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Message 1DOINGBUSINESS2025
2LOCATION: Guatemala is located in Central America, bordered to the north and west by Mexico, to the south by the Pacic Ocean, to the southeast by Honduras and El Salvador, and to the east by Belize and the Atlantic Ocean. CAPITAL: Guatemala City, with approximately 3.9 million inhabitants. TOTAL POPULATION: Approximately 17,109,746 inhabitants in the entire country.OFFICIAL LANGUAGE: Spanish ÁREA:108,890 km2 MAIN AIRPORT:La Aurora, Guatemala City GUATEMALADoing Business Guatemala l General AspectsExchange Rate:1 USD - 7.70GTQSource: December 23rd, 2024, banguat.gob.gt
3Guatemala is a democrat state governed by the rule of law, free, independent, and sovereign. The public powers and their activities are regulated by general norms based on the principle of legality and the constitution.Guatemala has a political diversity reected in approximately 29 political parties.2023: elections were held for the President, Vice President, members of Congress, and Municipal Mayors.Current President: Bernárdo Arévalo (term 2023-2027).The democratic government of Guatemala consists of three branches:1. Executive: President and Ministers.2. Legislative: Congress, responsible for enacting the laws that govern the country. 3. Judicial: Supreme Court of Justice and courts of justice.Doing Business Guatemala l Political & Economic Regime Source: Monetary Policy Report, Bank of Guatemala 2023.POLITICAL SYSTEM: ECONOMY:Political Party: Movimiento Semilla, center-left.2010 - 2019 2021 Stable growth of 3.5% on averageTotal Gross Domestic Product (GDP): $86 billion USD with a per capita GDP of $5,025.It is expected that the GDP growth will slow down to 3.2% by the end of the year.The economy grew by approximately 4%.20222023
4FREE TRADE ZONES: Aims to incentivize and regulate the establishment of free trade zones in the country, promoting national development through the activities conducted within them. This particularly includes actions to strengthen foreign trade, promote new options for national and foreign investment, generate employment, and facilitate technology transferDecree Number 65-89FOREIGN INVESTMENT LAW: Seeks to encourage and promote foreign investment in Guatemala with the purpose of it being a source of technology transfer, job creation, promotion of the growth process, and diversication of the economy for development in all productive sectors, as well as strengthening national investment.Decree Number 9-98 SPECIAL ECONOMIC DEVELOPMENT ZONES (ZDEEP): These are geographically dened areas within the Guatemalan territory, outside of customs, designated for the development of industrial goods and services or commercial activities with special tariffs.These areas are called Public Special Economic Development Zones (SEZs) and are authorized by ZOLIC (Free Trade Zone).Decree Number 30-2018LAW FOR THE PROMOTION AND DEVELOPMENT OF EXPORT AND MAQUILA ACTIVITIES: Promotes incentivizing and developing, within the customs territory of Guatemala, the activities carried out by individuals or legal entities domiciled in the country, operating within customs regimes in activities described by the law (mainly maquilas and technology service companies).Decree Number 29-89Doing Business Guatemala l Special Laws
5Doing Business Guatemala l Special LawsGUATEMALA’S COMPETITION LAWGuatemala’s Competition Law, approved in November 2024, aims to promote and safeguard free competition to enhance economic efciency in pursuit of national consumer welfare. This law represents a signicant shift, as it regulates the conduct of economic agents (both individuals and legal entities) to prevent, investigate, and sanction anticompetitive practices and other market restrictions.The law does not regulate prices, as these are determined by supply and demand. Its primary focus is to ensure that businesses compete freely, preventing practices that restrict or distort competition, such as price-xing, production limitations, or restricting access to essential inputs.The law denes and penalizes anticompetitive practices, categorized into:• Absolute practices: Agreements between competitors to x prices, divide markets, or limit production.