Business entities in Peru
Since 2003, Healy Consultants provides our Clients with the best corporate structures for doing business in Peru. The most common corporate vehicle preferred by foreign entrepreneurs setting up in Peru is the limited liability company. Lastly, foreign multinationals are also allowed to set up branch offices or representative offices in Peru.
The Peru limited liability company (Sociedad de responsabilidad limitada)
The Peruvian SRL requires at least 2 shareholders who can either be individuals or legal entities to be incorporated. An SRL without a director but must appoint at least 1 manager to be in charge of the company management. The shareholders can be of any nationality and are not required to be ordinarily resident in Peru.
The Peru joint stock company (Sociedad anónima)
The Peruvian joint stock company (JSC) is the most common corporate vehicle used by entrepreneurs setting up businesses in Peru. A JSC requires at least 2 shareholders who can either be individuals or corporate bodies of any nationality. Like an LLC, there is no minimum share capital requirement to setup such business entity in Peru. This entity must appoint at least 3 directors who must be individuals and must not be resident in Peru.
The Perun branch (sucursal)
The Peruvian General Companies Law (LGS) permits foreign legal entities looking to setup permanent establishments in Peru to set up branch offices. This entity is not considered a separate legal entity except for taxation purposes and therefore its parent company is responsible for its obligations and activities. The branch must appoint a permanent legal representative who must be resident in Peru.
The Perun representative office (oficina de representación)
A Peruvian representative office is not considered a legal entity separate from its parent company and is not allowed to conduct any commercial activities in Peru. The representative office may only carry out market research and promote products and services of the parent company in Peru.
Comparison table between Peru business entities
|LLC||JSC||Branch office||Rep office|
|Also known as||SRL||SA||Sucursal||Oficina de representacion|
|How long to set the company up?||12 weeks||14 weeks||15 weeks||13 weeks|
|How long to open company bank account?||5 weeks||5 weeks||5 weeks||5 weeks|
|Wholly foreign owned?||Yes||Yes||Yes||Yes|
|Minimum share capital?||US$1||US$1||US$1||US$1|
|File annual tax return?||Yes||Yes||Yes||No|
|Tax registration certificate required?||Yes||Yes||Yes||No|
|Recommended corporate bank account?||Standard Chartered||CitiBank||Santander||BBVA|
|Does our Client need to travel?||No||No||No||No|
|Resident director required?||No||No||No||No|
|Resident shareholder required?||No||No||No||No|
|Minimum directors allowed?||0||3||1||1|
|Tax identification code (TIN) needed?||Yes||Yes||Yes||No|
|Peru resident company secretary required?||No||No||No||No|
|Corporate shareholders allowed?||Yes||Yes||Yes||Yes|
|Corporate director(s) allowed?||Yes||Yes||No||No|
|Peru corporate tax rate?||30%||30%||30%||0%|
|Annual financial statements required?||Yes||Yes||Yes||No|
|Statutory audit required?||No||Yes||No||No|
|Regulated by?||Ministry of Trade||Ministry of Trade||Ministry of Trade||Ministry of Trade|
|Allowed to issue sales invoices?||Yes||Yes||Yes||No|
|Allowed to sign contracts?||Yes||Yes||Yes||No|
|Allowed to import and export goods?||Yes||Yes||Yes||No|
|Can rent an office space in Peru?||Yes||Yes||Yes||Yes|
|Can buy Peru property?||Yes||Yes||Yes||No|
|Can own equity in other Peru companies?||Yes||Yes||Yes||No|
|Total Peru business setup costs in Yr. 1||US$16,000||US$17,300||US$17,300||US$13,350|
|Subsequent annual costs (incl. accounting and tax fee)||US$5,390||US$6,200||US$5,390||US$5,400|
|Sample engagement invoice|