Employer of Record in Bolivia
Skuad’s Employer of Record Bolivia (EOR) solutions make business expansion to Bolivia easy and hassle-free. Our unique HR platform allows companies to hire exceptionally talented employees in Bolivia, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances. To learn more about Skuad, Book a demo today.
Bolivia at a Glance
Population: 1,1,75,000 (2021)
Currency: Boliviano (BOB)
Capital: Sucre (Constitutional Capital) and La Paz (Government and Executive Capital)
Languages spoken: Spanish and many indigenous languages such as Aymara, Quechua, etc.
Gross Domestic Product (GDP) per capita: USD 3,552.07 (2019)
Learn more about expanding your business into Bolivia by partnering with Skuad.
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Employment in Bolivia
What you should know before Employing in Bolivia?
Among Bolivia's employment laws and regulations, General Labor Law is the most important law. The laws are complex but a competent EOR will make things simple for you. The table below lists some of the employee entitlements in detail.
To ensure your expansion endeavors are in compliance with the Bolivian employment laws, Contact Skuad today.
Contractors vs. Full-time Employees
Employment contracts in Bolivia are governed by various statutes. The major difference between contractors and employees is the kind of service they provide. Employers can control the method of work of employees. With contractors, employers exercise little control over how the work is to be done.
Fixed Term vs. Temporary Workers
According to Bolivia employment contracts law, Fixed-term employment must be approved in writing by the Ministry of Labor. Usually, employment contracts are for an indefinite period in Bolivia. However, there is no law prohibiting employers from entering into a fixed-term contract or employing contractors for a particular work or service.
Fixed-term employees can work for a maximum of one year. After one year, their contract can be renewed. If it is renewed, they become indefinite employees.
Whether your organization requires contractors or full-time employees, Skuad’s employer of record service can cater to all your hiring requirements. Learn more by talking to Skuad experts.
Hiring in Bolivia
Bolivia’s economy has a lot to offer for companies. The major sectors are agriculture, mining, petroleum, smelting, textiles, and tobacco. There are many hiring avenues in Bolivia. Companies go to college campuses to recruit freshers. Job postings are updated on company websites. Social media platforms like LinkedIn are used to hire employees from Bolivia. Alternatively, there are hiring companies in Bolivia that perform this function as well.
There are numerous websites that connect employees and employers in Bolivia. Here are some of them:
- Job island
- Hiring Room
- Jobboard Finder
Despite the advantages of modern technology, the hiring process can be burdensome and costly. You can use Skuad’s Bolivia EOR solution to hire employees in Bolivia and manage them without setting up an entity. Skuad’s solution will help you focus on expanding your company, leaving HR-related tasks to our experts.
Probation & Termination
Probation Period in Bolivia
The standard probation period in Bolivia is three months. During the probationary period in Bolivia, the employer is free to terminate the contract of the employee if they are not satisfied with the quality of work. Probation is regulated by the General Labour Act.
Termination of Employment in Bolivia
Employees that are terminated for just cause are not entitled to severance pay. Employees that are terminated without just cause are entitled to severance pay that is equivalent to one month of salary for each year that they have been with the employer.
To ensure your expansion endeavors adhere to the laws regarding probation and termination in Bolivia, talk to Skuad experts and book a demo today.
EOR Solution in Bolivia
Business expansion is a long-drawn process that calls for extensive planning, especially when expanding to a foreign country. It is complicated and can take up to several months to complete but by choosing the EOR route for hiring employees in Bolivia, you can fast-track the expansion process. Employer of Record Bolivia (EOR) solutions by Skuad can make expansion to Bolivia much simpler and a lot quicker for business. Our global outreach and a tech-enriched HR platform ensure compliance with local labor laws by managing employment responsibilities such as monthly payroll, work permits, employment contracts as well as taxation for your employees in Bolivia. To learn more, Contact Skuad today.
Payroll Outsourcing in Bolivia through an Employer of Record
Hiring employees from Bolivia is not an easy task. The employment laws are not simple and straightforward. Bolivia has a workforce of more than five million. The working individuals are talented and skilled. Don’t miss out on hiring from Bolivia. Team up with Skuad to get access to an integrated and high-tech HR platform with a proven track record. Use the tailor-made EOR solutions to expand into Bolivia. To avail yourself of our services, speak to Skuad experts today.
Types of Visas in Bolivia
Before we discuss the types of visas, we must discuss the three visa groups. Citizens of group 1 can visit Bolivia for up to 90 days. This group includes most of Europe, Australia, the US, the UK, etc. People from these countries can enter the country without a visa and can get a tourist card with an entry stamp.
