Last Updated on February 15, 2025
If you’re considering starting your own business, investing, or engaging in similar activities in Bolivia, the first step is to establish a firm or company within the country, ensuring all necessary legal requirements are met. Fortunately, Bolivia allows any foreigner to start a company or business. However, managing it requires fulfilling additional criteria.
Any foreigner is permitted to start a business in Bolivia. Tourists with tourist visas can own companies, but individuals with other visa types, such as work, student, or multiple-entry visas, can both own and operate their companies within the country. Tourists can appoint a legal representative to manage their business.
In this article, we’ll discuss whether you’re permitted to start a business in Bolivia, considering the conditions and restrictions based on your residency status. We’ll also highlight the crucial role of a legal representative in operating a business in Bolivia and outline the general requirements for starting a business here. We are real estate experts and Bolivian citizens who have lived here our entire lives.
Can Foreigners Start a Business in Bolivia?
Yes, you can start a business in Bolivia. In fact, the process is relatively straightforward. You don’t need a minimum investment or any special qualifications to establish a business or company here. *However, there’s one critical requirement* you must meet for your business to operate in Bolivia:
- Your Bolivian company must have a “legal representative” who is either:
- A Bolivian citizen.
- A foreigner with a valid visa.
- A foreigner with temporary or permanent residency.
- A naturalized citizen.
- A company (legal entity).
If you are only “a tourist,” you can be listed as the owner in your Bolivian company’s constitutional statutes, *but you will not be permitted to operate or manage it unless it has a designated “legal representative.”* This representative can be yourself (if you meet the residency requirements mentioned above) or another individual or entity.
Therefore, *depending on your residency status* (tourist, resident, naturalized citizen, company, etc.), you have several options for starting a business in Bolivia.
1) As a Tourist (Not Directly Possible)
While Bolivian law allows any tourist or foreign national to establish and own a company in Bolivia, for it to be operational, the company must have a legal representative who possesses *at least a valid migratory status in Bolivia*.
This means that, as a tourist, you are permitted to form a company in Bolivia, but you won’t be able to operate it unless it has a legal representative who is either:
- A Bolivian citizen.
- A foreigner with valid migratory status (possessing *a valid visa and a foreigner’s ID card*).
Therefore, if you’re in Bolivia as a tourist, you can certainly visit a notary public and establish your company (you’ll only need to present your passport, complete the paperwork, and the company will legally belong to you).
However, this new company, owned by you, cannot operate in any way unless it has a valid legal representative who meets the aforementioned conditions. Nevertheless, as a tourist, you do not meet these conditions, so you *cannot be the legal representative of your newly formed company*.
Consequently, the only way for you, *as a tourist, to operate* a company in Bolivia is through another individual who will act as the company’s legal representative. We’ll clarify this further in the next section.
2) With a Legal Representative (Easier, But Risky)
As we’ve established, while you can own a company in Bolivia as a tourist, it requires a legal representative, other than a tourist, *with the appropriate migratory status*, to be able to operate within the country.
To accomplish this, you need to find someone who can represent your interests and decisions within your Bolivian company. This individual can be either:
- A Bolivian citizen.
- A foreigner with a valid residency status (other than a tourist – for example, someone with a work visa, multiple-entry visa, “specific purpose” visa, among other visa types, as well as a temporary or permanent resident).
- An established company (a legal individual or entity).
The individuals mentioned above can become your company’s “legal representative” *through a power of attorney (duly apostilled)* that you grant to this person or company, authorizing them to represent you and your interests as the owner of the Bolivian company.
However, this approach carries significant risks in Bolivia. As you may be aware, the country has numerous legal challenges, *and some individuals acting as legal representatives may attempt to exploit your situation as a foreigner*. You absolutely must find a trustworthy, ethical, and honest individual or company to represent your interests in the country.
If you can avoid this option, we recommend doing so, as the representative could potentially mislead or even defraud you in various ways. *Finding a reliable, ethical, and honest individual to represent you is quite challenging, even for Bolivians, and numerous problems of all kinds can arise*.
Instead, you should strive to both own and represent your Bolivian company yourself. We’ll explain how to achieve this in the next section.
3) With a Valid Bolivian Visa (Good Option)
Ideally, you should *both own and be the legal representative* of your company. To do so, you’ll need to obtain legal residency status.
By obtaining one of the following Bolivian visas, you’ll *also be eligible* for legal residency status and *a foreigner’s ID card*. This identification document will allow you to represent your company within the country yourself, eliminating the need for another person to act as the legal representative. These visas include:
- Work visa
- Student visa
- Health visa
- Family visa
- “Specific purpose” or “determined object” visa
- A diplomatic ID, consulate ID, or similar, provided by an embassy or consulate.
