{"id":134566,"date":"2026-04-07T12:07:18","date_gmt":"2026-04-07T12:07:18","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=134566"},"modified":"2026-04-07T12:07:18","modified_gmt":"2026-04-07T12:07:18","slug":"bolivia-doing-business-in","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/bolivia-doing-business-in\/","title":{"rendered":"Bolivia: Doing Business In"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-134566","comparative_guide","type-comparative_guide","status-publish","hentry","guides-doing-business-in","jurisdictions-bolivia"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Bufete, Aguirre, Quintanilla, Soria &amp; Nishizawa<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/03\/baqsn-logo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Bufete, Aguirre, Quintanilla, Soria &amp; Nishizawa<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/03\/baqsn-logo.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Doing Business In laws and regulations applicable in Bolivia<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the system of law in your jurisdiction based on civil law, common law or something else?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The system of law in our jurisdiction is based on civil law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the different types of vehicle \/ legal forms through which people carry on business in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The legal vehicles recognized by the Bolivian Code of Commerce are corporations, limited liability companies (SRL), limited partnership, limited partnership by shares, partnership, mixed economy corporations and accidental partnerships, mixed company, state mixed company, state intergovernmental company, and social company.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can non-domestic entities carry on business directly in your jurisdiction, i.e., without having to incorporate or register an entity?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Non domestic entities can carry on business directly in Bolivia, if such business is occasional. Permanent business would require establishing a branch or a subsidiary entity.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any capital requirements to consider when establishing different entity types?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Bolivian law there are no general capital requirements, save by special regulated entities such as banking or financial entities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the different types of vehicle established in your jurisdiction? And which is the most common entity \/ branch for investors to utilise?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Vehicles provided for investment are branch or subsidiary entities under all forms recognized by the Code of Commerce. Foreign investors frequently use limited liability companies or corporate structures for investment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the entity operated and managed, i.e., directors, officers or others? And how do they make decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Branch entities do not have a local structure (shareholders or board of directors), acting only by means of powers of attorney granted to their legal representatives or managers. Subsidiary entities operate according tot he legal form adopted under Bolivian laws. If using a corporate structure, they would have a shareholders meeting and a board of directors, this latter appointing management.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there general requirements or restrictions relating to the appointment of (a) authorised representatives \/ directors or (b) shareholders, such as a requirement for a certain number, or local residency or nationality?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no general legal requirements regarding number, nationality or local residency for shareholders, board members or general legal attorneys-in-fact. However, at least one of the general legal representatives must have a local domicile, as well as the statutory controller (<em>s\u00edndico<\/em>).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Apart from the creation of an entity or establishment, what other possibilities are there for expanding business operations in your jurisdiction? Can one work with trade \/commercial agents, resellers and are there any specific rules to be observed?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are different means of expanding business operations, by means of distributors, commercial agents or resellers. Applicable rules would depend on the chosen structure, and general representation rules would apply in general.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any corporate governance codes or equivalent for privately owned companies or groups of companies? If so, please provide a summary of the main provisions and how they apply.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Corporate governance of privately held companies in Bolivia is regulated by the Commercial Code, which establishes corporate bodies and rules on the appointment and removal of directors or managers, shareholder rights and management duties. Governance rules are set out in the deed of incorporation (for limited liability companies) or the by-laws (for corporations).<\/p>\n<p>In the two most common entity types\u2014corporations (SA) and limited liability companies (SRL)\u2014governance structures differ. In corporations, the main bodies are the shareholders\u2019 meeting, the board of directors and the statutory controller (s\u00edndico). In limited liability companies, governance is exercised through the partners\u2019 meeting, which appoints one or more managers.<\/p>\n<p>The Authority of Companies issued non-binding Corporate Governance Guidelines (2023), while financial institutions supervised by the Financial System Supervisory Authority (ASFI) are subject to mandatory governance standards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the options available when looking to provide the entity with working capital? i.e., capital injection, loans etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The main option is shareholder capital contributions. There are no general restrictions on capital contributions to commercial companies, but certain procedures must be followed, including registration with the Commercial Registry (SEPREC) and respect for shareholders\u2019 preferential rights.