Company Formation in Peru
Updated on Sunday 06th August 2023
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In recent times, many foreign investors choose to set up a company in Perú, considering that the country has a blooming market economy. Perú is one of the most developed Latin American countries and this is mainly due to the natural resources export, especially minerals.
Types of companies in Perú
Our experts in company formation provide optimal solutions for clients so they can choose what kind of legal structure suits their interests when opening a company in Perú.
Here are some of the most common incorporated businesses in this country: joint stock companies, publicly and closely held corporations, limited liability companies etc. The latter, however, is preferred by a vast majority of the foreign investors.
These are the requirements for the establishment of a limited liability company (sociedad de responsabilitad limitada):
- minimum two partners and maximum 20;
- must have the abbreviation S.R.L;
- minimum two shareholders (these can be of any nationality, without having a Peruvian residency);
- the company can function without a director, but at least one manager must be appointed.
What are the highlights regarding the registration of a Peruvian SRL?
The Peruvian SRL represents the most common way to start a business in this country. This company type has the same characteristics that are available at a global level for a limited liability company, with certain aspects that are particular to this jurisdiction.
We refer here to the minimum number of shareholders, the capital, managerial obligations, taxes charged, etc. The limited liability company is suitable for the majority of the business sectors, therefore most investors will opt for this company type.
The LLC is also the ideal legal entity chosen for offshore company formation. In the list below, our consultants in company formation in Peru have gathered some of the most important matters concerning the registration of this business form:
- the legal entity can be set up with 100% foreign capital;
- the steps for company registration in Peru can be completed in around 6 weeks;
- you will also need a corporate bank account and the formalities can be completed in around 10 weeks (for offshore company setup, investors will need an offshore bank account);
- the company is liable for the payment of the corporate income tax, charged at the rate of 29.5%;
- the LLC must also pay withholding taxes for the payments made to foreign shareholders, and they are imposed at a rate of 5% from the value of the payments.
Registration procedure in Perú
There are a few steps to be followed when forming a company in Perú, but our experts in company incorporation will assist you so that you can complete the process as quickly as possible. The first step of is to check the uniqueness of the name you have chosen for the company and then reserve it online with the Peruvian Public Registry.
The next step of the company formation process in Perú is notarizing the certificate of incorporation, a procedure that can be done with the assistance of a local public notary. After that, the next step is signing the certificate of incorporation and filing it online with the Public Register of Commerce.
What follows is that a certificate of registration has to be acquired, as well as a taxpayer identification number. Then, the stamping of the minute book and of the accounting one is completed at a notary office. This will cost around $50.
Last, but not least, the municipal license must be obtained from the City Council. For this you will need to submit some documents, such as incorporation papers or distribution plan.
Do investors need business permits in Peru?
Yes, business permits and licenses are necessary provided that the company will operate in specific economic sectors that require the issuance of permits as per the rules of the Peruvian law. The license can be necessary for economic sectors such as:
- services sector;
- industry;
- commerce.
The license is known as the Municipal Operations License and it will be granted at the level of the municipality where the company is registered and develops its economic activities. In order to be issued with the document, the company’s representatives have to submit a large set of documents.
For this, the following are necessary:
- the company’s tax identification number (RUC - Registro Unico de Contribuyente) which is obtained from the National Tax Administration Superintendence (SUNAT);
- the certificate attesting the type of location where the company operates (residential/commercial/industrial zones);
- documents attesting the business address (rental agreement/property purchase contract);
- the completed application form;
- the proof of paying the license fee.
Please know that the steps for company formation in Peru during this stage will imply that you will receive a visit at your premises from the Peruvian officials, to check if the location meets the necessary standard, as per the requirements imposed for your business activity.
Here, a safety inspection will take place, conducted by the representatives of the National Institute of Civil Defense (INDECI).
How can our team assist foreign investors in Peru?
Our consultants can provide full legal representation during the steps of company registration in Peru. Please mind that our team can offer legal assistance and the necessary advice before starting this procedure.
As a foreign investor, you will be required to comply with various immigration formalities, such as obtaining a visa issued for the purpose of your arrival, and to comply with residency formalities. Our consultants can offer guidance throughout this phase as well.
You can rely on our team for putting you in contact with any third party that may be necessary when opening a company in Peru, such as a notary public or accountants. Our specialists are also specialized in offering corporate tax services.
You can easily register a company in Perú in a couple of weeks with the assistance of our company formation team. Our specialists offer information as well as consultancy on establishing other types of companies in other countries as well, therefore feel free to contact us.