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What are the Legal Entities in Bolivia?

What are the Legal Entities in Bolivia?

Find out what legal entities in Bolivia are available for expanding businesses to carry out their commercial operations. There are several legal entities to choose from, and it is wise to seek expert guidance and advice on which is best for you. It is crucial to understand and comply with all legal and accounting requirements for that entity in Bolivia. The Bolivian Commercial Code establishes the following types of Commercial Companies: Collective societySimple limited partnershipLimited liability companyAnonymous societyLimited partnership for shares Accidental association or joint accountsCooperative societies. This article will explain the most common types of legal entities in Bolivia for expanding businesses. Common legal entities in Bolivia: Joint stock company The Joint Stock Company legal entity in Bolivia is popular for large companies. The Joint Stock Company in Bolivia is known as Sociedad Anónima, or S.A. This type of company is popular for large companies. The main characteristics of an S.A. legal entity in Bolivia include: The share capital is represented by securities known as sharesThe partners (shareholders) have limited liability up to the amount of their contributions, i.e. their personal assets are protected from company liabilityAn S.A. can be constituted by the sole act of the founders or by public subscription of shares. Constituted by a single act The S.A. legal entity in Bolivia can be established by a single act. It's constitutive contract must have the following requirements: At least 3 or more shareholdersThe share capital has been fully...

How to Liquidate a Company in New Zealand

How to Liquidate a Company in New Zealand

It is essential to know the steps to liquidate a company in New Zealand if business operations are not playing out as planned in these challenging economic times. Sometimes, the most beneficial action to take is to close company operations to avoid accumulating further expenses. This makes liquidation a viable option for executives when reorganization or further capital injections are not feasible.There are various ways to liquidate, cancel and dissolve business in New Zealand. As a result, it is wise to appoint a trusted legal services specialist in New Zealand who can support you through the liquidation process.This article outlines the most significant steps on how to liquidate a company in New Zealand. There are several options to liquidate a company in New Zealand: voluntarily, by court order, through receivership or solvent liquidation. 1. Decision and method to liquidate A business can go into liquidation through several methods: Voluntary liquidationSolvent liquidationCourt-ordered liquidationReceivership. The liquidation takes immediate effect. The business must close, and its listing is removed from the Companies Office Register. 2. Appoint a liquidator A liquidator can be appointed by court order, Shareholder meeting, or by resolution of a company's creditors at a 'watershed meeting'. These meetings are for creditors to decide upon the future of the business. The appointed liquidator is responsible for managing the company’s unsecured assets, and must freeze them. They must then sell these assets to repay debts owed to creditors and shareholders. The liquidator...

Manage your Business Risks with Due Diligence in Mexico

Manage your Business Risks with Due Diligence in Mexico

When doing business in Mexico, managing your business' risks with due diligence practices is essential to its success and longevity. Language and/or cultural barriers, understanding the market and the way of handling businesses are challenges that foreign business owners can face when expanding abroad. Buying existing companies or partnering with locals are key ways to reduce these challenges and get support navigating an unfamiliar market.However, it’s imperative to protect yourself when undertaking either of these processes in Mexico by conducting thorough due diligence checks of the companies and people you will surround yourself with.The purpose of this process is to minimize the risk present in a transaction by performing a detailed and independent analysis of the various business departments of the firm. Find out more about due diligence in Mexico and how to manage your business risks. Reducing risks and being prepared is key for starting off on the right foot in Mexico. Why is due diligence important in Mexico? Due to its strategic location and large population, Mexico is an attractive base for setting up a business in Latin America. Over the last decades, Mexico has attracted an enormous amount of foreign investment, and increasing numbers of large companies are establishing themselves in the country. These companies commonly enter the market by buying existing companies that hire local employees, or by partnering with other local companies.Despite this, commercial security remains a challenge for Mexico, and companies are encouraged to protect themselves...

How to Liquidate a Company in Chile

How to Liquidate a Company in Chile

As one of the most stable and prosperous countries in South America, Chile is considered a model of political and financial transparency in the region. Over the past decade, its economy has grown strongly. GDP grew by 4% in 2018, and is expected to grow by another 3.4% in 2019 and 3.2% in 2020, according to its central bank. Chile's attractiveness stems from its wealth of natural resources, stability of its macroeconomic system, high growth potential, legal certainty, low level of risk, and the quality of infrastructure. Foreign investors are contributing about US$8.224 billion to the economy (+28% / 2017) to enjoy these benefits.  Chile has a system of foreign business-friendly regulations for expansion into its thriving market, enabling companies to explore new commercial opportunities. But what happens if things don't go as you planned? If your business is not succeeding as you’d hoped, you can consider your exit strategy.  We take a look at the different steps to follow to liquidate a company in Chile.  What is company liquidation in Chile? In the world of finance, business, and economics, liquidating a company is a process that consists of shutting down all activities and redistributing the assets of a company to creditors. This typically occurs when a company is no longer able to pay its financial obligations (debts, loans, or others), it is said to be insolvent. However, businesses that are interested in exiting a market may liquidate voluntarily. This is a smart move if a company cannot foresee a profitable future in the market it’s in. The liquidation process...

