The corporate forms most commonly used for the conduct of business in Bolivia are the Sociedad Anónima (hereinafter "SA") and the Sociedad de Responsabilidad Limitada (hereinafter "SRL").

The SA is the Bolivian equivalent of a US Corporation. The organizational structure of a Corporation consists of the following tiers: three or more shareholders, directors/officers, and a comptroller. Shares represent ownership interests in a Corporation. They are freely transferable by endorsement and such transfer is tax exempt.

The SRL is the Bolivian equivalent of a Limited Liability Company (LLC).

Other legal entities available under the Bolivian Comercial Code, but much less frequently used, are: Sociedad Colectiva, Sociedad en Comandita por Acciones (the Bolivian equivalent of a partnership limited by shares) and Sociedad en Comandita Simple (limited partnership without shares).

The main characteristics of SA are the following:

Its capital is divided into shares of a minimum of 100 Bs. (approx. 15 USD),which are freely and easily transferable.
Shareholders have a limited liability regime with respect to liabilities. It means they are responsible to the limit of their respective capital contribution.
Main decisions are made by the General Ordinary or Extraordinary Shareholder meeting.
Must have a minimum of three shareholders. There is no maximum number of shareholders.National and foreign individuals or companies are allowed to be shareholders.
The Board of Directors is the body in charge of company administration. It is composed by a minimum of 3 Directors and a maximum of 12.
The legal representation of the company is the President of the Board, who must be a Bolivian Resident.
Company’s name is impersonal and has to be related to the business of the company.
Shareholders are free to transfer their shares to other shareholders and to third parties.
Administration of the company is controlled by a "Síndico" who must be Bolivian resident.

The main characteristics of SRL are the following:

Must have a minimum of two partners and a maximum of twenty-five.
National and foreign individuals or companies are allowed to be partners.
Capital is divided into "quotas" of a minimum of 100 Bs. (approx. 15 USD) each.
A partner’s liability is limited by the amount of quotas held.
A SRL is governed by the General Assembly (No Board of Directors is required).
Administration is in the responsibility of a General Manager.
Transfers of "quotas" must be approved by the General Assembly.

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