Venezuela company registration

DOING BUSINESS IN VENEZUELA IN 2017

Since 2003, Healy Consultants Group PLC has assisted our Clients effectively and efficiently with i) Venezuela company incorporation ii) business license registration iii) corporate bank account opening iv) immigration related solutions v) work space solutions and vi) employment strategies.

SummaryLLCFast business setup solutionFree zone LLCJoint Stock CompanyRepresentative officeBranch office
Also known asSrLFast SAPuerto libreSAOficina de representacionSucursal
Best use of company?All products and servicesClose a customer deal nowManufacturing and export tradingTo secure public fundingMarketing & researchSpecific projects
How soon can you invoice Clients/sign sales contracts?6 months1 month6 months6 months6 months6 months
How soon can you hire staff?6 months1 month6 months6 months6 months6 months
How soon can you sign a lease agreement?ImmediatelyImmediatelyImmediatelyImmediatelyImmediatelyImmediately
How long to supply corporate bank account numbers?1 month1 month1 month1 month1 month1 month
How long to supply company registration/tax numbers?6 months1 month6 months6 months6 months6 months
Corporate tax rate on annual net profits?34%34%34%34%0%34%
Limited liability entity?YesYesYesYesNoNo
Resident director/partner/manager/legal representative required?YesYesYesYesYesYes
Minimum paid up share capital?US$4US$1US$1US$1NoneNone
Corporate bank account location?Banco de VenezuelaBanescoBBVA ProvincialBanco MercantilBanco BicentenarioBanco del Tesoro
Can secure trade finance?YesYesYesYesNoYes
VAT payable on sales to local customers?12%12%0%12%None12%
Average total business set up engagement costs?US$42,820US$47,550US$42,820US$42,820US$42,820US$45,620
Average total engagement period?10 months6 months10 months10 months10 months10 months

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Accounting and tax considerationsLLCFast business setup solutionFree zone LLCJoint Stock CompanyRepresentative officeBranch office
Statutory corporate tax payable?34%34%34%34%0%34%
Reduced corporate income tax if properly structured?NoNoNoNoNoNo
Legally tax exempt if properly structured?NoNoNoNoYesNo
Group HQ tax incentives?NoNoNoNoNoNo
Must file an annual tax return?YesYesYesYesYesYes
Must file annual financial statements?YesYesYesYesYesYes
Must appoint an auditor?YesYesYesYesNoYes
Access to double taxation treaties?YesYesYesYesNoYes
Withholding tax on payments to foreign shareholders?34%34%34%34%None34%
Company RegistrationLLCFast business setup solutionFree zone LLCJoint Stock CompanyRepresentative officeBranch office
Resident director/partner/manager/legal representative required?YesYesYesYesYesYes
Minimum number of shareholders/partners?1111Parent companyParent company
Maximum shareholding for foreigners?99%99%99%99%100%100%
Minimum statutory paid up share capital?US$4US$1US$1US$1NoneNone
Shelf companies available?YesYesYesYesNoNo
Time to incorporate a new entity?6 months1 month6 months6 months6 months6 months
Can easily convert to a PLC?YesYesYesYesNoNo
Can have preference shareholders?YesYesYesYesNoNo
Business ConsiderationsLLCFast business setup solutionFree zone LLCJoint Stock CompanyRepresentative officeBranch office
Good entity for trademark registration?YesYesYesYesNoYes
Can secure an import and export license?YesYesYesYesNoYes
Can bid for Government contracts?YesYesYesYesNoYes

Sponsorship by a local citizen required?No
Our Client needs to travel to Venezuela for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
The entity will likely be regulated by?SAREN
Minimum number of directors/managers?1
Monthly VAT reporting to the Government?Yes
Must sign an office lease agreement during incorporation?Yes
Shareholders & directors documents to be attested/translated?Yes
Each foreign director needs a personal income tax number?Yes
Foreign director needs a residence visa?No
Maximum number of staff allowed?No maximum number for any entity
Expatriate to local staff ratio?Yes
Can secure residence visa for business owner?Yes
Government grants available?No
Government approval required for foreign owners?No
Public register of shareholders and directors?Yes
Security deposit to be kept with Government?No
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?No
Average custom duties suffered?17%
Government foreign investment approval required?No
Average monthly office rental? (US$ per sq m)US$150
Minimum statutory monthly salary?US$50
Average monthly US$ salary for local skilled employees?US$250
US$ deposit interest rate? (1 year average)NA
Overseas remittance currency controls?Yes
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Medium
Crowd funding available in this country?Yes

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages of Venezuela company registration

    Venezuela business registration considerations

    1. Only one director and one shareholder are required to incorporate a company in Venezuela and no minimum share capital is required. Our Clients will furthermore not need to travel in order to complete the engagement;
    2. A foreign owned company can invest in every business sector without restriction;
    3. The privacy of foreign investors is well respected in Venezuela, as there is no public company register disclosing shareholders’ and directors’ details.
  • Disadvantages of Venezuela company registration

    1. Our Clients should expect to pay a whopping 65% tax on net profits in Venezuela including i) corporate tax of up to 34% ii) VAT on sales of 12% iii) fuel tax of up to 50% of fuel expenses and iv) employer’s social security contribution of 17% of gross salaries;
    2. Venezuela-based businesses must cope with plenty of red tape and frequent government interventions. Venezuela company incorporation takes more than 144 days and processing of licenses more than 10 months; Venezuela leans toward a socialist economy since 1999 and is ranked as the world’s 14th most inhospitable country for running a business;
    3. Our Clients feel unsafe running a business in Venezuela, as its suffers from i) the world’s 5th highest murder rate ii) the world 2nd highest crime-related business costs and iii) high political instability, with violent protests in 2013/14;
    4. If required, Healy Consultants can assist our Client recruit quality local employees;
    5. Our Clients won’t be able to hire skilled workers in Venezuela, as only 13% of the workforce hold a university degree;
    6. Inflation in Venezuela has reached a record 61% in May of 2014; consequently, investors are faced with escalating business costs;
    7. The official language in Venezuela is Spanish therefore all official business documents are written in Spanish and foreign investors are faced with translation costs and waiting times.

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Company registration

  • Time to incorporate: Twenty weeks
  • Cost to set up: US$42,820
  • Minimum capital: US$4
  • Physical office required: Yes

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 34%
  • Corporate tax base: Worldwide
  • Shelf companies: Available
  • Main company type: SRL

Contact us

For additional information on our business registration services in Venezuela, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi