HOW FOREIGN COMPANIES ARE SERVED UNDER THE LAW
Bolivian law establishes two main procedures for serving and summoning foreign-incorporated companies:
The first applies when the foreign company performs isolated acts in the country. In such cases, the service is executed on the agent who participated in the act or contract that gave rise to the legal dispute.
The second applies to companies that maintain a branch or permanent representation within Bolivia. In these cases, the service is validly carried out on the permanent legal representative, who acts on behalf of the company for all judicial and extrajudicial matters.
This structure ensures that every foreign company has a formal channel of judicial communication within Bolivian territory, preventing gaps in liability or denial of legal protection to the parties involved.
JOINT LIABILITY FOR FAILURE TO REGISTER
Any person acting on behalf of a foreign company without complying with the legal requirements for registration and representation assumes personal, joint, and unlimited liability toward third parties for obligations incurred.
This means that if someone enters into contracts or performs commercial transactions in the name of a foreign company that is not properly registered or lacks valid representation, they will be held personally liable—with their own assets—for any resulting damages or contractual breaches.
This provision protects commercial transactions and ensures that foreign companies operate within the legal framework, securing the safety of contractual relationships and maintaining investor confidence.
IMPORTANCE OF PROPER JUDICIAL SERVICE
Proper judicial service ensures that the foreign company is formally notified of the legal process and can exercise its right to defense. If service is performed incorrectly or directed to an unauthorized individual, the resulting procedural acts may be declared null and void, affecting the validity of the entire legal proceeding.
Therefore, foreign companies operating in Bolivia must keep their legal representative information up to date in the Commercial Registry and ensure that such representatives hold sufficient powers to receive court notifications.
In conclusion, judicial service and joint liability of foreign companies in Bolivia are key pillars for ensuring control and transparency in international commercial relations. Meeting the legal requirements for representation and registration prevents legal disputes and reinforces legal certainty for business operations within the country.
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Frequently Asked Questions (FAQs)
How is a foreign company without a branch in Bolivia served in legal proceedings?
Through the agent who participated in the act or contract that led to the dispute.
What happens if the company does not have a registered legal representative in Bolivia?
The individuals acting on its behalf will be personally liable for any obligations incurred.
What responsibilities do legal representatives assume during a trial?
They are jointly liable with the company for actions taken while exercising their representation.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