• Relative practices: Agreements or actions by one or more economic agents within a relevant market intended to displace or eliminate competitors, block market access, or create unfair advantages for other economic agents.The law regulates economic concentrations, dened as the integration of two or more previously independent economic agents (whether competitors or not), resulting in the transfer of control from one entity to another.Economic concentrations exceeding certain nancial thresholds established by law will require prior authorization from the Competition Superintendency. If a concentration is deemed to hinder, reduce, or harm free competition, create market entry barriers, orfacilitate anticompetitive conduct, the Superintendency may deny the transaction.1. 2. 3.OBJECTIVE AND SCOPEANTICOMPETITIVE PRACTICES:ECONOMIC CONCENTRATIONS (M&A):KEY ASPECTS OF THE LAW
6Doing Business Guatemala l Special LawsThe law establishes the Competition Superintendency as an independent legal entity responsible for promoting and defending free competition, as well as investigating and sanctioning violations of the law.While the law does not establish criminal penalties, it does impose signicant nes for violations: up to US$3.18 million for absolute practices and up to US$1.59 million for relative practices.The law will be implemented in phases:• General provisions, theestablishment of the Competition Superintendency, and other competition promotion regulations took effect on January 1st, 2025.• Regulations concerning anticompetitive practices and economic concentrations will take effect 2 years after the law’s publication, allowing businesses time to adjust to the new requirements. 4. 5. 6.CREATION OF THE SUPERINTENDENCY OF COMPETITION:SANCTIONS: ENTRY INTO FORCE:ADDITIONAL CONSIDERATIONS:The burden of proof for demonstrating the existence of absolute and relative anticompetitive practices under the law rests with the Competition Superintendency. All anticompetitive conduct regulated under the law is subject to efciency-based defenses, for which the burden of proof lies with the Economic Agent involved.
7BUSINESSASPECTSIn Guatemala, there are several types of business entities, including: general partnership, limited partnership, limited partnership with shares, corporation, and limited liability company, with the latter two being the most com-monly used. The requirements for the establishment of a corporation are established in the Commercial Code and the Notary Code. After meeting the legal requirements, the entity must be registered with the General Mercantile Registry of the Republic and with the Superintendence of Tax Ad-ministration. The corporation will have its own legal personality, distinct from the partners who formed it. STEPS TO BUILD A CORPORATIONIt is established through a Public Deed authorized by a Guatemalan Notary. They must have an accountant authorized by the Superintendence of Tax Administration (SAT) for the establishment of the entity in Guatemala.After its establishment, the corporation must be registered with the Mercantile Registry of the Republic and with the Superintendence of Tax Administration (SAT) to obtain the Tax Identication Number (NIT) and be able to issue electronic invoices. In the articles of incorporation, a minimum of 2 shareholders or founding partners must appear.The approximate time to establish a corporation is 30 days from the receipt of the corresponding information and legal documentation. 12345Doing Business Guatemala l Business Aspects
