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Legal Aspects Guatemala
Legal Aspects Guatemala
When creating a company, with a series of bureaucratic procedures that must be completed, it is
likely that not enough importance is given to a series of legal aspects in which the new company is
involved and that may affect its subsequent development.
Sometimes it is due to the entrepreneur's lack of knowledge (a euphemism that is often used to hide
the lack of information on the part of the Administration), other times due to the latter's own
disinterest in dedicating valuable time to these issues, the fact is that in the Starting a company and
its subsequent development, a series of legal obligations are acquired about which it is advisable to
at least have an idea.
Constitution of a company
Creating a company often means establishing a commercial company. The tangled system of
procedures for the creation of that company is the reflection of the legal fact of the creation of a
commercial company with its own personality, and therefore, with rights and obligations towards
third parties.
Commercial Aspects
A commercial company must be formally established to acquire legal personality. This involves the
formalization, among other procedures, of a deed of incorporation according to the rules contained
in different legal texts.
Permits and Registrations
In addition to the procedures to create a company, it will be normal to be required to register in
certain registries or request the granting of certain permits to start or develop an activity. At this
point, the greatest difficulty is finding out what permissions to obtain from the State -and its
Ministries-, Autonomous Communities, City Councils, etc.
One of these registries is the Commercial Registry where it will not only be mandatory to register
the company in its foundation but the official books must be regularly presented for legalization.
Limited Liability
In most corporate forms used to create a company, there is a limitation of the liability of the
partners to the contributions they have made. However, for practical purposes, if you have to
request credits or other types of operations, it is normal that the partners must guarantee these
operations in their personal capacity. This is important, since any problems that may arise in the
company will automatically be transferred to the partners' assets.
Labor Relations
The company, sooner or later, will have to hire third parties to carry out its activity. Then Labor
Law appears on the scene to which the company is also subject in relation to its workers.
Employment contracts
By definition, every company-worker relationship is subject to an employment contract (if this does
not exist, it is considered verbal and indefinite). Furthermore, labor regulations may require the
registration of these employment contracts and the completion of countless procedures. Since in the
event of discrepancies, the Law explicitly favors the employee to the detriment of the company, it is
advisable to be very clear about the obligations acquired in this regard.
Collective agreements
It is not enough to just agree with a worker. It is possible that the company is subject to the
decisions adopted in collective bargaining and formulated in the so-called collective agreements.
Thus, if a company carries out its activity in a certain sector, it may be regulated by an agreement
that establishes rules different from the general norm.
Currently we can find information on various Internet pages, also on the pages of the
Commercial Registry and on the page of the Superintendence of Tax Administration
(SAT).
There are two types of merchants, described in the Commercial Code, individual
merchants, who operate in their own name; and social merchants, which are companies
organized under commercial form.
In Guatemala there are 5 types of commercial companies, which can operate within the
country, however the best known is the Public Limited Company.
Both individual merchants and social merchants are governed by the different laws in force
in the country, and some particular ones depending on the commercial activity to which
they are dedicated, such as the Commercial Code, VAT Law, Tax Update Law, Tax Code,
among others.
Having established the type of company we want to found and the main commercial
activity to which we will dedicate ourselves, we proceed to carry out a series of steps in the
Commercial Registry. Currently, on the entity's page there are the completely free
requirements and forms, which They facilitate the registration and registration action for us.
These forms are in PDF format, they are modifiable and are also sent through the page.
Verify the company name online and obtain a letter from a notary public for the deposit of
the minimum capital in a bank account. The minimum capital is Q.5,000.00 which must be
deposited in a local bank prior to signing the statutes. A notary public must issue a letter
confirming that he or she has been commissioned to prepare the social contract. The
presentation of the letter serves to open a provisional bank account in which the minimum
capital is deposited. The letter must indicate the exact address where the new company will
operate, proving it with the presentation of a utility bill.
You proceed to draft the deed of incorporation with the notary, fill out the forms from the
Commercial Registry and the tax authority and pay the registration fees online, which are
already available in digital form through the Minegocio.gt page.
The notary issues a certified copy of the "witness" deed with the act of appointment of the
legal representative (administrator or board member) who must be personally registered
with the SAT.
Finally, we proceed to pay for the procedures carried out in the Commercial Registry and
the appropriate forms, which include stamp duty and taxes.
The publication of the edict in the Diario de Centro América to inform third parties of the
provisional registration of the company, this is carried out two days after the provisional
registration in order to give third parties who consider themselves affected the opportunity
to oppose the creation. of the new entity.
By obtaining the definitive registration of the company, identification for social security,
patents and authorization of the company's books are obtained. Registration of shares must
be done by law within one year following registration. Through Minegocio.gt, employer
registration is obtained in the Guatemalan Social Security Institute.
ANNEXES
3 Draft the articles of incorporation with 0.5 day GTQ 6,127 [GTQ
the notary, fill out the forms from the (online 5,000 average
Commercial Registry and the tax procedure) notary fees + GTQ
No Time
Procedures Cost
. (days)
In addition to the aforementioned requirements, the following must be taken into account:
Individual or collective legal entities that are dedicated to tourism activities registered by
the Guatemalan Tourism Institute must fill out the registration form and attach the
documents required to begin their registration process.
The form can be obtained in the Forms section of this website or physically at any
Delegation of the Guatemalan Tourism Institute.