Guatemala: Operating a Business

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 200
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 200
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 200
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 200
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 200
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 Organisation: Company registration is done at the Registro Mercantil.

Setting Up a Company	Guatemala	Latin America & Caribbean
Procedures (number)	6.0	8.0
Time (days)	15.0	25.2

Source: Doing Business.

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

	2018	2019	2020
Labour Force	6,690,059	6,879,134	6,410,911

Source: International Labour Organization, ILOSTAT database

Source: International Labour Organization, ILOSTAT database

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

Minimum Wage: GTQ 2,643.21 per month for non-agricultural activities (2016).
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%

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).
Labour Unions: Guatemala unions website
Unionisation 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.
Labour Regulation Bodies: Ministry of Labor and Social Security

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