Benefits and problems of registering a company in Peru
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Benefits of Peru company registration
- Only one shareholder and one director are required to register a company and start business operations in Peru;
- Peru business registration is cost effective due to low government registration fees and the absence of minimum capital requirements;
- A Peru company accesses a network of double taxation treaties the country has signed;
- Healy Consultants will open a corporate bank account to support business registration. Healy Consultants works with internationally-recognised banks such as HSBC, Standard Chartered, and Citibank;
- All businesses involved in the manufacturing, maquila and assembling activities can be incorporated in the Peruvian Special Economic Zones i.e., in the Centers of Export, Transformation, Industry, Commercialisation, and Services (CETICOS) region. The companies benefit from the complete exemption from paying of i) corporate taxes; ii) VAT; iii) excise duties and iv) other fees and contributions that are otherwise levied by the Peruvian government.
Problems with Peru company registration
- At least one shareholder of a company must be Peruvian. Healy Consultants’ Peru business registration specialist may however provide our Client with sleeping partner services to comply with this requirement;
- A Peruvian subsidiary company is subject to tax on corporate profits of 30% upon registration. Profits distributed to non-residents are taxed at 4.1%. Capital gains tax is 30%;
- According to the 2013 Index of Economic Freedom by The Heritage Foundation, Peru is poorly ranked as having the world’s 44th freest economy, and scores at 70% in terms of investment freedom and capital flows. The survey is a measure of freedom enjoyed in business, trade, monetary, financial, investment, and labor markets;
- Peru is poorly ranked as the world’s 61st most competitive economy out of 142 reviewed in the World Bank’s Global Competitiveness Report 2012 – 2013;
- Peru suffers from a poor international reputation as a place to do business. According to the World Bank’s Doing Business 2012 Survey, Peru is negatively ranked at 41st in world for its ease in which to do business in. The survey measures factors including business startup procedures, time, cost, and minimum capital required to start a business. In addition, Peru is negatively ranked as the world’s 83rd least corrupt country in the 2012 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
- Peru is one of the largest producers of coca, the raw material for Cocaine. As a result, drug cartels and associated violence often take place in the country. Most of the drug trafficking in Peru is supported by the communist revolutionary group of Shining Path.