Entrepreneurs wishing to incorporate a business in the South American region, can register a company in Pero, the 3rd biggest nation in the continent. Peru is a desirable location for international entrepreneurs due to its wealth of natural resources. Peru is one of the top 10 gold producers around the globe and ranks third worldwide for the production of copper, silver, and tin.
Agriculture has historically been Peru’s main economic activity, but the mining and manufacturing industries have remained reasonably steady during the years. The nation’s services industry has grown quickly, employing almost three-quarters of the workers by the 21st century. The mining industry generates approximately 57% of exports and contributes about 12% to the nation’s GDP which is one of the main motives for entrepreneurs choosing Peru as the location for their business incorporation.
This article will briefly discuss the procedure for company registration in Peru. it will further address the documents, requirements, taxes, and charges for Peru company registration.
Procedure for Peru Company Registration
In order to register a company in Peru, a business owner can follow the steps given below:
Select the business structure
The initial step for Peru company registration is to choose what kind of enterprise and what kind of activity the business owner wants to incorporate. One of the most common forms of business that can be incorporated in Peru is Closely Held Corporations (S.A.C.)
Reserve the business name
Once the structure for the firm has been decided, the business owner must choose a name for the company that is distinct from any other already operating businesses in the nation and reserve the name accordingly.
Prepare the incorporation documents
The third step involves preparing numerous documents for company registration in Peru such as the meeting minutes, articles of incorporation, etc. As soon as the incorporation articles are finished, they have to be given to a notary public who analyses them and turns them into a public deed.
Register the business at SUNARP
Entrepreneurs must complete the form provided by the National Superintendence of Public Registries (SUNARP), pay the relevant costs, and submit the documentation that the Notary Public provides in order to register a company in Peru.
Acquire the RUC number
Once the firm has been registered, entrepreneurs must acquire the Taxpayer ID, also called the RUC number through the National Superintendence of Tax Administration (SUNAT).
Formalize your accounting books
Your statutory records and accounting records must be notarized to become legally binding. Minutes and stock registration records are included in statutory accounts, whereas sales, purchases, and daily books are included in accounting records.
Acquire the Municipal Operations License
The Municipal Operations License is the permission given by the local Municipality to businesses in the trade, manufacturing, or service sectors to begin operational activities.
Documents required to register a company in Peru
For Peru company registration, entrepreneurs must submit the documents given below:
- Business incorporation form that is given by SUNARP
- The firm’s articles of incorporation
- Information on how much money each stakeholder or partner is investing
- Details of the company’s activities
- An official record detailing the registered office address
- Anu other necessary documents
Business entities for Peru company registration
In order to register a company in Peru, the business owner must first choose the organizational structure for the enterprise.
The several business types that can be incorporated in Peru are shown below.
Private Closed Corporation (SAC)
Private Closed Corporation also known as Sociedad Anónima Cerrada, is the most widespread form of business in Peru. A SAC may be founded with at least two stockholders and a total of twenty. As a result of the limited liability that a SAC offers its stockholders, their obligation is restricted to the amount of share capital they contributed.
Joint Stock Company (S.A)
Joint Stock Company is also known as Sociedad Anonima. A joint-stock company must have at least two stockholders, who may be either natural persons or legal entities of any country.
Limited Liability Company (SRL)
An LLC also known as Sociedad Comercial de Responsabilidad Limitada (S.R.L) is a form of business structure that can have as few as two stockholders and as many as twenty. The members of an LLC have limited liability, and as such, they are not personally accountable for the firm’s debts and obligations.
Branch Office
Foreign corporations may establish branch offices in Peru. Excluding taxation-related matters, branch offices are not regarded as distinct legal entities. The branch office is permitted to engage in the same activities as its parent firm and the parent firm is accountable for the liabilities and commitments of the branch office. The branch shall choose a formal representative who shall be a resident of Peru.
Eligibility criteria for company registration in Peru
Here are the requirements that must be considered for company registration in Peru:
- A SAC may be established with a minimum of two and a maximum of twenty stockholders.
- The branch must select a legal representative who is a Peruvian citizen.
- There are no minimum capital limitations for company registration in Peru.
- For Peru company registration, a registered office address is required.
Taxation structure in Peru
Businesses that register a company in Peru must also enroll with the tax authorities and pay the various business taxes in the country.
Here are the rates of business taxes in Peru:
- Corporate income tax (CITQ): In contrast to foreign established corporations, which are taxed on their worldwide revenue, Peruvian-incorporated businesses are subject to a corporate income tax on their global net revenue. The rate of CIT in Peru is 29.5%.
- Value-added tax (VAT): Peru’s standard VAT rate is 18%.
- Withholding taxes: Royalties given to both resident and international businesses, as well as interest given to overseas firms, are subject to a 30% withholding tax.
Cost for company registration in Peru
Entrepreneurs must pay the necessary fees for Peru company registration to incorporate the firm. The business owner must pay the SUNARP the business incorporation fees to register a company in Peru. Public deed & Public Registry Office registrations cost between US$800 to US$1,000. Entrepreneurs must also account for other costs like opening a bank account, obtaining licenses, creating company documentation, etc.
Why register a company in Peru?
- Peru is known for having a wide variety of natural resources, which contributes to its robust economy in the mining sector.
- Peru is a member of the WTO and a signatory to numerous bilateral accords.
- Due to low governmental service charges and the absence of minimum capital requirements, Peru company registration is affordable.
- Peru has numerous partnerships and free trade agreements that promote foreign business.
- In terms of production, Pery ranks third in the world for copper, silver, as well as zinc.
Advantages of company registration in Peru
Here are the numerous benefits of company registration in Peru:
Simple to do business
One of the key considerations for international investors choosing Peru for direct or indirect investment is how easy it is to engage in commerce there. International stockholders, foreign investments, foreign currency, and the remittance of profits are not subject to any constraints. Additionally, there is no minimum capital required for incorporation and a minimum of 2 stockholders are needed.
Efficient mining sectors
Mining has consistently been among Peru’s strongest economic areas. Peru is now one of the biggest mining producers in the globe and the area as a result of its effective mining methods. By creating jobs, mining supports the local economy while also benefiting the surrounding residents.
Friendly International Relations
The development of Peru’s economy, as well as the economies of all nations, depends critically on positive global relations. Peru has been able to improve its economy’s competitiveness and increase export commerce as a result of the entry of new global markets and the signing of Free Trade Agreements (FTAs).
Abundant Natural Resources
Peru is a nation with abundant natural resources, which opens up prospects for exporting goods both domestically and internationally. Due to favorable conditions in international trade, Peru has had an average growth of 5.5 percent in its exports of products and services since 2000.
Conclusion
Peru company registration is the best option for businesspeople looking to access South American markets. Company registration in Peru can be done with the SUNARP with a minimum of two stockholders. The nation also has one of the strongest mining industries worldwide and several Free Trade Agreements.
If you want to register a company in Peru, you can contact our business formation experts at Odint Consulting.
