Starting a business in Guatemala
Plan Basics
Overview
Purchasing Products
All Amway Business Owners purchase products directly from Amway.
Bonus Payment
Bonuses will be paid directly to all Amway Business Owners (ABO) who have earned the bonus. Bonus payments will be paid by check unless direct deposit is requested. Beginning January 1, 2009, an ABO must generate 150 personal points in a month in order to receive a bonus. This applies to any bonuses (personal, group differential, leadership, etc.). This new requirement is a monthly requirement meaning that an ABO must generate 150 personal points every month that he is receiving a bonus to be eligible to keep it. This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market.
PV/BV Transfers
PV/BV transfers are not available.
Single Line of Sponsorship
Amway Latin America is integrated by 12 affiliates:
Argentina
Brazil
Colombia
Costa Rica
Chile
El Salvador
Honduras
Guatemala
Mexico
Panama
Uruguay
Venezuela
As of September 2007, Latin America began operating as a Consolidated Line of Sponsorship (consolidated market) where Amway Business Owners (ABOs) are able to personally sponsor from and to any market within the Latin America Region without the need to establish as second business. The consolidation of the Latin American line of sponsorship means very important opportunities for ABOs. Some of the benefits are:
– Cross border sponsoring allows for personal sponsoring in all markets
– ABOs can place orders in any market different from their home country, only to be shipped to local addresses within the affiliate where the order is placed
– Combined volume from all markets allows an ABO to reach the 21% level more quickly
– Regional Business Kit
– Regional SIP Program
– Regional Bonus Statement
Performance Schedule
PV Trade Discount
10000 21%
7000 18%
4000 15%
1,800 12%
600 9%
Retail Margin
Retail margin or mark up for Amway products averages about 30% but varies with each product. The average retail margin for this market is 30.4%.
how to start
Business Kit Purchasing
In order to buy a Business Starter Kit and become a new Amway Business Owner (ABO), the prospect must be at least 18 years age and contact an Amway Business Owner for purchase of the Starter Business Kit. The new Amway Business Owner must complete, sign and submit the Registration form (original) by post mail. (He/she may also fax the Registration Form before sending the original so he/she can buy products immediately).
This process can also be completed using the Internet site www.amway.com.gt where the applicant, together with the sponsor, completes the Registration Form. The new Amway Business owner is registered at that moment and he/she can buy products on-line. The Business Starter Kit will be automatically included in the order. The Registration Form must be printed and signed by the applicant and submitted to Amway de Guatemala within the first 90 days.
Cost of Starter Kit
$15.00 USD (including VAT)
Sponsoring
In order to register a new Amway Business Owner (ABO), the sponsoring ABO must ensure that all ABOs registered are provided with an official Amway Business Starter Kit (without substitution or alteration of the contents) and the ABO Contracts are completed, signed and submitted to Amway Argentina.
As of January 1, 2009, an ABO is required to attend or complete two training courses – Welcome to Amway and Presenting the Amway Business Opportunity within 30 days from their first sponsorship. If the ABO does not complete these two courses within the required 30 days, future sponsoring will not be allowed. An ABO must also generate 150 personal points within a performance month.
Distributor Classifications
In addition to the Amway Business Owners, Amway Latin America established two additional alternatives to have access to the Amway Products and Services called Associate and Client.
An Associate is able to buy Products directly from Amway de Guatemala at Distributor cost and resale them. Associates can not sponsor and bonuses are not received.
To become an Associate the person can be register by internet, the 800 number or in the Amway Shop he/she has to fill an application which requires basic information, an associate must be referred by a known ABO otherwise this person must be registered as a client. The cost to become an Associate is of $ 30.24 USD this cost covers a Product Catalog and special communications for a fiscal year (September – august).
A sponsor is required to sign in as an Associate and the person can choose if he/she wants to be contacted by the sponsor. Legal entities can not become Associates.
A Client is able to buy Products directly from Amway de Guatemala at a retail price and can be able to obtain a discount according to the amount purchased. Clients can not sponsor and bonuses are not received.
To become a Client the person can be registered by internet, the 800 number or in the Amway Shop by providing their name, telephone number, e-mail address, name of the ABO who is registering him/she, in case the person has not been refer and does not an Amway Business Owner, Amway will assign one based on a data base of retailers of the affiliate. There is not cost to become a client.
A sponsor is required to be register as a client and the person can choose if he/she wants to be contacted by the sponsor. Legal entities can become clients.
Establish a Second Business
Amway Business Owner Registration Requirements
Please check the following website for visa information:
Please check the following website for information on taxpayer registry:
ABOs are required to have a Guatemalan address, but an office is not necessary.
ABOs are responsible for complying with any local business, commercial and/or trade authority licensing issues.
Doing business by a foreigner includes but is not limited to selling products, receiving bonuses and sponsoring.
Visa Requirements
Please check the following website for visa information:
You can use your passport number to fill out the Amway application.
It is not necessary to have citizenship to start a second business.
Formation and Registration of Your Business
Any foreign ABO can have a business in Guatemala as an International Sponsor (as outlined in the Business Reference Guide) or as a Local Sponsor.
As in other countries, it is necessary to define the kind of ABO business is desired:
– A Single Person ABO (we recommend this option), or
– A legal Entity ABO (LLC)
Single Person ABO
– Buy a local starter kit, to be sponsored (payment in local currency)
Legal Entity ABO (LLC)
An ABO can choose to be an owner of a legal entity (Corporation or LLC). In this case, it is necessary to open a Guatemala LLC company. The Registration form must be submitted and processed in the individual name(s) of the ABO. The ABO can then request the transfer of ownership to the LLC through the affiliate. Please note the sole purpose of the LLC must be the operation of the Amway business. No other business activity can be conducted through the LLC.
