Company Incorporate in Guatemala With 3E Accounting’s Professional Help
Discover a land of untapped potential for your business in Guatemala – a nation known for its strategic location, abundant resources, and thriving markets. As a foreign entrepreneur, navigating through the country’s tough regulatory procedures and language barriers could be difficult. However, with 3E Accounting, you gain a trusted partner with in-depth knowledge of local laws and customs.
Here’s how we can assist you with a company incorporate in Guatemala:
Choosing a Company Structure
Our expert team guides you to choose the most suitable business structure tailored to your specific needs and goals.
Sole Proprietorship
An ideal choice for individual entrepreneurs seeking full control of their venture, a sole proprietorship requires no specific minimum investment and is suited for smaller businesses. Sole proprietors are the sole decision-makers and managers who’ll get all the profit but be liable for the losses.
Partnership
An excellent option for ventures with multiple partners, a partnership has no specific minimum investment and requires a minimum of two partners. There are no limitations on the maximum number of partners and no residence requirements for partners. But do remember that there isn’t a lot of flexibility, and the company doesn’t stand as a separate legal entity.
Limited Liability Company (LLC)
Balancing autonomy and limited liability, an LLC demands a minimum investment of 5,000 GTQ. It is a separate legal entity. With two to fifty shareholders allowed, an LLC must have at least one director who can be of any nationality, but a legal representative residing in Guatemala is required.
Corporation
A separate legal entity from its shareholders, a corporation necessitates a minimum capital of 10,000 GTQ. Two or more shareholders are required, and the corporation must have at least three directors, with one director residing in Guatemala.
In Guatemala, corporations are subject to corporate income tax, and shareholders may also face personal income tax on dividends received, while in an LLC, profits and losses are “passed-through” to the individual members’ tax returns, avoiding double taxation at the entity level.
Choosing a Company Name
After choosing a company type, our expert team helps you research a name and ensures the proposed name complies with regulations, is unique, and aligns with your business vision. We help you avoid conflicts and delays, establishing a strong and recognizable brand identity in Guatemala.
Preparing and Notarizing Articles of Incorporation
As the name is done, we’ll help you prepare and notarize the articles of incorporation for your company. This document must contain essential details, such as the company’s name, legal representative information, share capital details, registered office address, management structure, and a plan for extinction and liquidation.
Our legal team will review the Articles of Incorporation to ensure its completeness and readiness for submission to a Public Notary.
Payment of the Incorporation Fees
Once the Articles of Incorporation are notarized, they must be submitted to the Mercantile Registry for the incorporation of the company. Before submitting them, the incorporation fees must be paid at the Banrural (Banco de Desarrollo Rural de Guatemala).
Submission of Documents to Mercantile Registry
The Mercantile Registry is the government office responsible for regulating all commercial activities in Guatemala. The required documents include the application form, receipt of payment for the incorporation fees, Articles of Incorporation, Power of Attorney and legal representative information, registered office address, and copies of identification for members, partners, or shareholders.
Once the documentation is verified and approved, the Mercantile Registry will assign your company an identification number, commonly referred to as the Commercial Patent or ‘Patente de Comercio’.
Obtaining a Tax Identification Number or RTU
Upon completing the official registration with the Mercantile Registry, the next step is applying for a tax identification number, known as Registro Tributario Único (RTU) in Spanish, from the Superintendencia de Administración Tributaria (SAT). This final phase of the company registration process enables your business to commence operations in Guatemala.
Opening a Corporate Bank Account
As the final step of the process for company incorporate in Guatemala, 3E Accounting will help you open a corporate bank account. The process is straightforward but could cause issues if you have language barriers and miscommunications.
The bank will first ask for documents that verify your company identity. These could be:
- Articles of Incorporation
- Power of Attorney of the Legal Representative
- Directors and Shareholders Information
- Patent
- RTU
Some banks may impose foreign transaction restrictions on companies with foreign shareholders. This is a crucial aspect to consider, as choosing a bank with flexible policies will significantly impact the timeline for your new company to conduct its operations.
Starting a Business in Guatemala?
Experience a seamless and successful company incorporation in Guatemala with 3E Accounting. Our expert team navigates the complexities, ensuring compliance with local regulations. Start your venture confidently and explore the abundant opportunities this dynamic market offers. Contact us now for personalized guidance and unlock your business potential in Guatemala.
