Financial Crime World

Bolivia’s Company Registration: A Guide to Compliance

The Bolivian government has announced that companies operating in the country can now begin doing business, following a series of registration and compliance steps. In this article, we’ll outline the essential requirements for businesses looking to register and operate in Bolivia.

Trade Registration Number

Any company operating in Bolivia must obtain a Trade Registration Number (NIT) from the National Tax Service. This number is required for all financial matters and must be renewed annually.

Company Operating License

Companies must also obtain an operating license, which varies depending on business activity and location. For example, companies operating in Santa Cruz’s industrial heartland require an environmental permit before receiving their operating license.

All entities in Bolivia must have a registered legal address, to which official correspondences will be directed.

Companies must appoint a legal representative who meets specific criteria:

  • Must be 18 years or older
  • Must be a natural person or foreign national with a Bolivian identity card
  • Must have legal residence status in Bolivia
  • Must provide documentation supporting their designation as a legal representative

Municipal Business License and Registration Card

Companies must acquire a municipal business license and registration card (Padrón Municipal) to operate legally.

Financial Regulatory Compliance

To ensure financial regulatory compliance, companies must:

  • Hold an Annual General Meeting (AGM) within 120 days of the fiscal year’s close
  • Present financial statements to the national tax authority 20 days before the end of the fiscal year
  • Maintain accurate company books and shareholder information
  • Renew their Trade Registration Number annually, with deadlines dependent on business activity

Additional Requirements

Companies must also:

  • File monthly tax declarations (VAT and transaction tax)
  • Make an annual tax declaration and pay a business profit tax (BPT) set at 25% of net profits

Frequently Asked Questions

For your convenience, we’ve answered some common questions about entity legal compliance in Bolivia:

  • What are the common statutory appointments for a company in Bolivia?
    • An appointed legal representative who will be personally liable for the good operation and standing of the company.
  • Is a registered office address needed for a legal entity in Bolivia?
    • Yes, a registered local fiscal address is required for all entities.

Biz Latin Hub: Your Partner in Compliance

At Biz Latin Hub, we specialize in multi-jurisdiction market entries and operational support, including cross-border tax planning. Our portfolio of services includes accounting & taxation, company formation, corporate legal services, and hiring & PEO, among others. Contact us today to learn more about how we can assist you with financial regulatory compliance in Bolivia.

Note: The information provided here should not be construed as formal guidance or advice. Please consult a professional for your specific situation.