What Encourages Investment in Guatemala?
- Guatemala is currently developing and working to make an economic growth.
- Guatemala is open to opportunities, projects and businesses.
- Lack of competition in local markets, which expands your chances of gaining profits.
- Guatemala’s strategic geographic location, as the country overlooks two oceans, and contains ports on both sides.
- Setting up a company in Guatemala requires only two partners and one manager.
Also read: A Simplified Definition of Commercial Law
Procedures for Establishing a Company in Guatemala
- Choosing the company name.
- Registering the address of the company in Guatemala.
- Determining the type of company.
- Defining the company’s objectives and activities.
- Determining when the company will start its work.
- Registering the addresses of all partners and company directors.
- Opening a bank account and depositing capital.
- Preparing the company’s laws and regulations.
- Procedures for establishing the company take about two weeks.
- These procedures can be completed with an agent.
Also read: The Most Important Branches of Commercial Law
Types of Companies in Guatemala
Private Limited Company
This type requires at least two partners. The minimum capital is five thousand Guatemalan quetzals. Responsibility is limited to the amount of the capital.
Public Limited Company
This type requires at least two partners. The minimum capital is five thousand Guatemalan quetzals too. Responsibility is limited to the amount of the shares held.
Public Partnership
It consists of at least two partners. Responsibility of partners is unlimited.
Limited Partnership
It consists of two types of partners: active and non-active partners. The responsibility of active partners is unlimited. The responsibility of inactive partners is limited to their contributions to the capital, and they are not involved in the management of the company.
Also read: The Importance of Having a Commercial Lawyer Before Starting Your Investment