by Juan Manuel González | Dec 9, 2024 | Noticias-en
On November 20, 2024, the deputies of the Congress of Guatemala approved Decree 32-2024, the “Competition Law”, as a matter of National Urgency. This approval marks a significant milestone for the country, seeking to promote a competitive market, attract foreign investment, and promote national economic growth.
This new regulation aims to prevent anti-competitive and monopolistic practices or those that tend to limit market access for small or new Economic Agents (traders, companies and corporations). All of this under the supervision of a new regulatory body, called the Superintendency of Competition, which will be an autonomous and decentralized entity.
This law provides that the Superintendency of Competition may act ex officio or as a result of a complaint from a private individual, in which case the Economic Agent is obliged to provide all possible information to determine whether or not an anti-competitive practice is being implemented, through an administrative process, prioritizing the right to defense and the principle of innocence. In this sense, it establishes infractions, prohibitions and provides coercion to the entity in charge of monitoring compliance with sanctions when anti-competitive practices are determined in the Guatemalan market. They may be sanctioned up to a maximum of two hundred thousand current minimum wages. For this purpose, it is noted that individuals or legal entities, national or foreign, will be subject to this law.
As a consequence of its approval, the Monopoly Crime is repealed, with only economic sanctions, and articles of the Commercial Code, the Consumer and User Protection Law and the State Contracting Law are modified. Likewise, it establishes the supplementary application of the Competition Law with respect to Economic Agents that are governed by their own sectoral laws that contain competition rules and that have regulatory authority, with these prevailing over the Competition Law. Which will surely give room for interpretation in each case.
Finally, the entry into force of this Law has been defined in two stages, the first starting in January 2025 and the next two years after its publication.
It should be mentioned that this still needs to be sanctioned by the President of the Republic of Guatemala and then promulgated and published, in accordance with the legislative process.
For more information, contact us at info@blplegal.com
by Juan Manuel González | Oct 10, 2023 | Noticias-en
The transfer of employees and expatriates to Guatemala is a fundamental process for multinational companies that wish to operate in this Central American country. However, this process is subject to a series of immigration regulations and requirements that can be complex. In this text, we will address the most frequently asked questions that multinational companies usually ask when it comes to transferring employees to Guatemala. From the need to establish a legal presence in the country to the hiring rates of expatriate employees and the different types of residency available, we will explore the key aspects that must be considered to ensure a successful and compliant relocation process in Guatemala.
1. Is it necessary to have a legal presence of the entity in Guatemala for the transfer of expatriate employees?
Legal presence in Guatemala if necessary, which can be achieved through its own branch or subsidiary or through outsourcing.
2. What are the percentages that the entity must meet for hiring expatriate employees in Guatemala?
You can hire up to a maximum of 10% of foreigners and pay them up to a maximum of 15% of the total salaries, giving priority to Guatemalans, but there are exceptional cases where the above does not apply.
3. For what positions can a work permit for foreigners be requested?
For positions of trust such as Managers, directors, General Managers, Administrators and Superintendents, which are exempt from the percentages indicated in the previous question;
For jobs in which there are no Guatemalan personnel trained to fill that position.
4. Until when can I include the foreign worker on the payroll?
Until obtaining the resolution of the work permit.
5. What is the estimated period to include the expatriate worker on the payroll?
It is 1 to 2 months from when the residency file is submitted to the Guatemalan Migration Institute.
6. Prior to the expatriate’s entry into Guatemala, can I start the residency or work permit process?
It is not possible, it is necessary that the foreigner be in Guatemala to begin the processes.
7. What is the period that a foreigner can stay in Guatemala with a traveler or tourist visa?
Without a residency in process, up to a maximum of 90 days, with a tourist or traveler visa that can be extended for the same period.
8. What categories of permanent residences can a foreigner choose?
Permanent residence for foreigners who have been temporary residents for more than 5 years.
Permanent residence for being a relative of a Guatemalan person within the limits of the law.
Permanent residence for rentier or pensioner.
Permanent residence for foreigners who have been married for one year or more or declared a de facto union with a Guatemalan person.
Permanent Residence for those born in other Central American countries when they have been temporary residents for more than one year.
9. What is the difference between the two visas per residence file in process (single or multiple visa)?
The simple visa allows one exit and one entry to Guatemala while the residency is in process.
The multiple visa allows you to leave and enter Guatemala unlimitedly for 90 days.
10. If an expatriate is transferred to Guatemala for a period of less than one year, should temporary residence be requested?
Yes, it is necessary to proceed with obtaining residency.
For more information you can contact:
Juan Carlos Tristán | BLP Partner | jtristan@blplegal.com