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Essential Guide on How to Incorporate a Company in Peru

by Legal Team Peru | Dec 10, 2019

For investors researching how to incorporate a company in Peru, it is important to consider regulations the country has. Peru is the third best country to do business in for Latin America, according to the World Bank Group’s Doing Business Index. The government makes continuous efforts to enhance the Peruvian commercial environment, enabling easier methods of foreign investment in Peru, and treating foreign and local companies equally. There’s also a fairly straightforward process for the incorporation of a company in Peru. Peru offers highly competitive conditions that are worth exploring. For foreign entrepreneurs and investors reseaching how to incorporate a company in Peru, it is important to be aware of the several key requirements for company incorporation. 1. Incorporate a company in Peru: Understand the types of legal entities available There are different types of legal entities to choose from when incorporating a company in Peru, including: Closely-Held or ‘Closed’ Corporation (Sociedad Anónima Cerrada or SAC) Open Stock Corporation (Sociedad Anónma Abierta or SAA) Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL) Association Foundation Branch Office (Sucursal) Individual Company of Limited Responsibility (Empresa Individual de Responsabilidad Limitada, or EIRL). For the majority of new companies in Peru, a Closely-Held Corporation (SAC) comes highly recommended by experts. This is because a ‘Board of Directors’ style structure is not mandatory, so making or reaching decisions on business activities is easier for business owners. The...

5 Tips for Successful Business Expansion in Peru

by Legal Team Peru | Oct 2, 2019

Peru is an economic example for other Latin American countries to follow. Between 2004 and 2012, the country experienced an average growth of 6%. In 2018, GDP grew by 4.1%, and according to the IMF, growth for 2019-2020 will remain at 4.1%. The country is attractive to foreign investors seeking to start their business in the country, due to its diversified market and relatively open commercial environment. We give you five tips to successfully establish your company in this booming market. Peru Business Expansion - Overview of Peru and foreign investment Around US$6,175 million in foreign direct investment flows and a capital contribution reached US$25.931 billion, according to the Central Reserve Bank of Peru (BCRP). Investors in the United Kingdom are particularly keen on this destination as they represent 17% of the country's total invested capital, or nearly US$4.408 billion. The country's main agricultural products are cotton, sugar cane, coffee, wheat, rice, corn, quinoa, and barley. Peru is also one of the world's leading exporters of artichokes, quinoa, mangoes, citrus fruits, avocados, and grapes. The industrial sector generates 30.3% of GDP and employs 15.9% of the working population. The country also has significant natural gas and oil reserves, although Peru is a net importer of energy. The main manufacturing activities are textiles, consumer goods, food processing, and fishery products. The tertiary sector contributes 60% of GDP and employs 56% of the workforce. The industry consists of well-developed tourism, financial services, and telecommunications, all...

How to Register an Airline Carrier Company in Colombia

by Legal Team Colombia | Jul 16, 2019

As the world becomes ever more connected and globalized, transportation of people and products increases in complexity and importance. Colombia, one of Latin America’s fastest growing economies, is a natural hub and crossover point for airline carrier services and companies. With nearly US$3.9 million just in exports in the month of April alone, the country is ripe for airline carrier companies. Foreign and national businesses importing and exporting products continue to search the market for the most ideal aviation partners. While the market is rich and lucrative, there are some requirements for entry to be aware of. We give an overview of the different authoritative agencies and steps involved in registering an airline carrier company in Colombia. 1. Register a Cargo Airline in Colombia - A Foreign Branch Before getting started with the details of Colombian regulations and air traffic rules, first steps are to register a foreign branch. To do this, Colombia requires a certificate of incorporation and legal representation from the original country of incorporation. Additionally, the government asks for a copy of the company’s bylaws and an approved Power of Attorney to act on the company’s behalf. Finally, a comprehensive document with the company headquarters’ address, monetary amount allocated to the new branch, and the business industry of the company. Next, after gathering these documents and filing with the Colombian government, a formalized public document is created and signed by a representative of the company. Once signed, the company creates a unique tax...

