The National Stock Exchange i.e. Bolsa Nacional de Valores of Guatemala is situated in Centro Financiero, Tower 2, Guatemala, Central America. ( BVN, 2010 ) . The major and the largest Stock Exchange of Guatemala is the National Stock Exchange i.e. Bolsa Nacional de Valores. There are other two exchange markets in Guatemala one is Bolsa Agricola Nacional which is agricultural stock exchange and other is Corporacion Bursatil. ( Worldmarketmedia, 2010 ) .
National Stock Exchange ( Bolsa Nacional de Valores ) .
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National Stock Exchange of Guatemala ( BVN2, 2010 )
It is the largest stock exchange in Guatemala apparatus in 1989. It is a topographic point where the information of demand and supply is available and purchasers and providers conduct their concern at the finest market monetary value. In stock exchange portions of private companies and other securities are traded. But fundamentally the trade is done with authorities debts and bonds which are “ CDP, Certibono and Cenivacus ” . It provides the fiscal information of issuers to the general populace so the trading is done swimmingly. If anyone needs to put in the market they should reach the securities firm so they he enlightens you with the options and hazard of the investing. Soon there are 20 operational agents in which 17 are backed by fiscal pudding stones. They charge GTQ 10,000 monthly fees in the exchange market. ( BVN1, 2010 ) .
The other Stock Exchange in Guatemala
This is the 2nd stock exchange in Guatemala which trade in public securities. It was established in 1994. They charge GTQ 7,000 monthly as their fees. But they do n’t bear down fees to the agents operations in the market. ( Public debt market, 2007 ) .
Bolsa Agricola Nacional
It is an agricultural stock exchange market where trading is done with grains and flour ( wheat and soy ) , veggies, fruits and fertilisers. It is situated in Guatemala 4 Calle Zone 9. ( Worldmarketmedia1, 2010 ) .
Guatemala Trading Volume in Stock Exchange
( Public debts market1, 2007 )
The tendency of the trading in stock market is increasing since late 90 ‘s. The assortment in trading has given the stock exchange and its members the assurance and the market for equities development. The volume by the Bolsa in 1993 reached US $ 2.7 billion, which was 30 % addition from the old twelvemonth. During 1993 the capital market demo a flicker when agents traded 85,000 portions deserving US $ 5.5 million. By publishing the primary commercial documents in the past two old ages, the private companies of the stock market have raised US $ 220 million. The liquidness of the market has besides risen which can seen through the trading of commercial documents exceeded US $ 420 million in the same clip period. ( High beam, 2010 ) .
The National Stock Exchange was established in 1989. It started out good in 1992 ; it created an electronic system called SINEDI for the foreign currency minutess where purchasing and merchandising is done. The other programme called INFOBOL was besides constitutional in the exchange market ; it helps the users to look into the historical inside informations, rubrics and dialogues. They can besides ask about the purchasing and selling offers in that.
In 1999, the stock exchange faced figure of challenges sing economic and fiscal reverses, which bit by bit decreased the assurance in their investings. During November, the crisis in liquidness and repurchase rate of understandings which have risen from 27 % to 57 % . The values of portions have besides risen to US $ 57 million and volume of trading has besides been increased. But in 2000 and subsequently old ages it bit by bit did good. ( Anonymous, n.d. )
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Bank of Guatemala ( Banguat, 2010 )
The bank of Guatemala was established in 1945 which is known as Central bank of Guatemala. The mission of the bank is “ to advance the stableness in the general degree of monetary values ” ( Banguat1, 2010 ) . And in order to carry through its mission they have assorted schemes of advanced engineerings, good communicating, organisational construction and environment. It helped in the state ‘s economic system by advancing the liquidness and solvency. The first bank Manager of the Central Bank was “ Max Jimenez pinto ” . There were three Torahs which were considered as the most of import instruments of the Bank i.e. Organic Law, Monetary jurisprudence and the Bank Law. Presently the bank of Guatemala is following a Nationalist construct which is a portion of planetary context and functioning the state ‘s involvement. ( Banguat2, 2010 ) .
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Quetzal Coins ( Wikipedia, 2010 )
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Guatemala 100 Quetzals ( Banknotes, 2007 )
Currency is an plus which facilitates the exchange of goods and services. In Guatemala, earlier the Mayas used “ obsidian, cherished rocks, jade, quetzal plumes and chocolate trees beans for currency ” ( Banguat, 2010 ) . But due to conquest and consolidation Spanish currency was adopted which were in the signifier coins. During the first decennary of the XIX century, Spanish coins were imported and minted in the state. Subsequently on during the authorities of Rafael Carrera the currency called “ peso ” was created in the signifier of coins made of Ag and gold. In the last 30 old ages of Nineteen century paper currency was issued on the behalf of the old bank systems and peso was no longer minted. At the terminal of the century municipalities issued really little measures called “ cedulas ” type of coins for the payment of duty.
During 1925, pecuniary jurisprudence was issued and they adopted the gold form and introduced Quetzal currency equal to U.S dollar and it replaced peso. It was determined that Quetzal would be equal to 60 peso. There were many denominations in coins like 1 quetzal, half quetzal, 10 centavos, five centavos which were minted in Ag. Coin of one centavo was minted with Cu metal. In 1926, 20, 10 and five Quetzal coins were introduced and minted with gilded base. Then in 1932, half centavo and two centavo denominations were introduced made up of Cu and Zn.
