Country Trading Profiles Venezuela

Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Sociedad de Responsabilidad Limitada (SRL) is a Private Limited Company. Minimum VEB 20,000. Maximum BEV 2 million. Subscribed at the constitution.	Minimum 2 Liability is limited to the amount of capital contributed.
Sociedad Anonima (SA) is a Public Limited Company. No minimum. Subscribed at the constitution.	Minimum 2 Liability is limited to the amount of capital contributed.

Business setup procedures

Setting up a company	Venezuela	Latin America & Caribbean
Procedures (number)	17.0	9.3
Time (days)	141.0	56.7

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Venezuela.
Trade Register
The competent organization: A company must register with "Registro Mercantil" or "Trade Register" in the company's place of business: in order to find the right Trade Register, go to the Chamber of Commerce.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	349	3,105	1,404
FDI stock (millions USD)	43,524.0	41,214.0	38,022.0
Performance Index*, ranking on 141 economies	134	140	-
Potential Index**, ranking on 141 economies	41	-	-
Number of Greenfield investments***	22	16	-
FDI inwards (in % of GFCF****)	0.6	2.4	-
FDI stock (in % of GDP)	13.6	12.2	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Venezuela

Strong points: Ports and airports are being privatized and important markets should develop in these sectors. The oil sector is very dynamic, prospecting and exploitation remain attractive, even if the government has made the conditions of exploitation more difficult. Numerous markets remain unexploited in the country, mainly those concerning the production of finished products which are mostly imported. The technological sector has developed very little. In the recent years, a policy of aid to production has given a new impetus to the agro-food industry: coffee, tropical fruits, rice, tobacco, cacao, alcoholic drinks, as well as to the car industry and audiovisual production.
Weak points: The control of the state developed and promoted by the current government could steer into an unattractive commercial environment to foreign investors. Inflation, corruption, unemployment, the importance of the informal sector, poverty and violence are all restraints to the establishment and prosperity of a business.
Government measures to motivate or restrict FDI: Venezuela has adopted the Decree 2095 on foreign investment, which is encouraged and protected by a new legal framework. In addition to this, there is a policy supporting production activities that are particularly dynamic or potentially good for exports. The government also gives fiscal bonuses, ranging from tax exemptions to special credit treaties, in order to encourage investment in the so-called "strategic" sectors, or in order to stimulate the establishment of businesses in the country's five least developed states.

Procedures relative to foreign investment

Freedom of establishment: Freedom of establishment is guaranteed, but new barriers have been set up, notably in the oil sector (a percentage taken off the highest profits).
Acquisition of holdings: Acquisition of a majority stake in a local company's capital is authorized in Guatemala. There are however restrictions concerning certain sectors such as the press, aviation, shipbuilding, for the obvious reasons of security and independence.
Obligation to declare: Foreign investments are encouraged in Venezuela, and protected by a new legal framework, especially through the dispositions stipulated in the Decree 2095.
The country's agency promoting foreign investment provides information about the permits necessary to business establishment.
Competent organization for the declaration: Venezuelan Council for Investment Promotion
Requests for specific authorizations: None. In strategic sectors a special authorization is needed.

Finding assistance for further information

Investment aid agency: Venezuelian Council for Investment Promotion
Website for investment aid
Other useful resources