If you are interested in setting
up a company in Peru, make sure you are aware of the types
of legal entities in Peru
LatinFocus panelists expect GDP to accelerate and increase over
the coming years. This growth in the Peruvian economy has resulted
in an increase in FDI, particularly in the mining and export
sectors.
Government policies have encouraged this investment which has
benefited investors, local communities, and the economy in general.
There is a vast range of business opportunities available in Peru, and
both local and foreign investors are getting involved. Below we
present to you 5 types of legal entities in Peru.
Types of legal entities in Peru – Which Legal Entity
Should You Use?
Do you have a great business idea and are looking to find the
right structure for your company in Peru? Depending on the activity
that you plan to undertake, there are different legal entities
regulated by the Peruvian Companies Law under which you can set up
your new venture.
Below is a list of 5 types of legal entities to set up your
business in Peru most commonly used by foreign investors. Should
you require more information regarding each of these legal
entities, we recommend that you make contact with a professional
company that has an extensive understanding of the legal Peruvian
entities and have experience in the formation and incorporation of
companies depending on the types of operations being conducted.
Joint Stock Company (Sociedad Anónima or
S.A)
This type of company is the most popular type of legal entities
in Peru for business entities as it’s fairly easy to open. The
legal entity requires a minimum of two shareholders and an initial
capital contribution of s/.1000; approximately $350. Liability is
limited to the amount of the contribution and the joint-stock
company must have a Board of Directors and General Manager.
Private Closed Corporation (Sociedad Anónima
Cerrada or S.A.C)
One of the types of legal entities in Peru is the Private Closed
Corporation. This legal entity requires a minimum of two and a
maximum of twenty shareholders. Although a Board of Directors is
not necessary, the corporation must have a General Manager.
Public Corporation (Sociedad Anónima
Abierta)
6 Steps to set up a company in
Peru. Legal entities in Peru
For companies with a large number of shareholders, a publicly
held corporation can be a good option. To create this legal entity,
an initial public offering should be made, the company must have
more than 750 shareholders, and/or over 35% of share capital
distributed among more than 175 shareholders.
Limited Liability Company (Sociedad Comercial de
Responsabilidad Limitada or S.R.L)
A minimum of two and a maximum of twenty partners are allowed.
All partners have limited liability and capital is divided up
amongst them. This company corporation does not issue shares and
its procedures are the same as those of other corporations.
Branch (Sucursal)
Another type of legal entities in Peru is the Branch (Sucursal).
Established outside its legal address, the branch should realize
the same activities as its head office. The branch has the same
status as a head office but can be considered as an independent
company for tax purposes. To open a branch, a permanent legal
representative or General Manager must be present.
Originally published 23 March 2016 | Updated on: October 19,
2022
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
Source link : https://www.mondaq.com/peru/shareholders/1350274/5-types-of-legal-entities-in-peru
Author :
Publish date : 2023-08-02 03:00:00
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