Entrepreneurs doing business internationally pay attention to this jurisdiction. Registering a company in Peru opens up access to the western market and it is a convenient tool for international trade, planning revenues and taxes, and protecting assets. If this jurisdiction interests you too, it is possible to start a business here in one of these forms.
Major Forms of Legal and Business Presence
If you consider an option of company registration in Peru, this may be practically realized in one of these forms:
- Limited Liability Company − a corporate entity where founders don't risk losing any funds in excess of the contributed - their liabilities are limited. The minimum legally required paid-up capital is USD1. But, practically such has to correspond to the types of activities that an entity is going to conduct with depositing at least 25% of such at the moment for registration. The number of members may be from 2 to 20.
- Joint Stock Company − an entity that can freely transfer its shares and offer them to the public. The minimum paid-up capital, in this case, is also USD1. But, practically, Peruvian banks don't deposit a sum of chartered capital less than PEN 3,300.00. The liability of shareowners (minimum of two are required to form an entity) is also limited to the value of such shares only.
Registration Requirements and Steps
Company formation in Peru, an LLC for instance, covers these preliminary registration steps:
- Defining commercial objectives and the most suitable form of a business structure (reflecting those in a business plan).
- Picking and checking a business name.
- Making preparatory arrangements (collecting required personal data, depositing a part of the entity's capital, arranging a registered address, etc.).
- Drafting statutory documents.
- Collecting and submitting the set of documents for the registration.
- Obtaining a registration number for paying taxes.
- Registration of the certificate of compatibility (it is proved that the business will not adversely affect the region).
- Obtaining licenses for commerce and municipal one, from the city council.
Tax System in Peru
Company incorporation in Peru is associated with the next tax highlights entrepreneurs may find workable:
- Corporate income tax (CIT) rate − 29.5%
- Personal income tax rate − 30%
- Value-added tax rate − 18%
- Withholding tax rates − (i) dividends − 5%, (ii) interests − 4.99%, (iii) royalties − 30%
- Capital gains tax rates − (i) corporate − subject to the basic CIT rate, (ii) individual − 5%
Advantages of the Jurisdiction
Company incorporation in Peru may turn out to be a profitable arrangement because of:
- stable economy and advantageous tax regime;
- free zones available (with 0% corporate tax rate)
- absence of currency exchange control and any obstacles to the capital export;
- no need for a local registered office and agent;
- access to reporting is closed.
How Prifinance Specialists May Help You
We offer prompt company registration and bank account opening services in Peru and worldwide. New registration and ready-made options. Provide extensive details for more precise consultations and suggestions that can be effective for your future project.