Streamlined Business Formation with Shelf Companies in Peru

Peru offers a favorable business environment with its strategic location, robust economic growth, and extensive trade agreements, making it an attractive destination for international business ventures. The Latin American country boasts abundant natural resources, and a skilled, growing workforce, further enhancing its appeal as a prime location for doing business.

An innovative way to enter this flourishing market is to buy shelf companies in Peru. The government has enacted business-friendly measures, including tax incentives and simplified regulations, to promote and attract foreign investment.

Let’s examine why shelf companies in Peru are a brilliant strategy for business owners and the alternatives including the legal requirements to start a business in Peru.  

Infographic by Biz Latin Hub on considering a shelf company on an article about shelf companies in Peru
Why consider shelf companies in Peru?

What is a shelf company? 

A shelf company refers to a registered company that has never engaged in any business activities, possessing neither assets nor liabilities. It exists only on paper, patiently awaiting an acquisition by a buyer. In the past, purchasing a shelf company was the preferred method for swiftly obtaining a company without enduring the time-consuming process of registering a new one. 

Yet, the business market has evolved, and registering a company has become significantly faster and more cost-effective than acquiring and modifying a shelf company.

How to buy shelf companies in Peru

Foreign investors in Peru must complete several steps and undergo a verification process before acquiring shelf companies. 

Obtaining shelf companies in Peru requires a series of procedures and verification steps. This primarily involves procuring the equity stock from the existing owners, with buyers initiating the transaction by signing a purchase/sale agreement.

Once finalized, the present owners will transfer corporate authority to the buyer during a shareholders’ meeting, officially acknowledging them as the new proprietor. Further, it may be necessary to change the company’s name and address, amend its objectives, and replace the board of directors.

Advantages of shelf companies in Peru

  • Rapid Registration
  • Elevated Loan Accessibility
  • Proven Track Record

Here are three key benefits of purchasing shelf companies in Peru. 

1 – Rapid Registration: Peru’s ready-made companies are pre-established entities with a clean history and no outstanding debts. They can be acquired immediately, allowing buyers to commence business activities within 24 hours of placing an order.

2 – Elevated Loan Accessibility: Shelf companies facilitate easier access to bank loans for investment purposes. Due to their established status, these companies convey a sense of longevity and credibility, making them more attractive to financial institutions. Additionally, owners are relieved from the administrative burden of obtaining a tax identification number and opening a bank account for the company.

3 – Proven Track Record: As shelf companies have spent time “on the shelf,” they benefit from an aged corporation status. This implies that the legal entity carries no bad debts or negative credit history, providing a solid foundation for future business ventures.

Infographic by Biz Latin Hub on FAQS when setting up a company in Peru for an article on shelf companies In Peru
Shelf companies in Peru can save you some headaches

Disadvantages of shelf companies in Peru

  • Liabilities Transfer
  • Share Transfer Admin
  • Potential for Fraud

Now, let’s explore the biggest risks of purchasing shelf companies in Peru.

1 – Liabilities Transfer: When purchasing a shelf company, be aware that its existing and future debts will pass on to you as the new owner. As a result, obtaining a new loan may be complicated, as previous loans must be settled. Banks closely scrutinize the financial history and creditworthiness of companies before granting loans. However, shelf companies have minimal trade, tax, and income records, making it difficult to assess their creditworthiness. 

2 – Share Transfer Admin: Depending on company regulations, firms can undergo periodic reviews and require changes in ownership. While some of these transactions may go unnoticed, they can surface in the future, causing complications. For this reason, it is necessary to engage in the process of selling the shares of the old company. If any tax or revenue-related discrepancies arise from the previous shareholders, the current owners will be held accountable and required to settle the liabilities. The former partners and team members will be unaffected as the company has been transferred to new management, who assume responsibility for any tax or scam-related consequences associated with acquiring a shelf company.

3 – Potential for Fraud: Caution is advised when purchasing shelf companies due to the presence of scams. There is a risk of paying a substantial amount for a company that may not hold its claimed value. When buying a shelf corporation, you must exercise caution and make sure the seller is trustworthy. 

To avoid these risks, we recommend working with a local expert in acquiring Peruvian shelf companies. 

Biz Latin Hub can help you form shelf companies in Peru

Biz Latin Hub is a valuable partner for companies aiming to enter the Peruvian market. With our extensive presence in Peru, we take pride in our team of skilled bilingual professionals who specialize in corporate support. They are fully equipped to provide tailored solutions catering to your requirements.

The range of services we offer includes company formation, accounting and taxation, legal support, hiring, and PEO services. If you are considering doing business in Peru, Biz Latin Hub is an ideal partner for you. 

Our experts have the expertise and resources to support your business throughout Latin America. To discover more about our comprehensive services and how we can contribute to your success, reach out to our team of specialists today.

If you found this article regarding shelf companies in Peru interesting, we encourage you to delve into the rest of our coverage of the region. Furthermore, you can find additional information about our team and esteemed authors here.

A BLH infogrpahic showing key services offered by the company
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.
Douglas Davis
Douglas Davis

CHIEF OPERATING OFFICER
TEAM CORPORATE
Douglas is a British accountant and a member of the Association of Accounting Technicians. Douglas has extensive experience working in the financial & legal sectors and providing market entry and back office services in Latin America.
Douglas has lived and worked for multinational companies in APAC, LATAM and EMEA. He is fluent in both English and Spanish and spent one year teaching International Translation at the University of Colombo.
Douglas is also an expert in real estate investment and consults in various overseas jurisdictions as well as acting in an executive capacity.

Receive the latest news and advice about expanding your business globally
Subscribe to our newsletter to receive the latest business news and advice about entity formation, legal entity compliance, accounting, back office and fiscal requirements. Receive the latest news and advice about expanding your business globally.

This field is for validation purposes and should be left unchanged.