Start of operations is facilitated in Guatemala
Currently, Guatemala have more than 3 million of potential entrepreneurs, both national and foreign. Consequently, it is of great importance that the administrative procedures don’t represent an obstacle to facilitate the start of operations in Guatemala. By speeding up the procedures to invest, it is intended to generate wealth, employment and development in the country.
By virtue of the foregoing, on October 8th the Congress of the Republic of Guatemala approved important modifications to the Code of Commerce. Said modifications are focused on improving the access to the formal economy for the entrepreneurs; reducing time, costs and procedures for the registration of societies before the General Mercantile Registry of the Republic of Guatemala. These were made according to the Article 119 of the Constitution of the Republic of Guatemala, which establishes that it is fundamental obligation of the State to “promote the investment of national and foreign capitals.”
Among the most important modifications made to the Code of Commerce are the following:
- The participation in assemblies, meetings or administrative sessions and any communication between the partners can be done by any media at distance, as stipulated in the social deed. For such purpose, it will be considered that the communication occurred in the place where the society has its domicile.
- When a limited company is set up, the initial capital amount of the same shall be at least 200 quetzals. Previously, the initial capital amount was 5,000 quetzals.
- For amounts of less than 10,000 quetzals, the contributions in cash can be delivered to one or more administrators or deposited in any account of the society at any bank of the system.
- Modification to the process of registration of mercantile societies before the General Mercantile Registry, reducing significantly the current requirements and deadlines.
With such modifications and updates to the General Mercantile Registry, it is intended to make the institution more efficient; hoping that Guatemala escalate in the Doing Business Index during the next year, increasing significantly the number of societies that are registered annually before said registry. These modifications have yet to be approved, but undoubtedly, that will happen sooner than later.
Ma. Mercedes Castro Guerra
Associate
García & Bodán
Guatemala