Business entities in Guatemala in 2024
Healy Consultants will assist our Clients to incorporate the optimal corporate structure in Guatemala. There are several ways of doing business in Guatemala, the most common being the setting up of a limited liability company. Foreign entrepreneurs may also opt to set up a corporation, a branch office or a representative office.
The Guatemala limited liability company (Sociedad de responsabilidad limitada)
- The Guatemala LLC requires only i) two shareholders, who must invest at least US$260 (GTQ2,000) in the company’s paid up capital and ii) one director. While shareholders and directors can be foreigners, the company will also have to appoint a resident legal representative if no director is ordinarily resident in Guatemala. If required, our Firm can assist our Clients to appoint a professional, passive legal representative: kindly refer to the legal representative for South American companies page for further details;
- All LLCs submit annual audited financial statements to the Register of Commercial Entities. They are subject to corporate tax at a standard rate of 25%. All companies are also subject to registration with the local tax administration and the Social Security Authority, following commencement of operations.
The Guatemala public limited company (Sociedad Anonima)
Our Clients willing to raise funds in Guatemala through the issuance of shares usually setup a Guatemala PLC. The minimum paid-up capital required to form such entity is set at US$650 (GTQ5,000). The company is also required to appoint an independent auditor and to submit annual financial statements to the Register of Commercial Entities.
The Guatemala branch (Sucursal)
In order to register a branch in Guatemala, foreign corporations are required to guarantee the operations of the future branch by issuing a bond of US$50,000 as guarantee. The branch must also i) have a registered office in Guatemala and ii) appoint an agent who should be an attorney and must have power of attorney of the branch on behalf of the company.
The Guatemala representative office (Oficina de representacion)
While the Guatemala representative office can be 100% foreign owned, it is not allowed to carry out any income generating activities in Guatemala. Consequently, this entity can only engage in i) market research and ii) promoting the business of the parent company.
Table of comparison between Guatemala entities
| LLC | Public Corporation | Branch | Representative office | |
|---|---|---|---|---|
| Also known as | SRL | SA | Sucursal | Oficina de representacion |
| How long to set the company up? | 4 weeks | 5 weeks | 6 weeks | 6 weeks |
| How long to open company bank account? | 4 weeks | 5 weeks | 6 weeks | 6 weeks |
| Legal liability? | Limited | Limited | Unlimited | Unlimited |
| Wholly foreign owned? | Yes | Yes | Yes | Yes |
| Minimum paid - up share capital? | US$260 | US$650 | N/A | N/A |
| Minimum deposit by the parent company? | N/A | N/A | US$50,000 | US$50,000 |
| File annual tax return? | Yes | Yes | Yes | No |
| Tax registration certificate required? | Yes | Yes | Yes | No |
| Recommended corporate bank account? | Banco Citibank de Guatemala | Banco Industrial | Banco Azteca | Banco Internacional |
| Does our Client need to travel? | No | No | No | No |
| Resident director required? | No | No | No | No |
| Resident shareholder required? | No | No | No | No |
| Minimum directors allowed? | 1 | 1 | 1 | 1 |
| Minimum shareholders? | 2 | 2 | 1 | 1 |
| Tax identification code needed? | Yes | Yes | Yes | No |
| Guatemala resident representative required? | Yes | Yes | Yes | No |
| Corporate shareholders allowed? | Yes | Yes | Yes | Yes |
| Corporate director(s) allowed? | Yes | Yes | Yes | Yes |
| Statutory audit required? | Yes | Yes | Yes | Yes |
| Guatemala corporate tax rate? | 25% | 25% | 25% | N/A |
| Annual financial statements required? | Yes | Yes | Yes | Yes |
| Regulated by? | Register of Commercial Entities | Register of Commercial Entities | Register of Commercial Entities | Register of Commercial Entities |
| Allowed to issue sales invoices? | Yes | Yes | Yes | No |
| Allowed to sign contracts? | Yes | Yes | Yes | No |
| Allowed to import and export goods? | Yes | Yes | Yes | No |
| Can rent an office space in Guatemala? | Yes | Yes | Yes | Yes |
| Can buy Guatemala property? | Yes | Yes | Yes | No |
| Total Guatemala business setup costs in yr. 1? | US$8,640 | US$9,640 | US$10,640 | Contact us |
| Subsequent annual costs (incl. accounting and tax fee)? | US$4,390 | US$5,390 | US$6,390 | Contact us |
| Sample engagement invoice? | View invoice PDF | View invoice PDF | View invoice PDF | Contact us |
