How to start a business in Peru: Requirements and steps

Few things surprise entrepreneurs more than discovering how open Peruvian legislation remains towards foreign investment. No quotas, no mandatory local partners, no minimum capital required by law, and full ownership from day one. For anyone coming from more restrictive markets, this changes the calculation considerably.

Peru has steadily strengthened its position as one of Latin America’s most dynamic markets. Its economy has maintained stable growth throughout much of the last two decades, while Lima has become an attractive hub for digital entrepreneurs, international consultants, and companies seeking an operational base within the Andean region with Pacific market access.

If you’re considering opening a company in Peru, this guide walks you through the entire process. From legal structures, real costs, taxes, and foreigner requirements to the exact steps needed for incorporating your company legally.

How Much Does It Cost to Start a Business in Peru?

Let’s begin with the financial aspect. One of the first pleasant surprises within Peru’s system is that no legal minimum share capital exists for company incorporation. Unlike other countries, Peru doesn’t require a fixed deposit before starting operations. However, you must open a bank account under the future company’s name and deposit the capital defined within the bylaws, regardless of the amount.

That said, incorporation costs still exist, and understanding them beforehand remains essential:

1. Company Name Reservation with SUNARP

The first procedure involves verifying and reserving your company name before the National Superintendence of Public Registries. This process carries a low registration fee and guarantees exclusive use of the chosen name for 30 days.

2. Lawyer and Notary Fees

A lawyer must draft the incorporation deed and formalise it before a notary public. Fees vary according to the city and bylaw complexity, although for a standard S.A.C., notary and legal advisory costs usually range between €276 ($300) and €552 ($600).

3. Registration with SUNARP

After signing the public deed, the notary manages registration with the Legal Entities Registry. This step grants the company legal personality and includes registration fees based on declared share capital.

4. Apostilled Power of Attorney (If You Aren’t in Peru) 

If you plan to incorporate the company remotely through a representative, you must grant a power of attorney in your home country, apostille it under the Hague Convention, and send it to your representative in Peru. The cost of this procedure depends on your country’s notary and the administrative agency hired in Peru.

5. Obtaining the RUC with SUNAT

This procedure remains free of charge. Once the company registers with SUNARP, the legal representative visits the National Superintendence of Customs and Tax Administration offices to obtain the company’s tax identification number.

Overall, incorporating an S.A.C. in Peru with support from a local law firm may cost between €460 ($500) and €920 ($1,000), including professional fees, notary costs, and registration charges. Compared with European markets, this remains affordable and, since no minimum capital exists, the entry threshold stays genuinely low.

Which Types of Companies Can You Open in Peru?

Peru’s General Companies Law (Law No. 26887) regulates the different legal structures available. These remain the most relevant for foreign investors and entrepreneurs:

1. Closely Held Corporation (S.A.C.)

The most popular option among foreign investors, and for good reason. It allows between two and 20 shareholders, doesn’t trade publicly, doesn’t require a mandatory board of directors (it may operate solely with a general manager), and offers a closed structure with complete control over shareholder entry and exit.

It remains agile, flexible, and suitable for both small businesses and medium-sized projects. Furthermore, the greatest advantage is that foreigners may fully own the company without requiring any Peruvian partner.

2. Public Limited Company (S.A.) 

This structure applies to entrepreneurs planning to open a larger company in Peru or attract investment from more than 20 shareholders.

Here, the rules change because the structure requires a mandatory board of directors. This remains the usual format for companies planning rapid expansion, projects involving multiple investors, or structures that may eventually access capital markets.

3. Individual Limited Liability Company (E.I.R.L.)

This structure suits entrepreneurs wishing to operate independently with limited liability, without requiring partners. However, one important condition applies: Only natural persons may incorporate it, not foreign legal entities. Consequently, foreign companies wanting to establish subsidiaries in Peru can’t use this structure.

4. Commercial Limited Liability Company (S.R.L.)

This structure applies to companies with between two and 20 partners and closely resembles the S.A.C. regarding its closed structure. The main difference is that capital divides into ownership interests instead of shares, while transferring ownership interests requires consent from the remaining partners. Consequently, it offers less flexibility than the S.A.C. for international investment structures.

5. Foreign company branch

If your company already holds an established international track record and you simply want to expand into Peru without creating a separate legal entity, the branch structure provides the ideal solution. Unlike a subsidiary, a branch operates as an “extended arm” of the parent company: It doesn’t hold independent legal personality, allowing you to operate under the same corporate name and reputation already established abroad.

