Guatemala

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Operating a Business in Guatemala

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Sociedad de Responsabilidad Limitada is a Private Limited Company.	Minimum 2 partners. Maximum 20 partners. Liability is limited to the investment capital.	Certified copy of the deed of incorporation for filing with the commercial register: GTQ 650. Application for trading license: GTQ 165. Submit company accounting books and books of minutes of shareholder and board of directors meetings: GTQ 0.15/page. Application for book of salaries authorisation from the Inspection of the Department of Labour: GTQ 0.5/page.
Sociedad Anonima is a Public Limited Company	Minimum 2 partners. Liability is limited to the amount of shares held.	Certified copy of the deed of incorporation for filing with the commercial register: GTQ 650. Application for trading license: GTQ 165. Submit company accounting books and books of minutes of shareholder and board of directors meetings: GTQ 0.15/page. Application for book of salaries authorisation from the Inspection of the Department of Labour: GTQ 0.5/page.
Sociedad Collectiva is a general partnership.	Minimum 2 partners. Partners' liability is unlimited and joint.	Certified copy of the deed of incorporation for filing with the commercial register: GTQ 650. Application for trading license: GTQ 165. Submit company accounting books and books of minutes of shareholder and board of directors meetings: GTQ 0.15/page. Application for book of salaries authorisation from the Inspection of the Department of Labour: GTQ 0.5/page.
Sociedad en Comandita Simple is a limited partnership.	Two types of partners: active partners and sleeping partners. Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed as long as they do not take part in the company management.	Certified copy of the deed of incorporation for filing with the commercial register: GTQ 650. Application for trading license: GTQ 165. Submit company accounting books and books of minutes of shareholder and board of directors meetings: GTQ 0.15/page. Application for book of salaries authorisation from the Inspection of the Department of Labour: GTQ 0.5/page.
Sociedad en Comandita por Acciones is a partnership limited by shares.	Two types of partners: active partners and sleeping partners. Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount of shares held as long as they do not take part in the company management.	Certified copy of the deed of incorporation for filing with the commercial register: GTQ 650. Application for trading license: GTQ 165. Submit company accounting books and books of minutes of shareholder and board of directors meetings: GTQ 0.15/page. Application for book of salaries authorisation from the Inspection of the Department of Labour: GTQ 0.5/page.

Business setup procedures: Import procedures: See the Maga website. The administrative procedures are done at the Registro Mercantil (Trade Register) (Spanish only).
The competent organization: Company registration is done at the Registro Mercantil.

Working conditions

Legal weekly duration: 45 hours
Retirement age: 65 years
Working contracts: The majority of the Guatemalan workers do not have a work contract, they are part of the informal sector. For the remainder, there are 3 types of written contracts which have to be signed in triplicate: one copy for the employee, one copy for the employer and one copy has to be remitted to the administrative department of labor. See Ministry of Labor website.

- Open ended contract
- Temporary contract
- A contract for a specific project or the length of the contract is dependant on the completion of a specific project.

There are also verbal contracts which are valid for domestic services, labor in fields and temporary work not exceeding 60 days, however, the employer has to provide a document with the date of commencement of work and the salary amount.
Refer to the Labor Code

Cost of labor

Minimum wage: USD 6.95 per day in the agricultural sector and USD 7.12 in the non-agricultural sector.
Average wage: The average salary more or less corresponds to the minimum salary. There are often salary brackets negotiated by each sector like in the textile industry for example.
Social contributions: Social security contributions paid by employers: 10.67%
Social security contributions paid by employees: 4.83%

Social partners

Social dialogue and involvement of social partners: The two most representative Unions are: The Central Agricultural Workers, Guatemala Confederation of Syndicate Unity (CUSG) and the Central Guatemalan Workers (C.G.T.G.), Guatemalan Workers Union Syndicate (UNSITRAGUA).
Unions: Guatemala unions website
Unionization rate: It has to be noted that the unions do not have a lot of power; only 8% of employees in the formal sector belong to a union.
Labor regulation bodies: Ministry of Labor and Social Security

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