8Foreign companies legally established abroad that wish to establish or operate in any form in the country or wish to have one or more branches or agencies are subject to the provisions of the Commercial Code and other local laws. Among the most important requirements they must meet are:They must have a representative in the country with broad powers to carry out all legal acts and business of the entity.Contract a bond in favor of third parties for an amount not less than the equivalent in Quetzales of fty thousand United States dollars (US$ 50,000.00). The amount of the bond is set by the Mercantile Registry.They must have an accountant authorized by the Superintendence of Tax Administration (SAT) for the establishment of the entity.The approximate time to establish a branch is 30 to 45 days from the receipt of the corresponding legal documentation. Commercial Company Based on Capital. Capital represented by shares. Freedom to transfer shares, depending on how it is regulated in the company’s by laws. The name may be freely formed with the mandatory addition of the legend: S.A. (Sociedad Anónima - Corporation). Bearer shares are not allowed.• Commercial Company Personalistic and based on capital. Maximum of 20 partners. The name will be freely formed but must always refer to the main social activity or the full name of one or more partners. In both cases, it is mandatory to add the word “limited” or the legend “Limited Company.” • Important Note: In the event that the legal representative of any of the mentioned companies is not Guatemalan, the foreign investor must personally process the Tax Identication Number (NIT) at the Superintendence of Tax Administration (SAT) in order to represent the company in Guatemala. Doing Business Guatemala l Business Aspects
9TAXESDoing Business Guatemala l TaxesON THE CIRCULATION OF LAND, MARITIME, AND AIR VEHICLES: An tax is generated that owners of these vehicles must pay. The payment period is from January 1st to July 31st of each year. (Decree 70-94).INCOME TAX: This is the tax levied on the various types of income or prots obtained by individuals, companies, entities, or national or foreign assets, whether residents or not in the country.TAX RATE ON TAXABLE BASE AS INDICATED BY THE CORRESPONDING LAWDEFINITIONExchange Rate:1 USD - 7.70GTQSource: December 23rd, 2024, banguat.gob.gt
10SINGLE PROPERTY TAX: Known as IUSI, it is the contribution that Guatemalans who own real estate, both rural and urban, provide to the State. INHERITANCE, LEGACY, AND DONATION TAX: The payment is made by the beneciaries of inheritances, legacies, and donations.SOLIDARITY TAX: The payment of this tax is made by individuals or companies afliated with the Prot Tax Regime of the Income Tax Law, who have their own assets, engage in commercial and agricultural activities, and obtain a gross margin exceeding four percent (4%) of their gross income. TAX RATE ON TAXABLE BASE AS INDICATED BY THE CORRESPONDING LAWDoing Business Guatemala l TaxesBasic Fraction ExcessBasic Fraction Tax% Excess Tax Fraction0 72.750 0 0% 72.750 145.501 0 5% 145.501 291.002 3.638 10% 291.002 436.534 18.188 15% 436.534 582.055 40.017 20% 582.055 727.555 69.122 25% 727.555 873.037 105.497 30% 873.037 Hereinafter 149.141 35%
11VALUE ADDED TAX: This tax is paid by any person who purchases goods or acquires services.ON THE DISTRIBUTION OF CRUDE OIL AND PETROLEUM DERIVATIVES:This tax is paid by the distributor for the dispatch of crude oil and fuel. ON THE DISTRIBUTION OF DISTILLED ALCOHOLIC BEVERAGES, BEERS, AND OTHER FERMENTED BEVERAGES: This tax is paid by the distributor for the distribution of beers and other fermented cereal beverages, wines, sparkling wines, vermouths, ciders, distilled alcoholic beverages, mixed alcoholic beverages, and other fermented beverages. TAX RATE ON TAXABLE BASE AS INDICATED BY THE CORRESPONDING LAWDoing Business Guatemala l TaxesGasoline Type Tax per gallon Superior gas Q.4.70 Regular gas Q.4.60 Aviation gas Q.4.70 Diesel and gas oil Q.1.30 DEFINITION
12STAMP DUTY TAX AND SPECIAL STAMPED PAPER FOR PROTOCOLS: This tax is paid by those who issue or grant documents containing acts or contracts subject to the tax. ON TOBACCO AND ITS PRODUCTS: Governs everything related to the planting, cultivation, transit, manufacturing, trade, consumption, import, and export of tobacco and its products, as well as imposing a tax on machine-made cigarettes, both domestic and imported, as well as on cigars and mixtures.TAX ON THE DISTRIBUTION OF CEMENT: Paid by the manufacturer and importer for the distribution of cement within the national territory.TAX RATE ON TAXABLE BASE AS INDICATED BY THE CORRESPONDING LAWDoing Business Guatemala l Taxes