How to Incorporate a Company in Bolivia?

by Legal Team Bolivia | Apr 3, 2019

Bolivia may not be the first LATAM country you consider when expanding into the region, but it is becoming an increasingly popular choice for entrepreneurs looking to capitalize on new and growing markets. Indeed, despite being one of the least developed countries in South America, the country has seen an increase in foreign direct investment and its huge natural resources such as tin, copper, silver and iron offer unique opportunities for savvy investors. In addition, as the country is a member of the World Trade Organization and is an associate member of MERCOSUR, trade in the country has significantly bolstered in recent years - particularly when you consider the double taxation avoidance agreements in place with countries such as the United Kingdom, Germany, and several South American countries. Below, we’ve put together a guide to incorporating a new business in Bolivia, whether you’re a Latin American native or an investor from the other side of the world. We also share some tidbits on how to maximize your investment and be a successful entrepreneur in Bolivia. Confirm if you need to incorporate / form a company in Bolivia? Before entering into a new market such as Bolivia, it makes sense to spend time in the country to determine the level of demand for your products and services. Speak with local business leaders and potential customers, attend trade fairs and networking events to spread the word about your new venture. You should also acquire data on your industry's performance and assess key players. Entering into an oversaturated niche could be tricky,...

Different Types of Legal structures in Mexico

by Legal Team Mexico | Sep 21, 2018

Mexico is the second largest economy in Latin America and is growing at an astonishing rate. Despite a slight deceleration in growth in 2018, mostly triggered by a struggle to recover from the earthquakes in September 2017 that shook, economically and physically, the capital to its core, Mexico is comfortably one of the most influential economies in the world and is estimated to be the 7th largest global power in the world by 2050. Types of Legal structures in Mexico In recent years, a number of highly competitive industries have flourished and have rendered the Mexican market a far more varied, dynamic and interesting platform for foreign investment than ever before. One new market that has experienced particular success in recent years is the emergence of new markets such as the production of medical equipment and devices. As of 2016, this industry is valued by ProMexico, the governmental agency responsible for encouraging foreign investment, at over USD$13 billion. This same report highlights savings of over 20% when compared to fabrication in the US. This industry, as typifies all emerging industries in Mexico, is driven by an incredibly well educated, and economically accessible workforce. This ‘Holy Trio’ of innovative industries, cheap fabrication costs and a qualified workforce can be applied to any of the countless emerging industries and has been the crucial distinguishing factor between Mexico and other emerging economies. The most straightforward way to tap into the goldmine of opportunities that exist is toincorporate a Mexican company directly into the local...

Business Accounting and Company Taxation Requirements in El Salvador

by Accounting Team El Salvador | Sep 5, 2018

Despite having the nickname of the "30-minute country" ranging to "45 minutes" depending on the travel blog that you read, El Salvador is not a country to be overlooked as a business jurisdiction. The country of just 6.5 million habitants has a particularly positive business relationship with the United States, hosting giant companies such as FedEx and General Motors, whilst the two countries boast an impressive exchange of nearly USD$ 6 billion in goods. It is also a very easy destination to conduct business, facilitated by a dollarized economy and a growing and thriving service-based industry. The US government has highlighted printing and graphics, security equipment and tourism as some of the most promising market opportunities. As with any country, when planning to conduct business in El Salvador, there are many new laws and requirements that you must comply with. Some of the most important requirements are those that relate to your fiscal obligations or taxes. This article will walk you through all of the different types of accounting and tax declaration obligations that you will face in El Salvador. Business Accounting Requirements - Principal Taxation Types in El Salvador. When running your business venture in El Salvador, it is essential that you properly file your tax returns. Depending on the type of company that you chose at the time of incorporation and the activity that your company carries out, there are a variety of specific taxes that are applied in certain situations. Below is a list of the main tax types in El Salvador: The tax placed on the purchase...

Essential Guide to Forming / Incorporating a Company in Latin America

by Team Latin America | Aug 24, 2018

A company formation, also commonly known as a company incorporation or a business registration is simply the establishment of a commercial presence in a new environment through the creation of a legal entity. This local legal entity is then used to conduct business activities. A company formation is the best way to experience the commercial opportunities that a particular jurisdiction has to offer. In Latin America, this is no different. As many foreigns have already experienced, a company formation is a great way to break into your desired Latin America market and begin business operations. There are many advantages to company formation in Latin America, some include: Gaining access to diverse, unexplored and opportunity-filled markets. Profiting from an increasingly educated, talented and often bi-lingual workforce, and at a much cheaper rate than in North America or Europe. Taking advantage of government incentives, designed to attract foreign investment. The mission of Biz Latin Hub is simple: we strive to do everything we can to promote a healthy and fruitful relationship between investors and the remarkable, ever-evolving and emerging economies of Latin America. In just over 4 years, we have seen first hand the growing business opportunities developing across the region. In our professional experience, company formations are the most effective way to tap into these unexplored opportunities. Essential Guide - Why Form / Incorporate a Company in Latin America? Right now, Latin America is experiencing something of a golden age. Taking the time to truly appreciate...