A foreigner ID card, issued by the Bolivian government, allows any foreigner or individual from overseas *to fully exercise their rights*, including owning real estate properties, operating businesses, opening bank accounts, investing, etc. This is why this document is so important, and *it cannot be obtained with only a tourist visa*. You need one of the other visas mentioned above to acquire this ID card.
Therefore, you can leverage one of the many visa types offered to foreigners for various purposes when staying in our country. Perhaps you’re here for work or health reasons, you’re studying, etc. You can take advantage of this situation to also establish a company within the country.
The drawback of these visas is that they may not allow you to leave the country while they are valid. Additionally, many of these visas only last for around 60 days, or from 30 to 180 days. However, you can extend the visa, transition to temporary residency in the country, or find a suitable legal representative before they expire.
To address these issues, there’s a more suitable visa available: the “Multiple Visa.” You should consider obtaining this visa to conduct business or start a company in the country, as we’ll explain next.
4) By Obtaining the Bolivian “Multiple Visa” (The Best Approach)
Currently, Bolivia offers a more specialized visa geared towards business and investment, known as the Multiple Visa. The primary distinction of this visa is that it allows its holder to *enter and exit Bolivia multiple times* without forfeiting their foreigner’s ID card or temporary residency status.
This visa is better suited for investors and businesspeople, as it allows foreigners to enter and leave Bolivia according to their business or investment needs. This contrasts with other visas, which require the holder to remain in Bolivia while the visa is valid (short departures are permitted), along with other similar restrictions.
However, *obtaining this visa* requires presenting one of the following:
- The NIT number (link) of the Bolivian company that is inviting or employing you to conduct business in the country. This is a tax identification number that proves the company’s existence in Bolivia.
- Your home country company’s articles of incorporation, if you will be representing this company and its business activities in Bolivia. This will demonstrate that you are coming to Bolivia for business purposes and on behalf of this company.
Therefore, the Multiple Visa is more challenging to obtain due to the requirement of meeting one of these two conditions. However, it will allow you to enter and leave Bolivia multiple times and for extended periods without losing your residency and foreigner ID.
As you may have gathered, the Bolivian government presumes that you are coming to Bolivia either to represent a foreign company or because you’ve been invited by a Bolivian company to conduct business here. This is the rationale behind the creation of the “Multiple Visa.”
This is the most advantageous visa for starting a business in Bolivia because:
- You can own your company in Bolivia.
- You can also serve as its legal representative.
- Furthermore, you can enter and leave Bolivia “multiple times,” at any time and for as long as necessary, without losing your valid residency status.
5) As a Permanent Resident or Naturalized Citizen (Long-Term)
Whenever you obtain a Bolivian visa, *you also receive a transitory or permanent residency status* (depending on the visa). This allows you to obtain your foreigner’s ID (except with the tourist visa), and this document enables you to be the legal representative of your Bolivian company, not just the owner.
However, if, while using any of these visas, you reside in Bolivia for more than three years, you are eligible to apply for permanent residency or, by meeting some additional requirements, to apply to become a Bolivian citizen.
These two residency statuses, permanent resident or naturalized citizen, *will also enable you to become the legal representative of your company*.
Therefore, if you plan to be here for an extended period, exceeding three years, *you’ll also be able* to manage your company in Bolivia and serve as its legal representative without any issues.
6) As a Branch of a Foreign Company (Challenging)
There’s another way to establish a company in Bolivia: through the use of branches. *If you own or represent a company outside of Bolivia*, you can establish a branch of it within the country.
Indeed, this is a distinct type of company that can be established in Bolivia. It’s called:
- “Branch of a company incorporated abroad” (Sucursal de sociedad constituida en el extranjero).
You’ll need to complete certain paperwork and meet specific requirements to establish a branch of your foreign company in Bolivia. You can find more details about the requirements in this detailed guide: How to start a business in Bolivia? Link.
Natives vs. Foreigners When Starting a Business in Bolivia
The differences between foreigners and Bolivians when starting a business in Bolivia are minimal, as the laws here treat individuals from other countries and Bolivians equally. However, there are some key distinctions that you should be aware of before starting a business in the country.
In Bolivia, There’s a Distinction Between Owning and Managing a Company
You can own a company in Bolivia simply by being a tourist, but you won’t be able to manage it or represent it in various matters, such as signing contracts, buying or selling, providing goods and services, etc., *with only tourist status*.
