A crucial step in incorporating your business in Guatemala is to open a corporate bank account. Over the past four years, Guatemala has seen steady economic stability, with a growth rate of 3.1% in both 2018 and 2019. Additionally, Guatemala is considered one of the largest economies in Central America. Here are the key steps to establishing your corporate bank account in Guatemala.
1. Incorporate your company in Guatemala: When setting up a bank account in Guatemala, you will work closely with the Mercantile Registry. Before opening a corporate bank account, you must register your company with the Mercantile Registry. As a business executive, it is important to consider different types of legal entities and determine which one is most suitable for your business expansion strategy. If your company is an S.A., you will need to provide the following documentation: Public deed of constitution, certificate of appointment of legal representative(s), identification of business owner(s), tax domicile of the company, and receipts or proof of payment of fees. Once you have submitted the documents, the Mercantile Registry will approve your company’s constitution.
2. Evaluate and choose a type of bank account: There are various types of corporate bank accounts available in Guatemala. A corporate checking account allows you to manage cash flow, transactions, payments, and transfers for your company in the region, either through online banking or with associated cards and checkbooks. A corporate savings account can be used to earn interest on saved profits, requiring a minimum balance to maintain and sometimes requiring notice before withdrawing funds. A business term deposit is a savings account with fixed interest rates and expiry dates, offering a set return. Withdrawals before the term expires may be subject to a penalty fee. You can open a corporate bank account in either Quetzals or US dollars in Guatemala.
3. Evaluate and choose a bank: Guatemala offers a variety of banks to choose from. As a business executive, it is important to develop a business strategy and determine which bank is most convenient for your business model. Some popular banks in Guatemala include Agromercantil, Industrial, Promérica, G&T, and BAC. When evaluating bank options, consider whether they offer online banking services.
4. Set up your corporate bank account in Guatemala: Each bank has specific requirements for opening a corporate bank account, although procedures are generally similar. All bank institutions in Guatemala will need to know the account holders and final beneficiaries due to strict anti-money laundering legislation. The main requirements for opening a corporate bank account for legal entities include a copy of the appointment of the current legal representative, copy of the deed of incorporation, commercial patent, company patent, copy of the legal representative and other signatories’ personal IDs, utility bill for water, electricity, or company phone to verify the business address, and commercial references.
Common questions when opening a corporate bank account in Guatemala:
1. Can I open a corporate bank account online? No, but you can open one from abroad with the assistance of a local attorney empowered through a power of attorney (POA). The original bank application forms will need to be sent to Guatemala.
2. What documents do I need to open a company bank account in Guatemala? The initial capital must be deposited to open the account. Once the company has been established, you will need to present the company bylaws, appointment of the legal representative, patents of commerce, invoice or receipt of a utility service, and the tax ID.
3. Who can access a company bank account? Initially, only the legal representative (RL), and subsequently, all designated individuals by the RL.
4. What is the best bank in Guatemala for foreign companies? There is not a single best bank, but popular options include Banco Industrial, Banco Promerica, BAM, BAC, and G&T.
5. Why do companies open bank accounts in Guatemala? Companies are required to have a bank account when they exceed the legal minimum for cash capital, as set by the Commercial Code. Additionally, a bank account allows for adequate traceability of all company transactions and provides sufficient evidence for inspections by partners or government entities.
It is important to note that while non-residents may face stricter requirements due to anti-money laundering policies, if the company is registered in Guatemala, it is still possible to open a corporate bank account. To expedite the account opening process, it is recommended to visit Guatemala in person, which also allows for networking and building commercial relationships.
If you require assistance with opening a corporate bank account in Guatemala or incorporating your company in the region, consider seeking support from bilingual legal specialists. Biz Latin Hub offers market entry and back-office solutions to help businesses begin operations in Latin America with minimal risk and a higher chance of success. Contact us for advice on opening a corporate bank account and incorporating your company in Central America.
