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Ease of Doing Business in

Guatemala

Guatemala Download Profile (1733.1KB, pdf)
Region Latin America & Caribbean
Income Category Lower middle income
Population 16,342,897
GNI Per Capita (US$) 3,590
City covered Guatemala City

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 88 85 down
3
62.93 62.44 down
0.49
Starting a Business 119 113 down
6
82.31 82.13 up
0.18
Dealing with Construction Permits 89 88 down
1
69.30 68.84 up
0.46
Getting Electricity 19 21 up
2
88.95 85.76 up
3.19
Registering Property 74 74
-
66.47 66.42 up
0.05
Getting Credit 16 14 down
2
80.00 80.00
-
Protecting Minority Investors 173 174 up
1
33.33 33.33
-
Paying Taxes 93 94 up
1
71.55 70.71 up
0.84
Trading across Borders 77 78 up
1
75.31 75.31
-
Enforcing Contracts 173 173
-
34.55 34.55
-
Resolving Insolvency 149 151 up
2
27.52 27.30 up
0.22

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 119

DB 2016 Rank: 113

Change in Rank: down6

DB 2017 DTF (% points): 82.31

DB 2016 DTF (% points): 82.13

Change in DTF (% points): up0.18

Standardized Company
Legal form: Sociedad Anónima (SA) - Corporation
Paid-in minimum capital requirement: GTQ 5,000
City: Guatemala City
Indicator Guatemala Latin America & Caribbean OECD high income
Procedure – Men (number) info_outline 7.0 8.3 4.8
Time – Men (days) info_outline 19.5 31.6 8.3
Cost – Men (% of income per capita) info_outline 24.1 31.5 3.1
Procedure – Women (number) info_outline 7.0 8.3 4.8
Time – Women (days) info_outline 19.5 31.6 8.3
Cost – Women (% of income per capita) info_outline 24.1 31.5 3.1
Paid-in min. capital (% of income per capita) info_outline 17.2 2.3 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Check the company name and obtain a letter from a notary public to open bank account

    Agency: Notary Public

    The notary has to conduct a company name availability search on the website of the Mercantile Registry of Guatemala and then they can proceed with the issuance of the letter to open a bank account.

    The paid-in minimum capital requirement of GTQ 5,000 must be deposited in a local bank before the articles of incorporation are signed. For this purpose, a notary public must issue a letter confirming that he or she has been requested to draw up and register the company’s deed of constitution. This letter allows for the opening of a temporary bank account while registration is completed. The letter has to indicate the exact address for the new company, which has to be supported by a bill of a public service.
    1 day GTQ 30 for each name
    2

    Deposit the subscribed capital in a bank and obtain a receipt

    Agency: Bank

    The legal representative opens a bank account and deposits the subscribed capital. The bank will require a bill of any public service with the address of the new company. The deposit slip is presented to the notary.
    1 day no charge
    3

    A notary public draws the deed of constitution

    Agency: Notary Public

    The notary issues a certified copy of the deed and draws the appointment of the legal representative (Sole Administrator or members of the Board), who has to be personally registered before the Tax Authorities
    1 day included in procedure 4
    4

    A notary public completes registration forms and pays the registration fees online

    Agency: MiNegocio (Commercial Registry)

    The notary completes the forms required by the Commercial Registry online. On March 18th, 2013, Guatemala launched Mi Negocio, an online platform that allows registering a new company with the commercial registrar (Registro Mercantil), the tax authority (Superintendencia de Administración Tributaria), the social security institute (Instituto Guatemalteco de Seguridad Social) and the Ministry of Labor (Ministerio de Trabajo) through a single form online (https://minegocio.gt/).

    The following forms are required by the Commercial Registry:
    a- certified copy of the deed of constitution
    b- appointment of legal representative
    c- bill of any public service with the exact address of the new company
    d- letter of intent from the owner of the address
    e- bank receipt

    Finally, the notary pays in Banrural Bank online the amount required by the Registry:
    GTQ 5,000 average notarial fees + GTQ 250 stamp tax + GTQ 300 notarial stamp tax for the certified copy + GTQ 112 stamp tax for the appointment + GTQ 275 flat free + GTQ 15 edict + GTQ 75 appointment + GTQ 100 Commercial License.
    Less than one day (online procedure) see procedure details
    5

    Obtain the certification of the legal representative´s registration, the proof of registration at the tax administration and the edict

    Agency: Commercial Registry

    The notary or another authorized person has to go to the Commercial Registry in person to review and pick up the following documents: certification of the legal representative´s registration, the proof of registration at the tax administration and the edict that needs to be published.
    3 days no charge
    6

    Publication of the edict and opposition period for the provisional company registration by affected third parties

    Agency: Official Gazette (Diario de Centroamérica)

    The notary or legal representative must go to the Official Gazette office to request the publication of the company's edict. The edict is typically published 2 days after the request. The law establishes an opposition term of 8 working days, upon the day after the publication, in case any third party disagrees with the registration of the corporation.
    2 days for the edict to be published and 8 days for the opposition to the provisional registration by third parties GTQ 627
    7

    Obtain the Articles of Incorporation registration certificate, the commercial license, the Social Security Number and the authorization for social and accounting books

    Agency: Commercial Registry

    Once registration is completed, the social security identification number, certification of the articles of incorporation registration, the commercial license, and the authorization for social and accounting books can be obtained at the Commercial Registry.

    In addition, once a corporation is registered, by law, it has 1 year to send the Commercial Registry a notice stating the number of shares issued, in relation to the paid-in capital.
    3 days GTQ 250 stamp tax