Guatemala

Ease of Doing Business in

Guatemala

This page summarizes Doing Business 2015 data for Guatemala. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

Economy Overview

 
Region Latin America & Caribbean
Income Category Lower middle income
Population 15,468,203
GNI Per Capita (US$) 3,340
City covered Guatemala City
Doing Business 2015 Rank Doing Business 2014 Rank*** Change in Rank
73 71 down -2

Doing Business 2015 DTF** (% points) Doing Business 2014 DTF** (% points) Change in DTF** (% points)
64.88 64.22 down 0.66
Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

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 2015 Rank 98 DB 2014 Rank*** 107 Change in Rank up9
DB 2015 DTF** (% points) 83.72 DB 2014 DTF** (% points) 80.86 Change in DTF** (% points) up2.86

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

Indicator Guatemala 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)
6.0 8.3 4.8

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)
18.5 30.1 9.2

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)
25.8 31.1 3.4

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.

View methodology
Paid-in min. capital (% of income per capita)
18.7 3.2 8.8
No. Procedure Time to Complete Associated Costs
1 Check the proposed company name online and obtain a letter from a Guatemalan notary public to open bank account 1 day GTQ 0.5 for each name
2 Deposit the subscribed capital in a bank and obtain a receipt 1 day no charge
3 A notary public draws the deed of constitution, fills the forms required by the Commercial Registry and the tax authority and pays the registration fees online Less than one day (online procedure) see comment
4 Obtain the provisional registration of the new company before the Mercantil Register; the Tax Identification Number; the Edict; the Registration of the legal representative appointment and the authorization to print invoices 3 days no charge
5 Publication of the edict in Diario de Centro America and opposition to the provisional registration of the company by affected third parties 2 days on average for the edict to be published and 8 days for the opposition to the provisional registration by third parties GTQ 525.62
6 Obtain the definitive registration, the commercial license, the Social Security Number and the Authorization for social and accounting books. 3 days GTQ 250 stamp tax

**The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

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

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