Open a business in Peru

Answers to your qestions about moving to, and living in, Peru,
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Open a business in Peru

Postby ducado » Tue Jun 03, 2008 12:48 am

I am in the process of starting my own business. I will give a resume of the steps to take.
I decided to start a business with the SAC type ( Sociedad Anonima Cerada ) for basically two reasons:
The business basically is my own business, so I could have started a EIRL ( Empresa Individual Responsabilidad Limitada ), but I heard rumours that in case all goes wrong, you are supposed to be limited in responsibility up to the amount of the capital you started with ( They cannot go after your personal assets, as the business is not a ‘Persona Natural’ ). But supposedly the reality is that in case all goes wrong, they WILL go after your Persona Natural.
With a SAC, they will in the case all goes wrong, really only go against the SAC ( the money invested in it, but not the money of the individual socios ( members )

A second reason to choose for a SAC, is that it ‘looks’ more professional, for your customers..
OK, so how to create a SAC from nothing.
You need a minuta, a escritura and a registration in the registros publicos. The easiest, cheapest and fastest way is to do all this in a Notario.
- Go to registros publicos (SUNARP), ( located in Lince, in front of the Rebagliati hospital ) and do a search for an appropriate name ( My business SAC ). You can do several searches at the same time, each search costs S/. 4. There is a counter when you enter where you get all the forms, necessary, ask for ‘buscueda for persona juridica’ ( and the number of searches you need )
- Get a ticket for the line for the caja, and pay the S/. per buscueda
- Wait one hour, and pick up the result on the second floor
- Lets assume you can claim ‘My business SAC’
- Get the form ‘Reserva de nombre’ You will get two papers, fill them out, and go to 'Pre-liquidacion', your paperwork gets stamped and now get another ticket for caja. Pay S/. 16 for the Reserva de nombre. Bring a photocopy of your document ( Carnet de Extranjeria, or DNI )
- Wait 7 days, and go back to pick up the ‘Reserva de nombre’ in Mesa de Partes, which is to your left when you enter.
- With this document you have 30 days to actually register the name ‘My business SAC’. Proceed going to a Notario with the following documents
- The reserva de nombre, copy of your document , copy of the document of your socio. Ask the lawyer (abogado) of the notario to prepare the minuta, you will need to tell them with what capital you start ( can be cash, or property, even goods, but I choose cash, as it is the easiest ), who are the socios, how are the stocks divided ( In my case 99.95 % is mine, 0.05% is of my socio ), and most importantly to what ‘My business SAC’ is going to dedicate its business to. Be as extensive as possible, because your business can only sell or do whatever you specify now. And who is the Gerente General, and what can he sign for.
- The minuta is prepared, and signed by the socios ( in our case it was send by email, I revised it, signed it together with the socio ) and go to the notario. The lawyer signs it also. You need three originals of this, or two originals and have the notario make a certified copy.
- With the minuta you go to a bank, to open a bank account ( a cuenta corriente ). I assume the Gerente General can sign with one signature all checks and operations. If your minuta says that from a certain amount also the signature from another person ( an ‘Apoderado’ ) is needed, that is also possible.
- After opening the account, deposit the money as specified as your starting capital in the minuta.
- With the deposit voucher go back to the notario.
- Now the notario prepares the ‘Escritura’ based on the ‘Minuta’ and your deposit voucher. He will tell when the socios can come to sign the ‘Escritura’ ( In my case, I went with the voucher, and my socio, and waited 20 minutes )
- After signing, the notario will proceed in registering the paperwork in Registros Publicos. This takes like 4 days. The cost for the notario was S/. 550, which included the Minuta, Escitura, and registration in Registros Publicos.
- After the 4 days, the notario will give you a ‘Testimonio’ which is the ‘Escritura’ and the proof of registration in Registros Publicos. Make a certified copy of the ‘Escritura’
- Go to Registros Publicos, and get a Certified copy of your inscription in the Registros Publicos.
- Go to SUNAT ( tax office ) and get your RUC, with the following documents: two copies of your document, the Testimonio, The certified copy of registros publicos, a bill of water, electricity, cable, or phone, and copies of all these documents. Ask also for Clave SOL. This will give you online access to their system, to change things, your accountant will need it. They will send to your business address a paper to verify your address. You are supposed to be able to register it with your Clave SOL, but the system didn't proceed. I had to go to the SUNAT office again, where they stamped the paper and put my RUC on 'HABIDO', which means it is all ready to go.
- You will get a RUC, in which you select in which areas the business is going to operate. You will need to choose in which ‘Regimen’ you will be. The most extensive is Regimen General, ( which I choose ), also there is a Regimen Especial, but you pay taxes over your sells, not over your profit.
- Take a copy of your RUC certificate.
- Go to your bank, and finish the opening of your account, with the following documents: Certified copy of Escritura, certified copy of Registros Publicos ( In Sunat, they just need to see the original, they keep a copy, in the bank they want your original.. ) Ruc certificate, they keep a copy. They return your original Minuta which you left in their possession in one of the previous steps.
- Now it is time to get your ‘Libros Contables’ You will need ten of them ( if you choose to be in the Regimen General ). You can use books, or loose papers, the loose papers can be printed, the book need to be filled out manually. I choose the loose papers, as I hate to write manually, and also I project to have many sales, so to write down in detail every factura and boleta seems to problematic .. Libro de Actas and Libro de Planilla, are books, the rest is papers. 300 papers per book costs S/. 17 per libro, + S/.12 to number the papers.
- Go to Ministerio de Trabajo to legalize the Libro de Planilla.
- After SUNAT has verified your address, your RUC will be fully habilitated, and you can have your Facturas and Boletas printed. Prices vary, but in general the larger the quantity the cheaper it gets..
- Now you can start selling ..

