Bolivia

Starting a Business in

Bolivia

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Bolivia. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 185 economies. The most recent round of data collection was completed in June 2012.

Compare Bolivia to 184 other economies.

YearNew business densityNumber of new limited liability companies
2011 0.482,898

  • Standardized Company

  • Legal Form: Sociedad Anónima
  • Paid in Minimum Capital Requirement: BOB 300
  • City: La Paz

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No. Procedure Time to Complete Associated Costs
1 Check uniqueness of name at the Registry of Commerce in FUNDEMPRESA

The existence of the company name can be verified though the web or by telephone at no cost. However, if a name reservation certificate is obtained, the fee is BOB 175.
1 day BOB 175
2 An attorney draws the articles of incorporation, bylaws and constitution act, which includes the appointment of the provisory board.

Professional fees may vary. The lawyers association’s fee schedule (Colegio de Abogados) establishes that the minimum fee for the company incorporation should be BOB 3,000 plus 2% of the company’s capital. The fee for processing the formalities at the registry may also vary.
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”

Several notarized copies of public deeds are required for filing according to the procedures discussed here. Most other documents required for registration must also be notarized. The notary cost is BOB 480–1,500 a copy.
1 day BOB 1000 +80 BOB per copy (3 copies)
4 Publish company deed “titulo de constitución” in a national newspaper

According to Administrative Resolution SNRC–DN No. 254/2003 (issued by the National Service of Registry of Commerce, SENAREC, on May 30, 2003), the published announcement of a public deed of incorporation must contain a summary of the following shareholder characteristics, whether shareholders are natural persons or companies:

• For natural persons: age, name, profession, nationality, and marital status
• For companies: bylaws; proof of incorporation; power of attorney; tax identification number (TIN); new company’s denomination; corporate object or purpose; the amount of authorized, subscribed, and paid-in capital; the number, value, and nature of shares; and term

The firm must wait until the documents are actually published before filing the request to obtain legal capacity with the Registry of Commerce.

The cost of publication ranges from BOB 400 to BOB 1,100. According to article 132 of the Code of Commerce, the publication must be made in a newspaper of wide national circulation.
2 days BOB 80 per page
5 An accredited accountant prepares the opening balance sheet “Balance de apertura”

The accountant must be accredited at the “Colegio de contadores”.
1 day BOB 700
6 The opening balance sheet is administered by the seal of the Colegio de Contadores

The Colegio de Contadores must certify that the accountant is a registered one.
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)

Board Regulation Resolution No. 10-0032-04 (dated November 19, 2004) details the requirements and the procedures to obtain the tax identification number (TIN), which is mandatory for all commercial entities. The required documents for such procedure are: (a) notarized copy of the company’s articles of incorporation, (b) a utility (electricity or water) bill to evidence the venue, (c) and a notarized copy of (i) the power of attorney in favor of the company’s legal representative; and (ii) that representative’s identification document.
1 day no charge
8 Obtain a municipal business license and a municipal registration card (Padrón Municipal) from the municipality where the business is located

This procedure requires that the respective form be filed at the sole municipal window along with the TIN document (photocopy), the last utility bill and a floor map of the venue, the power of attorney (photocopy), the legal representatives’ identification cards, and the constitution deed (photocopy). For granting business licenses, the municipal government performs an onsite inspection to verify the venue’s technical and environmental characteristics.
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

Of the authorized capital for a limited liability company (sociedad anónima), at least 50% of shares must be subscribed. At least 25% of all subscribed shares must be effectively paid in at incorporation, and the balance must be effectively paid within 2 years.
1 day no charge
11 Register company deed “Matricula de comercio” with the Fundación para el Desarrollo Empresarial – FUNDEMPRESA and obtain legal capacity

Since 2002 a concession for the Registry of Commerce has been granted to a private operator (Fundación para el Desarrollo Empresarial, FUNDEMPRESA).

Registering the company deed requires filing the following documents:(a) application for new registration (Form 0020/03), (b) public deed of incorporation, comprising the charter documents, by-laws and the deed whereby the provisional board of directors is appointed, (c) power of attorney granted to the legal representative, (d) opening balance sheet certified by the Colegio de Contadores, (e) bank certificate or deposit stub, certifying the deposit of the paid-in capital, (f) newspaper publication of the incorporation deed.
9 days BOB 584.5
12 Register at the appropriate Chamber of Commerce or Industry

Pursuant to Article 54 of Supreme Decree 16833 (dated July 19, 1979) and to Supreme Decree 17242 (dated March 3, 1980), all companies must be registered at their respective chambers of commerce, however, in practice it is not done and there are no penalties.
1 day BOB 493
13 Register for national health insurance and short-term disability coverage

The employer may register with any health insurance institution (Caja Nacional de Salud, Caja Petrolera de Salud, Caja de Salud de la Banca Privada, etc.). The employer fills and submits the required forms, attaching copies of the proof of identification for the company’s legal representative, the articles of incorporation, the commercial registry certificate, the tax identification number (TIN), the opening balance sheet (duly registered) and payroll, and employees’ civil status (along with names, proof of identity, and names of dependents). Three forms must be completed for the employer and two for each employee.
15 days Bs.15 per form, 3 forms
14 Register at the Ministry of Labor, enroll in the Caja Nacional de Establecimientos

According to Resolution No. 002/04, issued by the Ministry of Labor on January 13, 2004, the employer registration process was simplified, requiring the filing of the following:

• Unified employers registry form
• Presentation of first monthly payroll
Bank deposit of BOB 50

The employer must complete this procedure within 3 months from the date of employee hire.
1 day BOB 80 per page
15 Register employees with the pensions system (Sistema Integral de Pensiones)

New employees must register within 10 days of entry into duty. If the employee refuses to register during this time, the employer must fulfill the requirement.

According to the new Law of Pensions, Law Nº 065 of December 2010, the contributions are:
•APORTES LABORALES AFP's
•Aporte de Vejez 10.00%
•Riesgo comun 1.71%
•Comisión AFP's 0.50%
•Aporte Solidario 0.50%
•Aporte Nacional Solidario 1% para sueldos superiores a Bs13.000.- 1.00%
•Aporte Nacional Solidario 5% para sueldos superiores a Bs25.000.- 5.00%
•Aporte Nacional Solidario 10% para sueldos superiores a Bs35.000.- 10.00%
•APORTES PATRONALES
•Prima por riesgo profesional 1.71%
•Aporte Patronal para vivienda 2.00%
•Aporte Patronal Solidario 3.00%

3 days no charge
* Takes place simultaneously with another procedure.
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