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Guatemala - DOING BUSINESS


Local business incentives


The government has implemented various incentive programmess aimed at helping companies. The most important deals with the production or the assembling operations using imported machinery or components. Finished products are exportable goods - outside Central America -. Then, the government grants companies a tax and VAT exemption on imported goods. However, these plans do not involve agricultural products, oil and forest products, which benefit from another incentive programme. Free trade zones have been established to encourage investments. They are located in Puerto Santo Thomas de Castilla, near the main Guatemala's port, on the Atlantic coast as well as in Palin, not far from Guatemala City. Companies established in these free trade zones are tax and customs duties exempt (except Social Security contributions).
Both the agency for investments promotion and the Guatemalan Development Foundation provide assistance and support, regarding investment matters.


Legal forms of companies


Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
La Sociedad de Responsabilidad Limitada is a Private Limited Company.   Minimum 2 partners.
Maximum 20 partners.  
  Liability is limited to the amount contributed.     Yes  
La Sociedad Anonima is a Public Limited Company   Minimum 2 partners.     Liability is limited to the amount of holding stock.     Yes  
La Sociedad Collectiva is a general partnership.   Minimum 2 partners.     Partners' liability is unlimited and several.     Yes  
La Sociedad en Comandita Simple is a limited partnership.   Two types of partners: active partners and sleeping partners.     Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed as long as they do not take part in the company management.     Yes  
La Sociedad en Comandita por Acciones is a partnership limited by shares.   Two types of partners: active partners and sleeping partners.     Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount of shares held as long as they do not take part in the company management.     Yes  




Foreign exchange control


A Central Bank's authorization is required in order to be able to repatriate profits and capital.


Regulations concerning equity investment


A majority holding interest in stock of a local company is legal in Guatemala.  


FDI inflows in Guatemala




FDI inflows (millions US$) 2000 2001 2002 World rank
Foreign Direct Investments (F.D.I.) 111   131   155   113 / 196
Sources : UNCTAD Database FDI/TNC


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Last modified in December 2003
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