Guatemala: Easier Procedures to Register New Companies

With the reform of the Commerce Code approved by Congress the process has been simplified and costs reduced for inscribing a corporation, among other changes.

Thursday, October 5, 2017

Main changes in the new Commercial Code:

- A business may be incorporated with ($28) Q200. Each shareholder must pay, at least, 25 percent of the nominal value of each share subscribed. 

- A bank deposit will be mandatory when the total cash contributions exceed the amount of ($1,362) Q10 thousand. 

- The cash of a commercial company under the protection of its administrators must be deposited in the bank account of the company. 

- Registration: In the case of partnerships or limited liability companies, they are obliged to publish all names of the partners in the electronic medium provided by the Mercantile Register.

- The registered company could be annulled by the Mercantile Registry if it does not present documentation proving the effective transfer of ownership of goods, within a period of three months.

- The Mercantile Registry must implement a means of electronic communication once the amendments to the Commercial Code enter into force. 

Read full release (in Spanish).

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