It might look like a long list, but in reality it is not so hard. Total costs to start the business:
Reserva de nombre: S/. 4 + S/. 16
Minuta, Escritura, Registros Publicos: S/. 550
Certified copy Registros publicos: S/. 12
Certified copy Escritura : S/. 19
Libros Contables: S/. 300
Facturas(1000), boletas(1000), nota de credito(100), nota de debito(100) S/. 220 ( Facturas and boletas in 'papel Quimico')

Total costs including transport S/. 1200
Time needed: 3 weeks
Last edited by ducado on Sat Jun 07, 2008 7:23 pm, edited 3 times in total.


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Postby italianalovinglife » Tue Jun 03, 2008 6:18 am

do you know how this compares to opening a branch of a business started in another country? For example I opened a business in Toronto, Canada and would like to open a branch of it when i relocate to Lima, I also want to do the same for an NGO i started here in Canada....do you know which would be better, a branch, or the way you have described?
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Postby ducado » Tue Jun 03, 2008 7:19 am

For other types of business the procedure is roughly the same. In the case of the brand for example, I suppose one of the socios is the 'Persona Juridica' ( your business in Canada. An NGO will have a different TAX regimen. But the procedure of getting the paperwork done will be roughly the same.
In a notario they can explain the details better, and also you will definitely need an accountant ( Contador ).
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Postby naturegirl » Tue Jun 03, 2008 7:37 am

Tanks for the info, it's very useful.
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Postby rgamarra » Tue Jun 03, 2008 9:46 am

Thanks for the information. I FINALLY received my power of attorney after having been promised it in a week and waiting for an entire month for it instead. My next thought was "what step to take next?" I'm glad you posted the information.

Thanks!
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Thanks

Postby mruffolo » Tue Jun 03, 2008 10:03 am

Thank you for the post. I move to Lima soon, and my current American employer is investigating this process.
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Postby mammalu » Tue Jun 03, 2008 11:26 am

I propose DUCADO for Expat of the week. :lol:

Great information! thanks for taking the time to explain all in so much detail.
Stand with anybody that stands RIGHT. Stand with him while he is right and PART with him when he goes wrong." ! Abraham Lincoln
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Postby ducado » Tue Jun 03, 2008 2:15 pm

Thanks :D I feel better already ..
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Postby naturegirl » Tue Jun 03, 2008 2:59 pm

I'll link to this the next time the UPL is updated. HOpefully in July
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Postby ducado » Tue Jun 03, 2008 5:00 pm

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Postby Mark Smith » Thu Jun 05, 2008 8:08 am

italianalovinglife wrote:do you know how this compares to opening a branch of a business started in another country? For example I opened a business in Toronto, Canada and would like to open a branch of it when i relocate to Lima, I also want to do the same for an NGO i started here in Canada....do you know which would be better, a branch, or the way you have described?