13The exemption from tax payments is established in the Political Constitution of Guatemala for the following individuals:Religious entities authorized by law.Universities are exempt from the payment of all kinds of taxes and fees. A. C.B.Private schools shall enjoy exemption from all kinds of taxes and fees. D.The Autonomous Sports Confederation of Guatemala and the Guatemalan Olympic Committee are exempt from all types of taxes and fees.E.The Guatemalan Social Security InstituteDoing Business Guatemala l Taxes
14LABORHIRING OF PERSONNEL:The hiring of personnel is based on the requirements of each company, but as a constitutional right, it should not differentiate by race, marital status, or gender.The individual employment contract is the economic-legal relationship by virtue of which a worker undertakes to provide personal services to his employer or to perform a work for him personally, under the employer’s continued dependence and immediate or delegated direction, in exchange for any kind or form of remuneration.Enter into individual employment contracts in writing in three copies, complying with the minimum requirements of the law (Identication of the parties, working hours, duration of the contract, salary, assignment of position, and place of execution). Provide one copy to the Worker.Submit one copy of the contract to the General Directorate of Labor.The employer must:DAYTIME WORKING HOURS: are those carried out between 6:00 a.m. and 6:00 p.m. on the same day, and cannot exceed 8 hours per day or 44 hours per week. NIGHTTIME WORKING HOURS: are those carried out between 6:00 p.m. of one day and 6:00 a.m. of the following day, and cannot exceed 6 hours per day or 36 hours per week. MIXED SHIFT: This includes hours from both the daytime and nighttime shifts and cannot exceed 7 hours per day or 42 hours per week. Effective working time is considered to be the time during which the worker remains under the employer’s orders. Every worker must have at least one day of paid rest per week (seventh day).Ordinary and overtime daily shifts cannot exceed 12 hours per day. The amount of the wage must be determined by the employer and the worker; however, it cannot be lower than the minimum wage established by law.The ordinary wage is the monthly amount that the worker receives in cash. This amount will be subject to legal deductions (IGSS, IRTRA, INTECAP, among others). MINIMUM WAGEDoing Business Guatemala l Labor
15The current minimum wage came into effect on January 1st, 2025. It was set according to two economic circumscriptions (EC): EC1 = limited to the department of Guatemala.EC2 = includes the rest of the departments of the Republic of Guatemala.The minimum wage for 2025 – EC1 (department of Guatemala):The minimum wage for 2025 – EC2 (all departments except Guatemala):Doing Business Guatemala l LaborFARMING ACTIVITYNOT FARMING ACTIVITYEXPORT AND MAQUILA ACTIVITYMINIMUM DAILY WAGEMINIMUM MONTHLY WAGE% INCREASE% INCREASEFARMING ACTIVITYNOT FARMING ACTIVITYEXPORT AND MAQUILA ACTIVITYMINIMUM DAILY WAGEMINIMUM MONTHLY WAGEExchange Rate:1 USD - 7.70GTQSource: December 23rd, 2024, banguat.gob.gt
16Doing Business Guatemala l LaborCHRISTMAS BONUS:Every worker is entitled to a payment equivalent to 100% of the average ordinary salary earned during the calculation period.Payment: It will be made in a single payment in the rst half of December, or 50% in the rst half of December and the remaining 50% in the rst half of January of the following year.ANNUAL BONUS FOR PRIVATE AND PUBLIC SECTOR WORKERS: Every worker is entitled to payment equivalent to 100% of the average ordinary salary earned during the calculation period:Payment: It must be made in a single installment during the rst half of July each year.VACATIONS:Every worker is entitled to a period of paid leave after each year of continuous service with the same employer.The minimum duration is 15 business days. INCENTIVE BONUS: Every worker is entitled to receive a monthly incentive bonus of at least Q.250.00. SEVERANCE PAY:Every worker who is unjustly dismissed is entitled to receive severance pay, equivalent to one month’s salary for each year of service or proportionally.
