Bolivia

• Author: Pablo Rojas
• Pages: 37-63

37

Bolivia

Pablo Rojas

C.R. & F. Rojas Abogados

CHAPTER 2

COUNTRY OVERVIEW

The Plurinational State of Bolivia is a landlocked country located in the middle of

South America. Bolivia has an area of 1,098,581 square kilometers1 and shares its

borders with Brazil, Paraguay, Argentina, Chile, and Peru.

Bolivia can be divided into the following regions: altiplano—or the highlands,

valleys, and lowland tropic. The B olivian departments of La Paz, Oruro, a nd Potosi

are located in the altiplano western part of the country and have an average alti-

tude of 3,500 meters above sea level. The Bolivian departments of Cochabamba,

Chuquisaca, and Tarija are located in the valleys and have an altitude of 1,000

meters to 3,000 meters above sea level. The Bolivian departments of Pando, Beni,

and Santa Cruz are located near 400 meters above sea level and have a tropical

climate.2

Bolivia has 10,027,254 inhabitants, according to the National Statistics Insti-

tute. The major cities in Bolivia that account for 70 percent of its population are La

Paz, Santa Cruz, and Cochabamba. La Paz is where the government is located, but

Sucre is the official capital where the supreme and constitutional court sits.3

38 Chapter 2

Bolivia is a democracy div ided into nine dec entrali zed and autonomous depart-

ments. The Bolivian State is organized and structures its jurisdiction through the

legislative, executive, judicial, and electoral branches.4

Bolivia is a civil-law country. The Bolivian Constitution also recognizes

indigenous-community justice as part of its judicial system.

ESTABLISHING A BUSINESS PRESENCE

Permanent Structures5

The most common business enterprises incorporated under Bolivian law are cor-

porations and limited liability partnerships (LLPs). These business entities share

common aspects but differ in complexity of structure and methods of ownership.

The organizational structure of a corporation consists of the following tiers:

directors/officers, a comptroller, and three or more shareholders.

Shares represent ownership interests in a corporation. They are freely transfer-

able by endorsement, and such transfers are tax exempt.

The ownership and management structure for an LLP requires a minimum of

two partners. A board of directors is optional, and no comptroller or bylaws are

required.

Capital quotas represent ownership interests in an LLP. Transfers of capital

quotas must be approved by all partners and are tax exempt. Each time partners

transfer capital quotas, the articles of incorporation must be amended.

For the incorporation of a corporation or LLP, the following information is

required:

• name, age, marital status, nationality, profession, domicile, and identifica-

tion number of those people who will become partners or shareholders and /

or name, nature, nationality, and domicile of those entities that will become

partners or shareholders

• there are no limitations or special restrictions for foreign partners or share-

holders; in the case of a foreign entity, a certificate of good standing is

required

• name and domicile

• purpose

• paid-in capital

A minimum of three directors is required for corporations. Board members

may be of any nationality and may reside outside Bol ivia. Corporat ions also require

a comptroller and alternate who must be domiciled in Bolivia. The mentioned cor-

porate bodies are not required for an LLP.