A legal representative in Bolivia is vital for the functioning of a legal entity. The legal representative acts on behalf of the legal entity in order to carry out various regulatory procedures and formalities.
In recent years, Bolivia has managed to maintain a stable economy that favors trade and investment, with sustained growth and low inflation rates.
When doing business in Bolivia through a legal entity, make sure to appoint a trusted legal representative in Bolivia.
Designation and function of the legal representative
When expanding, company owners must appoint the legal representative in Bolivia at the time of incorporation.
The legal representative in Bolivia is a person who acts on behalf of the legal entity in order to carry out various procedures and formalities. Therefore, a company’s legal representative in Bolivia can assume commitments and make decisions that will be attributed to the legal person (company).
If the company is foreign, the legal representative must be appointed through the extension of a Power of Attorney granted by the company owner, in order to represent them in one or more businesses. The Bolivian consulate of the owner’s country of origin and the Ministry of Foreign Affairs in Bolivia must legalize this Power of Attorney.
What are the requirements to be a legal representative in Bolivia?
In order to be appointed as a legal representative in Bolivia, individuals must:
- be of legal age (18 years or older)
- be a natural person or a foreign national with a Bolivian identity card
- have legal residence status in Bolivia
- have the documentation that supports their designation as a legal representative of a legal entity.
Can a foreign national be a legal representative?
Legal representation in Bolivia is essential for the legal functioning of a company. The legal representative of a company in the national territory can be Bolivian or a foreign national. In the latter case, it is essential to prove a sufficient migratory status, which implies having a visa for a specific purpose or for multiple purposes.
Types of legal entities in Bolivia
Foreign business can be made using the following legal entities, all of which require a legal representative in Bolivia:
- Branch of a company incorporated abroad
- Public Limited Company
- Joint Stock Company
- Limited Liability Company
- General Partnership
- Limited Partnership
- Limited Partnership by Shares.
Changing the legal representative
To change a company’s legal representative in Bolivia, owners must complete the commercial registry (Comercio de Registro) request form for registration of commercial acts as a sworn statement, duly completed and signed by the legal representative of the commercial company or individual merchant or client.
The procedure to change the legal representative also requires the notarial testimony granting general or special power and/or revocation of the appointment. This testimony must contain the legislation enabling this change, plus the accreditation of the grantor, as an original or legible legalized photocopy.
To carry out this procedure, the commercial company or sole proprietorship must also communicate this update to the commercial registry.
Liability of the legal representative with emphasis on tax
Bolivian law states that any errors made by the attorney or legal representative are his or her own responsibility. Therefore, before signing or assuming any action you must be sure of what you are going to decide.
A legal representative in Bolivia must be aware of all the responsibilities that this implies. In relation to debts with the National Tax Services (Servicios de Impuestos Nacionales – SIN), the legal representative, in case of non-payment of any type of tax, is responsible and will be notified as their name appears in the database of the National Tax Service.
The person who had been appointed as legal representative at the time can be released from all debts and liabilities if they prove that their dissociation with the company had been done by a power of attorney of that company.
Contact Biz Latin Hub to find a trusted legal representative in Bolivia
The legal representative in Bolivia is essential in the functioning of a legal entity. If you plan to do business in Bolivia get in touch with a trusted legal service provider who will help with the implementation.
Biz Latin Hub offers a full range of professional market entry and back-office services, including company formation and legal representation in Latin America. Contact our team here to start your business in Bolivia.
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