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Until the law separate us

"Transparency, clear information and foment the dialogue between all the members of the team", are the keys to survive...

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General aspects of the Moveable State Guarantees Law

From January 1st, of 2008, the small and medium companies or entrepeneurs will be able to ask for loans or credits, for their own needs and projects and whose guarantees can be personal moveable state property. This is due to the new law passed by the Congress of the Republic to have access on credits where the guarantees can be machinery, vehicles, and harvests, among others.

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Along with the well-known will made or advice by an attorney, under which we manage the succession of our assets and rights in several legal jurisdictions, it has recognized in several legal jurisdictions the autonomy of the patient and the rights and obligations of clinical documentation and information.

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Setting up a company in Guatemala

To set up a company and start a business in Guatemala, we recommend to get advice about the project facts, before starting to develop it. As an legal advisors, we will guide and advice to the right path according to the plan or projects seeked.

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Guatemala has the infrastructure and human resources to establish any kind of industry focused on technology. We trust the Guatemalan labor and we have the ability and attitude to learn quickly the tasks of assembling and manufacturing of electronic equipment ... Barreondo Manuel, General Manager, SAT Corporation

... Guatemalan labor force has natural abilities that allow easily be quickly trained in assembly tasks ... Jacob G. Teffel, Fogel Group CFO

Strategic Location

Guatemala has a comparative advantage with other countries in the region, due to its strategic location, making it a natural bridge between the Americas. Complemented by access to the Pacific and Atlantic oceans, as well as access to primary markets in the world.

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Aspects to take care in a Buying and Selling real estate business.

To our clients and visitors, we share this publication, that contains general aspects of the real estate market and transactions, is subedited to a series of social, legal, and procedural factors and normatives, that in many cases, the lack of attention to one of them causes obstruction, delay and interrupt the real estate transactions or Negotiations. (Esq. Pedro Aragon Muñoz.)

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The voluntary immobilization of registered goods or rights

The voluntary immobilization of registered goods or rights, that are registered at the General Property Registration, is guaranteed and safeguarded by law in our legal environment for the benefit and legal certainty of the owner and / or their representatives (in special cases).

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Home arrow Publications arrow Why invest in Guatemala.
Why invest in Guatemala. E-mail
Friday, 03 April 2009

Guatemala has the infrastructure and human resources to establish any kind of industry focused on technology. We trust the Guatemalan labor and we have the ability and attitude to learn quickly the tasks of assembling and manufacturing of electronic equipment ... Barreondo Manuel, General Manager, SAT Corporation

... Guatemalan labor force has natural abilities that allow easily be quickly trained in assembly tasks ... Jacob G. Teffel, Fogel Group CFO

Strategic Location

Guatemala has a comparative advantage with other countries in the region, due to its strategic location, making it a natural bridge between the Americas. Complemented by access to the Pacific and Atlantic oceans, as well as access to primary markets in the world.

Additionally, Guatemala has become the hinge region of Mesoamerica, a region with considerable potential because of its more than 50 cities, 25 of which are located in Central America.

Manpower

The workers salaries in the private sector are subject to the covenants between employer and employee, however the Ministry of Labor sets a minimum wage depending on the sector of activity, to safeguard the economic inequality of the employee. br />

Minimum Salary for 2015

Journal Quetzales U.S. Dollars
Agricultural and Non Agricultural Sector Q. 81.87 per day, equivalent to Q.11.10 per hours per day, on regular work day or proportional to the mixed or night hours, adding a monthly legal bonus of Q. 250.00. Equal to approximately U.S. $ 10.63 per day, equivalent to U.S. $ 1.52 per hour, in normal working hours or working day in proportion to the days or night mixed, adding a monthly legal bonus of US$. 32.90.
Industrial of apparel sector and export services. Q 74.89 per day, equivalent to Q. 10.70 hours per day on regular work day or proportional to the mixed or night hours, adding a monthly legal bonus of Q. 250.00. Equal to approximately U.S. $ 9.73 per day, equivalent to U.S. $ 1.39 per hour in normal working hours or working day in proportion to the days or night mixed, adding a monthly legal bonus of US$. 32.90.
Annual    
Agricultural and Non Agricultural Q. 38,458.56 US$ 4,994.62
Industry of apparel and export Q.35,478.10 US$ 4,607.54

Mixed day must include 3 hours of night and day 3. All those extra hours at the conference described above, will be counted as overtime, where the company must pay the employee 50% higher than the normal value of the minimum wage per hour extra. The ordinary and extraordinary journey may not exceed 12 hours a day.

In addition to the minimum wage, there are other burdens employers authorized by law, which must be considered within the cost of labor.

INCENTIVES FOR INVESTMENT

The biggest economic challenge for Guatemala is to generate more and better opportunities for gainful employment. This would have driven the growth of domestic and foreign private investment, as the conditions to compete in international markets. There are currently stable government policies and effective institutions in the financial area. The commitment of the current government is in total support for investment, which will be essential to grow the country. This is why Guatemala has several laws that have been established to simplify the establishment of foreign direct investment in the country, such as:

Foreign Investment Law (Decree No. 9-98 of the Congress of the Republic of Guatemala) )

That in terms of investment, the State of Guatemala is characterized by having a legal system that is mainly based on the absolute equality of treatment between nationals and foreign investors. Prohibits any act of discrimination against a foreign investor or its investment. Relevant points are: It gives the investor the same treatment accorded to domestic investors in developing their economic activities. Thus enjoys equal compared to domestic investors. The foreign investor can participate in the development of any lawful business in the country and participate in any share in the capital of profit society organized in accordance with Guatemalan law. This law does not allow the state to expropriate may, directly or indirectly, the investment by foreign investors, or take any action tantamount to expropriation of that investment. Among the main guarantees and rights which the Act are: private property, no expropriation of investment, free trade, access to foreign exchange, insurance to investment, double taxation and dispute resolution.

