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.
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.
In El Salvador, the private sector is putting pressure on President Sánchez Cerén to sanction the recently approved administrative simplification law, which promises to facilitate procedures for doing business.
Eliminating unnecessary procedures that represent operational costs for users, reducing administrative procedures and removing requirements not required by law are some of the benefits that companies could obtain if the new law is approved.
Companies have to allocate up to 15% of expenses to security services, as a result of the growing violence in the country.
A company wishing to operate in Guatemala has to allocate between 8 to 15% of its expenses to security in order to keep operating. The figure was provided by Victor Guillen, manager of purchases, imports and exports at Dagas, and published by Elperiodico.com.gt, who revealed that his company earmarked Q250 thousand ($32,000) per month for the security of its plants, trucks and workers.
The country which used to stand out in the region because of its good relative level of economic, social and educational development, is accelerating its march downhill in terms of productive competitiveness, income distribution and training.
EDITORIAL
A national entrepreneur's comments about how his half a century old company has no market problems and is in full swing in the phase of increasing investment, but can no longer keep production in the country because Costa Rica "has become very expensive and high risk", is confirmation of the march downhill of the real economy.
A World Bank study has evaluated regulations which exist in 22 cities in the region for starting new business, registration, construction, and border trade.
From a statement issued by the World Bank:
Doing Business in Central America and the Dominican Republic 2015 compares business regulations in 6 Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) and the Dominican Republic.
Product distribution companies in the North of Central America are paying monthly installments of $100 per truck to organized criminal groups.
Far from declining, the cost and problems caused by extortion for companies in Central America, continue to rise and is harming regional trade. In Honduras alone, Eleconomista.net reported, "... between 2012 and 2013 some 18,000 businesses closed because of pressures from gang members and consequently some 72,000 direct jobs were lost."
Investments by Costa Rican companies in their neighboring country went from $2.43 million in 2010 to $67.7 million in 2013.
Installation of production facilities, maquila subcontracts or transfer of part of the production process are part of the investment models that Costa Rican businessmen are utilizing in order to minimize the negative effects of the high production costs prevalent in Costa Rica and to stay competitive at the level international.
Recognized Brazilian company of backhoe loaders, telescopic, articulated and other types of cranes looking for companies interested in representing the brand and distributing their machinery in Central America and Mexico. The company manufactures and sells telescopic,...