Peru- Tag Archives - Business News and Updates

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How to Get a Business Visa in Peru for US Citizens

by Legal Team Peru | Jun 4, 2020

Find out how to get a business visa in Peru as a US citizen. Peru is still one of Latin America’s best-performing economies with a solid economic and industrial background. Despite current conditions changing the country's economic landscape, Peru is still considered one of the most attractive countries in the region to invest in or do business. To do business in Peru as a US citizen, you will need a business visa. The Peruvian government is constantly making its best effort to improve the commercial environment. The country is improving its legal framework to ensure that investors, whether foreigners or nationals, are treated as equals. It is important to know that there are two types of migration options for foreigners. They are as follows: Temporary Stay: Foreigners enter the country just for tourism or business.Residency: Foreigners who apply to live and work. Work, investor, and business visas in Peru for US citizens Peru is improving its legal framework to ensure that investors, whether foreigners or nationals, are treated as equals. Peru has different types of Peruvian visas for different uses. The most commonly required visas are: Working visa This is a visa for foreigners who want to work for long periods of time in Peru. It is important to note that this type of visa requires you to have an employment contract with a local company. This visa is usually obtained by incorporating your own company and then hiring yourself to this company. Investor visa This visa is for foreigners who want to establish, develop, and administer a company. Note that this Peruvian visa...

What is a Compliance Officer for an NGO in Peru?

by Legal Team Peru | May 23, 2020

Forming an NGO in Peru requires a range of legal aspects, such as the nomination of a compliance officer. NGOs in Peru must create an internal compliance system with a Compliance Officer. This is a part of the work culture of an NGO in Peru and the organisation must enforce it. Find out about requirements for NGOs in Peru to work with a Compliance Officer. What is the compliance system for an NGO in Peru? The main task of a compliance officer in an NGO in Peru is to ensure the organisation works ethically. A compliance system prevents corruption inside a company resulting in either direct or indirect benefit. The characteristics of a comprehensive compliance system for an NGO in Peru are: The general board and general management should be the main supporters of this system.Its implementation must function as a system that goes through the different business units.A compliance must take as a basis: values, promises and commitments of the organization. In addition to that, it must be measurable in order to confirm compliance.It should be considered that the company’s evaluation is carried out in the future. It is very important to put this comprehensive risk management model into effect in NGOs, since this involves identifying the most critical risks. Some organizations may apply international standards. What does a Compliance Officer do in an NGO in Peru? The Peruvian government established Decree Law N° 1352 of the Law N° 30424, which regulates the administrative liability of legal entities against transnational active bribery. The scope of application includes...

How to Form an NGO in Peru

by Legal Team Peru | Apr 30, 2020

If you want to form a non-governmental organization, or NGO in Peru, it’s important to understand the key steps and legal requirements to do so. NGOs in Peru are for those individuals or groups with the goal of making a difference in the cultural, social, educational, and political aspects in the country and its communities. In Peru, NGOs are not a separate legal entity, but a subcategory of NPOs (non-profit organisations). If an NGO meets certain requirements, it may be exempt from certain taxes in the country. Find out what you need to know to form an NGO in Peru. What is an NGO in Peru? In contrast to other countries, Peruvian NGOs are not recognized as a separate legal entity; rather, they are part of a subgroup of non-profit organizations (NPOs). An NGO, or non-governmental organization, operates without governmental control. Its operations are non-profit oriented and its objective serves a social purpose. An NGO can maintain itself through private donations, membership or government support, grants, or the sale of goods and services. In contrast to other countries, Peruvian NGOs are not recognized as a separate legal entity; rather, they make up part of a subgroup of non-profit organizations (NPOs) with the addition that NGOs can engage in international technical cooperation. What are the different types of non-profit organizations? There are 3 different types of NPOs in Peru: Association: An association is not limited to pursue a social interest or public benefit. An association may work for any common activity, as long as the goal is not...

Peru’s Exports Drive Trade Surplus in 2019

by International Trade Experts | Mar 13, 2020

Peru drove an export trade surplus in 2019, for the second year in a row. Peru's trade activity supports a healthy business environment with strong international commercial connections. Peru’s strong international ties support increased exports activities in Peru. Additionally, Peru is the world’s biggest exporter of blueberries, asparagus, and quinoa. Its non-traditional exports hit record levels and Peru aims to increase its agricultural exports to US$10 billion in 2021 from US$7.5 billion in 2019. Find out how Peru’s export environment is growing and current trends behind its trade activity. Peru records export surplus in 2019 Peru is the world’s largest exporter of blueberries, asparagus, and quinoa. According to the forecast report published by FocusEconomics’ LatinFocus Consensus in December 2019, Peru’s trade balance recorded a surplus of US$1.2 billion. This same number was recorded in 2018 as well, demonstrating a healthy trade environment in the Pacific Alliance member’s economy. Exports rebounded 6.6% year-on-year in December 2019, boosted by rising foreign sales of agricultural products and mining, only partially offset by falling exports of oil and natural gas. In the meantime, imports also bounced back and increased by 8.5% in December, contrasting the fall of 5.2% in November. This is due to the back of a jump in purchases of consumer and capital goods imports. The trade surplus of the 12 months leading up to December 2019 was US$6.6 billion, matching November’s results. Panellists who participated in the LatinFocus Consensus Forecast...

