DIFFERENCE BETWEEN PRODUCTIVE AND NON-PRODUCTIVE COMPANIES IN BOLIVIA

PRODUCTIVE COMPANIES

According to these rulings, a company is considered productive if:

• It is involved in the creation or transformation of material goods.
• It generates profits through a productive apparatus, i.e., through the means and tools that enable the production of goods or services with economic value.
• It offers physical products (manufactured goods) or what the Court refers to as “servuctos”.

WHAT ARE “SERVUCTOS”?

The definition of servucto—though somewhat ambiguous—originates from modern management science and refers to the intersection between tangible products and intangible services. A servucto is:

• A service that is materialized into a product (e.g., an app that offers a personalized service).
• Or a product enhanced with added services (e.g., an appliance that includes installation, maintenance, and technical support).

EXAMPLES OF PRODUCTIVE COMPANIES

• A furniture factory that transforms wood into physical products.
• A bottling plant that produces and distributes beverages.
• A software company that sells licenses and provides technical support, updates, and maintenance (servucto).
• An architecture firm that designs plans (intangible product) and also supervises construction, provides printed blueprints, renders, and delivers the completed project (servucto).

NON-PRODUCTIVE COMPANIES

Conversely, the Court considers non-productive those companies that:

• Are engaged in providing intangible services, without transforming raw materials or producing goods.
• Lack a productive apparatus in the economic or industrial sense.
• Do not generate profits through tangible goods or servuctos, but only through direct service delivery.

EXAMPLES OF NON-PRODUCTIVE COMPANIES

• Law firms that offer legal advice without delivering a physical product.
• Human resources consultancies that only provide training or advisory services.
• Dental clinics that provide medical care but do not manufacture products or materials.
• Educational centers that teach without generating marketable goods or services.

AMBIGUITIES AND NECESSARY INTERPRETATIONS

The definition of servucto is undoubtedly the most complex and ambiguous aspect of this jurisprudential approach. The Court does not offer a clear formula to distinguish when a service becomes a servucto. In practice, this requires a case-by-case analysis, evaluating whether:

• The service adds value through physical or technological components.
• The company transforms the service into a marketable product or one with tangible features.
• There is a structured production process with material or quasi-material outcomes.

CONCLUSION

The distinction between productive and non-productive companies carries significant legal consequences in Bolivia, particularly in the calculation of the longevity bonus. If your company generates profits through physical products or servuctos, the bonus is based on three national minimum wages. If your business is limited to pure service provision, the bonus is calculated based on one minimum wage.