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Company Formation in Bolivia

Updated on Wednesday 02nd November 2022

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Our consultants can offer all the necessary legal support for setting up a business in Bolivia - preparing corporate documents, addressing to the local institutions for the registration of the company, obtaining business permits, etc. 

Thus, if you need assistance in setting up companies in Bolivia, you can find here all the necessary support. For more information or assistance in the procedures of starting a business in Bolivia, please seek counsel from our team of specialists in company formation.

Legal structures in Bolivia

In order to open a company in Bolivia, you should first decide on which type of company you want to establish. You may choose from the following legal entities: the limited liability company, the Bolivian public corporation, the limited liability partnership.

A different approach is if you opt for creating a branch or a representative office, as these ones are dependent to their parent-company. The most commonly incorporated type is the limited liability company and the requirements for it are:
  1. at least 1 director (who has to be a Bolivian resident);
  2. minimum 2 shareholders;
  3. minimum share capital of 1$.

The process of incorporating a company in Bolivia should not take more than a few weeks and the company can be 100% foreign-owned. 

What are the incorporation requirements for Bolivian companies?

Our consultants in company formation in Bolivia have presented the main types of companies available for registration in this country. In this section, foreign investors can find out information on the basic incorporation requirements for such entities. 

The limited liability company has the simplest incorporation requirements – only 2 shareholders and 1 director. Similar requirements can be met in other countries as well. In some jurisdictions, this business form can be set up with only 1 shareholder. 

This can also be the case of those who opt for offshore company incorporation, where foreigners can typically set up the private company. 

Another way to start the process of company formation in Bolivia is by registering the public corporation, a legal entity designed for large businesses, but this can also be suitable for medium sized companies. 

For this business form, the investors have to appoint 3 directors (please mind that residency requirements are imposed in this case – it is necessary to have at least 1 director who is a Bolivian resident). 

Furthermore, this entity must have 1 appointed company secretary, 1 resident agent and 1 auditor. Foreign businessmen can also set up a limited liability partnership. 

This business form must be incorporated by at least 2 shareholders; it also needs 2 directors. For the branch office, foreign investors must appoint 1 manager. 

Important matters to know about company formation in Bolivia 

In the list below, we invite you to discover some of the matters you should be aware of when starting the process of company formation in Bolivia
  • the duration of the registration process is longer in the case of the limited liability company and the public corporation – it can take approximately 10 weeks to complete the procedure;
  • in the case of other company types, such as the branch office, the limited liability partnership or the representative office, the registration procedure is of just 2-3 weeks;
  • opening a corporate bank account can take approximately 4-6 weeks;
  • the capital requirements are very low – most company types need only $1 as a minimum share capital;
  • the only company type with a higher capital requirement is the public corporation, which requires $100 (which is still a very low capital requirement). 
Please mind that setting up a corporate bank account is part of the mandatory steps for company formation in Bolivia and all business forms will need to have a bank account set up in their name at a commercial bank in this country. 
The same applies for those interested in offshore company formation; in all offshore jurisdictions, investors will need to set up an offshore bank account.  
An advantage of opening a company in this country is that foreign investors have the right to full ownership of the legal entity, as they are not required by the law to associate with local businessmen in order to invest here. 
This applies to all company types, which allow 100% foreign ownership. With regards to tax compliance, all companies which develop commercial activities (and thus, obtain an income), must comply with certain tax procedures. 
For instance, it is necessary to file tax returns in accordance with the current procedures. This is applied to all company types, but an exemption from this is applied to the representative office, which is not set up for commercial purposes. 
Like in other jurisdictions, foreign investors will not be asked to personally come to Bolivia for the process of setting up the legal entity of their choice. The procedure of company formation in Bolivia can be completed through legal representatives. 
This can be achieved with the assistance of our consultants in company registration in Bolivia, who can represent foreign investors through the power of attorney in all the incorporation steps.  

Steps for company registration in Bolivia

You first have to choose a name for your company and then check its uniqueness at the Registry of Commerce. Then the notarizing of the incorporation articles is necessary and also the publication of a notice, announcing the new company's registration, in a local Bolivian newspaper.
For company registration in Bolivia you must also register at the National Tax Service (Servicio de Impuestos Nacionales), in order to obtain a tax identification number.

You need to submit some documents for this procedure, but our company formation agents can make sure that this process is completed as soon as possible.
The next step of the company formation process in Bolivia is obtaining a municipal license for business and also a registration card. Some of the papers you need are the application form, the copy of the public certificate of incorporation, a document to prove the domicile of your company etc.
Last, you need to deposit minimum 25% of the capital at a commercial bank and obtain an evidence for it. Then you need to register your company's certificate with the Registry of Commerce.

This is a country with an economy that has at its core substantial reserves of natural gas, crude oil, tin, silver and other goods, but also crops of rice, cotton, coffee or soybeans.  
For assistance or further information on how to register a company in Bolivia or in other countries, feel free to contact our team of company formation experts.