Company registration in Peru
Peru is a real haven for foreign investment, which greatly contributes to the economy. Many foreigners have successfully managed to register a company in Peru thanks to several incentives and simplified procedures. Because of this, Peru has become one of Latin America's most business-friendly destination.
How to register a company in Peru?
Registering a company in Peru depends on the type of shareholders that will be setting up the company. For foreign shareholders, the process becomes more difficult since there are required steps to carry out before registration, which translates into greater documentation. These documents have to go through other processes in Peru causing the registration process to take up to two months. Prior to registration, you must set up legal powers of attorney that will sign all the necessary documents for the company registration.
The company must decide how they wish to be registered such as: Closely Held Corporations (SAC), Limited Liability Companies (SRL) or Branches.
A branch office is a company location outside of the main office, which must be managed and represented by a permanent legal branch manager residing in Peru. Nevertheless, foreign branches are not considered legally independent from the parent company but are still managed autonomously by the branch manager, who usually takes orders from the main office. For this reason, the parent company must already be registered and recognized by the Peruvian Mercantile Registry (RMP).
Closely Held Corporations (SAC)
It is one of the most common forms of companies chosen by foreign people that are interesed in investing in Peru. The maximum number of shareholders is 20. The share capital is divided into shares of equal value, and at the time of the registration shall be paid not less than 25% of each participation and deposited in a bank of the national financial system on behalf of the company. Through the incorporation of a Peruvian SAC, one can use this company as the vehicle to sponsor a Peruvian working visa.
Limited Liability Companies (SRL)
Limited liability companies require a minimum of 2 and a maximum of 20 shareholders. This type of company does not issue shares, and the registration procedures are the same as those for all other corporations. The capital is divided into the ownership interests, which are indivisible and all partners have a limited liability. If owners want to transfer ownership interests to third parties, they have to be approved by the existing partners and must be registered in the Public Records Office.
Legal formalities to register a company in Peru
These are the main legal formalities to be carried out when registering up a company in Peru:
- Obtain a permission to sign contracts before migration department (migraciones) or instead you could grant a power of attorney to somebody to register the company.
- Sign the company bylaws prepared and signed by a Peruvian lawyer.
- Open a bank account in Peru in the name of the company to be registered, and depositing the share capital.
- Sign an affidavit by the directors of the company accepting such position.
- Register the company with the Public Registry (Registros Publicos).
- Register the company with the local tax authority (SUNAT) in order to get the tax id (RUC).
- Obtain the municipal authorization to open the business (licencia de funcionamiento).
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