However, for this “arm” to operate legally in Peru, three non-negotiable requirements apply:

• The local human factor: You must appoint a representative residing in Peru. This person becomes the official face before authorities, while their powers must remain properly registered with SUNARP (Public Registries).
• Independent tax identity: Although the branch shares the parent company’s name, it must obtain its own RUC (Single Taxpayer Registry) to interact with SUNAT and fulfil local tax obligations.
• Tax efficiency: The major competitive advantage is that, under this structure, you’ll only pay taxes on profits generated within Peru’s borders. Therefore, you won’t need to worry about income earned by the company elsewhere, greatly simplifying international accounting.

6. Representative Office

This remains the lightest structure available. The company can’t perform direct commercial activities or issue invoices. Its role remains limited to support activities, market research, or commercial representation without generating revenue.

It may become a useful option for companies wishing to explore the Peruvian market before committing to a more formal structure.

The general recommendation from specialised firms remains clear: For most early or mid-stage foreign investment projects, the S.A.C. remains the most efficient structure. It offers control, flexibility, fast incorporation, and liability protection without the additional requirements of the S.A.

What Are the Requirements for Starting a Business in Peru?

Here comes one of Peru’s greatest advantages: The law doesn’t discriminate by nationality. A foreigner may become a partner, shareholder, and owner of 100% of a company in Peru under exactly the same conditions as a Peruvian citizen. No restrictions, no mandatory local partners, and no limitations on profit repatriation.

That said, several practical requirements still apply, and understanding them from the beginning remains important.

1. Legal Representative Domiciled in Peru

This remains the most relevant requirement for entrepreneurs operating remotely. The law requires the company to appoint a legal representative (General Manager) domiciled in Peru. That representative may be Peruvian or a foreign resident. If you’re a non-resident foreigner and wish to assume this role personally, you’ll need a work or investor visa. Otherwise, you must appoint another person for this position.

2. Apostilled Power of Attorney (If Incorporating from Abroad)

If you won’t travel to Peru to sign the public deed, you must grant a power of attorney before a notary in your home country, apostille it under the Hague Convention, and appoint a representative in Peru acting on your behalf. This representative may be a lawyer or trusted person residing in Peru.

3. Valid Passport or Identity Document

As a foreign partner or shareholder, your official identification document remains your passport. If you’re a foreign legal entity (you already own a company abroad and want to create a subsidiary in Peru), you’ll also need your original company incorporation documents properly apostilled and, if not written in Spanish, translated by an official translator.

4. Tax Address in Peru

The company must hold a registered address in Peru for tax and administrative purposes. This may include a private office, coworking space, or an address provided by the law firm managing the process.

5. Registration with the Foreign Investment Registry

If the capital originates abroad, the company or its shareholders may (and sometimes must) register the investment with Proinversión, Peru’s national investment promotion agency. Although not mandatory in every case, this registration provides additional guarantees and simplifies future dividend repatriation.

6. Immigration Card for Foreign Resident Legal Representatives

If the General Manager will be a foreign resident in Peru, they’ll need an immigration card with authorisation to work legally. Entrepreneurs and investors planning to settle in Peru may apply for the investor visa, which allows residency and acting as the company’s legal representative.

An important clarification: Becoming a partner or shareholder in a Peruvian company doesn’t require residency or a visa. You’ll only need them if you plan to work actively in Peru or assume the legal representative role.

Which Taxes Must You Pay When Opening a Company in Peru?

The Peruvian tax system doesn’t rank among the world’s lowest, although it offers a clear structure and, in some aspects, favourable conditions for small and medium-sized companies. Here’s what you need to know.

1. Third Category Income Tax

This represents Peru’s corporate income tax. For companies operating under the General Regime, the rate stands at 29.5% on taxable net income, meaning the difference between revenue and deductible expenses. Resident companies pay taxes on worldwide income, while foreign company branches only pay taxes on profits generated in Peru.

2. MYPE Tax Regime (RMT)

This alternative to the General Regime targets micro and small businesses with annual income below 1,700 UIT (approximately 9.35 million soles in 2026 / €2.15 million / $2.5 million). Under this regime, the first 15 UIT of net income pay taxes at 10%, while the excess pays 29.5%. If your company remains in its early stages and revenue stays modest, this regime may generate significant tax savings during the first years.

3. IGV (General Sales Tax)

This represents Peru’s equivalent of VAT. The standard rate reaches 18%, divided into 16% IGV and 2% Municipal Promotion Tax. It applies to movable goods sales, service provision, and goods imports within Peru. Monthly declarations remain mandatory for every company registered with the RUC.

