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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 111501
Experience:  20+ Years of Employment Law Experience
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My company is thinking about openeing a business in

Customer Question

My company is thinking about openeing a business in Guatemala. Our corporate office is in Dallas TExas. The business will be a customer service base. I do not know anything about Guatemala labor laws, I'9 documentation or payroll laws. Can you help?
Submitted: 9 months ago.
Category: Employment Law
Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
First, to open a business in Guatemala, you have to open a bank account there with a minimum of $5000 Guatemalan dollars (about $633 USD).
You need to present the certificate of deposit to a notary there who will draw up your corporate documents. The notary there will file your documents with the tax authorities and government and will get everything else you need to operate filed and set up.
Here are the minimum wage laws in Guatemala: http://www.wageindicator.org/main/salary/minimum-wage/guatemala
An employee can be made to work only 8 hours a day (6 at night) and you cannot force overtime. Overtime is by agreement only and if overtime is worked you have to pay time and one half for those hours. Here is a sheet discussing the benefits and payments you must make to employees: http://www.leylaboral.com/guatemala/summariesguatemala.aspx#t2_p1
For resident employees, those with income above the equivalent of US$37,975 are taxed at 7%; other employees are taxed at 5%. Social security contributions amount to a total of 17%, of which 12.67% must be contributed by the employer and 4.83% must be contributed by the employee. You will need a payroll office in Guatemala to navigate their complex tax system with federal and local taxes.
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