How to Liquidate a Company in Peru

by Legal Team Peru | Feb 20, 2020

Our Senior legal experts outline the process to liquidate a company in Peru. Over the past few years, Peru has been one of the fast-growing countries in the world according to the World Bank Group. Its GDP growth rate was 4.4 % between 2009 and 2019. However, doing business in a Latin American country might not always go according to plan, and you may need to consider liquidation proceedings for your business.If you’re considering exiting the market in Peru it is important to know how to do this legally according to the country’s dissolution and liquidation process. This takes some time, as the system in Peru is complex. Make sure you find the right legal support to guide you through the liquidation process. Find out what steps you should undertake to liquidate your company in Peru. Dissolution stage There are several circumstances which could influence a company’s decision to dissolve in Peru: The term set out in the company by-laws for its operational life expiresThe company completes its corporate purpose, doesn’t fulfill it for a prolonged period of time, or it cannot possibly fulfill it at allContinued inactivity in the General Shareholders Meeting Total incurred losses that reduce the value of net assets to less than one-third of the company’s paid-in capital, (unless this capital is increased or reduced) Creditors approve an agreement of bankruptcy or insolvency, following due legal procedures Lack of plurality of shareholders for more than 6 months Judicial resolution by the Supreme CourtThe agreement approved by the shareholders Any other cause established in the...

Head of Korea Trade-Investment Promotion Agency in Peru Discusses Korean Business Potential

by International Trade Experts | Feb 6, 2020

Enrique shared his insights on industries with potential, the state of Korean companies in Peru, and cooperation between both countries that has led to productive outcomes. Biz Latin Hub’s Tania Perales had the privilege of speaking with Enrique Bazán, Head of the Korea Trade-Investment Promotion Agency (KOTRA) in Lima about the potential for Korean business in Peru. Enrique shared his insights on the Peruvian industries with potential, the state of Korean companies in Peru, and cooperation between both countries that has led to productive outcomes. What is the role and main objectives that KOTRA fulfills for business in Peru? KOTRA is the commercial office of the Korean embassy, is a worldwide institution and has more than 120 offices in more than 85 countries. At KOTRA in Lima, we assist Korean businesses in both Peru and Bolivia. The main role of KOTRA is to strengthen commercial relationships between Peru/Bolivia and Korea. To achieve this, we provide support to foreign companies to invest in Korea and of support Korean micro and small enterprises (MSEs) to expand their business abroad. We also work collecting and processing commercial information between countries and help in governmental projects. So, if a Korean company wants to enter the Peruvian market, the first point of contact would be you? "Nowadays, doing international business is simpler than it was a few years ago because of the internet... What is still missing and is what offices like this one try to help with, is cultural know-how. The culture of doing business." Of course, KOTRA in Korea is a...

7 Steps to Forming an LLC in Peru

by Legal Team Peru | Jan 13, 2020

Forming a Limited Liability Company (LLC) in Peru can be a great option to enter the Peruvian market. As Peru enters 2020 with greater stability than last year, market observers have granted the country the lowest risk level in the region, which means that Peru is considered a safe investment due to present economic and political stability. Investors seeking to enter the Peruvian economy might wonder about which legal entity best fits their business model. In this article, we give advice on forming an LLC in Peru and the characteristics of this type of legal entity. Why form an LLC in Peru? According to market observers, a strong demand will support the growth of above 3% for 2020 in Peru. In addition to this, the middle class grew by 4.5% in 2018 and with this, more people have obtained a higher purchasing power. By forming an LLC in Peru, investors can enter a market with strong demand and stability. Peru's wealth of trade deals give businesses the opportunity to expand abroad. The country’s efforts to open its economy are displayed in its 21 Free Trade Agreements (FTA) which include strategic players such as the US, China, the European Union, Japan amongst others. An LLC in Peru is called a ‘Sociedad Comercial de Responsabilidad Limitada’ (SRL). The SRL entity limits the liability of its owners in regards to the owners’ assets that can be utilized to cover any financial issue the company may encounter. Characteristics of an LLC in Peru The LLC in Peru is constituted by a minimum of two members and has a limit of 20 members. It is constituted at the time the...