It will be necessary to have a Resident person with power of attorney to represent the foreign owner of the LLC. The attorney will also be the legal representative of Foreign Owner face to Supervision of Tributary Administration (SAT).
Amway recommends that you consult qualified professionals and pertinent government authorities to prepare the required documents that need to be filed.
To open an Amway Business the only capital required is the starter kit cost (approximately US$45.00).
As with your primary business, your second business must be renewed each year with the affiliate.
It is necessary to open a Bank Account in order to receive a bonus from Amway. Along with the mandatory taxpayer number, other documents must be confirmed with Bank Office.
Submit your paperwork to:
Amway de Guatemala, S.A.
2da. Avenida 9-01 Zona 10 zip code 010010
Guatemala, Centroamerica
Required Documents for Registration
Please check the following website for visa information:
Please check the following website for information on taxpayer registry (SAT):
Cost and Bonus Payment
Costs to open a LLC
– Lawyer and accounting costs
– Additional fees for translating, notary and maintenance costs. These are dependent on the size and volume of the activity of the company.
– Monthly fees
Bonus Payment
Bonus payments are made through deposit in a local bank account. The ABO should provide bank data, bank account number, swift bank number and bank ABA code, a remittance request letter for Amway and an authorization to Amway to deduct a broker’s fee from the total payment. The cost is approximately US$30.00 per operation paid by the ABO. Amway will provide the necessary document to release the remittance.
Affiliate Staff Contact (names / email / phone)
Claudia Reynoso
Customer Service
claudia_reynoso@amway.com
Tel: (502)24183131
how to order
Ordering
ABOs, Associates and Clients can order Amway products from Amway de Guatemala by:
Order Entry:
phone: 1-800-8350342
Following the next steps:
– Provide your ABO, Associate or Client Number to place an order.
– Confirm that the code number of the Products is correct when you are ordering; you can verify this number in the price list.
– Have handy the address where you wish Amway Guatemala to deliver your order. This address has to be within the country of Guatemala.
Hours of Operation:
9:00 am. to 7:00 pm – Monday through Friday
9:00 am to 1:00 pm. – Saturday
Internet Orders
You can also order products through our web site: www.amway.com.gt
Amway Shops
2da. Avenida 9-01 Zona 10
PBX (502) 24183131
9:00 am. to 7:00 pm. Monday through Friday
9:00 am. to 1:00 pm. Saturday
Payment Methods
– Order Entry and Internet Orders
– Credit Card (Visa)
– Debit Card ( Visa)
– Deposit in Bank Account
Amway Shops
– Credit Card (Visa)
– Debit Card
– Deposit in Bank Account
– Cash
Returns/Refunds
Business Kit returns will be accepted 90 days from date of purchase (Amway Business Owner only). The new Amway Business Owner has three months (90 days) during which if they want to resign, they may receive a refund provided that the Business Kit is returned intact, with the contract and Identification Card. If product or literature is missing when returned, that amount will be deduced from the cost initially paid for the kit.
Products may be returned under the Customer Satisfaction Guarantee policy. Amway Business Owners must return the products to the Product Selection Center with proof of purchase (receipt, ticket, invoice). ABOs must also complete a form where all the information pertaining to the Amway Business Owner is captured as well as the reason for returning the product. Depending on the situation, the Amway Business Owner has the option to receive money back or product replacement.
how to manage
Access Information
– In person – at the offices through a Customer Service or Distributor Relations Representative
– By phone – (502) 24183131
– By e-mail: claudia.reynoso@amway.com
Receive Bonus Payments
Beginning January 1, 2009, an ABO must generate 150 personal points in a month in order to receive a bonus. This applies to any bonuses (personal, group differential, leadership, etc.). This new requirement is a monthly requirement meaning that an ABO must generate 150 personal points every month that he is receiving a bonus to be eligible to keep it.
This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market.
ABOs, who have earned a bonus, may receive the payment via bank, electronic transfers by registering the bank account.
The ABO must send a data modification informing their bank account number data:
– Bank
– Branch
– Account Type
– Account Number
The bank account could be Santander Río or Standard Bank and the titular account name has to be the Amway Business Owner’s name.
If the ABO does not provide a bank account, a check is generated automatically and submitted by post mail to the ABO’s mailing address.
Also the ABO can choose that all the bonus payments earnings will stay in A/R forward so that amount can be use for future purchases.
Renew
All ABOs need to renew their Contract.
An ABO’s initial contract year terminates on December 31, if it is signed prior to August 31, or on December 31 of the next year if the ABO Contract is signed after August 31. The renewal fee and procedures are published yearly in Amway Publications.
Renewal Methods
– Amway Shops
– Order Entry
– Internet web site: www.amway.com.gt
Payment Methods
– Credit Card
– Bank Transfer
– Cash (Only in Amway Shops)
contact
Amway de Guatemala, S.A.
2da. Avenida 9-01
Zona 10
Guatemala City
Guatemala
Phone: 502-24183131
Fax: 502-23602491 – Administrativo
www.amway.com.gt (Public & Distributor Website /MultiLingual)
jaime.blanco@amway.com (Email)
Opened September 1987
