Procedures relating to the setting up of a business in Peru are quite simple. Find out more in this article.
Peru is deemed to be a real haven for foreign investment. Indeed, many foreigners have successfully managed to set up a business in the country thanks to several incentives and simplified procedures. Hence, the country has become Latin America's most business-friendly destination. Added to that, a simple legal and tax framework.
The following are the most attractive sectors in Peru in terms of investment: information and communication technology, industry, mining and finance. However, salaries in the country are rather low compared to other South American countries.
Types of companies
There are three types of companies in Peru, namely the Limited Liability Company, the Public Limited Company and the Limited Partnership.
The Limited Liability Company and the Public Limited Company, for instance, require a minimum of two partners, but with no limit. No minimum capital is required and each partner's liability is determined by his amount of contribution.
In the case of the Limited Partnership, at least two partners and associates are required but with no limit. Note that it involves two types of associates: limited associates with limited liability and limited partners whose liability depends on the amount of contribution made although they are not members of the company's board of directors. Moreover, no minimum capital is required.
Procedures and fees
Booking a company name
First of all, you are required to book a company name. This step can be performed online on the Public Registry's website, that is SUNARP, or at a representative office. You will therefore select a social motive for your company and check its availability. Fees of 4 new Peruvian soles apply for the research and 18 new Peruvian soles for the booking.
Thereafter, you will proceed with the company's incorporation. This step can also be performed online on the Individuals and Companies Service Portal. You thus have to choose a notary and provide him with all necessary information pertaining to the company's incorporation. These procedures are free of charge.
Registering your company is the longest and most expensive procedure. The incorporation certificate has to be signed by the entrepreneur, associates and partners before a public notary. Thereafter, the SUNARP will proceed with the verification and validation of the company's registration within 35 working days. Otherwise, it will notify you and your notary regarding any irregularity.
You then have to register the incorporation certificate before the notary. Note that notary fees amount to 1% of the capital, depending on the company's structure, each partner's initial contribution and the public deed's content. Registration fees paid to SUNARP also have to be paid to the notary. These will amount to 0.3% of the invested capital, 40 new Peruvian soles for registration at the Public Registry and 9 new Peruvian soles for each director, manager or other representative. All all cases, fees should not exceed 3,800 new Peruvian soles.
On receiving the public deed, SUNARP will finalize the company's registration to the Public Registry. A registration certificate will then be issued.
Obtaining a TIN
You will be eligible to a tax identification number (TIN) following the newly constituted company's registration with the Unique Registry of Taxpayers. Thus, one the company's nominated legal representatives has to fill in some forms which he has to produce to the National Customs and Tax Superintendence. He also has to produce a copy of his identity card, proof of the company's address and the company's registration certificate issued by SUNARP.
Minutes of meetings and accounts book
The company's minutes of meetings and accounts book have to be authenticated by a public notary. Notary fees will be determined by the latter according to the amount of documents to be authenticated.
Obtaining an operation permit
Finally, you have to apply for an operation permit from the nearest municipality or district council to the company's address. Documents to be produced are the following:
- the company's registration certificate
- the distribution plan
- the property deed or lease document (whichever applies).
Some district councils even provide online registration facilities on their website. Procedures can then take up to 15 days. Fees applied may vary from district council to another.
SUNARP – Public Registry www.sunarp.gob.pe
SUNARP – Online registration enlinea.sunarp.gob.pe
SUNAT – National Customs and Tax Superintendence www.sunat.gob.pe
SUNAT – Registration as a taxpayer www.sunat.gob.pe/ol-ti-itinsrucsol