There are some important differences between a branch office and a SAC. If you'll have a very small business then they might not be important, but if more than a very modest cash flow you should check with an attorney or accountant who understands - both in Peru and Canada. For example, a branch office is not allowed as many tax deductions in Peru as a SAC (or, rather, they are simply a lot more picky about what kinds of transactions they'll consider because it's so easy to "move" expenses to a branch to escape taxes in high tax jurisdictions. And your Peru profits will automatically be taxable in Canada whether or not you distribute the cash back to Canada. With a SAC you have some control over the timing of taxes in Canada.

Having said that, in some jurisdictions (like Australia) it is actually better to open foreign offices (like in Peru) as branches because the Australian tax system looks at world wide taxes and you get favorable treatment for open, "flow through" business structures.
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Postby rgamarra » Thu Jun 05, 2008 12:30 pm

For approx. S/.458 a well trusted Notary by my house will do the business registration. No need to go to SUNARP to do the name search, they do it for you.

This does not include your bank deposit. You can make it $1 per share for 100 shares ($100 USD) or do it in Soles if you want to.

Anyway, they do nearly all the foot work for you on the SUNARP side of it.

I should also mention, for a SAC you cannot have a "Socio" that is immediately related to you. In my case for me to put my husband's name in my business I have to include his uncle for a total of 3 socios.
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Postby italianalovinglife » Thu Jun 05, 2008 3:59 pm

thanks mark and ducado...very helpful information...i will try to get as much information here in Canada before I leave for Peru.... :D
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Postby naturegirl » Thu Jun 05, 2008 9:24 pm

rgamarra wrote:For approx. S/.458 a well trusted Notary by my house will do the business registration. No need to go to SUNARP to do the name search, they do it for you.
This does not include your bank deposit. You can make it $1 per share for 100 shares ($100 USD) or do it in Soles if you want to.
Anyway, they do nearly all the foot work for you on the SUNARP side of it.
I should also mention, for a SAC you cannot have a "Socio" that is immediately related to you. In my case for me to put my husband's name in my business I have to include his uncle for a total of 3 socios.


Do you have to have shares?
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Postby ducado » Thu Jun 05, 2008 10:44 pm

The shares part is just how to divide the profits in the end of the year. I think if you start an SRL you don't have shares, just every socio has an equal cut in the profit. ( But I am not sure of it ).
A SAC protects you that the other socios cannot just sell their share to anybody, ( the Cerrado part of the saC), but have to sell it to the other socios, who can then themselves find a new socio.
I also saw in a 'Minuta' of another company that they had for S/. 40.000 shares, but only deposited 25% of that in the bank.
The fee for the notario and Registros Publicos depends not only on the notario itself ( I got for my SAC quotes ranging from S/. 440 - S/. 900 ) but it also depends on the amount of money you put in the SAC, the number of socios, and the number of Gerentes Generales with their Apoderados. ( the fee for the Registros Publicos is based on that )
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Postby rgamarra » Fri Jun 06, 2008 10:56 am

ducado wrote:The shares part is just how to divide the profits in the end of the year. I think if you start an SRL you don't have shares, just every socio has an equal cut in the profit. ( But I am not sure of it ).
A SAC protects you that the other socios cannot just sell their share to anybody, ( the Cerrado part of the saC), but have to sell it to the other socios, who can then themselves find a new socio.
I also saw in a 'Minuta' of another company that they had for S/. 40.000 shares, but only deposited 25% of that in the bank.
The fee for the notario and Registros Publicos depends not only on the notario itself ( I got for my SAC quotes ranging from S/. 440 - S/. 900 ) but it also depends on the amount of money you put in the SAC, the number of socios, and the number of Gerentes Generales with their Apoderados. ( the fee for the Registros Publicos is based on that )


My Notary quote was with S/. 3,000 in shares. I will likely put the equivalent of $150 and my socios will only have 1% while I retain 98% of the shares. It's common to have friends or non-immediate family members as socios for purposes of formalities. In most cases they do not receive any of the profits as you are the one providing the capital or investing in the start-up costs...basically they are silent partners.
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Postby rgamarra » Fri Jun 06, 2008 5:25 pm

Well, speaking of inactive socios....

Today I got a visit from a rep from SUNAT looking for my husband. My husband is an inactive partner of his uncle's business. SUNAT says the business owes a whole slew of back-taxes that obviously haven't been paid.