17A working mother is entitled to a paid leave equivalent to 100% of her salary for a period of 84 consecutive days.Every nursing mother can take advantage of a 10-month period at her workplace, where she can have two half-hour breaks during her work hours to feed her child.Doing Business Guatemala l LaborJanuary 1st June30thOctober20thDecember25thMay1stAugust 15thNovember1stDecember31stMay10thSeptember15thDecember24thHoly Thursday, Good Friday and Holy Saturday.Festivities that depend on the municipality.For working mothers in private companies For Guatemala CityFrom noonFrom noonGUATEMALAN INSTITUTE OF SOCIAL SECURITY (IGSS):• Employers with one or more workers anywhere in the national territory must register and remain in the Social Security System.• Employers must deduct from workers the labor contribution to the IGSS equivalent to 4.83% of the total ordinary and extraordinary salaries earned by the worker. The deducted labor contribution must be delivered to the IGSS within 20 days following the month in which they were deducted.• Employers must pay the IGSS the employer’s contribution equivalent to 10.67% of the total ordinary and extraordinary salaries earned by the workers in the month. GUATEMALAN WORKERS’ RECREATION INSTITUTE (IRTRA): • Employers must pay IRTRA a fee equivalent to 1% of the monthly salary earned by each worker. This fee will be paid by employers who are registered in the Social Security System. This employer contribution does not affect workers’ salaries. TECHNICAL TRAINING INSTITUTE (INTECAP): • Employers must pay the INTECAP a patronage fee equivalent to 1% of the value of their monthly payroll. The IGSS collects the employer’s fee and its own contributions.
18The termination of an employment contract can occur in the following ways:Upon termination of the employment relationship, every worker, regardless of the cause or form of termination, has the right to receive payment for:Christmas bonus (Aguinaldo), compensation in cash for any remaining unused vacation days, proportional annual bonus up to the termination date and severance pay when applicable. Doing Business Guatemala l LaborFOR JUST CAUSE: • The employer may terminate the employment contract with just cause, which are established in Article 77 of the Labor Code.• Likewise, the worker may terminate their employment contract for just cause in accordance with Article 79 of the Labor Code.• Every dismissal is done through a written letter indicating the cause.UNJUSTIFIED DISMISSAL:Unilateral termination of the employment relationship by the employer without just cause.Therefore, the employer is obligated to pay the established compensation..BY WORKER’S RESIGNATION:The employment relationship can end by the worker’s resignation without any responsibility for the employer (without compensation) as long as the worker gives the corresponding notice as per Article 83 of the Labor Code.BY MUTUAL AGREEMENT:Termination agreed upon by both parties without any responsibility for either of them, meaning it does not result in compensation.
19Doing Business Guatemala l LaborEMPLOYER’S ANNUAL REPORT: Within the rst 2 months (January and February) of each year, the employer must digitally submit, through the portal of the Ministry of Labor and Social Security, a statistical report as established in Article 61 of the Labor Code.. INTERNAL WORK REGULATIONS: Every employer with 10 or more permanent workers must have internal work regulations authorized by the General Labor Inspection of the Ministry of Labor and Social Security.These regulations must be posted in at least 2 of the most visible places in each workplace or have proof of delivering a copy of the regulations to each worker.AUTHORIZED SALARY BOOK: If the employer has 10 or more permanent workers, they must have an authorized salary book by the General Labor Directorate of the Ministry of Labor and Social Security. FOREIGN EMPLOYEES: The law establishes that 90% of the workforce must be Guatemalan. Employers can only hire a maximum of 10% of foreign workers, paying them a maximum of 15% of the total wages to foreign staff (except for managerial and trust positions, where these percentages do not apply). Every foreigner must have a migratory status that allows them to work in the country legally (temporary or permanent residence) and must have a work permit issued by the Ministry of Labor and Social Security.
20INTELLECTUAL PROPERTYTrademark registration protects the exclusive use of a trademark (name, design, or combination) for the products for which it is used.The registration is granted for 10 years, renewable indenitely in periods of 10 years each time.If there are no oppositions, the process takes around 8 months.In Guatemala, rights to a trademark are obtained solely through registration. This means that protection and exclusive use of a trademark can only be achieved through registration. Without registration, any third party can register the trademark (or a similar sign) and prevent the marketing of products or services using that trademark. Therefore, it is recommended to register the trademark before advertising it. Doing Business Guatemala l Intellectual PropertyPATENTS FOR INVENTIONSThe registration of patents protects the exclusive exploitation of an invention, which must meet the requirements of novelty, inventive step, and industrial applicability.FOR HOW LONG?The registration is granted for 20 years from the application date, and it is not renewable. After this period, the patent becomes public domain.ESTIMATED TIME TO REGISTER A PATENT IN GUATEMALA?Usually, the registration takes around 4-5 years.WHAT SETS GUATEMALA APART IN PATENT REGISTRATION?In Guatemala, through the patent registration system, exclusivity (monopoly) is acquired to exploit an invention. This registration system is very similar to most of the world, and usually, patent registrations are for international inventions, so the registration has effects from the rst international application. By having the patent registered, it is possible to prevent any third party from copying or exploiting a product that infringes on it, and it also grants the right to grant licenses for it.