<\/p>\n<p>Shareholder loans are also common, although subject to limitations on interest tax deductibility. Companies may also obtain working capital financing from third parties (private or institutional loans or bond issuances through the securities market), whether local or foreign.<\/p>\n<p>Foreign financing or investment must be registered with the Bolivian Central Bank for statistical purposes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the processes for returning proceeds from entities? i.e., dividends, returns of capital, loans etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The most common process for returning investment from entities is the payment of dividends, which if paid to a foreign beneficiary is subject to a withholding obligation related to IUE-BE normally taxed at 12.5%. Payment of dividends must be approved at a partners or shareholders meeting based on annual financial statement, and subject to a minimum 5% deduction for legal reserve which must be accounted up until it reaches at least 50% of the social capital.<\/p>\n<p>Return of capital and payment of interests under loans are also possible and subject to the contractual agreed terms. As with dividends, if paid to a foreign beneficiary it is subject to a withholding obligation related to IUE-BE normally taxed at 12.5%.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are specific voting requirements \/ percentages required for specific decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Voting rights are generally proportional to shares or quotas held, with each share or quota typically carrying one vote unless the by-laws provide otherwise.<\/p>\n<p>In corporations (SA), ordinary shareholders\u2019 meetings require a quorum of more than 50% of voting capital on first call, while a second call may proceed with the shares present if properly convened. Extraordinary meetings require two-thirds of voting capital on first call and generally one-third on second call. Decisions are typically adopted by absolute majority of votes cast.<\/p>\n<p>In limited liability companies (SRL), meetings require participation of more than 50% of the capital. Ordinary decisions are approved by partners representing more than half of the capital, while fundamental matters\u2014such as amendments to the articles, capital changes or admission of new partners\u2014generally require two-thirds of the capital.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are shareholders authorised to issue binding instructions to the management? Are these rules the same for all entities? What are the consequences and limitations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Generally speaking, shareholders are not authorized to issue binding instructions to the management unless if done on proper partners assemblies or shareholders meetings and only within the scope of the specific authority granted to said meetings. Under Bolivian law, particularly the Commercial Code, shareholders (or partners in an SRL) do not directly manage the company. Directors and managers are expected to manage the company independently with diligence and loyalty and not simply follow shareholder instructions on operational matters unless such instructions fall within shareholder competence.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the core employment law protection rules in your country (e.g., discrimination, minimum wage, dismissal etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bolivian employment law is grounded in the Political Constitution (2009), the General Labour Law and complementary regulations, which establish a strong protective framework for employees. Workers are entitled to fair remuneration, safe working conditions, non-discrimination and job stability.<\/p>\n<p>The Constitution recognises the right to decent work and prohibits forced labour and exploitation.<\/p>\n<p>Labour provisions are interpreted under protective principles, including primacy of the employment relationship, continuity of employment, non-discrimination and reversal of the burden of proof in favour of the employee.<br \/>\nEmployees\u2019 rights and social benefits are non-waivable, and labour claims generally take priority over other debts. Employment relationships are typically defined by subordination, the provision of services for another party and remuneration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">On what basis can an employee be dismissed in your country, what process must be followed and what are the associated costs? Does this differ for collective dismissals and if so, how?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bolivian labour regulations provide strong job stability protection. Employees may be dismissed for just cause, such as serious misconduct or breach of contractual duties, among other causes identified in the regulations. If an employee is dismissed without justified cause, in case of acceptance the employer must generally pay statutory benefits, including severance compensation (one month\u2019s salary per year of service) and dismissal compensation (desahucio, equivalent to three months\u2019 salary), when termination is abrupt. If the employee does not accept the dismissal, he\/she may demand to be reinstated to the same position.<\/p>\n<p>Dismissals must be documented and accompanied by payment of all accrued labour benefits. Collective or mass dismissals are subject to stricter scrutiny, as the constitutional principle of employment stability (inamovilidad laboral) limits unjustified large-scale terminations and may require strong legal justification before labour authorities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have a system of employee representation \/ participation (e.g., works councils, co-determined supervisory boards, trade unions etc.)? Are there entities which are exempt from the corresponding regulations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Employee representation is primarily exercised through trade unions, as recognized by the Political Constitution and the General Labour Law. Bolivia does not generally provide for works councils or co-determination mechanisms commonly found in some other jurisdictions.<\/p>\n<p>Union organizations operate independently from the State and employers, and union leaders benefit from statutory protection (fuero sindical) against dismissal during their mandate and for a period thereafter. Unions may be formed at the company, industry or professional level, subject to minimum membership requirements. In practice, union presence varies significantly across sectors, and many private companies operate without unionized workforces.