With a growing middle class and highly educated citizens, Guatemala is considered one of the top investment destinations in the region for entrepreneurs.
Those interested in operating commercially in the country should first understand the legal steps involved in starting a business in Guatemala with the help of bid invest.
Starting a business in Guatemala
The process of starting a business in Guatemala will depend on the type of entity or legal structure you choose to use.
In general terms, the steps mentioned below are the most common in the business start-up process.
However, it should be noted that some entities will require additional information or procedures.
Step 1: Define the legal structure of your company
Before starting your business in Guatemala, you need to be clear about the type and plan of business you want to carry out. This will help you decide which legal entity in Guatemala will give you the right governance structure.
Guatemala’s Company Law offers several different types of legal entities for entrepreneurs to start a business, each with particular characteristics.
Step 1: Granting a power of attorney to start a business in Guatemala
Next, you will need to draft and sign a Power of Attorney document in Guatemala to allow a legal expert to form the company on your behalf.
In some cases, especially when you or the partners of your company do not reside in the country, it will be necessary to draft and sign the Power of Attorney to an external local lawyer who can form a company in Guatemala.
Step 2: Choose and reserve your company name
It is a good idea to choose and reserve your company name in Guatemala, to make sure you get the name you want to do business with.
The Inspección General de Justicia manages this process and is responsible for verifying the company name.
In case you wish to reserve the name of your business in Guatemala, you must make a request to the IGJ by completing a form through the website and making the respective payments.
You may also be interested in: How be an entrepreneur in Guatemala
Step 3: Drafting and certifying the articles of association
Your company’s bylaws, also known as articles of incorporation, act as your company’s “constitution” and describe your business intentions.
All shareholders of the company must sign this document. You must also certify these signatures through a notary public.
These bylaws must be registered with the Public Registry of Commerce to create your company in Guatemala.
The Public Registry of Commerce will require you to submit the company’s by-laws, plus additional documents such as.
Step 4: Publish the creation of your company
Next, you will need to make a public announcement of your new business in Guatemala through a national publication known as the Official Gazette.
Only a registered lawyer or other authorized person can carry out this step. Note that the Gaceta Oficial charges per line published.
In short, you can start your business in Guatemala easily, you just need to follow these silple steps.