Setting up a business in Bolivia

Résumé du document

Bolivia is a Republic. The seat of government is in La Paz, although the legal capital and also the seat of justice are located in Sucre. The country is separated in 9 administrative divisions: Chuquisaca, Cochabamba, Beni, La Paz, Oruro, Pando, Potosi, Santa Cruz and Tarija.

Bolivia gained its independence from Spain on 6th August 1825 and ever since then, it's legal system is based on the Spanish law and the Napoleonic Code.

The main political movements are the Movement toward Socialism (MAS), Social Democratic Power (PODEMOS), Nationalist Revolutionary Movement (MNR), and National Unity (UN).

Since 2005, the chief of state is Evo Morales; he has been elected by universal adult suffrage, by the people above 18 years old. He is the first aborigine president and his election changed the battle of wills bringing hope and aspirations among aborigine, poor or isolated people.

The Bolivian law is based on a constitution of 1967 and it was revised in August 1994. However a new constitution has been drafted in 2007, a referendum was scheduled for last January, and the document has been approved.

The project of the constitution involves some rules on the rights over water supply, food security, health, education, accommodation, basics services, justice and various other rights. The privatization of water management from the control of private enterprises of energy supply or basic services, will be prevented by the Constitution, although President Evo Morales has nationalized vast natural gas reserves.

Extraits

[...] High uncertainty avoidance oriented cultures have preference for group decision, consultative management and against competition among employees. Tradition role models are granted to females. Bolivians tend to control everything and reduce this stress by creating strict rules, law, policies and structures. Then, Bolivia is a communitarian culture where individuals are well integrated in groups and where families; communities are essential. For example loyalty is central and relationships are built on the long term. Afterwards, Bolivia is said to be a masculine culture. [...]

[...] International and national Trade Bolivia is dependent of its imports in terms of equipment goods and commodities. In order to encourage trade with other countries of South America, regional preferential trade agreements have been set. For instance, thanks to the Andean Community, Bolivia, Peru, Ecuador and Colombia, can trade with each other in a free trade area. Moreover, Bolivia is a member of Mercosur and the Bolivarian Alternative for the Americas (ALBA), promoting developing markets. But the trade alliances go beyond South America since the Andean Trade Promotion and Drug Eradication Act (ATPDEA) let the entry on the United States to Bolivian products such as lama or alpaca products. [...]

[...] Its main reserve is located in the Uyuni lake at 3.700 meters of elevation in the southwest of Bolivia. This is the remains of a lake of sea water dried out and therefore the world's largest salt desert containing one third of the world lithium. The mining industry is also a major economic activity for the country. This has become one of the major tin producers. On the one hand, in 1952 its three main tin exploitations have been grouped and nationalized in one company: Corparacion minera de Bolivia. [...]

[...] III-Timing in setting up the business We will need to answer fifteen registration requirements in order to start our business in Bolivia. This administration and red tape works will take around two months. The two most lasting parts are: Obtaining a municipal business license and a municipal registration card from the municipality where the business is settled. (12 days on average) Register for national health insurance and short term disability coverage (15 days on average) IV-Governmental policies Foreign property is authorized virtually in all Bolivian economic sectors, with no requirement of registering foreign direct investment separately. [...]

[...] Trade unions: Trade unions have a strong history in Bolivia. Lots of workers in the formal sector are member of unions. The bigger unions, such as the Bolivian Labor Federation and the Trade Union Federation of Bolivian Mine Workers, have a strong influence and have succeeded in rallying workers to numerous strikes and work stoppages. However, working conditions for most Bolivian workers are difficult. Positive points The Bolivian labor force is known to be stable, with low rates of turnover and high levels of manual deftness. [...]