CLASSIFICATION OF PUBLIC COMPANIES AND STATE-PARTICIPATED ENTERPRISES IN BOLIVIA

STATE-OWNED COMPANY IN BOLIVIA

State-Owned Companies are legal entities used exclusively by the State to carry out productive or service activities of strategic or social importance. Their creation must comply with specific public enterprise regulations, and they begin operations upon formal registration.

These entities have an administrative structure composed of a Board of Directors, Executive Management, managerial and operational departments, and an internal oversight body. Board members are required to post a bond and comply with transparency obligations, including the submission of sworn asset declarations.

MIXED ECONOMY COMPANY IN BOLIVIA

A Mixed Economy Company results from the partnership between State entities and private capital, aiming to promote economic activities that serve the public interest. These companies are private legal entities, although their incorporation and operation are governed by special rules that combine principles of corporate and public law.

They operate under the name “Sociedad Anónima Mixta” or the abbreviation “S.A.M.” and are mainly subject to the rules applicable to corporations, with certain exceptions. When the central government is involved, additional regulations for public enterprises apply.

Incorporation requires a partnership agreement, an authorizing Supreme Decree, capital subscription, and registration with the Registry of Commerce. Additionally, state representatives must submit a Sworn Statement of Assets and Income. S.A.M.s are prohibited from creating subsidiaries, and sector participation is limited to the contributed capital.

MIXED COMPANY IN BOLIVIA

In a Mixed Company, the State holds the majority of shares while allowing the participation of national or foreign private investors. Incorporation requires legal authorization, a notarized agreement with specific content, and bylaws aligned with public enterprise regulations.

The Shareholders’ Meeting, composed according to shareholding proportions, is the highest decision-making body. It handles key matters such as capital increases and borrowing, with input from the Strategic Superior Council of Public Enterprises. This structure enables the State to lead management while welcoming private investment.

STATE-MAJORITY MIXED COMPANY IN BOLIVIA

The State-Majority Mixed Company shares similar features with the Mixed Company but requires a state participation of at least 97% and less than 100%. This structure allows for predominantly state management with limited non-state involvement.

Like the previous model, it includes a Shareholders’ Meeting, and board members must post a bond. All public sector representatives are required to submit sworn asset declarations. Its structure responds to the need for control and efficiency in enterprises with high state relevance.

INTERGOVERNMENTAL STATE COMPANY IN BOLIVIA

This model allows joint participation by the central government and autonomous regional governments. It is designed to implement projects with economic or social impact across multiple territorial jurisdictions.

The company must have a clear operational and decision-making structure, ensuring proportional participation of public shareholders. Like other public enterprises, it requires legal authorization, compliant bylaws, and a strict transparency regime.

OTHER CORPORATE STRUCTURES IN BOLIVIA

In addition to the public and mixed-ownership companies described, Bolivian legislation recognizes other legal entities serving specific purposes, including irregular and de facto companies, cooperatives, and foreign companies.

IRREGULAR AND DE FACTO COMPANIES IN BOLIVIA

These are groups that have not fulfilled the formal legal requirements for incorporation but operate effectively in the market. Their partners are jointly and unlimitedly liable to third parties and may dissolve the entity upon the request of any partner or interested party.

COOPERATIVE COMPANIES IN BOLIVIA

Established under special legislation, these entities aim to benefit their members collectively, rather than pursue individual profit. They are subsidiarily governed by the rules of limited liability companies, insofar as such rules do not conflict with their core mission.

FOREIGN COMPANIES IN BOLIVIA

Companies incorporated abroad may operate in Bolivia on a temporary or permanent basis. To conduct regular business, they must legalize their corporate documents, appoint legal representatives, and register with the Registry of Commerce. If their principal business operations are based in Bolivia, they are treated as local companies for legal purposes.

In conclusion, Bolivia offers a wide range of corporate and public enterprise structures, each with specific requirements depending on the type of activity, level of state participation, and need for oversight. This differentiation seeks to ensure both economic efficiency and legal transparency in business operations.