Business entities in Guatemala in 2023

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