Bolivia Enacts The Law Of Social Enterprises

Bolivia has issued a new law that affects any private company operating in the country. Significant consequences are possible for non-compliance, so it's important for businesses to take note.

Understanding the ramifications of the new legislation is essential, and TMF Group has the local expertise and knowledge to help you understand the implications for your business.

The 'Creation of Social Enterprises' Law came into effect on May 1st, 2018, sanctioned by the Plurinational Assembly.

This law will allow workers to take control of private companies they work for, when the companies enter bankruptcy, abandonment, or liquidation. The Head of State in enacting the new law said that it is not a measure to harm employers, but to protect workers' rights and to create and maintain the job market.

The move by Bolivian President Evo Morales is in keeping with Bolivia being an interventional state that increasingly approaches socialism. These laws seek to sanction private activity and are similar to existing laws in Venezuela.

The 'Creation of Social...