Business entities in Bolivia in 2022

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Healy Consultants will assist our Clients to incorporate the optimal corporate structure in Bolivia. There are several legal entities in the country, the most common Bolivia business setup is the limited liability company. Foreign entrepreneurs may also opt to set up a corporation, limited liability partnership, a branch office or a representative office.

The Bolivia limited liability company (Sociedad de responsabilidad limitada)

  • The Bolivia LLC requires only 1 director who must be resident in Bolivia and 2 shareholders for incorporation process to be complete. The minimum paid-up capital required is US$1;
  • All LLCs with annual sales over US$170,000 must submit annual audited financial statements to the commercial registry.

The Bolivia public corporation (Sociedad Anonima)

  • The Bolivia corporation is commonly used by entrepreneurs to setup an SME as a minimum paid-up share capital of US$100 is required to complete the incorporation process. A corporation must appoint at least 3 directors who must be natural persons and one of the directors must be resident in Bolivia. This entity must also appoint i) 3 shareholders who can be of any nationality ii) a resident company secretary and iii) a Bolivia resident agent. Healy Consultants will provide for our Client these services if required;
  • All incorporation documents must be translated by a court appointed translator in Bolivia submitted in Spanish. Furthermore, these documents must be legalized by the nearest Bolivian Consulate;
  • After the Bolivian corporation is setup, the entity must appoint a controller/auditor and those corporations with sales over US$160,000 must submit annual audited financial statements to the Tax Bureau and Fundempresa.

The Bolivia limited liability partnership (Sociedad en comandita simple)

  • An LLP must appoint at least 2 shareholders and 2 directors whom can be of any nationality, and the minimum paid-up capital required for incorporation process to be complete is US$1;
  • For this Bolivia business setup, liability of the shareholders is limited to the amount of their capital contributions. Transfer of quotas (shares) must be approved by all shareholders and is tax exempt;
  • The Bolivia LLP does not require annual audit of financial statements and neither does it require company secretary. Limited partners are liable up to the amount of their capital contributions.

The Bolivia branch (Sucursal)

A Bolivia branch office can be 100% foreign owned. The scope of operations for this entity will be defined by the parent company. Also, the branch must have a registered office in Bolivia and the appointed manager must have power of attorney of the branch on behalf of the company.

The Bolivia representative office (Oficina de representacion)

While the Bolivia representative office can be 100% foreign owned, it is not allowed to carry out any income generating activities in Bolivia. All expenses of the representative office are required to be met through inward foreign currency remittances. Consequently, this entity can only engage in i) market research and ii) promoting the business of the parent company.

Table of comparison between Bolivia entities

  LLC Public Corporation Limited liability partnership Branch Rep Office
Also known as SRL SA SCS Sucursal Oficina de representacion
How long to set the company up? 10 weeks 10 weeks 3 weeks 2 weeks 2 weeks
How long to open company bank account? 4 weeks 6 weeks 5 weeks 4 weeks 4 weeks
Legal liability? Limited Limited Limited Unlimited Unlimited
Wholly foreign owned? Yes Yes Yes Yes Yes
Minimum paid - up share capital? US$1 US$100 US$1 US$1 US$1
File annual tax return? Yes Yes Yes Yes No
Tax registration certificate required? Yes Yes Yes Yes No
Recommended corporate bank account? Banco Bisa Banco Union S.A. Banco Mercantil Santa Cruz S.A. Banco de Credito de Bolivia Banco Ganadero S.A.
Does our Client need to travel? No No No No No
Resident director required? Yes Yes No No No
Resident shareholder required? No No No No No
Minimum directors allowed? 1 3 2 1 1
Minimum shareholders? 2 3 2 1 1
Tax identification code needed? Yes Yes Yes Yes Yes
Bolivia resident company secretary required? No Yes No No No
Corporate shareholders allowed? Yes Yes Yes Yes Yes
Corporate director(s) allowed? Yes No Yes Yes Yes
Statutory audit required? No Yes No No No
Bolivia corporate tax rate? 25% 25% 25% 25% 0%
Annual financial statements required? Yes Yes Yes Yes No
Regulated by? Commerce Registry of Bolivia Commerce Registry of Bolivia Commerce Registry of Bolivia Commerce Registry of Bolivia Commerce Registry of Bolivia
Allowed to issue sales invoices? Yes Yes Yes Yes No
Allowed to sign contracts? Yes Yes Yes Yes No
Allowed to import and export goods? Yes Yes Yes Yes No
Can rent an office space in Bolivia? Yes Yes Yes Yes Yes
Can buy Bolivia property? Yes Yes Yes Yes No
Total Bolivia business setup costs in yr. 1? US$19,900 US$22,200 US$19,900 US$24,650 US$22,650
Subsequent annual costs (incl. accounting and tax fee)? US$6,100 US$7,200 US$6,100 US$6,100 US$3,800
Sample engagement invoice? View invoice PDF View invoice PDF View invoice PDF View invoice PDF View invoice PDF

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Contact us

For additional information on our business setup services in Bolivia, please contact our in-house country expert, Mr. Kunal Fabiani, directly:
client relationship officer - Kunal
Ministry of Economy and Public Finance Central Bank of Bolivia National Chamber of Commerce Registry of Commerce - FUNDEMPRESA