How to do Business in Guatemala

This are fragmentes of a publication made by the Chamber of Commerce of Guatemala to provide useful informaton on basic economic, commercial, labor tax and social conditions of our country.

 

I. GENERAL INFORMATION

1. GEOGRAPHY

Guatemala is located on the top north of Central America, approximately between 14º and 18º North latitude and 88º and 92º longitude west of the Greenwich Meridian. It borders North and West with the Mexican Republic, to the East with Belize, Honduras, El Salvador, and the Caribbean Sea, and to the South with the Pacific Ocean. It's extension is 108,889 km2 (about 42,000 square miles). In this extension of land, which is relatively small, the geological formations, topography, climate and soils combine to a great ecological diversity, which gives Guatemala very special characteristics.

2. CLIMATE

All this variety in Guatemala's topography, within relatively short distances from sea level up to 4,000 meters (13,000), provides a wide range of climate variations Temperatures may change from a maximum of 38 °C, to a minimum of 0 °C Rainfall varies from less than 500 mm up to 5,000 mm per year being regularly between 1, 200 and 2,500 mm.The average temperature ranges between 15° to 25 °C, two seasons prevailing: summer or dry season from November to April, and winter or rainy season from May to October, with heavy rainfalls in June and September

3. POPULATION

To the end of 1997, Guatemala's population reached approximately 11.2 million inhabitants. Population density is estimated in 102 per km2, being greatly exceeded in the departments of Guatemala, Quetzaltenango, Sacatepequez, Solola and Totonicapan.

4. LANGUAGE

The official language is Spanish, but there are 22 indigenous dialects, which are a part of the cultural heritage (more than 50% of the population). Quiche, Kakchiquel, Quekchi and Mam are among the most important.

5. GOVERNMENT SYSTEM

Guatemala is a Constitutional Democratic Republic, with an executive power, which is exercised by the President of the Republic, elected by popular vote; one legislative power, which rests on the congress of the Republic; and a Judicial Power under the Responsability of the Supreme Court of Justice. The country is divided in 22 Departments or 332 Municipal Districts.

6. SERVICE INFRASTRUCTURE


6.1 PORTS
Due to its excellent geographic location between the Pacific and Atlantic Ocean Guatemala is a strategic spot in international trade. It counts with modern portuary infrastructure, in which the following stand out:


- On the Atlantic Ocean Santo Tomas de Castilla and Puerto Banrios.

- On the PaciEc Ocean: Quetzal and Champerico.

Santo Tomas de Castilla and Quetzal have the facilities and equipment to handle general cargo vessels, solid and liquid bulk shipments, containers, roll-on roll off, tourist and fishing vessels, etc. Quetzal is the most modern and has a 24 hour service Twenty seven (27) shipping companies of different nationalities reach Guatemalan ports, providing cargo transportation from and to the United States, Canada, South America, Central America, Europe, Japan, The Far East, Mexico and Meditenranean Ports.

6.2 AIRPORTS
International airport "La Aurora", located in Guatemala City, allows air communication between the country and the rest of the world. "Santa Elena" airport in the department of Peten, is open to international air traffhc. It mostly receives tourists who visit Tikal's archaeological parks, lost world and Uaxactun, among others.

Additionally, in many locations throughout the country, there are public and private landing fields, which attend local flights. Twenty four (24) international airlines anrive daily to "La Aurora", of which fourteen (14) are passenger flights and ten (10) are cargo flights.

6.5 COMMUNICATIONS
The international telephone access code is 502. In 1996, the usage of seven digits for national phone numbers was introduced.

Guatemala is connected with the rest of the world by the most modern means of telecommunications. It counts with wired telephony, telefax, cellular phone service and Internet.

A new telecommunications law exists, which will allow services to be provided by private companies with the objective of promoting competition.

In addition Guatemala has an official television channel, with a variety of programs, and a service of cable TV. It also has around 90 radio stations, in modulated stereo amplitude and frequency

6.6 TRANSPORTATION
The road network has a length of 11,500Km, of which close to 6,000 are paved. The principal highways are those of the Central American network, in which outstand: the Panamerican highway, crossing the country from Mexico to El Salvador; the Atlantic-Pacific Inter-Ocean highway; and the highway that extends along the South Coast.

The Guatemalan Railroad Company (FEGUA) connects the city with the ports of Quetzal and Barrios, as well as the Mexican border (Tecun Uman).

The railway reaches a length of 782 kilometers. Recently, the railroad transportation service has been given in concession to an American company, which will put it in operation again.

The country also counts with overland cargo and passenger transportation, which cover all the departments in the country. This service is provided by many companies, and head inside Guatemala and abroad. (Central America, Mexico, and some cities in the south east of the United States).

Note: The traveler has to consider that in Guatemala some taxis circulate around the city's streets, but others are found in specific places, and their services need to be required. Generally, they are located in hotels, parks and at "La Aurora"lnternational Airport.

Next Page


[General Information] [Economic Aspects] [Legal Framework]

Guatemala Abril 2000

38 avenida 4-41 zona 7 colonia La Floresta, Guatemala Centro America 01007 Phone: (502) 5933374 fax: (502) 5955835 [email protected]