In Bolivia, a tourist can only own a company, but a foreigner who is more than just a tourist, with the appropriate visa and residency status, can *also be the manager* (or legal representative) of their Bolivian company.
As we previously mentioned, if you don’t have this option, you can always appoint a legal representative for your Bolivian company, who will act according to your wishes within the country and on behalf of your company.
You Can’t “Run” a Business Without a Foreigner’s ID Card
As a result, when you are more than just a tourist – for example, a temporary resident, a permanent resident, or a naturalized citizen with the correct visa – *you obtain a foreigner’s ID card*.
This document is analogous to an ID card for Bolivians, but for foreigners, and it allows you to operate a business or company and be its legal representative, sign contracts, invest, open a bank account, purchase real estate, work, etc. *In Bolivia, foreigners with only a tourist visa cannot obtain a foreigner’s ID card*.
The Regulations Apply Almost Identically
The Bolivian Constitution and Bolivian laws state that all Bolivians and foreigners are treated equally while in the country. They have the same rights and obligations to the community and its institutions.
However, there are some nuances to this. *Tourists have numerous limitations when engaging in activities beyond tourism in Bolivia*. As we’ve mentioned, they cannot open a bank account, purchase properties, manage a business, invest, or work in the country unless they upgrade to a better residency status with a visa other than the tourist visa.
Therefore, if you want to have your full rights guaranteed in the country when engaging in activities other than tourism, you need to obtain a more suitable visa. We have a comprehensive guide on the different types of visas available in Bolivia, with all their details, here: [Link].
How to Start a Business in Bolivia as a Foreigner?
We’ve discussed the possibility of starting a business and owning a company in Bolivia as a foreigner. Now, let’s examine the steps and requirements for establishing a firm in Bolivia.
You’ll find that the requirements are largely the same for both Bolivians and foreigners. In general, you’ll need to complete the following steps:
- Decide on the type of company you will establish in Bolivia (it can be a corporation, a sole proprietorship, a limited liability company, or a branch, among other types).
- Visit a Bolivian notary public to formally establish your company.
- Appoint a legal representative for your company, who will be responsible for all legal matters and operations in dealings with Bolivian public institutions (you’ll need to designate them in the public deed of incorporation for your company, at the notary public’s office).
- Register this new company with SEPREC (Bolivia’s company registry authority).
- Register this company with the SIN (Bolivian tax authority, Sistema de Impuestos Nacionales). Link
- Register this company with the local government where it will operate (for example, in the city of La Paz, with the La Paz government).
- Register this company with a Bolivian pension fund; these are called AFPs.
- Register your company with a health insurance institution in Bolivia (to provide your employees with access to medical services).
- Register logos and other intellectual property related to this company with SENAPI and other relevant institutions.
To complete all this paperwork and fulfill all these requirements, you’ll need approximately $1,000 to $2,000, and the procedures will take about one to two months to finalize.
However, remember that *these are only the general steps and requirements* for starting a company in Bolivia. Many details, risks, and precautions are not covered here, as they are beyond the scope of this article. We have another guide where you can find all the details you need for a more in-depth understanding of how to establish a firm here.
We have a comprehensive guide covering all the steps, requirements, costs, precautions, and other details for starting a business in Bolivia as a foreigner, available here: How to start a business in Bolivia? A definitive guide. Link
Conclusions:
In this guide on whether or not you can start a business in Bolivia, you’ve learned that any foreigner can establish a business and company here. However, you’ve also realized that foreigners, as tourists, can only own businesses in the country and will require a legal representative to operate and manage them.
You’ve discovered that, depending on your residency status, you have six different ways to start a business in Bolivia. If you’re a tourist, you’ll need a legal representative to run the business. If you have other types of visas, such as work, family, health, study, multiple-entry, or similar visas, you can also become the legal representative of your company and manage it yourself.
You’ve also seen that a foreign company can establish a branch in Bolivia without any difficulty, by completing the appropriate paperwork and meeting the necessary requirements. Additionally, you’ve recognized the key distinction between owning and running a business in Bolivia, and that tourists can only own a business, while other foreigners can both own and manage their businesses within the country.
Finally, you’ve learned that to start a company in the country, you’ll need to: choose the type of company you’ll establish, visit a notary public to sign the company’s statutes, appoint a legal representative, register the company with SEPREC, SIN, the local government, AFP, a health insurance provider, and SENAPI, along with other requirements.
We hope this information has been helpful. If you’d like to learn more about the best business opportunities currently available in Bolivia, including real estate, the Bolivian stock market, small businesses, and other types of activities, please visit our dedicated guide here: [Link].
CasasenBolivia.com, information on living, working, investing, and traveling in Bolivia.
