If you’re thinking about starting a business in South America or planning to expand your current operation you can think about locating your company in Peru. Peru is a wonderful place to access the markets in South America due to its location in the continent of South America.
There are several advantages of setting up a business in Peru such as the ease of doing business streamlines the process of registering corporations in the nation. Peru has established several international trade agreement with other nations that streamlines trade and offers company owners an opportunity to expand their enterprises.
With this article, we will be covering the different reasons for registering a company in Peru providing you with a quick overview of why you must consider setting up your firm in the nation.
Various Advantages of Setting Up a Business in Peru
Here are the various reasons for registering a company in Peru:
1. Simplicity of Business Operations
- One of the advantages of setting up a business in Peru is the ease with which organizational operations can be carried out within the nation.
- Atleast one shareholder and one director are required in order to establish a firm in Peru.
- According to the most recent surveys on the ease of doing business, the country is presently in 76th place.
- The lack of minimum capital requirements is another one of the benefits of registering a business in Peru.
- Furthermore, establishing a business in Peru is a simple and straightforward process that might take between 15 and 30 days.
2. Wealth of Natural Resources
- Another one of the advantages of setting up a business in Peru is the quantity of natural resources available within the country.
- Peru is the world’s second-largest provider of copper, silver, and zinc and ranks seventh among nations in terms of worldwide gold production.
- The availability of these resources presents an opportunity for organizations engaged in the mining, energy, and allied industries.
3. Growing Consumer Market
- The development of a strong middle class in Peru has been characterized by rising purchasing power and discretionary income.
- The expanding middle class is driving consumer interest in a wide range of products and services, including consumer goods, technological advances, travel, medical care, schooling, and entertainment.
- Companies can benefit from the expanding consumer sector to meet the changing demands and preferences of Peruvians.
4. Welcome to Foreign Investment
- Another one of the advantages of setting up a business in Peru is the country’s openness to foreign investment.
- According to Peruvian law, both international and local investors have an equal entitlement to their assets under the “national treatment” rule.
- As such, overseas investors will be treated equally, and also the rule forbids discrimination by any governing body on the basis of a person’s nationality, type of economic operation, place of residence, tariffs, non-custom duties, and so on.
- Further, there aren’t any limitations on foreign ownership of shares, foreign currency, or investment from abroad which is another one of the reasons for registering a company in Peru.
5. Investment Incentives
- Another one of the benefits of registering a business in Peru is that the nation provides alluring investment incentives to encourage economic growth and draw in foreign direct investment.
- These rewards range from tax breaks to subsidized lending, and finance.
- Additionally, the nation has designated free trade zones that offer businesses extra advantages like streamlined customs processes, tariff exemptions, and access to specialized infrastructure which is another one of the reasons for registering a company in Peru.
6. Access to the Internet
- Another one of the benefits of registering a business in Peru is access to internet connectivity.
- The internet’s capacity to connect consumers, producers, and suppliers on a virtual platform is crucial given the expansion of the world’s burgeoning e-commerce industry.
- Peru is also one of the counties possessing the highest share of people who use the internet globally.
- As a result, more than 70% of Peruvians have access to the Internet, which is one of the reasons for registering a company in Peru.
7. International Trade Agreements
Another one of the advantages of setting up a business in Peru is that the nation has struck a number of international trade agreements with other countries. As a result of such agreements, there is a growth in international trade, which attracts more investors to Peru.
The trade agreements that Peru has negotiated are listed below:
- The United States-Peru Free Trade Agreement (PTPA) is an accord that governs trade between the US and Peru.
- Additionally, Peru and MERCOSUR (South American Common Market) nations have Framework Agreements.
- Peru has additionally established free trade accords with the EU, the European Free Trade Association, Australia, Japan, and several other nations.
- Peru has also adopted the WTO Accord on Trade Facilitation.
- There are 29 bilateral investment treaties that Peru is a signatory to.
Conclusion
Businesses looking to expand into South America have many reasons to consider Peru. Its favorable business climate, availability of internet resources, abundance of natural resources, and expanding consumer market provide an ideal setting for entrepreneurship. Businesses may unlock their growth potential, contribute to the development of the nation, and successfully traverse the vibrant and dynamic South American business environment by utilizing the opportunities that are accessible in Peru.
If you have queries about the benefits of registering a business in Peru, don’t hesitate to reach out to the business specialists at OnDemand International. Our group of knowledgeable experts is here to help you and offer advice. We are committed to answering your questions and making sure you are aware of all the benefits of registering a business in Peru. Additionally, our staff members are qualified to guide you through the registration procedure and guide you with all of the required documentation.
FAQ’s
Peru offers enticing investment incentives, including reductions in taxes, and subsidized loans and financing. The country has also established free trade zones that provide companies with additional benefits like expedited customs procedures, tariff exemptions, and access to specialized infrastructure.
International trade agreements make it easier for individuals to engage in trade, which in turn draws more investors to Peru. It facilitates business transactions with foreign countries, fostering the expansion of firms.
Due to the lack of minimum capital requirements and the requirement of just one shareholder and director to establish a business in Peru, doing business there is simple. Additionally, opening a business in Peru is a quick and easy process that could take between 15 and 30 days.
The abundance of natural resources presents a commercial opportunity since they provide access to the resources needed by companies in the mining, energy, and allied industries.
Peru attracts more foreign investment because there are no restrictions on overseas ownership of shares, foreign exchange, or investments from abroad.
Access to internet is advanatgeous for businesses registered in Peru because of its capacity to connect consumers, producers, and suppliers on a virtual platform. More than 70% of Peruvians have access to the Internet, making it simple for businesses to reach their customers.
The consumer market in Peru is expanding. Rising purchasing power and discretionary income have been factors in Peru’s emergence of a robust middle class. The growing middle class is increasing customer interest in a variety of goods and services, which is advantageous for companies involved in these industries.
