How to Set Up a Company in Peru

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Peru has an open investment regime, free trade agreements with China and other Asian economies, and a growing role as a Pacific gateway with the Chancay port. Foreign investors receive national treatment and, in most sectors, need no prior authorisation.

1. Choose the vehicle

• Sociedad Anónima Cerrada (SAC): the most common choice, with between two and 20 shareholders.
• Sociedad Comercial de Responsabilidad Limitada (SRL): a simpler limited company, also with at least two partners.
• Branch of a foreign company.

2. Main steps

1. Name reservation with the Public Registry (SUNARP).
2. Bylaws and capital contribution: the capital is usually deposited in a Peruvian bank account opened in the name of the company in formation.
3. Public deed before a Peruvian notary. Foreign shareholders can act through apostilled powers of attorney translated into Spanish.
4. Registration with SUNARP, which gives the company legal personality.
5. Tax ID (RUC) with the tax authority (SUNAT), electronic invoicing and the municipal operating licence.

3. Points to watch

• General manager: the company needs a general manager, and in practice someone resident in Peru with a local ID to deal with banks and SUNAT.
• Foreign investment registration: optional in general, but useful for legal stability agreements in larger projects.
• Foreign staff: the employment of foreign workers is subject to limits as a percentage of staff and payroll, with exceptions.
• Tax: the general corporate income tax rate is 29.5%, with a 5% withholding on dividends; the general sales tax (IGV) is 18%, including the municipal promotion tax.

4. After incorporation

The company must keep electronic accounting books, file monthly tax returns and an annual income tax return, issue electronic invoices, report its beneficial owners and register employees with the payroll and social security systems.

The views expressed are personal and do not necessarily represent the position of NET CRAMAN. This article is for general information only and does not constitute legal or tax advice. Rules change over time; seek specific advice before acting.