Business entities in Venezuela
The Venezuela limited liability company (Sociedad de Responsabilidad limitada or S.R.L)
The Venezuela LLC is not a very common type of entity as one of the requirements for incorporation is minimum paid-up share capital of not less than US$4 and not more than US$400. The LLC must appoint at least one director and one shareholder of any nationality.
The Venezuela publicly limited company (SA)
The Venezuelan PLC is the business entity most commonly used by foreign entrepreneurs in order to access to the Venezuelan market. Minimum paid-up capital is not a requirement for setting up a Venezuela PLC and only one shareholder and one director are required for the incorporation process.
The Venezuela branch office
The parent company of the branch is legally responsible for all operations of the branch. Venezuela branch office can be 100% foreign owned and as stipulated by Venezuela Corporate law, the branch is authorized to conduct business within the country.
The Venezuela representative office
A representative office is restricted by law to be incorporated only for banking or other financial institutions. The incorporation process may take more than 6 months.
Table of comparison between Venezuela entities
|How long to set the company up?||20 weeks||25 weeks||25 weeks||25 weeks|
|Wholly Foreign owned||Yes||Yes||Yes||Yes|
|Minimum paid-up share capital||US$4||US$0||US$0||US$0|
|Minimum directors allowed||1||1||1||1|
|Resident director required||No||No||No||No|
|Corporate shareholders allowed||Yes||Yes||Yes||Yes|
|Corporate director(s) allowed||Yes||Yes||Yes||Yes|
|Corporate Tax Rate||34%||34%||34%||34%|
|Draft invoice||Contact Us|
|Nominee company||Shelf Company||New company|
|Our order of preference||1||2||3|
|Summary at a glance|
|Estimated total cost of this engagement||US$47,550||US$58,960||US$42,820|
|When can the company issue invoices and execute contracts?||1 month||1 month||6 months|
|Estimated timeframe to totally complete the engagement||6 months||6 months||10 months|
|Time to provide our Client with company and bank account number and tax number?||1 month||1 month||6 months|
|Estimated timeframe to change the corporate structure?||5 months||5 months||0|
|How long before our Client can issue sales invoices and sign contracts?||1 month||1 month||6 months|
|How long until our Client can legally hire staff in the country?||1 month||1 month||6 months|
|Paid up share capital required||Yes||Yes||Yes|
|Physical office required to be leased within 5 months||Yes||Yes||Yes|