LEGAL CAPACITY FOR FOREIGN COMPANIES IN BOLIVIA
A company incorporated abroad remains valid under the laws of the country in which it was established. However, in order to operate legally in Bolivia, it must comply with national regulations. Legal recognition of its capacity is subject to registration with the Commercial Registry, authentication of documents, and the establishment of a branch or permanent representation with a local address.
For example, a Chilean logistics company wishing to operate continuously in Bolivia must first formalize its legal presence by meeting all the requirements outlined below.
REQUIREMENTS TO REGISTER A FOREIGN COMPANY IN BOLIVIA
To engage in regular commercial activities, the foreign company must follow these steps:
DOCUMENT PROTOCOLIZATION
The articles of incorporation, bylaws, amendments, and regulations must be protocolized before a notary public in the location where the company will be domiciled in Bolivia. This protocolization requires prior judicial authorization and must be accompanied by an internal resolution of the foreign company authorizing the opening of a branch or permanent representation, with the express designation of legal representatives in Bolivia, vested with broad powers to act both judicially and extra-judicially.
ESTABLISHMENT OF DOMICILE AND ASSIGNED CAPITAL
The company must establish a physical address in Bolivia and demonstrate that the capital assigned to its operations has been fully paid. In some regulated sectors—such as banking or finance—minimum capital thresholds may apply.
For instance, a U.S.-based tech company that decides to open a permanent office in Santa Cruz must not only protocolize its documents but also demonstrate that it has transferred sufficient capital to Bolivia to support its operations.
LEGALIZATION AND AUTHENTICATION OF DOCUMENTS
FOREIGN COMPANIES WITH UNRECOGNIZED LEGAL STRUCTURES IN BOLIVIA
If a foreign company has a legal structure not recognized under Bolivian law, it may petition a judge to determine the closest equivalent under national law. This will allow the company to comply with the relevant registration, publication, and other legal formalities.
SPECIAL REGULATIONS FOR FOREIGN FINANCIAL ENTITIES IN BOLIVIA
Foreign companies intending to operate in the financial sector must meet additional requirements set by the Financial System Supervisory Authority (ASFI). They may only operate as multiple-service banks, SME banks, savings and credit cooperatives, or other recognized forms. Furthermore, they must be explicitly authorized by ASFI and often must comply with specific passive, active, and service-based operations under strict regulation and supervision.
For example, a Peruvian financial institution intending to offer loans in Bolivia must register as an SME bank or development finance entity and obtain direct authorization from ASFI before beginning operations.
KEY STEPS TO OPERATE LEGALLY IN BOLIVIA
Registering a foreign company in Bolivia involves a combination of legal, administrative, and judicial requirements aimed at ensuring transparency, regulatory compliance, and the protection of local interests. Proper document protocolization, establishment of a permanent domicile, and formal authentication are essential steps for operating legally within Bolivian territory.
Our law firm provides specialized legal counsel for the registration of foreign companies, including legal representation, document protocolization, and compliance with ASFI requirements. Contact us to ensure the success and legal integrity of your business operations in the country.
Frequently Asked Questions (FAQs)
Can a foreign company operate in Bolivia without registration?
Only if it carries out isolated and non-habitual activities. For permanent operations, formal registration is required.
How long does the registration process take?
The timeframe may vary depending on the complexity of the documents, jurisdiction, and judicial workload, but it generally takes between one and three months.
Is it mandatory to have a legal representative in Bolivia?
Yes. A person must be appointed with broad powers to act on behalf of the company, both judicially and extra-judicially.
What happens if the company’s legal structure does not exist in Bolivia?
A petition may be filed before a judge to determine the most similar legal structure under Bolivian law in order to comply with formal requirements.
Which authority regulates foreign financial entities in Bolivia?
The Financial System Supervisory Authority (ASFI) is responsible for authorizing and regulating their operations in Bolivia.
- Political Constitution of the Plurinational State of Bolivia
- Bolivian Commercial Code
- Financial Services Law
- Financial System Supervisory Authority (ASFI)
- Plurinational Legislative Assembly. (n.d.). Commercial Code of the Plurinational State of Bolivia. La Paz.
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.
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