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a system governing anti-bribery or anti-corruption or similar? Does this system extend to nondomestic constellations, i.e., have extraterritorial reach?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bolivia has a legal framework governing corruption, bribery and illicit enrichment, primarily under Law No. 004 (2010), which establishes criminal offences related to corruption and mechanisms for the investigation of illicit assets. Institutional coordination is carried out through national bodies responsible for anti-corruption policy and enforcement, involving authorities such as the Public Prosecutor\u2019s Office, the Comptroller General, the Financial Investigations Unit (UIF) and other government agencies.<\/p>\n<p>In parallel, Law 262 (2012), created a national coordination framework for combating money laundering and terrorist financing, led by economic, justice and security authorities. While Bolivian criminal law is primarily territorial, authorities may cooperate with foreign regulators and international institutions in investigations involving cross-border transactions or assets.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, are the laws relating to economic crime? If such laws exist, is there an obligation to report economic crimes to the relevant authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bolivia regulates economic crimes through several statutes incorporated into the Criminal Code and related legislation. Key laws include Law 1768 (1997), which introduced the offence of money laundering and created the Financial Investigations Unit (UIF), and Law 004 (2010) addressing corruption and illicit enrichment. Additional reforms under Laws 170 (2011) and 262 (2012) strengthened provisions on money laundering and terrorism financing.<\/p>\n<p>Bolivian law also establishes reporting obligations for certain regulated entities, particularly in the financial sector. Under Law 393 (2013) and related regulations, financial institutions must apply know-your-customer (KYC) and due diligence procedures and report suspicious transactions to the UIF.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is money laundering and terrorist financing regulated in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Money laundering and terrorist financing are mainly regulated by the laws provided in section 18 above.<\/p>\n<p>The Financial Investigations Unit (UIF) is a decentralized entity under the tutelage of the Ministry of Economy and Public Finances. The UIF is a member of the Egmont Group of financial intelligence units and serves as the link between the Plurinational State of Bolivia and the Financial Action Task Force of Latin America (GAFILAT).<\/p>\n<p>The UIF is in charge of regulating the regime for combating money laundering and the financing of terrorism, in consultation with the Ministry of Economy and Public Finances and the supervisory authorities; investigating cases in which the commission of crimes of legitimization of illicit gains, financing of terrorism, and other crimes within its competence is presumed; and carrying out the analysis, processing, and transmission of information to prevent and detect such crimes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there rules regulating compliance in the supply chain (for example comparable to the UK Modern Slavery Act, the Dutch wet kinderarbeid, the French loi de vigilance)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bolivia does not currently have a specific legal framework regulating supply chain due diligence comparable to legislation such as the UK Modern Slavery Act or the French Loi de Vigilance. However, general provisions under labour, criminal and anti-trafficking laws prohibit forced labour, exploitation and child labour, and these rules may indirectly apply to business operations and contractual relationships within supply chains.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please describe the requirements to prepare, audit, approve and disclose annual accounts \/ annual financial statements in your jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Commercial Code, companies must prepare annual financial statements, including the balance sheet, income statement and inventory records, reflecting the financial position and results of operations for the fiscal year. Financial statements must be prepared using generally accepted accounting principles and applicable accounting standards to ensure an accurate representation of the company\u2019s assets, liabilities and results.<\/p>\n<p>In corporations (SA), financial statements are typically reviewed by the statutory controller (<em>s\u00edndico<\/em>) and submitted for approval to the shareholders\u2019 meeting. An external audit may be required where mandated by law, regulations, company by-laws or when securities are offered to the public. Companies may also be required to submit financial statements to the relevant authorities in accordance with applicable regulations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please detail any corporate \/ company secretarial annual compliance requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The most common corporate forms in Bolivia are the limited liability company (SRL) and the corporation (SA). Both entities must hold an ordinary partners\u2019 or shareholders\u2019 meeting at least once per year, typically within three months after the close of the fiscal year, to approve the annual financial statements, management reports and profit distribution, and to appoint or remove managers, directors or statutory controllers, as applicable.<\/p>\n<p>Companies must also maintain corporate records and accounting books in accordance with the Commercial Code. In addition, commercial companies are required to annually renew their commercial registration with the Commercial Registry (SEPREC) and comply with other applicable corporate filings depending on the nature of their activities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a requirement for annual meetings of shareholders, or other stakeholders, to be held? If so, what matters need to be considered and approved at the annual shareholder meeting?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Under the Commercial Code, companies must hold an ordinary annual meeting of shareholders or partners, generally within three months following the end of the fiscal year. At this meeting, the shareholders typically review and approve the annual financial statements, the management and controller\u2019s reports, and the distribution of profits or treatment of losses. The meeting may also address the appointment or removal of directors, managers or statutory controllers, and any other matters relating to the management and operation of the company.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any reporting \/ notification \/ disclosure requirements on beneficial ownership \/ ultimate beneficial owners (UBO) of entities? If yes, please briefly describe these requirements.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bolivian regulations require companies to identify and report their ultimate beneficial owners (UBO) to the Commercial Registry (SEPREC) and the National Tax Service (SIN).<\/p>\n<p>Under Supreme Decree 4904 (2023), and subsequent regulations, a beneficial owner is generally defined as the natural person who directly or indirectly holds 20% or more of the share capital or ownership interests of a legal entity. Where no individual meets this threshold, the beneficial owner may be the person exercising effective control by other means, or ultimately the individual holding the highest managerial position.<\/p>\n<p>Companies must disclose this information during registration and update it periodically, including through filings with the tax authorities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What main taxes are businesses subject to in your jurisdiction, and on what are they levied (usually profits), and at what rate?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The main taxes affecting companies are as follows:<\/p>\n<p><strong>Corporate Income Tax (IUE):<\/strong> Generally levied on net income (income minus expenses) at a rate of 25%.<\/p>\n<p><strong>Corporate Income Tax on Payments to Foreign Beneficiaries (IUE-BE):<\/strong> Generally applies to remittances of profits to foreign beneficiaries (i.e., payment of profits to a foreign shareholder), at a rate of 12.5% on the amount remitted or paid abroad.<\/p>\n<p><strong>Value Added Tax (IVA):<\/strong> Applies to the sale of goods and services and to imports, at a rate of 13%. The tax is included in the sale price and may not be shown separately.<\/p>\n<p><strong>Transactions Tax (IT):<\/strong> Levied on the gross revenues derived from business activities, at a rate of 3%. The Corporate Income Tax (IUE) paid on an annual basis may be credited against the IT until it is fully offset, after which the IT must be paid.<\/p>\n<p><strong>Specific Consumption Tax (ICE):<\/strong> Imposed on certain consumer goods, such as tobacco and tobacco products, alcoholic and non-alcoholic beverages, and vehicles. Rates vary depending on the product.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any particular incentive regimes that make your jurisdiction attractive to businesses from a tax perspective (e.g. tax holidays, incentive regimes, employee schemes, or other?)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bolivia provides several tax incentives aimed at promoting exports, productive investment and industrial development. Exporters benefit from a zero rate of Value Added Tax (IVA), the refund of IVA input credits, and the issuance of Tax Refund Certificates (CEDEIM). Additional incentives include tax and customs benefits for companies operating in free zones, as well as IVA exemptions for the importation and commercialisation of capital goods and industrial plants used in productive sectors such as agriculture, industry, construction and mining.<\/p>\n<p>Recent measures also encourage investment through tax benefits for the reinvestment of profits, potential accelerated depreciation for fixed assets, and greater flexibility in offsetting corporate taxes. Bolivia has also entered into Double Taxation Agreements (DTAs) with Argentina, Germany, Spain, France, the United Kingdom and Sweden, and is a party to a multilateral tax agreement within the Andean Community (CAN), which includes Peru, Ecuador and Colombia, facilitating cross-border investment and reducing the risk of double taxation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any impediments \/ tax charges that typically apply to the inflow or outflow of capital to and from your jurisdiction (e.g., withholding taxes, exchange controls, capital controls, etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned in point 25, the remittance of profits to foreign beneficiaries is subject to a 12.5% tax on the amount remitted or paid abroad, under the Corporate Income Tax on Payments to Foreign Beneficiaries (IUE-BE).<\/p>\n<p>With respect to foreign exchange, Bolivia does not maintain formal exchange controls; however, the Central Bank of Bolivia determines the official exchange rate for the Boliviano against the US dollar. International transfers are also subject to reporting obligations and anti-money laundering controls under the supervision of the Financial System Supervisory Authority (ASFI).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any significant transfer taxes, stamp duties, etc. to be taken into consideration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Bolivia, there are no generally applicable significant transfer taxes or stamp duties.<\/p>\n<p>Reference may be made to the Financial Transactions Tax (ITF), which, in general terms, applies to credit and debit transactions in current accounts and savings accounts held in foreign currency and in Bolivianos with maintenance of value, with financial institutions acting as withholding agents. The applicable rate is 0.3% of the amount of the transaction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any public takeover rules?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bolivia does not have a comprehensive public takeover regime comparable to those of more developed capital markets. Public acquisitions of listed companies are primarily governed by the Securities Market Law 1834 (1998), which regulates the issuance, public offering and trading of securities, as well as disclosure and registration requirements for listed companies.<\/p>\n<p>Supervision of securities market activities is carried out by the Financial System Supervisory Authority (ASFI). In addition, the Commercial Code establishes general corporate rules applicable to stock corporations, including listed companies, although it does not provide specific procedures for mandatory takeover bids.<\/p>\n<p>In certain regulated sectors, such as financial institutions, acquisitions of significant shareholdings may require prior regulatory approval.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a merger control regime and is it mandatory \/ how does it broadly work?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no general merger control regime in Bolivia. Rather mergers are only regulated in certain industries through sector-specific regulation. These rules cover the following regulated sectors: telecommunications; electricity generation, transmission, and distribution; hydrocarbons (i.e. oil and gas); water; transport services and financial services (including banking and insurance). However, specific regulations on the filing process are yet to be enacted.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there an obligation to negotiate in good faith?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Bolivian law, parties are required to act in good faith during preliminary negotiations and contract formation. Parties must conduct themselves in accordance with the principle of good faith and may incur pre-contractual liability if damage is caused through negligence, recklessness, or by failing to disclose circumstances that could render the contract invalid.<\/p>\n<p>Accordingly, a party that engages in negotiations without observing this standard may be required to compensate the other party for damages arising from such conduct.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What protections do employees benefit from when their employer is being acquired, for example, are there employee and \/ or employee representatives\u2019 information and consultation or co-determination obligations, and what process must be followed? Do these obligations differ depending on whether an asset or share deal is undertaken?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bolivian current regulation does not provide an obligation to inform or consult employees if the employer is being acquired. The substitution of employers does not affect the validity of existing contracts; for its effects, the substituted employer shall be jointly and severally liable with the successor until 6 months after the transfer. In addition, employees are protected by current labor laws that provides for job stability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please detail any foreign direct investment restrictions, controls or requirements? For example, please detail any limitations, notifications and \/ or approvals required for corporate acquisitions.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Some of the main constitutional restrictions include the following: No foreign person, natural or legal, may acquire property or possess property rights over waters, soil or subsoil within 50 km of the national borders, except in cases of state necessity declared by express law. Natural resources are the \u201cdirect, indivisible and imprescriptible property of the Bolivian people\u201d and are administered by the State. Foreign investors cannot own natural resources and may only operate through contracts with the State. Political Constitution (2009)<\/p>\n<p>All foreign investment is subject to Bolivian jurisdiction, laws and authorities, and no one may invoke a situation of exception or resort to diplomatic claims in order to obtain more favorable treatment. Political Constitution (2009)<\/p>\n<p>More favorable conditions may not be granted to foreign states or enterprises than those established for Bolivians. Also, certain strategic sectors are subject to additional restrictions. For example, broadcasting licenses cannot be granted to foreign persons or entities. Law 164 (2011).<\/p>\n<p>Foreign participation in broadcasting associations is limited to 25% of the total investment unless authorized by the State. Law 164 (2011).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have any exchange control requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bolivia does not maintain a comprehensive exchange control regime restricting the inflow or outflow of foreign currency. Foreign investors may generally conduct foreign currency transactions through the local financial system.<\/p>\n<p>Bolivia does not maintain a comprehensive exchange control regime restricting the inflow or outflow of foreign currency. Foreign investors may generally conduct foreign currency transactions through the local financial system.<\/p>\n<p>Under Investment Promotion Law (2014), foreign investors are guaranteed the right to remit abroad freely convertible currency, including net profits after payment of applicable taxes, proceeds from the sale of shares or participations, capital reductions or liquidation, and the repatriation of invested capital.<\/p>\n<p>Foreign currency transactions carried out through the financial system are subject to reporting and anti-money laundering controls, including obligations to provide information to the Financial System Supervisory Authority (ASFI) and to comply with regulations issued by the Financial Investigations Unit (UIF).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the most common ways to wind up \/ liquidate \/ dissolve an entity in your jurisdiction? Please provide a brief explanation of the process.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Bolivian Commercial Code, commercial companies are wound up through dissolution followed by liquidation. Dissolution must be approved by the competent corporate body (shareholders\u2019 meeting in corporations (SA) or partners\u2019 meeting in limited liability companies (SRL)) on grounds established by law or the company\u2019s articles of incorporation.<\/p>\n<p>Once dissolution is approved, a liquidator or liquidation committee prepares a liquidation balance sheet and carries out the liquidation process, including the realization of assets and payment of liabilities. During this stage, the company retains legal personality only for liquidation purposes.<\/p>\n<p>After liabilities are settled, the partners or shareholders approve the final liquidation balance sheet and distribution of remaining assets. The liquidation deed and distribution plan must be published, and the company is extinguished upon cancellation of its registration in the Commercial Registry (SEPREC).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4121<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/134566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=134566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}