Subsequently on around 1948, The Banco de Guatemala issued their ain measures with different designs in denominations of 50 centavo of a Quetzal, one, five, 10, 20 and 100 Quetzal and dated September 15, 1948. Coins with the value of 25, 10, five and one centavo of a quetzal were besides minted. The last alteration which was done with the pecuniary system was that they reversed the design of the Quetzal. The one Quetzal coin therefore had the lettering “ peace ” as a portion of fashionable dove with a slogan “ PAZ FIRME Y DURADERA ” ( Long and permanent peace ) and dated Dec. 29, 1996 with the denomination and the name of the national currency. ( Banguat3, 2010 )
Exchange rate to USD
As of today April 6, 2010 the current exchange rate of Guatemala Quetzal to USD is:
1 USD is equal to 8.14 Guatemalan Quetzal ( GTQ )
1 Guatemalan Quetzal ( GTQ ) is equal to 0.12 USD.
( Greenwich Meantime, 2010 )
How to get down a Business in Guatemala
To get down up a concern in Guatemala 11 processs are need to be completed which take 29 yearss and 45.36 % GNI per capita.
Following is the process:
Before get downing the procedure the party should look into the projected company name at the mercantile Registry of Guatemala to avoid subjecting a preexistent name. It take merely one twenty-four hours to seek via cyberspace and that excessively free of cost.
Second measure is to obtain a missive from Guatemalan notary populace to open a bank history. The lower limit of GTQ 5000 must be deposited in the bank before subscribing any articles of incorporation. This would at least take one twenty-four hours.
After one twenty-four hours lodge the subscribed sum of capital in the bank and acquire the reception.
Then the title is executed by the stockholders and attested by the notary. Once the company is registered, stock certifications are issued. This process about takes three yearss and GTQ 6,800 + revenue enhancement are charged.
The financial casts are bought by the notary and it issues a certified transcript of title of incorporation to register it commercially. GTQ 650 is being charged for this procedure and it take one twenty-four hours to finish it.
A alone enrollment signifier which is notarized and paperss are filed with the commercial registry. The Registro Mercantil takes 4 concern yearss to analyse the paperss and giving a enrollment figure. GTQ 2000 is charged for acquiring a enrollment figure.
When the enrollment figure is assigned, the campaigner is called by the commercial register to choose the company ‘s legal representative.
After this the probationary enrollment is completed within two three yearss but before that period of eight yearss is taken to finalise the enrollment. Once it is done so revenue enhancement and societal security Numberss are obtained.
Application for trading licence is being filed which usually take one twenty-four hours and the application fee is GTQ 165.
Now the company ‘s demands to subject its accounting books and books of proceedingss stockholders for the mandate.
At last if the company needs to engage more than 10 workers, they need to acquire the mandate for the book of wages from Inspection of the Department of Labour.
After the whole process is finished you are ready to make concern in Guatemala. ( Making concern, 2010 ) .
Thingss to make and non to make in making Business in Guatemala
Local contacts are of import for a individual to acquire involved with Guatemalans. The possible man of affairs does non take involvement with in new attacks therefore you need to set up for some authorities bureaus, Bankss or any association to present you to Guatemalan companies. If you have any papers that should be written in Spanish stating that if preferred can be translated into English.
Appointment day of the months should be requested about two hebdomads in progress. If expected to run into so form the meeting in office merely instead than a eating house or a saloon. Meetings are schedules merely twice a twenty-four hours one between 10:00 – 11:30 and the other at 3:00 p.m.
Before discoursing about the concern attempt to construct a trusty relationship and a good resonance with them because ambiance of trust is a pre status for a successful concern. Guatemalan believes in long permanent relationships so you need to see them 2-3 times before making a serious concern with them. Guatemalan people depict one ‘s position based more on societal category, household background and instruction instead than the personal accomplishment.
Therefore one can demo his position by exposing concern in rational chases, or by remaining in top hotels or by dressing gracefully. When meeting or departing, handshaking should be done with everyone in the room both male and females, but it should non be excessively steadfast.
When person is presenting you please keep oculus contact and a smiling on the face and how are you is the most frequent salutation used at that place. A individual is called by the rubric and his last name which is considered to be appropriate. When speaking to person custodies should non be in pockets it is considered impolite. The American OK mark should besides be avoided.
If you are interrupted in between do n’t experience offended because it is non considered rude at that place. But avoid direct statement during dialogues. Give them some clip to acquire involved with you before acquiring down into concern trades. While cutting anything avoid utilizing side of your fork and do n’t utilize custodies to pick nutrient. They do n’t wish to speak much between the repasts and do n’t get down the concern talk before the java is served. ( UHY, 2009 )
Attitude of Guatemalan towards foreigners making Business
Guatemalans are really curious about things and they have their ain protocols. Earlier the attitude of the Mayans specially the high rank officers towards foreigners was ill-mannered but it was non considered on their portion. But now they have bit by bit changed their attitude they are friendly and treat others with regard. They love people who portion same values and easy acquire along with them if they talk to them frequently. But they need an debut of yours through some mediators foremost to hold strong relationships in concern. ( UHY1, 2009 ) .
In Guatemala, a individual is recognised by his place in the societal hierarchy hence when it comes to do comparing or combinations of professional or academic accomplishments it should be done with the same degree of people. Boss keeps a batch of distance from employees.
By and large, the mediators and executives make determinations in a centralised mode in the offices. Middle direction takes attention of new thoughts and they have the bent of taking enterprises. In a concern run intoing an intermediary introduces both the parties to each other and after that they can get down speaking about their trades. If something is to be decided between two states so official individual should be of same degree so merely it can take to a smooth coaction. ( UHY2, 2009 ) , ( Intercultural acquisition, 2009 ) .