Law Free Forex Trading (Decree No. 94-2000 of the Congress of the Republic of Guatemala):

This law states that there is free disposal, possession, procurement, shipment, transfer, purchase, sale, and collection and payment of foreign exchange and will pay for each individual person or legal entity, domestic or foreign earnings, losses and risks arising from such transactions made. It is equally self-possession and handling of deposits and foreign currency accounts and transactions of financial intermediation in domestic banks as foreign banks.

Guatemala providing incentives for investment through the following schemes:

  • Free Zone Act.
  • Law on the Promotion and Development of Export and Maquila activity.

Which granted the following tax incentives to foreign and domestic investors:

  • 100% exemption from customs duties and charges on imports of machinery, equipment, raw materials and others.
  • 100% exemption from income tax-ISR-10 years.
  • 100% exemption from Value Added Tax-VAT
  • 100% exemption of the single tax on property - IUSI-for entities that manage zones
A Democratic Political Government

Guatemala is divided into 8 regions, 22 departments and 331 municipalities; there are three levels of government: national, departmental and municipal. Municipalities and autonomous authorities are democratically elected. Usually the town is the seat of municipal government (mayor). Guatemala has a democratic and representative government, exercised by the executive (Presidency of the Republic), legislative (Congress) and Judicial (Supreme Court). Every Guatemalan citizen has the right to vote and enjoy full freedom to cast your vote. The legislative power to Congress, which, at present, 158 deputies elected by direct suffrage. Guatemala is experiencing a period full of encouraging and positive aspirations for change within an atmosphere of optimism which is the constant effort by the new government: Encourage the growth of a sustainable economy in the pursuit of socio-economic development.

Encourage each institution of government values such as honesty, transparency and tolerance. Strengthen business relationships that promote and strengthen economic agreements which injected new vitality into the country's investment climate. All this through continuous dialogue and inclusion of all sectors that make up the country, stresses the good and close relationship that has grown between the public sector and private sector. The present government headed by President Alvaro Colom. Was elected democratically, and the period ending January 14 2012.

Stable economy and largest of the Region
Macroeconomic Stability

Macroeconomic stability in Guatemala paved the first half of 2006 with a growth of 4.4%, making the country strong like a highly attractive destination for foreign investors. This has been based on a state policy to boost development. This approach has fostered teamwork between the current Guatemalan government and the private sector in the country in recent years to facilitate economic growth and access to major world markets. Guatemala has the largest economic market in Central America with a GDP of U.S. $ 34 million, representing 396% of the total GDP of the region. The most recent studies of investment banking highlights the great economic stability of Guatemala throughout history.

    2002   2 2003    2004    2005    2006   p/ p/2007 
GDP
2.2
2.1
2.7
3.2
4.4
4.7

The Guatemalan economy has evolved dramatically in recent years. Due to globalization, manufacturing and service sectors have been the fastest growing. For its part, agriculture remains strong and incorporates high levels of technology use, which has led in turn to a dynamic growth in related economic sectors such as transport and logistics. The latter have had a boom due to the country's strategic geographical location and its preferential access to various international markets.

Economic openness

Guatemala seeks to promote the free development of business in the country. Tariff barriers have been lowered or even eliminated and the current government is committed to providing transparency and legal certainty, given that the priority is to attract investment. The work and commitment of government to reform the economy recognize the importance of becoming a nation of free trade, why has reached trade agreements with the following countries:

  • Mexico
  • Central America
  • Panama
  • United States
  • Colombia
  • Venezuela
  • Belize
  • Taiwan

These trade agreements are a tool for national development and are essential for the promotion of FDI. Additionally, allowing the promotion of more and better opportunities for local consumers and offer wider access to Guatemalan products in international markets. It is worth mentioning that currently are in negotiations to establish FTAs with the European Union, Canada and Chile, among others.

Future Vision

Guatemala is experiencing a period full of encouraging and positive aspirations for change within an atmosphere of optimism which is the constant effort of the new government by: • Encouraging the growth of a sustainable economy in the pursuit of socio-economic development. Encourage each institution of government values such as honesty, transparency and tolerance. Strengthen business relationships that promote and strengthen economic agreements which injected new vitality into the country's investment climate. All this through continuous dialogue and inclusion of all sectors that make up the country, stresses the good and close relationship that has grown between the public sector and private sector.

In 2005, the National Competitiveness Program-PRONACOM-launched the "National Agenda for Competitiveness 2005-2015," with the aim of presenting proposals for actions to give continuity projects, strategies and have a shared vision and long term to improve living standards and improve the socio-economic development of the country. The agenda identified the qualities that Guatemala has to position on three major areas in Mesoamerica, as export platform, logistics center and tourist destination. Thus the PRONACOM several institutions and public and private sector are joining forces to meet the objectives outlined in the position.

In Aragon & Aragon are aware of the need for investors to have the support of legal certainty that the investment project, regardless of their nature to do so our attorneys are prepared to the requirements and solutions of these requirements, contact us

Last Updated ( Monday, 11 September 2017 )
 
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Edificio Centro Empresarial
Torre II, oficina 305
Guatemala, Guatemala, Postal Code 01010

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