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Doing Business in Bolivia

Bolivia is a country with more than 11 million inhabitants located in South America. Its historical capital is Sucre, the political capital (seat of government) is La Paz and the economic capital Santa Cruz, which contributes more than a quarter of the country's Gross Domestic Product. Bolivia is divided into nine departments, each with particular cultural and productive traits. The official and most widespread language is Spanish. The currency in current use is Bolivian (BOB), however, transactions in US dollars are usual, mainly for real estate and vehicles.

What are the outstanding economic features?

Economy: The economy rests on Bolivian oil and gas production, mining and agro, income per capita ranges 4,000 per annum and the national minimum monthly wage is 295 USD.

Which is the tax burden for corporate profits?

Within the Bolivian tax system, profits are taxed at a 25% rate, the source principle is applied, i.e. falls on benefits obtained from activities partial or totally undertaken in the country.

Is there a value added tax?

Yes, value added tax rate in Bolivia is 13%, and there are other specific taxes, so in the design of any commercial transaction tax influence should be considered on each business stage or type of product.

What are the usual corporate figures in Bolivia?

Under Bolivian law, commercial companies can only be incorporated as one of the following types:

  • Collective Society.

  • Limited Partnership.

  • Limited Liability Company.​

  • SA. Corporations​.

  • Company Limited by Shares .

  • Association Accidental or Participation Accounts.

However, the most common types of companies in Bolivia are Limited liability Companies and SA. Corporations.

The study has experience in designing commercial operations, incorporation of companies, subsidiaries, branches, corporate changes, due diligence, and accompaniment to regular business processes for companies that choose to be installed in the country.

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