Starting a new enterprise in Peru as a foreigner or even a local resident can quickly become a time consuming and complicated process. This is why it´s extremely important to seek adequate legal assistance in Peru in order to successfully navigate the laws and regulations of the business world in order to save your corporation time, money, and resources.
Here is some crucial information on how to go about formally establishing a business in Peru and what sort of legal services can assist you in the process.
Corporate Law – What Is the Process for Forming a Corporation in Peru?
The process of starting a corporation in Peru takes between 4-6 weeks, needs a minimum of 2 shareholders, and can only have a 20% foreign employee workforce.
Before officially starting the process to form a company in Peru, first you need to decide what type of legal structure you want for your company; whether it’s a Joint Stock Company, Closely Held Company, Publicly Held Corporation, or a Limited Liability Company. The majority of companies established in Peru are Joint Stock Companies.
Please note that all legal entities in Peru must meet some requirements which include:
- Have a Legal Representative
- Have a registered fiscal address – ‘domicilio legal´
- File monthly and annual tax declarations
A legal representative is required for all companies in Peru to carry out the procedures of registering your company as well as legalizing the statutory books and the accounting records. This can be a Peruvian national or a foreign national with the right to live and work in Peru.
A professional local firm will be able to provide all of the above services as part of a monthly operating package.
Legal Considerations when Operating in Peru
In Peru, all new companies need to be registered and have a Taxpayer Identification Number (RUC – Registro Unico de Contribuyentes). The legal representative of your company needs to present the necessary documents to the National Tax Authority to obtain a certificate of registration and a Taxpayer ID.
In addition, a municipal license is required in order to operate in Peru and is granted by an applicable municipality.
Due Diligence and Mining in Peru
Due diligence is a crucial role when conducting business in Peru in order to protect your corporation from risks to property, investments and security. Examples of due diligence services include background checks on individuals and companies and IP protection.
The mining industry in Peru is one of the largest in South America. A foreign company wishing to establish a new mining company will need to become familiar with regulatory bodies such as the Mining and Metallurgical Geological Institute (INGEMMET), and the Ministry of Energy and Mines (MINEM). The INGEMMET is responsible for the granting of mining concessions and the collection of license and penalty fees, and the MINEM grants material permits and processing and transportation concessions. Forming a mining corporation in Peru will need specialized legal services in navigating the regulatory policies of these administrations.
Essential Corporate Legal Services in Peru
In the event no one in your business is qualified or able to be appointed as the legal representative of your company, Biz Latin Hub can provide this service for your company by appointing a trusted senior lawyer to fill this role.
With respect to the mining industry, Biz Latin Hub is prepared to walk with you in the process of obtaining the proper mining permits, concession applications, and due diligence.
We are also able to provide legal services in relation to labour, commercial and mining law, visa application management, import and export law, labour contracts, customs clearances, and liquidations.
If you’re interested in finding out more about our services at Biz Latin Hub, get in contact with our CEO and founder, Mr. Craig Dempsey here and see how we can help ensure your business venture is a success.
Watch our video below to find out more about about the company formation process in Peru: