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flag Guatemala Guatemala: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

Sociedad de Responsabilidad Limitada is a Private Limited Company.
Number of partners: Minimum 2 partners, maximum 20.
Capital (max/min): GTQ 5,000
Shareholders and liability: Liability is limited to the investment capital.
Sociedad Anonima is a Public Limited Company
Number of partners: Minimum 2 partners.
Capital (max/min): GTQ 5,000
Shareholders and liability: Liability is limited to the amount of shares held.
Sociedad Collectiva is a general partnership.
Number of partners: Minimum 2 partners.
Capital (max/min): GTQ 5,000 of minimum capital.
Shareholders and liability: Partners' liability is unlimited and joint.
Sociedad en Comandita Simple is a limited partnership.
Number of partners: Two types of partners: active partners and sleeping partners.
Capital (max/min): GTQ 5,000 of minimum capital.
Shareholders and liability: 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.
Sociedad en Comandita por Acciones is a partnership limited by shares.
Number of partners: Two types of partners: active partners and sleeping partners.
Capital (max/min): GTQ 5,000 of minimum capital.
Shareholders and liability: 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.
The Competent Organization
Company registration is done at the Registro Mercantil.
Search a Company or a Financial Report
Companies Registry
 
Setting Up a Company Guatemala Latin America & Caribbean
Procedures (number) 12.0 9.0
Time (days) 40.0 53.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Guatemala.
Trade Register

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The Active Population in Figures

20112013
Labor force 5,571,0004,465,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -66.90%67.60%
Men activity rate 87.90%88.30%88.30%
Women activity rate 48.10%48.80%49.00%

Source: UN - United Nations

 

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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 (in Spanish)website (in Spanish).

- Open ended contract
- Temporary contract
- A contract for a specific project or the length of the contract is dependent 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

Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
GTQ 2,161 per month (source: ILO, 2011).
Average Wage
Gross average monthly wage of men: GTQ 2,086 (source: ILO, 2011);
Gross average monthly wage of women: GTQ 1,707 (source: ILO, 2011).
Social contributions
Social Security Contributions Paid By Employers: 10.67%
Social Security Contributions Paid By Employees: 4.83%

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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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Last Updates: January 2015