Note to those starting your business: Hire a VERY GOOD accountant!

So now that the company owes XX amount in taxes and no one has paid up, SUNAT is going to all the socios to deliver them the legal documents of it all.

This was an interesting lesson I've learned even though this is (A.) NOT MY BUSINESS and (B.) I'M FINALLY ABOUT TO START THE PROCESS OF REGISTERING MY OWN.

This teaches me that even though I may have inactive partners, if I MESS UP, the government will hold my partners equally accountable.

If his uncle doesn't pay the taxes then the business will be dissolved and SUNAT will liquidate what they (the business) own(s).
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Postby naturegirl » Sat Jun 07, 2008 11:06 am

Hm, I'm starting to think that the informal route is better.
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Postby craig » Sat Jun 07, 2008 3:10 pm

naturegirl wrote:Hm, I'm starting to think that the informal route is better.


Millions of Peruvians agree with you. They probably are not wrong.

A former landlady of mine was strongly of the opinion that it was her patriotic duty to regularize her business as a "external tourism agent" for which she had trained by taking some government sponsored courses. So she conscientiously went to the municipality to obtain a business license.

They gave her a pile of forms to fill out asking such things as how many square meters of office space she had, how many computers, etc. so they could pronounce on whether or not she could qualify. She came back and told them she didn't have any of those things; that she was not a travel agency. They asked her to explain the nature of her business so they could help her; which she did. Then they went rooting about for more appropriate forms but they could not find any. So they came back and said, "You can't do that".

Needless to say, she went away and continued operating informally.

I think that unless there is some REALLY compelling reason you actually need to be formal in order to conduct your business it is much better to operate informally. And, in my opinion, more morally sound.
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Postby rgamarra » Sat Jun 07, 2008 3:36 pm

Well, I've discovered that the SUNAT issue is something that has been going on for a while now. It ends up that SUNAT didn't keep their records straight and the Uncle has pulled in the lawyers to do the barking.

Again, as a SAC they can only go after the company's assets. His business is a multi-million dollar business and it looks like SUNAT has been trying to get him to pay higher taxes.

Anyway, if you are going to operate a company that does a high volume of business it may be wise to keep an accountant and lawyer on payroll...preferably ones that are good at what they do.

This SUNAT issue comes from a cousin that was an accountant and didn't do such a hot job...needless to say she hasn't been doing the accounting since then.
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Postby latina_822 » Mon Jun 09, 2008 7:20 pm

Thanks Ducado for all the info. Very very useful here. Hopefully we can read post like this more often.

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Postby Mark Smith » Mon Jun 09, 2008 7:56 pm

Craig wrote:
naturegirl wrote:Hm, I'm starting to think that the informal route is better.


Millions of Peruvians agree with you. They probably are not wrong.

A former landlady of mine was strongly of the opinion that it was her patriotic duty to regularize her business as a "external tourism agent" for which she had trained by taking some government sponsored courses. So she conscientiously went to the municipality to obtain a business license.

They gave her a pile of forms to fill out asking such things as how many square meters of office space she had, how many computers, etc. so they could pronounce on whether or not she could qualify. She came back and told them she didn't have any of those things; that she was not a travel agency. They asked her to explain the nature of her business so they could help her; which she did. Then they went rooting about for more appropriate forms but they could not find any. So they came back and said, "You can't do that".

Needless to say, she went away and continued operating informally.

I think that unless there is some REALLY compelling reason you actually need to be formal in order to conduct your business it is much better to operate informally. And, in my opinion, more morally sound.


Hernando de Soto's book on this topic (I forget the title) is a great read!! They studied the silliness of the Peru paperwork jungle and concluded basically that no reasonable person trying to open a small business would (or could, in fact) do it 100% legally!!
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Postby naturegirl » Tue Jun 17, 2008 8:10 pm

IfI were to start a SAC, would I need socios (business partners?) or could it just be my business?

What would I need to open if I just want it to be mine?

Also what percentage of the profits would I have to pay to SUNAT?
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Postby craig » Wed Jun 18, 2008 1:49 am

Mark Smith wrote:Hernando de Soto's book on this topic (I forget the title) is a great read!! They studied the silliness of the Peru paperwork jungle and concluded basically that no reasonable person trying to open a small business would (or could, in fact) do it 100% legally!!


