Requirements to Be a Merchant: Steps, Types and MORE

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To be a merchant is to occupy a relevant role in a consumer society like the current one, here in the Requirements to be a Merchant We will be telling you what you need to do to become one. There is a high number of people dedicated to this activity, which also serve as an economic engine in society.

Facilitating the exchange of goods, services and merchandise for the well-being and care of individuals contributes to the growth of a country. Being a merchant means giving a service to society, serving customers and offering products. Dare to start as a merchant, Bolivia offers a large number of goods for exchange with other countries.

What are the requirements to be a merchant?

To be a merchant in Bolivia, it is necessary to meet certain requirements and they are the following:

  • Must do the registration of the commercial activity in the Mercantile Registry of the Chamber of Commerce.
  • Also, you must have the Tax identification number (NIF).
  • Pay the tributes of business creation.
  • In addition, have on file the invoices related to the commercial activity that you carry out.
  • In addition, you must keep track of the business in a Accounting book or Accounting.
  • Also, account for all activities.
  • Comply with established standards related to the registration of documents and books.
  • You must be mentally fit.
  • The product you sell must be legal for trade.
  • Likewise, comply with the legal and administrative requirements.
  • Be legally fit to do business.
  • Declare the balance of the business at the close of the fiscal year.
  • Carry out the law audits.

Requirements to Be a Merchant: Steps to Follow

The Code of Commerce of Bolivia in its Article 6 expresses which are the acts and commercial operations. Among which are the purchase of movable property and merchandise for sale, company shares, the business activity of hotels, pharmacies, clinics, newspapers, construction companies, publishing houses, restaurants, education companies, among many others.

If you want to know more clearly the steps to follow, keep reading the Requirements to be a Merchant in Bolivia.

To register the activity of the trade, they are the ones mentioned below:

  • Enter the web portal and download the form.
  • Complete the form and sign it. If it is a legal person, it must be signed by the owner or largest shareholder. Likewise, it can be signed by the legal representative.
  • It pays 260 bolivianos as a tariff of sole proprietorship.
  • Submit the Trade Register with the corresponding documentation, the proof of payment of the fee and the corresponding code.
  • The review will be done by the registry office and once the approval is made they issue the operation certificate.
  • Have the NIF for all business activities.
  • Carry out commercial activities within the lawful trade.

History says that commerce has a remote origin, and merchants have played a prominent role in societies. A country develops with the intervention of a dynamic commercial activity.

Who cannot be a merchant?

I agree with you Requirements to be a Merchant and article 19 of the Bolivian Commercial Code, the persons with impediments to carry out commercial activity are those mentioned below:

  • The people who have a court sentence or have been subjected to any.
  • Those people who have been bankrupt and has not yet been rehabilitated.
  • Those who exercise the functions of Notaries Public.
  • Those who act as Brokers Public.
  • Likewise, those people convicted of crimes against property.
  • Entrepreneurs, managers, directors, administrators or legal representatives of commercial companies that have been declared guilty or fraudulent bankruptcy.
  • Also, public employees or officials.

Types of Merchants

Within the commercial activity that covers many areas and reviewing the Requirements to Be a Merchant, we find the types of existing merchants. They are the following:

  • Individual trader, which is one who carries out commercial activity as a natural person and / or sole proprietor.
  • The Social Trader, are people associated to carry out the commercial activity forming a commercial company with the profit motive.
  • He too External Trader, is an individual and social merchant but who carries out trade by importing or exporting products and merchandise. Acquire merchandise from other countries, and whoever exports or sells products abroad.
  • Likewise, the Internal Trader, is the one who carries out commercial activity within the country. Within the internal trade it is in turn divided into wholesale trade and retail trade.
  • Also, there is the Formal Merchant, which is the one that carries out its commercial activity in the country, and is covered by the current legal norm. He is a merchant duly registered with the authorities and before which he reports his economic activities. Formal merchants carry out their commercial activity in a commercial premises, under a brand and a company name.
  • Also, the Informal Trader, is one who carries out commercial activity outside the law, does not comply with the legal norm and the formalities corresponding to the activity.

It is necessary and pertinent that more number of traders join the export, since according to the National Chamber of Exporters of Bolivia (CANEB), the participation of Bolivia in the foreign trade of the region is only 3%.

Requirements to be a Merchant: What is it?

Be Businessman is that natural person or legal person who, in his own name or on his behalf, engages in commercial activity, the exchange of goods and services for profit and in search of the satisfaction of needs.

Merchants are those who are professionally and formally engaged in commercial activities, within the legal framework that establishes it.

According to the Bolivian Code of Commerce in its Article 4, it indicates that whoever carries out the trade is a merchant, since they carry out the activity for profit.

Being a merchant is therefore the purchase, sale, exchange of goods or services for profit. It is an economic and social activity where there is acquisition and transfer of goods and merchandise with a means of exchange such as money.

Obligations of the Merchants

According to the Bolivian Commercial Code, the obligations of merchants are the following:

  • Register in the Commercial Registry, this is in the Foundation for Business Development (FUNDEMPRESA).
  • You must register in the Commercial Registry all documents, contracts and acts on which the Law requires this formality. For example, in the case of the transfer of capital quotas, increase in shares of a company, constitution of a company, among others.
  • The cessation of payments for obligations that have been contracted, must be communicated to the competent authorities, within the corresponding deadlines.
  • Traders have to keep business accounts according to what is determined by the Law. For example, the daily book, the ledger, the purchase and sale books, among others.
  • The tax obligations are strictly enforced as required by law. Pay taxes such as transfer tax, corporate profit tax, value added tax and others as established by the tax regime.
  • The law also states, as an obligation of the merchant to keep the books, documents and others that are related to the business.
  • The merchant is obliged not to perform acts that mean the unfair competition.
  • Likewise, any other obligation established by law.

If the trader applies for the international market without a doubt that this will bring him advantages, such as widening the limits of the market, generate more jobs, attract new investors and of course increase competitiveness and be more efficient and enjoy more benefits.

It is very clear that a society grows and develops with commercial activity, that is why it is broad and highly regulated since it involves many actors.

You have already read everything you need to know in the Requirements to be a MerchantNow take into account that it is an activity that is governed by a broad legal framework and strict compliance.


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