SETTING UP BUSINESS BOLIVIA 2024

General Aspects

Bolivia located in the heart of South America (South America) , bordered by countries like Brazil, Argentina, Peru, Chile and Paraguay . Your monetary unit is the Bolivian (Bs) . With 1,098,581 square kilometers, Bolivia is one of the richest countries in

Legal Forms of Business Entities

Legal form Feature

Collective society

natural resources in the region . The total population is around 12.08 millions of people.

The official language is Spanish.

Simple Limited Partnership

Limited liability company

In the Collective society, all partners are jointly and severally liable for social obligations. The person who allows his name to be included in the company name without being a partner is jointly and severally liable for the company obligations. (Chapter II, Art. 173 of the Commercial Code)

The simple limited partnership is made up of one or more limited partners who are only liable with the capital they agree to contribute, and by one or more managing or collective partners who are jointly and severally liable for corporate obligations, whether or not they make contributions to share capital. (Chapter III, Art. 184 of the Commercial Code)

In limited liability companies, partners are liable up to the amount of their contributions.

The limited liability company may not have more than twenty-five partners. Any partnership requires at least two partners with a personal commitment . Your liability for the debts and liabilities of the partnership is generally unlimited and personal, including all assets private . ( Chapter IV, Art. 195 of the Commercial Code)

Incorporate In a public limited company, the capital is represented by shares. The liability of the partners is limited to the amount of the shares they have subscribed. The public limited company will bear a name referring to the main purpose of its business, followed by the words “Sociedad Anónima”, or its abbreviation “SA”.

The name must be different from any other existing company. ( Chapter V, Art. 217 of the Commercial Code)

Remarks

This type of business is not common.

This type of business is not common.

Company limited by shares

In the partnership limited by shares, the managing partners are responsible for the social obligations as the partners of the Collective society. Limited partners limit their liability to the amount of the shares they have subscribed for. Only the contributions of limited partners are represented by shares. (Chapter VI, Art. 356 of the Commercial Code)

This type of business is not common.

Accidental association or

accounts

Through the contract of accidental association or joint accounts, two or more persons take an interest in one or more specific and transitory operations, to be fulfilled through common contributions, carrying out the operations by one or more or all the associates, as agreed. in the contract.

This type of association does not have its own legal personality and lacks a company name. (Chapter VII. Art. 365. of the Commercial Code)

Cooperative societies are governed by special law. Subsidiarily, the prescriptions of limited liability companies will be applied to them, as long as they are not contrary; but, if their purpose is any commercial activity unrelated to their purpose, they are subject, as pertinent, to the provisions of this Code.

Suitable for small businesses and start-ups. Special formalities are not required.

Organizational Questions

Legal form Feature

Commercial register Companies must register with the SEPREC - Plurinational Service of Commerce Registry; www.seprec.gob.bo

Tax Identification

Number – NIT

Remarks

Companies must obtain their NIT registration at the National Tax Service.

It is the registry that every taxpayer who performs an economic activity or is related to a tax must have, as of January 1, 2005. The NIT is a unique number that serves to identify each one of the taxpayers in the different tax, exchange and customs matters to which they are obliged.

For natural persons

• Identification document (Identity Card, Foreigner Identity Card or Special Identification Document);

• Signature register;

• Current Account Opening Form;

• Registration in the National Register of Digital Biometric Taxpayers, when applicable;

• Not be included in the lists of closed checking accounts issued by the Financial System Supervisory Authority;

• Other additional documentation required by the supervised entity.

For legal persons

• Articles of incorporation, Resolution or other similar document that proves the legal personality;

• Statutes in force and duly approved and with the formalities of Law, in the corresponding cases;

• Signature register;

• Current Account Opening Form;

• Powers of administration registered in the Bolivian Trade Registry, when applicable, or legalized copies of the Acts of appointment and possession of their representatives, as pertinent;

• Identification documents of the attorneys or representatives;

• Registration in the National Register of Digital Biometric Taxpayers, when applicable;

• Trade registration updated and issued by the Bolivian Trade Registry, when applicable;

• Not be included in the lists of closed checking accounts issued by the Financial System Supervisory Authority;

• For fiscal checking accounts, they must comply with the requirements set forth in the Guide to Operating Procedures for Fiscal Current Accounts issued by the Ministry of Economy and Public Finance;

• Other additional documentation required by the supervised entity.

All operations over Bs50,000 or US$10,000 are monitored and reported in accordance with the regulations of the FIU – Financial Investigation Unit.

Employment

Legal form Feature

Work permit

What does a foreigner need to work in Bolivia?

Valid passport with a minimum validity of 6 months. Photocopy of the passport (page of affiliation and last stamp of entry into the country). Sworn declaration form before the General Directorate of Migration, of the purpose of the activity that will be carried out in Bolivian territory.

Supreme Decree 26877, of December 21, 2002, eliminated the Labor Card assumed by Resolutions O51/86 and O11/97, and Arts. 53, 54 and 55 of the DS. 423, and regulated the labor regime for foreigners and together with M. 534/03, establish that foreigners to work in Bolivia must compulsorily imitate their temporary stay in accordance with the provisions of the current immigration regime, presenting their employment contract visa by Ministry of Labor (dependents); or notarized letter indicating the activity carried out and Tax Identification Number, in the case of self-employed workers).

Social Security System Short Term Insurance

They are the insurances that manage the immediate contingencies of life and work, granting them the right to receive the medical attention that is considered essential for their cure and rehabilitation due to: Common Illness, Maternity and Occupational Risks (Accident at Work and Occupational Disease) , with the financial support of the employer contribution of 10% on the monthly income of each worker.

