Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Bolivia. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
This information was collected from World Bank: Doing Business
* Takes place simultaneously with another procedure.
This information was collected from World Bank: Doing Business
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Check uniqueness of name at the Registry of Commerce in FUNDEMPRESA | 1 day | BOB 175 |
| 2 | An attorney draws the articles of incorporation, bylaws and constitution act, which includes the appointment of the provisory board. | 1 day | BOB 7,800 = BOB 6,500 legal fee + BOB 1,300 procurement for processing of documents with Registry |
| 3 | Notarize the articles of incorporation “escritura de constitución” | 1 day | BOB 1000 +80 BOB per copy (3 copies) |
| 4 | Publish company deed “titulo de constitución” in a national newspaper | 2 days | BOB 80 per page |
| 5 | An accredited accountant prepares the opening balance sheet “Balance de apertura” | 1 day | BOB 700 |
| 6 | The opening balance sheet is administered by the seal of the Colegio de Contadores | 1 day | BOB 54 for each balance sheet |
| 7 | Register at the National Tax Service to obtain the tax identification number (Número de Identificación Tributaria, NIT) | 1 day | no charge |
| 8 | Obtain a municipal business license and a municipal registration card (Padrón Municipal) from the municipality where the business is located | 12 days | no charge |
| * 9 | Municipal Government inspects the technical and environmental characteristics of the venue | 1 day, simultaneous with previous procedure | no charge |
| 10 | Obtain evidence of a bank deposit equivalent to at least 25% of subscribed and no less than 50% of authorized capital | 1 day | no charge |
| 11 | Register company deed “Matricula de comercio” with the Fundación para el Desarrollo Empresarial – FUNDEMPRESA and obtain legal capacity | 9 days | BOB 584.5 |
| 12 | Register at the appropriate Chamber of Commerce or Industry | 1 day | BOB 493 |
| 13 | Register for national health insurance and short-term disability coverage | 15 days | Bs.15 per form, 3 forms |
| 14 | Register at the Ministry of Labor, enroll in the Caja Nacional de Establecimientos | 1 day | BOB 80 per page |
| 15 | Register employees with the pensions system (Sistema Integral de Pensiones) | 3 days | no charge |