Bolivia

Ease of Doing Business in

Bolivia

This page summarizes Doing Business 2014 data for Bolivia. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Latin America & Caribbean
Income Category Lower middle income
Population 10,496,285
GNI Per Capita (US$) 2,220
City covered La Paz
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
162 158 down -4

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Improvement in DTF** (% points)
49.62 49.92 down -0.30
 

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2014 Rank 180 DB 2013 Rank*** 178 Change in Rank down-2
DB 2014 DTF** (% points) 55.72 DB 2013 DTF** (% points) 55.40 Improvement in DTF** (% points) up0.32

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Bolivia Latin America & Caribbean OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
15 9 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
49.0 36.1 11.1

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
71.6 33.1 3.6

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

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Paid-in Min. Capital (% of income per capita)
1.8 3.6 10.4
No. Procedure Time to Complete Associated Costs
1 Check uniqueness of name at the Registry of Commerce in FUNDEMPRESA 1 day BOB 175
2 An attorney draws the articles of incorporation, bylaws and constitution act, which includes the appointment of the provisory board. 1 day BOB 7,800 (BOB 6,500 legal fee + BOB 1,300 procurement for processing of documents with Registry)
3 Notarize the articles of incorporation “escritura de constitución” 1 day BOB 1000 + 80 BOB per copy (3 copies)
4 Publish company deed “titulo de constitución” in a national newspaper 2 days BOB 80 per page
5 An accredited accountant prepares the opening balance sheet “Balance de apertura” 1 day BOB 700
6 The opening balance sheet is administered by the seal of the Colegio de Contadores 1 day BOB 54 for each balance sheet
7 Register at the National Tax Service to obtain the tax identification number (Número de Identificación Tributaria, NIT) Less than one day (online procedure) no charge
8 Obtain a municipal business license and a municipal registration card (Padrón Municipal) from the municipality where the business is located 12 days no charge
* 9 Municipal Government inspects the technical and environmental characteristics of the venue 1 day, simultaneous with previous procedure no charge
10 Obtain evidence of a bank deposit equivalent to at least 25% of subscribed and no less than 50% of authorized capital 1 day no charge
11 Register company deed “Matricula de comercio” with the Fundación para el Desarrollo Empresarial – FUNDEMPRESA and obtain legal capacity 9 days BOB 584.5
12 Register at the appropriate Chamber of Commerce or Industry 1 day BOB 493
13 Register for national health insurance and short-term disability coverage 15 days Bs.15 per form, 3 forms
14 Register at the Ministry of Labor, enroll in the Caja Nacional de Establecimientos Less than one day (online procedure) BOB 80 per page
15 Register employees with the pensions system (Sistema Integral de Pensiones) 3 days no charge
* Takes place simultaneously with another procedure.

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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