21The Political Constitution of the Republic guarantees private property as a constitutional right inherent to individuals, establishing that every person can freely dispose of their property according to the law. In Guatemala, the Property Registry is the public institution that provides legal certainty and registry security to property owners, with the objective of registering, annotating, and canceling acts and contracts related to ownership and other property rights over identiable real and movable property, with the exception of chattel established in accordance with the Movable Guarantees Law. The Cadastral Information Registry (RIC) is the competent authority in cadastral matters, responsible for establishing, maintaining, and updating the national cadastre and is present in some departments of the country.PROPERTY ACQUISITIONThe most common way to acquire property is through purchase and sale agreement; however, there are other mechanisms for acquiring property such as donation, contribution, payment adjudication, inheritance, or bequests, among others.REAL ESTATE: This tax applies when: • When it is the rst sale: the applicable tax will be the Value Added Tax (IVA), which will be 12% of the sale value of the property.• When it is a second or subsequent sale, the • applicable tax will be the Stamp Duty Tax, • calculated at 3% of the sale value of the property • • In the event of the sale of real estate, the • seller will be subject to the Real Estate Capital Income Tax or Income Tax, on the total amount of income generated in money from the sale, minus 30% for expenses. The applicable tax rate will be determined according to the law, • depending on the characteristics of the seller. PERSONAL PROPERTY: The transfer tax applicable to the sale of personal property is the Value Added Tax (IVA), which is calculated at 12% of the sale value of the movable property.The law establishes certain exemptions from the payment of this tax, such as transfers of credit titles, securities, and shares of any kind (except for the bill of exchange), as well as other general and specic exemptions established in the Law. . Doing Business Guatemala l Real EstateREAL ESTATE
22AGENCY, DISTRIBUTION AND REPRESENTATION CONTRACTSRELEVANT LEGISLATION:Agency, distribution, and representation contracts are regulated in the Commercial Code of Guatemala. Commercial agents are considered to be individuals who act permanently in relation to one or more principals, promoting or entering into mercantile contracts on their behalf. Commercial agents can be dependent or independent. Distributors or representatives are individuals who, on their own behalf, sell, distribute, promote, market, or place goods or services of a natural or legal person, national or foreign, called the Principal, to whom they are bound by a distribution or representation contract. The Principal may simultaneously use several agents, distributors, or representatives in the same area and for the same line of business. Individuals or legal entities acting as distributors, agents, or representatives under the law must register as such in the Registry of Agents, Distributors, and Representatives, established and managed by the General Mercantile Registry of the Republic. DAMAGES AND LOSSES TO THE AGENT:If, after termination or rescission of the contract or respective relationship, the parties do not agree on the amount of compensation to be paid for damages and losses, the amount must be determined in an arbitration process or in a judicial process through summary proceedings. For this purpose, it will be understood, unless otherwise agreed, that the parties have opted for arbitration.The contracts of independent agency, distribution, or commercial representation can only be terminated or rescinded:In any case, judicial proceedings must be processed and resolved in the Republic of Guatemala, in accordance with the national laws applicable to judicial procedures.CONTRACTS TERMINATIONDoing Business Guatemala l Agency, Distribution and Representation Contracts
23FINANCIAL MARKETCREDIT INSTRUMENTS AND SECURITIES:Credit instruments are commercial assets that confer a right to the person who holds them and are regulated in the Commercial Code.Securities are documents necessary to legitimize the exercise of the literal and autonomous right incorporated in them. They can be credit, corporate, or participation-based, and can be either tradition or representative of goods. For this reason, Securities are referred to as the genus, and Credit Instruments as the species.STOCK EXCHANGE:The National Stock Exchange (BVN) of Guatemala is the institution responsible for providing the infrastructure, services, and regulations for brokers to conduct stock market operations in the Guatemalan