A popular tourist location in Central America for people who enjoy extreme sports, hiking, and being in touch with nature in Guatemala. The nation is home to a large number of beaches, waterfalls, and volcanoes, as well as numerous animals and species that are unique to that particular region. One of Central America’s most prosperous economies in Guatemala. Its $319 billion GDP accounts for 35% of the region’s GDP (Gross Domestic Product). In addition, the Quetzal Guatemalteco (Q), the country’s currency, has exhibited long-term stability against the US dollar. Due to this, it is a very alluring nation for businesspeople and investors from all over the world.
Steps on how to register a company in Guatemala
The following are the steps required:
Choose the appropriate business model for your venture in Guatemala
The selection of the form of company that best meets your demands is the first stage in the incorporation procedure for a business here. It is crucial to take into account the type of business activity, firm size, number of partners, and first capital contribution each of them will provide to launch operations.
The two most distinct business categories are as follows:
- Sociedad de Responsabilidad Limitada (SRL), is also known as a limited liability company.
- A corporation or anonymous.
Choose the company’s name
It’s crucial to keep in mind that a company’s name needs to accurately describe both its operations and its intended market. Also, you should choose at least three alternative names in case one of them is taken or sounds too much like the names of other businesses.
Create and notarize your company’s articles of Incorporation
Once you’ve decided on a name for your business, it’s necessary to draft the Guatemalan company’s Articles of Incorporation. All relevant information regarding the company, its legal representation, and its funding, must be included in this document.
The following details must be included in the articles of incorporation:
- Name of the business.
- Details about the legal representative.
- Information about share capital.
- Registration office location.
- Organizational structure.
- The detailed plan for extinction and liquidation.
To ensure that the information is accurate and prepared to be submitted to a Public Notary, it is advised that the Articles of Incorporation be examined by a local attorney.
Pay the incorporation fees
The Mercantile Registry must receive the notarized Articles of Incorporation before the firm can be incorporated. The incorporation fees must be paid at the Banrural before submitting them (Banco de Desarrollo Rural de Guatemala). The Mercantile Registry with the registration form and supporting documentation. The Guatemalan government’s office in charge of policing all business activity there is called the Mercantile Registry. They are in charge of starting new businesses. You must deliver a file containing the necessary paperwork for registering the firm at their offices. The Mercantile Registry will provide the firm an identity number, known as a Commercial Patent or “Patente de Comercio” if all the paperwork is accurate and the company has been registered. The corporation needs this document in order to conduct business in Guatemala.
Get an RTU or tax identification number
A request for a tax identification number, known in Spanish as a Registro Tributario nico (RTU), can be made to the Superintendencia de Administración Tributaria (SAT) once the business has been properly registered at the Mercantile Registry. The corporation will now be able to conduct business in Guatemala after completing this last step of the registration procedure.
Create a business account in Guatemala
Companies must register a corporate bank account in order to begin operations in Guatemala. Depending on the agreement and objectives of the organization, each bank offers a variety of accounts with a number of benefits. The bank must provide reasonable pricing plans for cross-border transactions. Also, it’s crucial to keep in mind that some banks might impose limits on overseas transactions for businesses with foreign shareholders. This is an important consideration for your company setup strategy because choosing a bank with accommodating policies will affect when your new business can begin operating.
