Guatemala - the Law of the Land Basics and a Brief Business Law Guide
Welcome to Coban, Guatemala and the Verapaces, the green heart of one of the most beautiful countries on earth! This article is intended to provide a basic overview of the legal system of Guatemala and some general information for those wishing to become a little more than tourists after a visit to the largest country in Central America.
Since its time as an ancient Mayan civilization and later as a Spanish colony, Guatemala has seen a number of different governments - both military and civilian. After 36 years of a bloody civil war, in 1996 the Peace Accords were signed and included not only an end to the fighting, but also a number of agreements around topics ranging from human and indigenous rights to agricultural and land usage.
Today, Guatemala is a country where primarily civil law governs the land, and larger tourist destinations such as Antigua, Quetzaltenango and Coban are no exception. Many categories of law exist here as they do elsewhere, including business law which may be of particular interest to a visitor to Coban (or Guatemala in general).
In general, a new law in Guatemala becomes valid after being enacted according to a specified procedure, and is eventually published to the Official Gazette.
The first step of the process involves a presentation and a reading in three different sessions of Congress. A Guatemalan President does have veto power, but this power can be overturned by a two thirds majority vote in Congress. If the President signs or allows 15 days to pass after receiving the draft, it will be sent for publication to the Official Gazette and then become an effective law usually eight days after publication. Many types of laws are created and enacted by this system, from immigration law to civil and criminal law.
The only other way that a law can be passed in the Guatemalan legal system is through an emergency session of Congress and a two thirds majority vote.
Since the signing of the Peace Accords, Guatemala had made some significant strides forward in their ability to attract foreign direct investment. In 1998, a Foreign Investment Law was passed to help govern Guatemala's ability to deal with an increased presence in the global marketplace. In addition, legislation was passed soon after the signing of the Accords to allow for the use of international arbitration for the first time in Guatemala's history.
When operating a business in Coban or any other place in Guatemala, the tourist turned entrepreneur will be subject to the Guatemalan laws of foreign investment. Often, those considering a business opportunity in Guatemala will look for online legal advice as they begin to plan the logistics of such an endeavor.
Today's foreign investment laws in Guatemala do more to protect the investor than before as well as remove many restrictions on types of foreign investment. For example, when perusing international law resources a potential investor will realize that in most cases a foreign investor now has the same rights and enforcement mechanisms as a Guatemalan national.
In addition, the recent CAFTA agreements contain perhaps the most detailed set of rules and regulations around foreign direct investment, and although many provisions were previously covered under existing Guatemalan Foreign Investment law, when considering an international business law solution, the savvy potential investor would do well to make themselves familiar with these significant changes.