Citizens of group two countries can get a visa on arrival or apply for one from the consulate. Countries such as India, China, Sri Lanka, etc. are on this list. Citizens of group 3 need to apply for a visa and the process takes about one to five weeks.
Talk to us and get more information and guidance related to types of visas and Bolivia work visa requirements. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.
Bolivia Work Permit for Foreigners
Candidates need to file the relevant documents with the Bolivian Consulate in their home country. Here are some of the documents required:
- Application (filled and signed)
- Valid passport
- Employment agreement in Bolivia
- Police records from their last country of residence
- Passport photographs
A Bolivia work permit without a job offer is not possible. Candidates must secure employment in the country before applying for a permit. The whole process could take from one to five months. Candidates cannot go to Bolivia until approval has been granted.
To know more about work permits in Bolivia and how Skuad can secure them for you, speak to our experts today and kick-start your expansion.
Payroll & Taxes in Bolivia
Things You Must Know to Set Up Payroll in Bolivia
To set up payroll and manage taxation in Bolivia, you need to be aware of the laws that vary across categories. First, you must decide whether you want to employ foreign nationals or locals. Then, you need to familiarize yourself with income, sales, and withholding taxes. You should ensure that your expansion efforts comply with them.
Payroll and Taxes: Particulars
Filing and paying taxes requires a lot of time, skill, and knowledge. Companies need to be well versed in accounting practices, local laws, and customs. You can either,
- Set up an in-house team to handle all the tax responsibilities, or
- Hire a local payroll specialist such as Skuad that can make payroll management and taxation simpler for you. Our term of experts will also ensure that you comply with all the payroll and taxation laws in Bolivia. Talk to us to learn more.
Incorporation: How to Set Up a Subsidiary in Bolivia
Here’s how to set up different forms of companies in Bolivia:
- An LLC should have at least one director (resident of Bolivia) and two shareholders. LLCs with annual sales of more than US$170,000 must have their accounts audited and submit the documents to the authorities.
- A public company needs to have a minimum share capital of just US$100. Three directors are needed, one of which should be a resident of Bolivia. The company should also have at least three shareholders, a Company Secretary (resident), and a resident agent. All the relevant documents should be submitted in Spanish and approved by a Bolivian consulate. You will need to submit documents such as Memorandum of Association and Articles of Association. These documents contain basic information about the company such as the name of the company, registered address, purpose for which it is formed, names of directors and their addresses, etc.
- A Limited Liability Partnership needs to have at least two partners and two shareholders. The minimum paid-up capital is US$1. The liability of the partners is limited by the capital they bring. The LLP does not require financials to be audited and a company secretary is also not needed.
Forming a company is a difficult task that requires one to be well versed with the local laws and regulations. Incorporating a holding company in Bolivia is an even more difficult task. The local laws are not easy to grasp and are complex.
No matter which company you set up, there are endless formalities that need to be completed. Instead, companies can use Skuad’s EOR solution to form a subsidiary in Bolivia. It will simplify the process so that you can focus on business expansion and strategizing.
Professional Employer Organization (PEO) - Bolivia
A professional employer organization (PEO) provides employment-related services such as compliance, HR consultancy, filing taxes, health insurance, payroll processing, safety and risk mitigation, training, and development. The difference between PEO services and EOR solutions can be understood on the basis of following terms:
Organizations planning to expand into new territories are better suited with a global EOR which becomes the legal employer on behalf of the organization. Instead of associating with a PEO, a co-employment partner, organizations have more to gain by utilizing the services of a EOR solution. The EOR solution safeguards organizations from unexpected policy changes, loss of control, and potential risks as the EOR bears every legal liability for the organization. In addition to these, the EOR handles payroll, tax, and employment law compliances. To know more about Skuad's EOR solution, Contact Skuad today.
Conclusion: What Gives Skuad’s Bolivia Solutions an Edge?
Bolivia is the fastest-growing economy in Latin America. There are many business opportunities in Bolivia for employers to hire from an up-and-coming country. Companies should not worry about the technicalities of hiring from Bolivia. They can team up with Skuad to hire, onboard, train, manage and pay employees in the country without any hassles. Skuad is updated with the business customs, local laws, probation and termination rules, Bolivia work visa process, among other things. Leverage its EOR solutions to expedite your expansion plans. Skuad’s EOR solutions take care of all employment-related responsibilities to ensure everything goes smoothly with your expansion to Bolivia.