Doing business in Guatemala

How quickly can I set up a business?

20-30 labor days.

What is the minimum investment needed?

Qtz.200.00, which is approximately $USD 25.00.

How can I raise finance?

In the banks of the financial system. It can also be financed for the entity’s working capital.

What are the legal requirements for setting up my business?

Option 1: Individual trader

Option 2: Trading Company, requires 2 partners as minimum, who can be individual or legal entity, national or foreign.

What structure should I consider?

Limited company:

It must be formalized with a public deed, registered in the Mercantile Registry and SAT. Capital is divided and represented by shares and the responsibility of each shareholder is limited to the payment of the shares they have subscribed.

Branch:

Must have at least one representative in the country permanently, and a bond in favor of third parties not less than $ USD.50,000.

What advice can you give me in regards to payroll and taxation requirements?

Employees are subject to the payment of IT (5% -7%) and social security (4.83%).

Employers have a workload of 42%.

Companies are subject to VAT (12%), IT (from 5% to 25%), Solidarity Tax (1%).

There are non-resident income tax withholdings from 3% to 25%.

Is there anything else that I should know?

There is a Free Zones Law and a Maquilas Law with different tax benefits.