market. It has shown progress in recent years. In 2022, the volume of operations conducted on the National Stock Exchange (BVN) of Guatemala exceeded 1.3 trillion (USD 176.122 billion), with an annual growth of 60.5% compared to 2021.BANKING SYSTEM:Only entities duly authorized by the Monetary Board can perform nancial intermediation functions.It is composed of 6 members and exercises the supreme direction of the Bank of Guatemala.The Monetary Board performs its functions with absolute independence and under its exclusive responsibility.An administrative body responsible for overseeing the purpose and compliance with the laws against Money Laundering and for Preventing and Suppressing the Financing of Terrorism. It is a decentralized, autonomous entity with legal personality and its own assets.Its fundamental objective is to contribute to the development of the national economy by fostering monetary, exchange, and credit conditions that promote stability in the general price level. It is a technical body of the Central Bank, with functional independence, which operates under the general direction of the Monetary Board and exercises supervision and inspection of the Bank of Guatemala, banks, nancial societies, credit institutions, surety companies, insurance companies, general deposit warehouses, exchange houses, nancial groups, and controlling companies of nancial groups. MONETARY BOARD: SPECIAL VERIFICATION SUPERINTENDENCY (IVE): BANK OF GUATEMALA:BANKING SUPERINTENDENCY:Doing Business Guatemala l Financial Market
24FAQCan the Incorporation documents of a corporation be signed with an electronic signature?In Guatemala, it is not possible to sign the constitution of a corporation or any type of company with an electronic signature because it must be subscribed before an active notary in Guatemala and in a public deed. Can shareholders of a corporation be foreigners?Yes, shareholders can be Guatemalan or foreign individuals or legal entities, national or foreign. Can the legal representative of the corporation be a foreigner?Yes, there is no prohibition for the person occupying the position of legal representative to be a foreigner. However, if this person will be registered with the Superintendence of Tax Administration (SAT), they must personally appear at any SAT agency to obtain their Tax Identication Number (NIT). Is it possible to establish a corporation in Guatemala with a single shareholder?No, in Guatemala, a minimum of two shareholders, who can be natural or legal persons, national or foreign, is required.Does the corporation need an accountant?Yes, in Guatemala, it is necessary to dene and assign an accountant from the moment of its registration with the Mercantile Registry and the Superintendence of Tax Administration. The accountant must be active and registered with the SAT.What is the minimum capital required to establish a corporation in Guatemala? The minimum capital is Q.200.00, equivalent to US$25.00.Can a bank account be opened with the Incoporation document of the corporation? Yes, it is possible to do so at the time of the constitution of the corporation by depositing Q.2,000.00 or more in a bank of the system. This allows the notary to record in the public deed that the paid-up capital is deposited in a bank account. The bank registers the deposit under the name of the corporation and grants 90 days for the constitutive documents to be presented to activate the bank account. These documents include the registration certicate of the corporation with the Mercantile Registry and with SAT, the corporate patent, the appointment of registered legal representatives, and a utility bill with the registered scal address for the corporation.What is required to establish a corporation with a foreign shareholder who will not travel to Guatemala to sign the articles of incorporation?Yes, it is possible. For this, the foreign shareholder must grant a special power of attorney. If the power of attorney is granted in a language other than Spanish, a sworn translation in Guatemala will be necessary, and the registration of a Guatemalan notary must be carried out in order to register the power of attorney in the Power of Attorney Registry of the General Archive of Protocols. Once the power of attorney is registered, the constitution of the corporation can proceed.For how long is a corporation established?The corporation can be established for a specic period or for an indenite period. It is common for it to be established for an indenite period. Is it possible to issue bearer shares?In Guatemala, it is not possible to issue bearer shares. The Commercial Code only allows for the issuance of nominative share certicates. Doing Business Guatemala l FAQ
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