DOING BUSINESS IN BOLIVIA
Since 2003, Healy Consultants has assisted our Clients with business registration in Bolivia. Our services include i) Bolivia company incorporation ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.
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Advantages and disadvantages
Advantages of Bolivia company registration
- A limited liability company in Bolivia can be incorporated with a minimum of two shareholders and one director of any nationality. The minimum paid-up capital required is US$1 for incorporation and our Client will not need to travel to complete the engagement;
- Bolivia’s close proximity to the large South American markets of Brazil, Paraguay, Chile and Peru make Bolivia company incorporation a good platform to engage in trade with these four countries. Foreign investors can easily access these countries for trading purposes from Bolivia by road or air;
- In Bolivia, there are no restrictions on i) foreign investments ii) foreign currency exchange controls and iii) capital imports and exports;
- Bolivia is a member of the World Trade Organization and also the Andean Community and is an associate member of MERCOSUR. Bolivia also seeks to develop markets through participation in the Bolivarian Alliance for the Americas (ALBA) with Venezuela, Nicaragua and Cuba. Trade in Bolivia has also been enhanced by eliminating double taxation through double taxation avoidance agreements with a number of South American and European countries such as the UK, France and Germany;
- Bolivia is one of the least developed countries in South America but is rich in mineral wealth including metals such as tin, copper, silver and iron. The country also has the second highest reserves of natural gas in South America, hence there is a lot of business potential for our Clients.
Disadvantages of Bolivia company registration
- Bolivia is a landlocked country therefore making it quite difficult to transport products within as well as out of the country. According to World Bank’s Doing Business in Bolivia the cost of exporting a container from Bolivia is US$1,440 which is quite high in comparison to other Latin America & Caribbean countries where it costs US$1,283. Bolivia is negatively ranked 105th out of 148 countries on the Global Competitiveness Index 2014-2015;
- A significant hurdle for business operations in Bolivia is the abundance of administrative procedures. A survey conducted by the World Economic Forum Global Competitiveness Report 2011-2012 indicates that government bureaucracy is one of the most problematic factors when doing business in Bolivia. Obtaining necessary licenses to do business is time-consuming and costly. Healy Consultants will be happy to help you handle your administrative requirements;
- Corruption is a major constraint for business as public officials expect gifts to get things done. Interaction with tax officials, customs services and the judicial system often involves demands for facilitation payments in order to expedite bureaucratic procedures and to overcome complicated and time-consuming administrative procedures. These factors as well as political instability collectively contribute to make Bolivia a risky place to do business;
- In Bolivia, the official language is Spanish therefore all business documents must be translated into Spanish. This slows down the process of company setup and is also a constraint when doing business in the country communicating with employees and government officials is a problem for investors.
- Time to incorporate: Ten weeks
- Cost to set up: US$19,900
- Minimum capital: US$1
- Physical office required: Yes
- Shareholders: 2
- Directors: 1
- Company secretary: No
- Resident director: Yes
- Corporate tax rate: 25%
- Corporate tax base: Territorial
- Shelf companies: Unavailable
- Main company type: SRL
Useful links for Bolivia