Expand Business in Venezuela

Venezuela

Global Upside helps businesses expand into Venezuela by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Venezuelan laws and regulations.

The hiring and incorporation processes in Venezuela are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Venezuela. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.

Capital City

Caracas

Currency

Bolívar Soberano (Bs)

Language

Spanish

Government

Federal Constitutional Socialist Republic

Country Overview

Venezuela – home to the largest oil reserves in the world, is a South American country with an economy majorly dependent on the production of petroleum. The earnings from the petroleum sector have played a crucial role to diversify and modernize other economic sectors. The development of rich deposits of nickel, iron ore, bauxite, coal, and hydroelectric power has further expanded the economy of Venezuela.

  • The major export products of Venezuela are mineral fuels, organic chemicals, and fish.
  • The principal import items of Venezuela are medicament, tubes, pipes, maize, and meat.
  • Venezuela is a significant trading partner of the US, the Netherlands, China, Colombia, Brazil, and Mexico.

Options for setting up a legal entity in Venezuela include:

Limited Liability Company

A limited liability company, also known as, Sociedad de Responsabilidad Limitada (SRL) is a form of an entity set up that requires at least 1 investor. The investors are not accountable for the obligations of the organization.

Public Limited Company

A public limited company, also referred to as Sociedad Anónima (SA), is a form of an entity set up that requires a minimum of 1 investor. This is the most common form of an entity set up incorporated in Venezuela.

Branch Office

A branch office of a parent company can engage in commercial activities within the nation. The parent company is liable for all the operations of the branch office.

It takes a minimum of two to four weeks to establish a legal entity set up in Venezuela.

The Venezuelan Labor Law came into effect on May 7th, 2012, and was published in the Official Gazette No. 6.076 of the Bolivarian Republic of Venezuela.

The terms that need to be stipulated in the employment contract of Venezuela are:

  • Employee name and identification number
  • Job description and responsibilities
  • Working hours
  • Remuneration and payroll cycle
  • Nature and duration of the contract
  • Date of commencement of the employment
  • Collective agreement (if applicable)
  • Termination and notice period

There are 9 statutory national holidays in Venezuela and they are:

  • Jan. 1: New Year’s Day
  • Monday and Tuesday of Carnival (the two days before Ash Wednesday)
  • Maundy Thursday (the Thursday before Easter)
  • Good Friday (the Friday before Easter)
  • May 1: Labor Day
  • Dec. 24: Christmas Eve
  • Dec. 25: Christmas Day
  • Dec. 31: New Year’s Eve

The payroll frequency, in Venezuela, is monthly or fortnightly.

The Venezuelan Federation of Certified Public Accountants ratified IFRS as the accounting standard to be used in companies.

The FCCPV, also known as Federación de Colegios de Contadores Públicos de Venezuela, the professional accountancy organization in Venezuela approved the IFRS for all SMEs in Venezuela.

Corporate Tax

The corporate tax rate in Venezuela is 34%.

Value Added Tax (VAT)

The VAT rate in Venezuela is 16%.

There is no general law that governs data protection in Venezuela. However, there are general regulations established in the Constitution of Venezuela and developed by the decisions of the Supreme Court, which gives the right of access to data and information.

Anti-Bribery & Anti-Corruption Law

The Law against Corruption issued in the Official Gazette No. 6.155 dated 19 November 2014 (the “Anti-corruption Law”) regulates the bribery of public officials. This law partially modified the Anti-corruption Law issued in the Official Gazette No. 5.637 of 7 April 2003.

1. Bribery of Public Officials

For Individuals: Concussion

i) Imprisonment for at least 2 to 6 years

ii) A monetary fine of up to 50% of the value of the bribe received

For Individuals: Improper passive corruption 

i) Imprisonment for at least 1 to 4 years

ii) A monetary fine of up to 50% of the value of the bribe received

iii) Confiscation of money or object given

For Individuals: Proper passive corruption

i) Imprisonment for at least 3 to 7 years

ii) A monetary fine of up to 50% of the value of the bribe received

iii) Confiscation of money or object given

2. Bribery of Private Officials

For Individuals:

i) Imprisonment at least 2 to 6 years

For Businesses:

i) Suspension from the Sole Register of Persons that Engage in Economic Activities under RUPDAE (Registro Único de Personas que Desarrollen Actividades Económicas).

The registration in the RUPDAE is mandatory to engage in commercial and economic activities in Venezuela.