New arrivals – May 8, 2019
The objective of the regulation is to develop the normative precepts contained in the Entrepreneurship Strengthening Law, Decree Number 20-2018 of the Congress of the Republic of Guatemala; as well as establishing the structure and functions of the Entrepreneurship Strengthening Unit.
With the aim of keeping you informed, below are some obligations and changes that will arise as a result of the entry into force of said regulation:
Obligations within the Entrepreneurship Societies established in the Regulation of the Entrepreneurship Strengthening Law:
- Obligation to obtain authorization to use the company name, by the interested party prior to entering the file in the General Mercantile Registry of the Republic.
- Entrepreneurship Companies whose authorized capital has been subscribed and paid in full, must submit the Notice of Share Issuance to the General Mercantile Registry of the Republic and publish it in the Electronic System of the General Mercantile Registry of the Republic.
- Obligation of the Administrator of the Entrepreneurship Company to publish in the Electronic System of the General Mercantile Registry of the Republic the Income Statement of each fiscal year. It must be signed by the administrator and the registered accountant of the Company. Failure to publish for two consecutive periods will be reported by the Mercantile Registry to the Ministry of Economy, in which case there will be a sanction.
Changes derived from the Regulation of the Entrepreneurship Strengthening Law:
- Electronic delivery of the Company's book authorizations.
- The resolution of the modification of the contract of the Entrepreneurship Company must be taken through a Shareholders' Meeting.
- The formalization of the modifications consisting of: Extension, Name Change, Reduction, Capital Increase and form of administration of an Entrepreneurship Company will be made through an Electronic Contract through the platform provided by the General Mercantile Registry of the Republic.
- Merger, Transformation, Dissolution and liquidation contracts of companies will continue to be regulated by the Commercial Code.
For any questions or comments, do not hesitate to contact us at: guatemala@latinalliance.co o rolivares@latinalliance.co