Corporate Law at Bolivia
Here’s an overview of Corporate Law in Bolivia:
🇧🇴 Legal Framework
Bolivia’s corporate law is primarily governed by the Bolivian General Corporation Law (Ley General de Sociedades No. 1777) enacted in 1997, which regulates company formation, governance, mergers, and dissolution.
The law has been amended several times to modernize corporate governance and encourage investment.
Other relevant laws include the Commercial Code and sector-specific regulations.
🏢 Types of Companies
Sociedad Anónima (S.A.) — Joint Stock Company:
Most common corporate form for medium to large businesses.
Capital divided into shares, with shareholders’ liability limited to their investment.
Can be publicly traded or privately held.
Sociedad de Responsabilidad Limitada (S.R.L.) — Limited Liability Company:
Suitable for smaller businesses.
Shareholders have limited liability, and the company is managed by one or more managers.
Sociedad en Comandita — Limited Partnership:
Has general partners with unlimited liability and limited partners whose liability is restricted to their capital contribution.
Other types: civil companies, cooperatives, etc.
⚖️ Company Formation & Governance
Companies are registered with the National Service of Intellectual Property and Commerce (SENAPI).
Minimum capital requirements vary by company type; for example, S.A. requires a minimum capital (set by law or articles of incorporation).
Governance structures typically include a General Shareholders’ Meeting, Board of Directors, and Managers depending on the company type.
Directors and managers owe fiduciary duties and must comply with disclosure and reporting requirements.
📑 Reporting and Compliance
Annual financial statements must be prepared and filed with the relevant authorities.
Public companies must comply with additional disclosure and transparency standards.
Shareholders’ meetings are mandatory to approve accounts and key corporate decisions.
🧭 Practical Considerations
Bolivia’s corporate law framework supports both domestic and foreign investment but can involve bureaucratic processes.
Companies operating in regulated sectors may face additional requirements.
Recent reforms aim to enhance transparency and corporate governance standards.
📚 Summary
Bolivia’s corporate law provides several company forms with limited liability, clear governance frameworks, and mandatory registration and reporting processes. The legal environment continues to evolve to promote investment and protect shareholders.
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