Bolivia is a country in Latin America that has sparked recent interest among foreign entrepreneurs. This Andean country is known for having a vast amount of natural resources , including some of the most important minerals, such as iron, silver, copper, and tin. Bolivia is also an associate member of MERCOSUR , which means it has access to the big economic block in the southern part of the continent, along with countries like Brazil, Argentina, Chile, and others. In Bolivia, there are no restrictions on foreign investments or foreign currency controls, furthermore, it is encouraged, since it attracts investors from all around the world.
Starting a business and registering a company in Bolivia is a very interesting opportunity for many. However, but it can be a long tedious process full of administrative and bureaucratic procedures. At Easyco, we can help you and make the company registration process easy for you and your team!
Are you interested in registering a company in Bolivia? Would you like to know what are the requirements? At Easyco, we tell you how and give a step-by-step guide on how to register your company in Bolivia in the most successful, easy, and fast way possible.
Decide on the right type of company and legal structure
The company type and legal structure you choose depend on how many people are going to constitute the company, as well as the capital available and the nature of the business. These are some of the most common types of companies in Bolivia:
Limited Liability Company (SRL): In an SRL in Bolivia, the liability of each of the partners is restricted to their capital contribution. This type of company can have a maximum of 25 partners and at least 4 managers or administrators.
Public Corporation or Sociedad Anónima (S.A.): A Public Corporation in Bolivia must have a minimum of 3 shareholders, who have limited liability over their contributions. In Bolivia, an S.A. can be constituted in 2 ways. The first one is by a single act or by the public subscription of shares .
Unipersonal Company or Sole Proprietorship: An Unipersonal Company is formed by one person (national or foreign), who is going to pursue the business activity of the company. It is recommended to hire a Legal Manager and an Accountant since the owner of the company is going to be responsible for all the company obligations with its own personal assets.
Elaboration and signature of the Power of Attorney
If your shareholders are not present in Bolivia, a Power of Attorney (POA) 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 Bolivia. 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 Bolivia. Nevertheless, there is another way in which you can incorporate a company in Bolivia without completing this step first. At the end of this article, be sure to ask us how.
Register the company at Bolivia’s Public Registry of Commerce
Prepare all the documents and submit them to Bolivia’s Public Registry of Commerce or Registro Público de Comercio (RPC). This step can be done online at the platform called ” Mi Empresa”, which allows you to easily submit all the documentation required for each type of company. Some of the documents needed are the type of company, name, registered office address, legal representative, nature of the business, and the application form that can be found on the platform.
Once the documents are submitted, it is necessary to pay the incorporation fees online or at the bank. The RPC is going to review all the documents and finally proceed with the registration process. A commercial registration number will be assigned to the company as an identification number. Once this step is completed, your company officially exists.
Obtain a Tax ID Number or NIT
After the company is successfully registered at the Public Registry of Commerce, it’s time to obtain a Tax Identification Number or ‘Número de Identificación Tributaria’ (NIT) at the National Tax Service or ‘ Servicio de Impuestos Nacionales’, in Spanish. some of the documents needed to obtain an NIT are:
Commercial Registration Number assigned by the Public Registry of Commerce
Register the company with Bolivia’s National Health Insurance and a Pension Fund Administration
One important step is to register the company with Bolivia’s National Health Insurance or Caja de Salud and a Pension Fund Administration or Administradora de Fondos de Pensiones (AFP). The company has to pay 10% of the employee salary to the Caja de Salud. This way, the employees and their families can have access to healthcare.
In order to start working, companies need to open a corporate bank account in Bolivia. Each bank offers different types of accounts with many benefits depending on the agreement and goals of the company. It is recommended that the bank offers good pricing structures for international transactions.
To open a bank account in Bolivia, most banks require you to make an initial deposit of USD$500 to fund your new account. Remember you can deposit the initial paid-in capital at the corporate bank account created.
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.
Submit an application to the local Municipality to get all licenses required
In order to start operations, it is necessary that the office or the business local has all the required licenses and documents needed. Each local municipality is responsible for the supervision, verification, and issue of the licenses. This step may require a couple of inspections and visits. The requirements vary depending on the nature of the business, the type of work being done, the number of people working, etc.
Get Assistance from Easyco Experts!
Bolivia is a small country in Latin America but in constant growth and is always interested in attracting foreign investors from all around the world. To make sure you register your company in the right way, you can get in touch with us. Our team of experts is going to make sure you comply with all Bolivian laws.
At Easyco, we make company formation in Bolivia easy; our team of corporate experts has vast experience helping companies and individuals register their business in Bolivia, 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 Bolivia today!
Easyco also provides additional services to guarantee your company’s compliance, which includes: