How to Set Up an Entity in Bolivia

Bolivia offers a growing and increasingly accessible business environment for foreign investors. With natural-resource wealth, expanding trade links across South America, and recent efforts to streamline business registration, setting up a legal entity in Bolivia can unlock access to local banking, formal contracts, and long-term operating flexibility.

The process is moderately bureaucratic: there are several mandatory steps—drafting notarized documents, registering with the commercial registry, obtaining a tax ID, and opening a bank account. But compared with many jurisdictions, Bolivia’s barriers to entry are relatively low, especially for small and medium enterprises.

The main challenges often include document legalization (especially for foreign shareholders), compliance with local formalities, and translation into Spanish. On the plus side, benefits include limited liability, the ability for foreigners to hold 100% ownership, low minimum capital requirements, and relatively low entry costs.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Bolivia?

In Bolivia, “opening an entity” means legally constituting a company under national commercial law, registering it with the commercial registry, and obtaining fiscal recognition so the company can sign contracts, open bank accounts, hire employees, and carry out business operations. This involves choosing a legal form (e.g., local company or branch), drafting incorporation documents, registering with the authorities, and obtaining tax and employer registrations.

Entity overview in Bolivia

A summary of the typical legal company structure for foreign investors in Bolivia follows below. The most commonly used structure is a private limited liability company.

Step-by-step guide: How to open an entity in Bolivia

Step 1: Choose the right structure

Most foreign investors and SMEs in Bolivia opt for a Sociedad de Responsabilidad Limitada (S.R.L.), due to its simplicity, limited liability protection, and low capital requirement. For larger ventures or businesses intending to raise capital publicly, a Sociedad Anónima (S.A.) may be more appropriate. Alternatively, a foreign company may open a branch (sucursal) or operate as a sole proprietorship in limited cases.

An S.R.L. requires at least two shareholders and a local fiscal address. Liability is limited to the shareholders’ capital contributions. In contrast, an S.A. has more formal structure: shares rather than quotas, more shareholders, and more governance requirements. A branch is not a separate legal entity but an extension of the foreign parent; nevertheless, it must still register locally.

Step 2: Verify business name availability

You must check and reserve your company name with SEPREC through their online registry for “homonimia” (name duplication check). Only once the registry confirms that the name is unique and acceptable can you proceed.

Naming restrictions require the name to be distinctive and not identical to existing registered entities, particularly within the same commercial sector.

Step 3: Prepare incorporation documents

To form an entity, you must draft and prepare the following key documents:

• Notarized deed of incorporation (escritura pública), including articles/statutes
• Identification of all shareholders (passport or ID) and legal representatives. If any shareholder is foreign, apostilled (if from abroad), and translated into Spanish
• Power of Attorney (POA) if shareholders cannot sign in person, granting a legal representative authority to act on their behalf
• Fiscal address (local registered office) documentation

If forming an S.A., additional governance documentation (shareholder/board structure, capital subscription details) will be required.

Step 4: Register with SEPREC

Submit the notarized incorporation deed (and any required POA) to SEPREC (the official commerce registry). For most jurisdictions in Bolivia, this can now be done digitally through SEPREC’s online portal — upload PDFs of required documents, pay the fee online, and follow the process to receive the Matrícula de Comercio (commercial registration certificate).

Upon approval, you’ll receive the official certificate of incorporation (with a validation code/QR) and formal legal existence in Bolivia.

Step 5: Register for tax and social security

Once the company is registered, you must obtain a NIT (Número de Identificación Tributaria) from the national tax authority (Servicio de Impuestos Nacionales, SIN) to carry out fiscal operations, issue invoices, and pay taxes.

If you plan to hire staff, you must register as an employer with the relevant social security and pension authorities and ensure compliance with labor and social security contributions (health, pension, etc.).

Step 6: Open a corporate bank account

With the commercial registration and NIT in hand, you can open a corporate bank account with a local bank. Banks will require the company’s incorporation documents, proof of NIT, and identification of legal representatives. Foreign shareholders may need to provide legalized and translated identification. In practice, having a minimal capital deposit (often recommended at least $1,000) helps to open the account smoothly.

This account is used for capital deposits, operating expenses, payroll, and other business transactions.

Step 7: Set up payroll and employment compliance

To hire employees in Bolivia, you must register the company as an employer with the Caja Nacional de Salud (CNS) or the relevant regional health fund for short-term health coverage, and with one of the country’s two authorized pension administrators—AFP Futuro de Bolivia or AFP Previsión BBVA. These AFPs manage mandatory long-term pension contributions, disability insurance, and the solidarity fund under Bolivia’s pension system. You must also register with the Ministry of Labor, where employment contracts are filed, and must comply with the Ley General del Trabajo (Bolivia’s primary labor law).

Once registered, you must run compliant payroll by calculating and remitting mandatory pension, solidarity, risk-insurance, and health-insurance contributions, while withholding RC-IVA where required. Monthly filings with CNS, the AFPs, and the Ministry of Labor are mandatory. In many municipalities, businesses must also obtain a licencia de funcionamiento before hiring or operating locally.

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Post-registration obligations

After incorporation, Bolivian companies must stay compliant with local governance, tax, and employment rules. This includes:

• Tax and financial reporting: Corporations must file corporate income tax returns, VAT (if applicable), and other fiscal obligations as required by SIN and other authorities
• Corporate registers: Maintain accurate records of shareholders, directors, and beneficial owners, and report any changes to SEPREC
• Compliance tracking: Monitor deadlines for tax filings, social-security contributions, and registry renewals (e.g., the “matrícula de comercio” may have periodic renewal or verification cycles). For many businesses in Bolivia, periodic renewal of registration is required
• Licenses and renewals: Keep any required municipal business licenses current, and renew them as needed.
• Recordkeeping: Maintain accounting, payroll, HR, and transaction records for the legally required period (typically several years) so that they are ready for audits or inspections.
• Employment law compliance: Ensure all employment contracts, payroll, social-security contributions, benefits, and other obligations comply with Bolivian labor law.

Taxes and financial considerations

You are responsible for:

• Corporate income tax: The standard corporate tax applies to profits at a standard 25%
• VAT/GST: Bolivia applies standard 13% VAT to goods and services; registered companies must charge, collect, and remit VAT when applicable
• Payroll/social contributions: When you employ staff, you must contribute to social security, pension, and health systems on behalf of employees, per Bolivian social-security law
• Accounting standards: Companies must maintain proper accounting records per Bolivian accounting and commercial law. For larger companies (especially S.A.), financial statements and, when required, external audits may be obligatory

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Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into the United Kingdom—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Bolivia?
Typically, 2–6 weeks**,** depending on the completeness of all required documents and the speed of registry processing. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
For an S.R.L., as little as Bs 1 (≈ $1 USD) — though many practitioners recommend a more realistic capital deposit (e.g., $1,000) to facilitate banking setup.

Can foreign companies own 100% of an entity in Bolivia?
Yes — foreign individuals or legal entities can fully own a company; local partners are not required for most business structures.

Do I need a local director or representative?
If no shareholder is resident in Bolivia, you must appoint a local legal representative (through a notarized Power of Attorney) to sign documents and act in the company’s name.

How much does it cost to register an entity?
Registration fees are modest; for S.R.L., the cost may start around Bs 455 (plus publication fees). Find out the setup cost with our Entity Setup Calculator.

Can I hire employees before the entity is fully registered?
Typically, no. However, Deel’s Employer of Record (EOR) lets you hire and pay talent immediately while your entity setup is in progress.

Can Deel help me open an entity in Bolivia?
Yes. Deel Entity Setup manages the end-to-end process — from registration to payroll compliance—in over 100 countries. Deel’s local experts handle documentation, filings, and legal requirements on your behalf.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.