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Guatemala

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Delivery:

3 weeks

Price: $

$299

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Requirements:

Document checklist:

Local legal address (Handled by B2B Hub) 

1.Passport
2.Proof of Residence 

Registrar

Organization name

Abbreviation

Country

Guatemala

Email

Phone

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About

Guatemala

Capital
Official languages
Population 
Currency

ISO 4217

Guatemala City

Spanish

17,924,000

Quetzal

GTQ

FAQ

Frequently Asked Questions (FAQ) for Company Formation in Guatemala:


1. What is the process for forming a company in Guatemala?


The process for forming a company in Guatemala involves several steps. First, the company name must be reserved with the Mercantile Registry. Then, the company's articles of incorporation must be drafted, signed, and notarized. The company must also be registered with the Tax Administration Office (SAT), and the company's legal representative must obtain a personal identification number (NIT) from the SAT.


2. What types of companies can be formed in Guatemala?


Several types of companies can be formed in Guatemala, including sole proprietorships, partnerships, and corporations. The most common type of company formed in Guatemala is the Sociedad Anónima (SA), which is equivalent to a limited liability company.


3. What are the requirements for forming a company in Guatemala?


To form a company in Guatemala, you must be at least 18 years old and have a valid identification document. Additionally, you will need to appoint a legal representative who is a Guatemalan resident and has a personal identification number (NIT) from the Tax Administration Office (SAT).


4. Do I need to be a Guatemalan citizen to form a company in Guatemala?


No, you do not need to be a Guatemalan citizen to form a company in Guatemala. However, you will need to appoint a legal representative who is a Guatemalan resident and has a personal identification number (NIT) from the Tax Administration Office (SAT).


5. How long does it take to form a company in Guatemala?


The process for forming a company in Guatemala typically takes between 2-4 weeks.


6. What are the ongoing requirements for maintaining a company in Guatemala?


In order to maintain a company in Guatemala, you must file an annual tax return and pay any applicable taxes. Additionally, you must renew the company's registration with the Mercantile Registry every year.


7. What taxes does a company in Guatemala need to pay?


Companies in Guatemala are subject to a variety of taxes, including income tax, value-added tax (VAT), and payroll taxes. The exact taxes that a company must pay will depend on the nature of its business and its annual revenue.


8. What is the minimum capital requirement for forming a company in Guatemala?


There is no minimum capital requirement for forming a company in Guatemala.


9. Can I form a company in Guatemala remotely?


Yes, it is possible to form a company in Guatemala remotely. However, you will need to appoint a legal representative who is a Guatemalan resident and has a personal identification number (NIT) from the Tax Administration Office (SAT).


10. Do I need to engage a lawyer to form a company in Guatemala?


While it is not strictly required to engage a lawyer to form a company in Guatemala, it is highly recommended. A lawyer can help you navigate the legal and regulatory requirements associated with forming a company in Guatemala and ensure that your company is set up properly.

Economy

Guatemala has a mixed economy that is largely based on agriculture, tourism, and remittances from Guatemalans living abroad. According to the World Bank, the GDP of Guatemala in 2019 was $112.3 billion, with a growth rate of 2.7%. The unemployment rate in Guatemala is 5.2%, and the inflation rate is 4.2%. The country has a poverty rate of 54.3%, with the majority of the population living in rural areas. Guatemala has a trade deficit of $3.2 billion, with exports totaling $10.3 billion and imports totaling $13.5 billion. The main exports of Guatemala are coffee, sugar, bananas, and cardamom. The main imports are petroleum, machinery, and electrical equipment. Guatemala has a Human Development Index (HDI) of 0.637, which is below the average for Latin America and the Caribbean.

Taxation

Taxation in Guatemala is regulated by the Tax Code, which establishes the tax laws and procedures for both corporate and personal taxation.


Corporate Taxation:

Companies registered in Guatemala are subject to a flat corporate tax rate of 25% on their net taxable income. In addition to corporate tax, companies may also be subject to other taxes such as value-added tax (VAT), payroll tax, and municipal taxes.


Personal Taxation:

Individuals who are resident in Guatemala are subject to a progressive income tax system with tax rates ranging from 5% to 31% depending on their income level.


Tax Payment Process:

The tax year in Guatemala runs from 1st January to 31st December of the same year. Both individuals and corporations are required to file their tax returns annually, with the deadline for filing being in April of the following year.


Taxpayers can make their payments at any authorized bank or online through the Guatemalan tax authorities' website. In addition to income tax, taxpayers may also be subject to other taxes such as property tax, stamp tax, and customs duties.


It is important to note that Guatemala has implemented a tax reform that includes new measures to combat tax evasion and strengthen tax administration, such as mandatory electronic invoicing and the creation of a tax authority with more powers to monitor and enforce tax compliance.


In summary, the tax system in Guatemala includes a flat corporate tax rate of 25% for companies and a progressive income tax system for individuals, with tax rates ranging from 5% to 31%. The tax year runs from January 1st to December 31st with the deadline for filing tax returns being in April of the following year. Taxpayers can make their payments at any authorized bank or online through the Guatemalan tax authorities' website.

Company incorporation application form

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