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The Complete Process to Company Incorporate in Bolivia

Foreign investors are increasingly recognising the potential in Bolivia, drawn by its robust growth, untapped markets, and skilled workforce. Bolivia’s membership in the World Trade Organization, associate membership in MERCOSUR, and double taxation avoidance agreements with important countries also provide a favourable business environment.

Whether you are contemplating market entry or exploring expansion opportunities, you need to understand the process of registering a company in Bolivia. In this article, we look at the steps to successfully incorporate your company and seize the emerging opportunities in this thriving Andean nation.

 

Visa Requirement for Foreign Investors in Bolivia

Foreign entrepreneurs can apply for a business visa in Bolivia, provided they will invest US$30,000 or more there. The application might take a couple of weeks and offers investors permanent residence after two years of living in the country. Subsequently, citizenship is available after three years of living in the country without interruption.

You don’t need to apply for a visa if you’re visiting Bolivia to assess demand or to meet a contact, as long as you stay for less than 30 days. You can extend your trip for 60 days without paying any fee, provided you apply before the end of your 30-day period at one of the Department of Immigration offices situated across the country.

 

Types of Companies in Bolivia

When registering a business in Bolivia, you have various legal structure options. The most popular choice for foreign investors is a Limited Liability Company (Sociedad de Responsabilidad Limitada), which requires only one director, one legal representative, two shareholders, and no specified minimum starting capital. Importantly, you don’t need to be physically present in Bolivia to initiate the LLC formation process.

Alternatively, you can consider a Public Corporation (Sociedad Anónima), Limited Liability Partnership (Sociedad en Comandita Simple), or opt for a branch (Sucursal) or Representative Office (Oficina de Representación).

Regardless of the chosen entity type, a physical office and fiscal address in Bolivia are necessary, typically in the same location. You need to rent or purchase an office space for this purpose.

 

Steps Involved in Company Incorporate in Bolivia

Here are the steps to incorporate a company in Bolivia:

Approval and Documentations

First, you need to obtain approval from the Office of Investment Promotion. Next, it is necessary to publish the company’s legal documents in a newspaper to ensure transparency. Additionally, you must ensure that the institution’s name, correspondence address, Memorandum of Association, and other relevant papers are attested by a government-endorsed person.

Share Capital and Promoters

Personal details of overseas promoters must be disclosed to the Bolivian government as part of the registration process. It is also important to meet the minimum share capital requirement, set at 25% of the total resources and should not be less than 50% per the investment policy.

Registration with the Chamber of Commerce

Registration with the Chamber of Commerce is another essential step, as it provides credibility and facilitates business activities. Acquiring the necessary insurance coverage for the organization is mandatory.

Clearance from the Ministry of Employment

To comply with labour regulations, an application for clearance from the Ministry of Employment must be submitted. Corporate income tax, set at 25%, is applicable to both corporate and liaison offices. Value Added Tax (VAT) is also levied at a rate of 13%.

It is important to note that dividend rates for trading corporations are set at 12.5%, while royalties and liaison remittances enjoy a favourable rate of 12.5%.

Furthermore, Bolivia’s banks are known for being friendly to non-resident investors, making it easier to open accounts or apply for credit when conducting business there.

 

Looking to Start a Company in Bolivia?

Ready to register your company in Bolivia? Trust 3E Accounting Indonesia for expert guidance and efficient incorporation services. From approvals to legal documentation, we ensure compliance every step of the way. Let our experienced team assist you in navigating the complexities of Bolivian company registration. Contact us today to discuss your goals and start your business journey in Bolivia.