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Bolivia’s Financial Regulatory Compliance: A Guide for Companies

As Bolivia continues to emerge as a key player in the global economy, companies seeking to establish operations in the country must prioritize financial regulatory compliance. Failure to comply with these regulations can result in severe penalties and reputational damage.

Why Invest in Bolivia?

Bolivia boasts significant natural resources, including hydrocarbons, lithium, ores, and precious metals, making it an attractive destination for investors. The country’s strong economic growth since the turn of the century has also created a favorable business environment.

Initial Obligations for New Companies

To achieve full financial regulatory compliance in Bolivia, companies must complete several initial steps:

  • Obtain a Tax Identification Number (NIT): A unique identification number assigned to each company.
  • Obtain a trade registration number: Required for all businesses operating in Bolivia.
  • Obtain a company operating license: Issued by the relevant authorities, this license is required for all companies operating in Bolivia.
  • Register a legal address: Companies must register a local fiscal address for receipt of legal correspondence and governmental visits.
  • Appointment of a legal representative: An appointed legal representative will be personally liable, both legally and financially, for the good operation and standing of the company.
  • Obtain a municipal business license and a municipal registration card

Key Responsibilities and Dates

Companies operating in Bolivia must also adhere to certain key responsibilities and dates:

Annual General Meeting (AGM)

  • At least one AGM must be held annually to approve the company’s financial statements in the past year.
  • The date of the AGM is dependent on when the fiscal year closes, which varies by activity.

Renewal of Trade Registration Number

  • Companies must renew their Trade Registration Number before the SEPREC Office each year.
  • Deadlines for renewal are based on business activity.

Renewal of Company Operating License

  • The company operating license must be renewed annually.
  • Discounts are offered to companies that clear payment in a timely manner.

Monthly Tax Declarations

  • Certain taxes, such as VAT and transaction tax (TT), must be declared on a monthly basis.

Annual Tax Declaration

  • All companies must make an annual tax declaration following the close of the financial year.
  • Pay a business profit tax (BPT) set at 25% of net profits.

Frequently Asked Questions

Common questions clients have regarding regulatory compliance in Bolivia include:

Statutory Appointments for a Company in Bolivia

  • An appointed legal representative who will be personally liable, both legally and financially, for the good operation and standing of the company.
  • Yes, a registered local fiscal address is required for all entities in Bolivia for the receipt of legal correspondence and governmental visits.

Deadline for Submitting a Company’s Annual Income Tax Declaration in Bolivia

  • The deadline varies by business activity.

Biz Latin Hub Can Help

As a professional services company providing integrated market entry and back office services throughout Latin America and the Caribbean, Biz Latin Hub has the expertise and personnel to effectively assist companies with financial regulatory compliance in Bolivia. Our portfolio of services includes:

  • Accounting & taxation
  • Company formation
  • Corporate legal services
  • Hiring & PEO

Contact us today to learn more about how we can help you navigate the complexities of financial regulatory compliance in Bolivia.