1. CHOOSE THE APPROPRIATE LEGAL STRUCTURE FOR THE COMPANY:

To begin operations in Guatemala, it is necessary to establish a legally recognized business entity in the country.

The most common approach is to create a Public Limited Company - PLC (Sociedad Anónima - S.A.). In this type of entity, the capital is divided into shares, and shareholders’ liability is limited to the amount they have paid for their shares.

REQUIREMENTS:

• - A minimum of two shareholders is required.
• - A bank account must be opened first with a letter from an attorney confirming that the incorporation process is underway. (The bank will open the account provisionally.)
• - The minimum capital required to establish an S.A. is GTQ 200.00 (approximately USD 25.00).
• - Other common business structures include registering a foreign branch of a parent company or acquiring an already established company in the country.

2. CHOOSE THE COMPANY NAME:

It is necessary to select a name for the company to be established. The chosen name must comply with legal requirements, ensuring that it:

• - Is not easily confused with the name of an existing company.
• - Does not contain inappropriate terms.

Once a potential name has been selected, a name search must be conducted through the Commercial Registry (Registro Mercantil) portal to verify its availability.

3. DRAFTING THE COMPANY’S ARTICLES OF INCORPORATION:

To draft the company’s Articles of Incorporation in Guatemala, the following requirements must be met:

REQUIREMENTS:

• - Personal information of the founders.
• - Company name.
• - Type of business entity to be established.
• - Stated capital (amount of money or assets contributed by the founders to establish the company).
• - Company structure, including: (Number of shareholders or partners, decision-making processes, appointment of administrators and legal representatives).
• - Business purpose (description of the activities the company will engage in).
• - Registered business address.

4. REGISTRATION WITH THE COMMERCIAL REGISTRY:

Commercial Registry (Registro Mercantil) is the entity responsible for registering businesses in Guatemala.

To complete the registration process with the Commercial Registry, the following requirements must be met:

REQUIREMENTS:

• - Articles of Incorporation, signed by the founders and a notary.
• - Payment of the registration fee.
• - Personal identification of the founders.
• - Tax Identification Number (NIT).

5. OBTAINING TAX IDENTIFICATION NUMBER (NIT):

To obtain the Tax Identification Number (NIT)—assigned by the Superintendence of Tax Administration (SAT) to each taxpayer—the following requirements must be met:

REQUIREMENTS:

• - Personal Identification Document (DPI).
• - Form SAT-1.
• - Payment of the applicable fee.
• - Registration on the SAT website.
• - Submission of the application at SAT offices.

6. REGISTERING THE COMPANY WITH IGSS AND MINTRAB:

To register a company with the Guatemalan Social Security Institute (IGSS), the following requirements must be met:

REQUIREMENTS:

• - Articles of Incorporation.
• - Company’s Tax Identification Number (NIT)
• - Registration certificate from the Commercial Registry.
• - Personal identification of the company’s founders.
• - Completed registration form.
• - Payment of the applicable fee.
• - Once the company is registered with IGSS, employees must also be enrolled.

To register a company with the Ministry of Labor and Social Welfare (MINTRAB), the following requirements must be met:

• - Articles of Incorporation.
• - Company’s Tax Identification Number (NIT)
• - Registration certificate from the Commercial Registry.
• - Personal identification of the company’s founders.
• - Completed registration form.
• - Payment of the applicable fee.

7. OBTAINING THE REQUIRED LICENSES AND PERMITS

Depending on the type of business, the company may need to obtain additional licenses and permits.