Venezuela

Operating a Business in Venezuela

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
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.	Reserve company name: VEF 115. Lawyer must prepare and legalize the company’s constitutive documents and social statutes: VEF 1,250. Register at the local mercantile registry (Registro Mercantil): 1% of capital + VEB 322. Publish articles in a local newspaper : VEF 63. Obtain tax clearance certificate at municipal level (Instituto Municipal de Aseo Urbano): VEF 9. Obtain conformity of use certificate (zoning permit): VEF 230. Obtain industrial or commercial license from competent municipality: VEF 461.
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.	Reserve company name: VEF 115. Lawyer must prepare and legalize the company’s constitutive documents and social statutes: VEF 1,250. Register at the local mercantile registry (Registro Mercantil): 1% of capital + VEB 322. Publish articles in a local newspaper : VEF 63. Obtain tax clearance certificate at municipal level (Instituto Municipal de Aseo Urbano): VEF 9. Obtain conformity of use certificate (zoning permit): VEF 230. Obtain industrial or commercial license from competent municipality: VEF 461.

Business setup procedures: The registration of legal entities is made with the RIF (Register of Fiscal Information). The company's status must be registered with the Trade Register in the place where the company is located. Legal assistance is strongly advised in order to face possible legal problems. Furthermore, the company must be registered with the SIEX (Surintendance of Foreign Investments) within 60 days following the signature of the contract or the company's registration with the 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.

Working conditions

Legal weekly duration: 44 hours in the public sector, 48 in the private sector.
Retirement age: 60 years for men and 55 years for women, given that they have worked for at least 25 years. If the length of work reaches 35 years the worker can retire regardless of his or her age.
Working contracts: Employment contracts are regulated by law and collective agreements.

A large part of Venezuelan workers do not benefit from any work contract, they are part of the informal sector. For the rest there are three types of written contracts: a contract must be signed in three exemplaries, one for the employee, one for the employer and one that must be submitted to the Work Administration Department: see the Ministry of Labour's website.
- permanent work contract
- fixed-term work contract
- contract for a fixed-term project, the duration of which depends on the completion of the specific project

Cost of labor

Minimum wage: 512,325 bolivars (USD238)

Social partners

Social dialogue and involvement of social partners: CTV: Confederation of Venezuelan Workers : the most powerful. CUTV Unified Confederation of Venzuelan Workers. CODESA : Confederation of Autonomous Trade Unions.
Unions: Confederation of Venezuelan Workers (CTV)
Unified Confederation of Venezuelan Workers (CUTV)
Confederation of Venezuelan Autonomous Trade Unions (CODESA)
Unionization rate: 28%.
The Venezuelan trade unions are very powerful, especially in the oil industry sector. They have however been always known for their high levels of politicization and corruption.
Labor regulation bodies: Venezuela Labour Law Profile
Text of the Labour Law