available in Spanish.
In order to register a company in Guatemala, it is important to know that there are two ways to accomplish it:
- As an individual trader.
- Or through a trading company or a limited company.
It is important to count on professional advice from Lawyers in Guatemala, to ensure proper registration in the Commercial Registry.
The process of registering an individual trader can take 1 to 2 weeks, after which the Commercial Registry will issue a business license that may list one or more individuals as co-owners.
The process for registering a limited company is more complex, because it is necessary to draw up a public deed for a business entity, which must be prepared by a notary, and its registration can take 2 to 3 weeks.
When you register a Limited Company, the Commercial Registry will provide 2 licenses:
- Trading Company License.
- Limited Company Trading License, and the latter will be the owner of the trading company.
In the Partnership Agreement, there will be different stipulations or clauses established, such as:
- Name of the Limited Company.
- Commercial Name.
- Commercial property.
- Paid-in capital.
- Distribution of shares.
- Partner names, partner contributions.
- Appointment of Legal Representative.
- And others.
Both entities are registered in the Commercial Registry. However, in addition to the differences mentioned above, there are different procedures for registering each one, which are detailed below.
REQUIREMENTS AND STEPS FOR REGISTERING AN INDIVIDUAL TRADER AND A TRADING COMPANY:
- Complete the registration form for Individual Traders and Trading Companies provided by the Commercial Registry.
- Pay the applicable fees at a Banrural branch.
- Submit the application to the Commercial Registry along with the following documents:
- Printed and signed form.
- A copy of the owner's personal identification document and a bill confirming the company's location.
- Pick up the license at the Commercial Registry or download it from its website and affix the corresponding tax stamps.
REQUIREMENTS AND STEPS FOR REGISTERING A LIMITED COMPANY:
- Fill out the application form to register a Trading Company.
- Please make the following tariff payments at a Banrural branch:
- Publication of edicts of the Limited Company.
- Payment for the approval of the books.
- If the authorized capital does not exceed Q499,999.99, the fee is “0.” If the authorized capital exceeds Q500,000.00, an additional fee must be paid.
- The application is reviewed by the Legal Department of the Commercial Registry and by a representative of the Superintendency of Tax Administration. If the submitted application meets all the requirements, the limited liability company will be registered and a tax identification number will be assigned.
- Present the following documents:
- Application form.
- Original receipts.
- Testimony of the Partnership Agreement.
- Appointment of Legal Representative.
- Personal Identification Number of each partner.
- Bill that supports the company's address.
- Municipal ticket of the legal representative or the Notary.
- The Commercial Registry will provide the following documents:
- Partnership agreement in effect.
- Appointment of a legal representative completed.
- Limited Company Trading License (with the corresponding tax stamps).
- Trading License (with the corresponding tax stamps).
- Authorization stickers for books.
Should I choose a trading company or a limited company?
When starting a business, it's common for many people to choose a trading company and an individual trader, and leave a limited company as a last or future option.
This is mainly because registering a limited company is more expensive, which is why a trading company could be more convenient.
This does not imply that a Limited Company is the best option. However, it is important to evaluate the legal, administrative, and financial benefits offered by each of these options. It is also important to have effective legal advice that helps you evaluate the best option, enabling you to make the best decision.