Business entities in Bolivia in 2021
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|
|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|
|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|