Long Term Insurance

The Dependent Insured must provide the following contributions:

10% - Monthly Contribution; 1.71% - Common Risk; 0.5% - Solidarity Contribution of the Insured; 0.5% - AFP Commission.

The Dependent Insured, whose Total Earned Income exceeds the Solidarity Limits must also contribute the following National Solidarity Contributions:

1% - Total Earned greater than Bs.- 13,000.

5% - Total Earned greater than Bs.- 25,000.

10% - Total Earned greater than Bs.- 35,000.

contributions

The Independent Insured must provide the following contributions:

10% Monthly Contribution; 1.71% Common Risk Premium; 1.71% Labor Risk;

0.5% Solidarity Contribution of the Insured; 0.5% Commission for the Administrator

The Independent Insured, whose quotable income exceeds the Solidarity Limits, must also contribute the following National Solidarity Contributions.

1% For total wins greater than 13,000

5% For total wins greater than 25,000

10% For total wins greater than 35,000

Remarks

Social Security System Supreme Decree No. 4585 establishes in April 2023 the start of activities of the Public Gestora in the Contributory and Semi-contributory Regimes of the Comprehensive Pension System – SIP; Likewise, it will provide the administration service of the Universal Old Age Income Fund, administration of the Beneficiary Database, management and payment of the Dignity Renta, and Funeral Expenses

Taxes

In Bolivia, there are the following taxes:

Tax Tax Feature Tax to Value AddedVAT Regular sales of personal property.

• Rental of movable and/or immovable property.

• Services in general and construction contracts.

• Definitive imports.

• Financial lease (leasing) with personal property.

• Sale of national and imported books, and official publications made by State institutions.

• International cargo transportation (Land).

• Sale in the domestic market of capital goods, industrial plants, cargo vehicles of high volume and tonnage capacity for the agricultural and industrial sectors, including refrigerated vehicles and heavy machinery for the construction and mining sectors

Transaction tax - IT Gross income accrued, obtained from the exercise of the taxable activity, lucrative or not:

• Commerce.

• Industry.

• Profession.

• Job.

• Rental of goods.

• Contracting works.

• Provision of services.

• Free transfer of movable and immovable property and rights. Corporate

Complementary Regime to the Value Added Tax – RC VAT

Direct contribution

• Rental, subletting of real estate or furniture.

• Placement of capital from the investment, which does not constitute income subject to the IUE.

• SA directors and trustees fees.

• Salaries of staff recruited locally by diplomatic missions, org. international and foreign governments.

• Income from people hired by the public sector (line consultants).

• Anticretics (presumed).

• Those coming from the exercise of the profession or trades freely or independently.

• The fees, remunerations or income from payments, whatever their denomination, of people not domiciled in the country, coming from the work carried out in national territory.

Taxpayer in dependency relationship

• Wages and salaries of dependents.

• Wages, bonuses, overtime, bonuses, allowances, etc.

• Per diems and the like.

• Income from people hired as dependents abroad.

Specific Consumption Tax - ICE

Tax on Air Departures - ISAE

Tax on Hydrocarbons and its derivativesIEHD

Direct Tax on Hydrocarbons - IDH

Tax on Financial Transactions - ITF

Sales in the domestic market and definitive imports of goods for final consumption:

• Cigarettes and tobacco.

• Refreshing drinks.

• Alcoholic beverages.

• Undenatured alcohols.

• Motor vehicles.

Departures abroad by air (even if the tickets are purchased abroad), provided that the passengers originate their trip in national territory.

The import or internal production of hydrocarbons or their derivatives for commercialization in the internal market.

Production of hydrocarbons throughout the national territory.

Only transactions in foreign currency or national currency with maintenance of value, related to the following operations:

• Withdrawals or deposits in current accounts and savings accounts.

• Payments or transfers of funds.

• Acquisition of Manager’s Checks or other similar financial instruments existing or to be created.

• Transfers or shipments of money abroad or within the country, through financial institutions or other entities.

• Delivery or receipt of own funds or those of third parties through other payment systems.

• The redemption or withdrawal of time deposits.

• Participation in Investment Funds.

Gambling Tax - IJ

Gambling Participation Tax - IPJ

Tax on Great Fortunes - IGF

• Games of chance and raffles.

• Business promotions.

Participation of natural persons in games of chance and raffles

Accumulated net fortune in the national territory and/or abroad for a value greater than Bs30,000,000.- or its equivalent in foreign currency, as of December 31 of each year.

This guide has been prepared by FINAUDIT S.R.L. , an independent member of Antea

Finaudit S.R.L

Av. 20 de octubre, edificio torre

Mercedes Campos

Tel.: 591-2424293

info@finauditbo.com

www.finauditbo.net

SETTING UP BUSINESS IN BOLIVIA

Antea members in Bolivia:

LA PAZ

Contact Partner; Wilton Aleman

Tel.: + 591-2424293

Mail: waleman@finauditbo.com

Web: www.finauditbo.com

SANTA CRUZ DE LA SIERRA

Contact Partner: Victor Wilfredo Chugar

Tel.: +5913356970

Mail: victorchugar@aconsultchugar.net

Web: www.aconsultchugar.net/

Mallorca, 260 àtic 08008 – Barcelona

Tel.: + 34 93 215 59 89

Fax: + 34 93 487 28 76

Email: info@antea-int.com

www.antea-int.com