Setting up a business in Peru

Popular sectors for investment include Information Technology, Finance, Industry, and Mining. However, despite the investment-friendly climate, there are still procedures to follow and conditions to be met in order to set up a business as an expatriate. Below is a brief guide to getting started.

Types of companies

There are three main types of companies in Peru: the Limited Liability Company, the Public Limited Company, and the Limited Partnership.

The Limited Liability Company and the Public Limited Company both 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

Migratory procedures

If you enter Peru as a tourist, you will first need 'permission to sign contracts' which is easily granted at MIGRACIONES, the office for migration. Depending on whether or not you need a visa in the process of setting up your business, you could apply for an Investor Visa, with a minimum share capital of USD $30,000 required.

Booking a company name

You are first required to book a company name. This step can be performed online on the Public Registry's website, SUNARP, or at a representative office. You will also have to select a social motive for your company and check its availability. Fees of four New Peruvian Soles (PEN) apply for the research and 18 PEN for the booking.

Incorporation

Next, you will proceed with the company's incorporation. This step can also be performed online on the Individuals and Companies Service Portal. You need to choose a notary public and provide him/her with all necessary information pertaining to the company's incorporation. These procedures are free of charge.

Registration certificate

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 notary public. SUNARP will then 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 PEN for registration at the Public Registry and 9 PEN for each director, manager or other representatives. In 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 RUC

You will be eligible for a tax identification number (RUC) following the newly constituted company's registration with the Unique Registry of Taxpayers at SUNAT, the local tax authority. One the company's nominated legal representatives have to fill in some forms which must be presented to the National Customs and Tax Superintendence. The representative also has to produce a copy of his/her 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 number 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.

Useful links:

SUNARP ' Public Registry
SUNARP ' Online registration
SUNAT ' National Customs and Tax Superintendence
SUNAT ' Registration as a taxpayer