The process to set up a company or corporation in Peru takes about four to six weeks. It is required to have at least two shareholders who might be individuals or a legal entity and involves preparing the minutes of incorporation. The following are the steps you should follow to form a company.
Setting Up the Legal Structure for Your Company in Peru
There a number of different legal structures you can choose from when forming your company:
- Joint Stock Company (S.A.)
- Closely Held Company (S.A.C.)
- Publicly Held Corporation (S.A.A.)
- Limited Liability Company (S.R.L.)
A Legal Representative could complete the registering of your company. In order to appoint a new legal representative you would need a Power of Attorney (POA), this POA has to be signed, legalized by the Ministry of Foreign Affairs of Peru and if the power is written in another language it has to be officially translated into Spanish.
Quick FAQs When Setting Up a Company in Peru
- Is foreign ownership allowed? YES
- Can the company sponsor foreign employees? 20% of total employees
- How much capital is needed to form a company in Peru? >USD $150
- Does Peru impose any foreign exchange or capital controls? NO
- What is the timeframe for setting up a company (including registration, and bank account)? 3 – 4 WEEKS
- Are a fiscal address and legal representation required? YES, in order to obtain the RUC number
- What is the minimum number of shareholders required? TWO
- What is the currency? PERUVIAN SOLES and US DOLLARS
6 steps to form a Company in Peru
- Step 1: Create the Minutes of Incorporation
- Step 2: Open a Company Bank Account in Peru
- Step 3: Register Company at the National Superintendence of Public Registries (SUNARP)
- Step 4: Obtain a Tax ID (RUC – Registro Único de Contribuyente)
- Step 5: Formalize the Statutory Books
- Step 6: Obtain a Municipal License in Peru
1. Create the Minutes of Incorporation
This is the incorporation document of your company, which includes:
- Identification of Shareholders
- Description of leadership positions
- Company objective
- Bylaws
- Description
Please note that this document has to be signed by a lawyer
Setting Up the Legal Structure for Your Company in Peru
2. Open a Company Bank Account in Peru
You must choose a bank to open your company's bank account. It is important to consider that in order to open an account you usually will have to make a minimum initial deposit amount in the currency of your new account (i.e. USD for a USD account and S/. for a S/. account).
3. Register Company at the National Superintendence of Public Registries (SUNARP)
The Notary public is in charge of converting the minutes into a public deed and preparing your documents for registering in SUNARP.
To register in SUNARP you will need:
- Notary Public documents
- SUNARP forms
- Payment for the Rights to Registration
4. Obtain a Tax ID (RUC – Registro Único de Contribuyente)
The tax authority in Peru grants the Taxpayer Identification Number, which is the Superintendence of Tax administration (SUNAT).
In order to request your Tax ID, you will need the following:
- Water or electricity bill that shows the legal address of your company, this is your address for tax purposes
- RUC Registration form (Provided by SUNAT)
- Testimony of Company Incorporation, duly registered with SUNARP
- Identification document of the Legal Representative
- Rental agreement, or ownership title, of the location where the business will operate
5. Formalize the Statutory Books
The following step to form a company in Peru, is the legalization of statutory books and accounting records. The following are necessary for this step:
- Books/records to be legalized
- Copy of RUC form
- Notary Public's Offices Rights to Registration Payment
Authorization of the Payroll Book, granted by the Ministry of Labour and Promotion of Employment:
- Payroll Book authorization application
- Copy of RUC Certificate
- Application rights payment
- Name or Legal name of Employer
- Company address
6. Obtain a Municipal License in Peru
The Municipal Operations License is required to operate for commercial, services, industrial, and professional service establishments. The respective municipality grants this, and the following steps are needed:
Certificate of Sectorisation and Compatibility of use:
- Application form
- Application Rights Permit
- Map of the area / premises of your company.
Approval from the National Institute of Civil Defense (Defensa Civil)
This is a safety inspection that grants a Certificate of Safety for your premises used:
- Compliance Certificate (This is granted by the Division of Land Registry and Municipal Authorizations)
- Copy of property title or property ownership extract
- A request addressed to the mayor
- Required payments
- Map of the area, signed by an architect
- Copy of RUC certificate
- Identification document copy of the respective party of the legal representative
- Rental agreement, or ownership title, of the location where the business will operate
- If Applicable – Copy of deed of incorporation of the legal person
- If Applicable – Copy of the authorization/certification of the respective sector
Biz Latin Hub can assist you in how to Incorporate a Company in Peru
Other Cases
Other cases may include branch offices, partnership, and joint venture.
Branch Offices
Branch offices can be freely established by companies that are domiciled or not in Peru. The branch is to be registered in SUNARP's Register of Legal Entities. Please note that a branch office does not have any legal status independently from its parent company.
The Branch Office's public deed of incorporation should include, at least:
- Certificate of Good Standing of the parent company, issued by the competent authority in your country of origin
- Copy of the agreement of the creation of the branch by the board members (or the competent body of the parent company) defining capital, activities, purpose, address, legal representative and its powers granted
- Incumbency certificate
- If Applicable – copy of bylaws, articles of association, or equivalent in the country of origin
Partnership Agreements
Please note that a partnership agreement does not create a legal entity. It is based in the mutual interest of the parties; a partnership agreement rules the integration and participation of particular businesses and companies by which the agreement requires to be in written form.
Joint Venture
In Peru regulations for joint ventures are not standardized and may vary depending on the industry. Joint ventures allow foreign capital to enter the country be teaming up wit local companies and facilitates the use of technology, access to products or services, know-how, and financing of economic activities.
If Applicable – FDI registration
Under legislation it is obligated to register foreign investments, by which it gives the right to the investor to transfer abroad and use the most favorable buying/selling exchange rate when conducting an exchange transaction.
Do You Want to Set Up a Company or Corporation in Peru?
Once you have your business setup, registered, legal representation, and you have your tax and accounting in order, then you are ready to do business in Peru.
Originally published 8 May 2018 | Updated on: July 31, 2023
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