The Other Path (new edition!)
http://www.amazon.com/Other-Path-Econom ... 465016103/

The Mystery of Capital
http://www.amazon.com/Mystery-Capital-C ... 465016154/
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Postby ducado » Wed Jun 18, 2008 6:55 am

If you open a SAC, yes you need socios. ( a SAC is at least constituted with 2 socios, and maximum somewhere between 20 and 30, don't know the exact number )
But as each socio has shares, you can divide the shares in such a way that effectively you are the owner ( You 3999 shares, your socio 1 )
The socio is only the 'owner' of your business, not the management. You simply appoint yourself as the CEO ( Gerente General) with full power with 1 signature( your signature).
If you are in the Regimen General you pay 30% taxes over your profit. If you are in the Regimen Especial you pay 2.5% taxes over your sales.
The latter is limited to a maximum of sales ( like S/. 40.000 a month )
The latter seems 'better' but think again, if your business don't make profit, you don't pay nothing of taxes in case you are in the Regimen General ! And there are ways to keep your profit low.
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Postby naturegirl » Wed Jun 18, 2008 7:27 am

So you're taxed only on your profits? Sounds good.
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Postby ducado » Wed Jun 18, 2008 9:07 am

Well, now we get to the fineprint .. If you are in the Regimen General, you pay 30% taxes over your profit. You calculate this after the year closes and you need to pay it somewhere half of march the next year.
But you pay 'in advance' every month 2% over your sales. This amount you deduct of the tax you need to pay at the end of the year. If this is negative ( meaning you paid too much taxes ) you will NOT get a refund, but it remains as a credit for the next year.
The SUNAT does a calculation and the percentage ( of 2%) is adjusted. Then you pay that new percentage over your sales, but any credit you still had of the previous year is used to pay that new percentage. Get it ?!
Well an example:
Lets say you start in June 2008, and your sales are fixed at S/.20.000
This means you pay June S/.400, July S/.400 etc. to December S/. 400.
In total you paid S/.2800 of taxes.
In January 2009 you still pay S/. 400, february too, march also, but you present your tax declaration in March 2009. Lets say your profit is S/. 1000
( So your sales where 7*S/.20.000 = S/.140000 and your costs where S/. 139000 )
This means you should have paid 30% over S/. 1000 = S/.300
But you paid already S/. 2800, so you have now a credit of S/. 2500
In April the coefficient ( the percentage ) is adjusted, to lets say 1%.
This means in April 2009 ( your sales are still S/. 20.000) you must pay S/. 200 of taxes, but that you deduct of your credit, so you pay nothing to SUNAT , and your new credit is S/. 2500 - S/. 200 = S/. 2300

Simple no ?

The idea is offcourse that after some years you do start making a profit, and the coefficient is adjusted exactly to 1/12 of what you need to pay of taxes the end of the year.
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Postby ducado » Wed Jun 18, 2008 9:14 am

By the way, if you are a Persona Juridica ( SAC for example ) you DON'T need to legalize your Libro de Planilla in the Ministerio de Trabajo, but you do need to fill out the Planilla Electronica.
Also at least the Gerente General must be in planilla ( on the payroll ). Many people will say it is not an absolute requirement ( Sunat, Ministerio de Trabajo will say that it is not necessary ) but apparently the Law on Sociedades requires it.. So at least the Gerente General is in Planilla. ( with at least the minimum salary S/. 550 ). Don't forget to inform your employer ( if you have one ) that you receive a salary in another company, as it is required by law, and they can calculate your renta quinta.
If I am not mistaken, the renta quinta (income tax ) is only paid by the employer where you receive the highest salary ( well it is actually deducted from your bruto salary ).
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Postby naturegirl » Wed Jun 18, 2008 1:12 pm

My head's spinning. How can after one year a business only make a profit of 1000 soles? And the maths thing is complicated, I'll have to re read it.
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Postby ducado » Wed Jun 18, 2008 1:32 pm

It is an example.. To show the logic ..