Legal Compliance in Paraguay for a Secure Investment

Legal Compliance in Paraguay for a Secure Investment

Paraguay: Where fishing is as popular as football; home to a waterfall twice the width of Niagara Falls and the habitat of the giant guinea pig. Any foreigner would easily recognize Paraguay's unique features. Nevertheless, what may be easy to miss is the multitude of investment opportunities at present in Paraguay. To name a few: there is the quickly expanding cannabis industry, the energy sector and agricultural trades. This is supported by Paraguay’s central location between the South American powerhouses of Argentina and Brazil. Furthermore, Paraguay’s membership in the MERCOSUR community has been looking forward to the “historic agreement” it has made with the European Union. This agreement aims to create a new trade network to “bring Europe and South America closer together in a spirit of cooperation and openness”. However, to place a secure an investment in the many opportunities Paraguay has to offer, one must comply with the country's legislation and any procedures which are to be followed for an investment. Here is a short introduction to corporate legal compliance in Paraguay. Legal Entity Compliance in Paraguay - Law 117/91: Equal opportunities for foreign investors A good starting point with legal compliance in Paraguay would be to look at law 117/91. This law stipulates that foreign investors have the same guarantees, rights and obligations as would have a Paraguayan investor. This means there are no restricted areas or no limitations for foreign investors. Law 60/90: Custom duties for certain goods or services If you are looking to invest in Paraguay,...

How to Get a Patent for Your Commercial Idea in Australia

How to Get a Patent for Your Commercial Idea in Australia

With one of the most welcoming economies for startup businesses, it’s no wonder so many entrepreneurs are looking to do business in Australia. Earning a spot in the top 15 startup-friendly countries in the world, Australia offers many opportunities and legal structures to facilitate the creation and implementation of a new business. In 2017 alone, the country saw over 328,000 new business enter the market. The most popular sector for startups in Australia is within the up-and-coming FinTech industry. Typically, with startups comes new and innovative ideas or inventions to solve problems. Naturally, business people look to protect their unique approaches or creations with government-issued patents. Fortunately for businesses in Australia, the country offers a comprehensive and fair system in which parties can apply for and receive a variety of different types of patents. Commercial - Australia’s Government and Patent Law Australia has an organized, calculated, and regulated approach to the government’s role in patent generation and intellectual property (IP) laws. IP Australia, a Commonwealth Government agency and an agency of the Department of Industry, Innovation, and Science, reviews and administers patents to approved parties. Generally, all patent-related laws are covered in the Patents Act 1990, which covers patent rights, ownership, patent validity, applications, approvals, and amendments. One advantage of getting a patent in Australia is that it will most likely be compatible in other countries. Australia is a member of the World Trade Organization (WTO) and...

How to Hire an Employee or Contractor in Colombia

How to Hire an Employee or Contractor in Colombia

Once a company has been formed and established in Colombia, you will need to hire employees to help you boost your business and take it to the next level. Here we focus on how to hire an employee or contractor in Colombia. Hiring in Colombia - Can the Company Sponsor and Hire Foreign Nationals in Colombia? – YES! Foreign nationals have the same rights and obligations as Colombian nationals. One key difference that an employer or company has to take on board is, when a foreign national enters into an employment contract in Colombia, both the employer and foreign national must meet additional requirements imposed by the Ministry of Foreign Affairs (Ministerio De Relaciones Exteriores) concerning: Entry of the foreign national into Colombia Supervision of the foreign national's stay in Colombia Departure from Colombia If a foreign company hires an employee in Colombia and the contract is carried out in Colombia, the contract must follow the same rules as those that apply to domestic Colombian companies. Essentially, if the work takes places in Colombia, Colombian rules apply, regardless of the employer's origin and where the contract was executed. What If a Colombian Based Company Hires Employees to Work Abroad? Colombian labour law applies to employees if the company and services are rendered in Colombia, thus making the law inapplicable if the services are being delivered outside of the country, even if they are rendered by a Colombian national. What Are the Requirements and General Conditions for Hiring Employees in Colombia? Labor regulation in Colombia complies with the...

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