantile Registry for the incorporation of the company. Before submitting them, the incorporation fees must be paid at the Banrural (Banco de Desarrollo Rural de Guatemala).

6. Submit the registration form and documents to the Mercantile Registry

   The Mercantile Registry of Guatemala is the government’s office in charge of regulating all commercial activities in the country. They are responsible for the creation of new companies. At their offices, you will need to submit a file with the documentation required to register the company.

   This is the list of documents required by the Mercantile Registry to begin the incorporation process of your company in Guatemala:

   • Application Form

   • Receipt of payment of the incorporation fees

   • Articles of Incoporation

   • Power of Attorney and legal representative information

   • Registered Office Address

   • Copy of the identification of the members, partners, or shareholders

   If all the documentation is correct and the company is registered, the Mercantile Registry will assign the company an identification number, known as Commercial Patent or ‘Patente de Comercio’. This is the document that allows the company to pursue commercial activities in Guatemala.

7. Obtain a tax identification number or RTU

   Once the company is officially registered at the Mercantile Registry, you can submit an application to the Superintendencia de Administración Tributaria (SAT), to obtain a tax identification number, called Registro Tributario Único (RTU), in Spanish. This is the final step of the company registration process and will finally allow the company to operate in Guatemala.

8. Open a Corporate Bank Account in Guatemala

   To start operations in Guatemala, companies need to open a corporate bank account. Each bank offers different types of accounts with many benefits depending on the agreement and goals of the company. The bank should offer good pricing structures for international transactions.

   These are some of the documents banks in Guatemala need to open a corporate bank account. Keep in consideration that this may differ depending on the type of bank account you choose and also the bank.

   • Articles of Incoporation

   • Power of Attorney of the Legal Representative

   • Commercial Patent

   • Utility bill

   Also, it is important to consider that some banks may have foreign transaction restrictions for companies that have foreign shareholders. It is crucial to take this into account as part of your company establishment strategy, as identifying a bank that has flexible policies will determine when your new company can start its operations.

Get Assistance from Easyco Experts!

Guatemala is in constant growth and always looking to simplify its processes. To make sure you register your company in the right way, you can get in touch with us, and our team of experts is going to make sure the registration of your company in Guatemala is done successfully and in the least amount of time possible.

At Easyco, we make company formation in Guatemala easy; our team of corporate experts has vast experience helping companies and individuals register their business in Guatemala, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing a hassle-free online company registration experience. Start your company in Guatemala today!

Additionally, Easyco also provides services to guarantee your company’s compliance, which includes:

• Appointment of legal representation,

• Providing a registered office address

• Handling tax and accounting

• Hassle-free Payroll Services

• Recruiting and Hiring Talent

• Manage your Company bank account opening

• Manage your Trademark Registration

• Corporate Legal Services