Investment in Peru
Peru is a real haven for foreign investment, which greatly contributes to the economy. Many foreigners have successfully managed to set up a business in Peru thanks to several incentives and simplified procedures. Because of this, Peru has become Latin America's most business-friendly destination.
How to register a company in Peru?
Incorporating a business in Peru depends on the type of shareholders that will be used to set up the company. For foreign shareholders, the process becomes more difficult since there are required steps to carry out before incorporation, which translates into greater documentation. These documents have to go through other processes in Peru causing the incorporation process to take up to two months. Prior to incorporation, you must set up legal powers of attorney that will sign all the necessary documents for the company incorporation.
The company must decide how they wish to be incorporated such as: Closely Held Corporations (SAC), Limited Liability Companies (SRL) or Branches.
A branch office is a location of business 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 legal entities 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 incorporation 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 partners. This type of company does not issue shares, and the incorporation 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 setting 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 set up the company.
- Sign the by-laws prepared and signed by a Peruvian lawyer.
- Open a banking account in Peru in the name of the company to be created, and depositing the share capital.
- Sign an affidavit by the directors of the company accepting such position.
- Register the company with the Registros Publicos (public registry).
- 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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