The Law to Strengthen the entrepreneurship was approved in October 2018 in Guatemala.
It’ll be effective in 2019 and its main objective is to encourage and strengthen the entrepreneurship in the Guatemalan territory by different types of financial and technical resources in order to be more effective in the formation and legalisation of new companies, building a new juridical figure and reducing the times and costs of the process of inscription in the mercantile register. One of the expected benefits of the new law is the economic growth of the country thanks to the job opportunities these new entrepreneurships will create, giving the people the chance to get a better life.
This law contemplates the creation of “the entrepreneurship strengthen unity” by the economic minister to bring in new investors into the country (local and foreign), use them as a resource of capital injection and different ideas of businesses proposed by the entrepreneurs in Guatemala. According to the article 19 of the present law “the total annual income of an entrepreneurship society may not exceed Q5 million (Q5,000,000 or US$644,329.90 approximate), in difference with the other types of society’s allowed by the mercantile register. The entrepreneurship societies won’t need a specific amount of initial capital to begin with its operations.
Additionally, this law tries to cement the entrepreneurship in different education levels including primary, middle school, high school and even universities by different type of programs and educational contents. It was ordered to create the “Entrepreneurship day” and it’ll be celebrated in the 16 of April of every year1.
Guatemala is getting ready for all the needs of formation and legalisation of this new societies of entrepreneurship and businesses and governmental entities are joining efforts in order to create different type of programs in schools and universities, where the entrepreneurship centers are being formed and designated to attend different type of problems like the reduction of unemployment, increasing the business productivity, market competition, finding new markets and fomenting the entrepreneurship culture all over the country.
Contributor:
Lic. Marco Monterroso – Partner
Nexia Guatemala, S.A.
E: mmonterroso@nexiagt.com
