CREATING COMPANIES IN BOLIVIA (INSIGHT)

In order to start a business it’s imperative to choose the right trading vehicle, because every trading vehicle in Bolivia has its own legal characteristics and its subject of different rules and regulations. The simplest form of business structure is the sole trader (empresa unipersonal), in this structure, there are not partners and the owner its responsible for all debts.

If there are a variety of partners and investors, the ideal business structure is a partnership in which a variety of people put common efforts in order to reach the same goal. In this structure, all the partners are jointly and severally liable for the debts, nevertheless they can create a Limited Liability Partnership, in which all the partners except one have limited liability, this general partner is going to be liable for all debts and bankruptcy matters. This structure its known in Bolivia as Sociedad Comandita Simple.

The most important and commonest business structure is known as Limited Companies, this structure its similar in most of the countries, and requires almost the same formalities. Limited Companies are separate legal entities with own rights, that means that the shareholders are not liable for the debts.

Private companies and all the other trading entities must fulfill some formalities

• Choose a name which is legally acceptable

• Register the company in the register companies (Fundaempresa)

• Adopt Memorandum and Articles of Association

• Opening balance

• Choose a legal representative

• Another formalities according to the business structure (Shares and its value, permissions and licenses, registration issues, agreements, etcetera)

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