What to Expect As a Foreign Investor in Peru?

Whichever candidate wins the presidential election on 5 June, it now seems certain that the new administration will be pro free market – great news for international businesses interested in investing in Peru. Now is as a good a time as ever to form or incorporate a company in Peru.

Foreign Investment in Peru

Today Peru is one of the most stable economies in Latin America with an abundance of natural resources and a good level of political stability.  The Peruvian economy is the seventh largest in Latin America and results for the first quarter of 2016 show that the economy grew 6% compared to the same period last year. At 58.5% of GDP the services sector is the largest growth contributor, followed by industry with 34.2%, and the agricultural industry with 7.3%.

Keen to promote the development of the financial and technological know-how necessary to develop the country’s abundant supply of natural resources, Peru has a strong legal framework that supports foreign investment. Foreign investment is governed by the Peruvian Constitution, the Foreign Investment Promotion Law and the Framework for Private Investment Growth.

Market outlook for Peru 2023. Learn some important facts for entrepreneurship in Peru. An infographic by Biz Latin Hub.
Market outlook for Peru 2023. Learn some important facts for entrepreneurship in Peru.

Advantages of Investing or Forming a Company in Peru

If you decide to invest in, or form a company in Peru, you are guaranteed the following rights:

  • The same treatment as national investors
  • Freedom to work and operate within business, trade and industry
  • Freedom to engage in a private business in a market based economy
  • Free competition and zero tolerance for monopolistic abuse
  • Freedom to hire workers
  • Power of the state to put in place guarantees and grant securities pursuant to contract law
  • Right to submit controversies from contractual relationships for national or international arbitration
  • Freedom to hold and dispose of foreign currency

When it comes to capital investments and collections in Peru, investors enjoy the following benefits:

  • Freedom to engage in commercial and industrial activities and in foreign trade
  • Right to repatriate profits or dividends, after payment of taxes
  • Right to use the most favorable market exchange rate
  • Right to repatriate capital investment proceeds, whether stock sale, capital reductions, or total or partial liquidation of investments
  • Unrestricted access to domestic loans
  • Free purchase of technology and free remittance of royalties
  • Freedom to buy shares from local investors
  • Right to hire investment insurance
  • Right to enter legal stability agreements with the state for investments in Peru

Conditions For Foreign Investment in Peru

Foreign investments in Peru do not require prior authorization and the acquisition of local investor shares is allowed through stock exchange or other schemes. In terms of ownership, foreign individuals or corporate bodies enjoy the same rights as nationals. However, foreigners may not acquire mines, land, woods, water, fuels, and energy sources within fifty kilometers from international borders, except in the case of public necessity. If the latter is the case this must be expressly declared by a supreme decree and approved by congress.

Foreign investments in Peru may be made in any income-generating activity, under any of the following forms established by law:

  • Direct Foreign Investment as contribution to capital stock
  • Contributions to the development of contract- based joint ventures
  • Investment in goods and properties located in Peru
  • Portfolio investments
  • Intangible technological contributions
  • Any other investment relating to the development of the country

Biz Latin Hub can support your foreign investment in Peru

The sustainability of the Peruvian economy supports businesses in the nation, and new arrivals to the market. With the lowest country risk in South America, strategic budget spending, international cooperation, promotion of the Peruvian industries, investment in science and technology and the protection of the environment, Peru is a highly competitive option to incorporate a business in its diverse industries.

At Biz Latin Hub, we help businesses of all sizes to enter the Peruvian market, providing legal services to make sure your business is compliant with regulation. Our team of expert  lawyers can assist you in company formation, visa processing, commercial representation, employment services and more. Contact us now for personalized support to begin your commercial operations in Peru.

Learn more about our team of expert authors, and check out our short presentation below about the advantages of investing in Peru.

Key services offered by Biz Latin Hub
Key services offered by Biz Latin Hub

The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.

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Tags: Business | Investment | Peru

Categories: Peru

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