How to Register a Sole Proprietorship in Bolivia
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Bolivia is located in the West-Central region in South America. It is known for being one of the countries with the most significant development in terms of microfinance; a significant part of the economy is informal, which has facilitated the growth of micro-enterprises. According to the World Bank, the annual growth rate of Bolivia GDP averaged 2.2%
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
The registration process of sole proprietorship in Bolivia
In Bolivia, there is a possibility to register as an individual trader (comerciante individual) or sole proprietorship (Empresa Unipersonal); the latter being the most common setup.
A sole Proprietorship in Bolivia is owned by a natural person who exercises trade on their own account, making this a regular economic activity. Some of the benefits of this type of business include the ease of requesting the Tax Identification Number (Número de Identificación Tributario) and opening bank accounts. Also, the process does not require lawyers or notaries.
Decide on the company name
Before setting up, it is necessary to decide on the company name and denomination; it should not contain any other name different from the owner’s or words such as “associates”.
The next step is to process the homonymy control. This process allows you to verify that the company name does not already exist; it is done by filling out this form from the Bolivian Register of Commerce.
To set up the sole proprietorship, it is necessary to register in the Bolivian Register of Commerce (Unidad de Registro de Comercio de Bolivia).
Sole proprietorship registration in Bolivia
To register, you will need the following documents:
- Trade registration application form as an affidavit; you will find the form on the website listed above.
- Identity card and copy of the identity card signed by the owner
- If the initial capital is equal to more than Bs 27,736, you should present the opening balance signed by the individual trader and the professional involved, with the respective original professional solvency granted by the College of Accountants or Auditors. In case the initial capital is less than Bs 27,736, there’s no need to present the opening balance.
FUNDEMPRESA, a non-profit Foundation that supports business development and operates the Bolivian Trade Registry, has created an illustrative guide that shows the detailed step-by-step on how to Register as a sole proprietorship in Bolivia.
Tax Registration in Bolivia
The Taxation Office in Bolivia is called Servicio de Impuestos Nacionales. All taxation procedures must be done using the Tax Identification Number (Número de Identificación Tributario - NIT), which is obtained at the National Taxation Office.
VAT in Bolivia
The standard VAT rate in Bolivia is 13%. VAT is levied on the sale of movable goods and provision of services.