4. Dividend Tax

When the company distributes profits to shareholders, authorities apply a 5% withholding tax on the gross dividend amount. The distributing company directly withholds this amount and pays it to SUNAT. This applies to both Peruvian and foreign shareholders.

If the shareholder resides in a country holding a double taxation agreement with Peru (including Spain), more favourable conditions may apply.

5. ITAN (Temporary Tax on Net Assets)

This asset-based tax applies to companies whose net assets exceed 1 million soles on 1 January each year (€230,000 / $267,000). The rate stands at 0.4% on the excess amount. Companies may deduct the amount paid from the corresponding corporate income tax.

6. EsSalud (Social Security)

Employers must contribute 9% of every employee’s gross salary to Peru’s healthcare social security system. Employees also make mandatory pension contributions (AFP or ONP), which employers deduct directly from payroll.

Peru maintains double taxation agreements with Spain, Chile, Mexico, Brazil, Canada, Italy, Japan, Switzerland, Portugal, and several other countries. For entrepreneurs maintaining economic activity across multiple jurisdictions, these agreements may become decisive when planning taxation strategies.

What Are the Steps for Opening a Company in Peru?

Peru’s incorporation process follows a clearly defined order. Here’s how it works in practice, step by step.

1. Reserve the Company Name with SUNARP

Before drafting any document, verify that your chosen company name remains available. You may complete this through the SUNARP website or personally at its offices. If the name remains available, you may reserve it for 30 days while completing the remaining procedures. Although not mandatory, this reservation prevents last-minute complications.

2. Draft the Incorporation Deed

The incorporation deed contains the company’s constitutive act: Shareholder information, corporate purpose, capital amount, management structure, and bylaws. A lawyer must draft and sign it. If shareholders remain outside Peru, this stage also incorporates the apostilled power of attorney representing them.

3. Convert the Deed into a Public Instrument Before a Notary

The lawyer submits the incorporation deed before a Peruvian notary public, who converts it into a public instrument. The notary verifies the identity of shareholders or their representatives and certifies the act. After signing the deed, the notary manages registration with SUNARP’s Legal Entities Registry.

This process usually requires between two and three weeks from submission until official registration.

4. Obtain the RUC with SUNAT

Once the company registers with SUNARP, the legal representative visits SUNAT to obtain the Single Taxpayer Registry (RUC). This becomes the company’s tax identification number, essential for issuing invoices, declaring taxes, and operating formally.

At this stage, the company also receives the SOL Code, allowing access to SUNAT’s online platform for managing tax obligations electronically.

5. Open the Corporate Bank Account

With the RUC and incorporation deed ready, the company may open its corporate current account with a Peruvian bank. The country’s main banking institutions include BCP, Interbank, BBVA Perú, and Scotiabank, among others. Some banks require the legal representative’s physical presence for opening the account, while others allow remote procedures under certain conditions.

Remember that reviewing each bank’s specific requirements before starting the process saves considerable time.

6. Legalise the Accounting Books

Every Peruvian company must maintain accounting and corporate books legalised before a notary. The legal representative submits the books together with the RUC copy and payment of the relevant fees. This procedure remains necessary for operating completely formally.

7. Register the Foreign Investment with Proinversión (if applicable)

If the capital originates abroad, registering the investment with Proinversión remains advisable. This registration protects foreign investors’ rights, simplifies future dividend repatriation, and may become necessary in certain contracts involving the Peruvian government.

How Can You Get Internet for Business Trips to Peru?

Travelling to Lima to meet your lawyer, sign notarial documents, or visit suppliers requires constant connectivity. The first days in a new country always bring unexpected situations: Last-minute changes, email confirmations, or urgent video calls with your team. Depending entirely on hotel Wi-Fi for all that remains a risky decision.

With Holafly’s monthly plans, you get data coverage across more than 160 countries through one eSIM activated directly from your phone before departure, without touching any physical SIM card. This creates a major advantage because you complete the setup once and forget about renewals.

If you plan to stay in Peru for an extended period, the Holafly eSIM for Peru becomes the most direct option: Unlimited data, no unexpected charges at the end of the month, and coverage across Lima and Peru’s main cities. You manage everything directly through the app: Activate, extend your plan, or simply let it continue running.

When your monthly plan expires or you decide to pause it, Always On takes over, giving you 1 GB of automatic monthly data across more than 70 countries without additional charges. You don’t need to configure anything or remember activation. It remains there quietly, ready exactly when you need it most.

Frequently Asked Questions About Starting a Business in Peru

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