( In the example your sales were S/. 140000 and your costs S/. 139000, making your profit only S/. 1000 )
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Postby Yuyis » Thu Nov 06, 2008 1:32 pm

Let me bump this thread, since it is very interesting and important.
Indeed, I read some very strange things here, uncovering Peru's bureaucracy c.q. silliness.
Why do they have to know how much office space and computers one has? Can't one do the administration in his own home office on the home computer?
Well, when I tell my wife of this, she laughs and says that things have changed, and that I just have to register a 'micro empresa' or 'empresa familiar', which do not have all that hassle. But I think she's quite unknowledgeable herself and takes it a bit too light. I know it's a serious matter and when I ever start a business I want to be in order to avoid trouble with the state. To be honest, all this makes me think twice before pumping my savings into a Peruvian business...
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Postby fanning » Thu Nov 06, 2008 9:52 pm

Well, lets give some more info ..
November is the time to pay CTS to your employees.. So also to yourself if you are the only employee of your company.. You have till the 15th of November to deposit in the CTS account of your employees ( including yourself )
If you don't do it, according to the SPAM mails I get, ( and probably they are true ) you can get a fine up to S/. 35000 if you don't pay CTS on time..

OK.. But how do you do that ? Pay CTS to a new employee, even if it is only yourself..

Make a nice letter using the following format:

-------------------------------------------------------


, de Noviembre de 2008


Señores:

Bank ( Banco de Credito for example )

Unidad de CTS


Presente.-



De nuestra consideración:


Mediante la presente y de conformidad con lo dispuesto por el D.S. 001-97 TR T.U.O. del Decreto Legislativo 650; Solicitamos se sirvan efectuar el abono correspondiente al mes de ....................... de 2008 de nuestros trabajadores indicados en la relación adjunta.


Abrir cuentas en Moneda (indicar soles o dólares), realizar cargo en cuenta N°..........................


Adjuntamos relación por triplicado de los trabajadores de la empresa.

(Considerar Nombre Completo del Trabajador, DNI, Fecha de Nacimiento, Monto a abonar)


Sin otro particular y en espera que se de el trámite correspondiente quedamos de ustedes.


Atentamente,


Razón Social

RUC de la Empresa

Dirección

Teléfono

-----------------------------

Make a list of your employees with the data as specified in the format.
The amount of CTS you calculate as follows:
Sum the bruto salaries of May, June, July, August, September, October, including all overtime, bonuses, 'assignacion familiar', etc. and divide it by 12. That is the CTS you pay.

Make THREE copies of all, and go to the bank. They will make you sign a paper, stamp one of the copies, and store it in your 'contabilidad'
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S.A.C. vs Branch office and Visas

Postby GBell » Sun Jan 04, 2009 3:40 pm

I am a dual citizen of both Australia and the US, and have been living in New York for the past few years and plan to move to Cusco this spring. Your blog has been extremely helpful as I am an entrepreneur and will be starting my business in Peru. What type of visa should a foreigner get if they a planning on starting a new company in Peru? Can we revisit the previous conversation about the benefits of an independent SAC vs a foreign branch? Does opening a branch of a foreign corporation have any advantages over starting an independent SAC when it comes to obtaining a visa?

The last thing I would want would be to get down to Cusco and not be able to setup my SAC because my visa was the wrong kind or to short.

From what I can tell, it looks like there are two options for non-temporary visas: Residence Visa and Work Permit (Carnet de Extranjería) or Appointed worker (Trabajador Designado). Both seem to require documentation that might not be available if the startup is not yet incorporated.

The workers visa appears to require a work contract that has been approved by the company administrative authority, and legalized by a notary or authenticated by the Peruvian General Directorate of Immigration and Naturalization (DIGEMIN). Can this type of document be obtained without an established company?

If I go the route of opening a branch of my startup in Peru and then apply for a "Appointed Worker for a foreign firm visa", then it sounds as thou i need a contract between the foreign firm and the Peruvian person/company receiving the services.

Does anyone have any advise on this matter?
Much appreciated.
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Postby fanning » Sun Jan 04, 2009 8:31 pm

The last question is not so much a question about opening a business in Peru, but merely 'how to get a residence visa'
First of all, welcome to the forum !

What I know of that subject is limited.

To get a visa as a dependent worker in your newly setup business will be impossible I think, as one of the requirements to be able to hire foreigners in a company is that the foreigners only make up like 20% of the total workforce of the company. As you are the only employee I presume, that visa application as a dependent worker will be denied.

I think you have only one option, and that is to get an investors visa. You need to invest like US$25.000 and generate work for a number of Peruvians ( 5 I think, but not sure ) within a certain number of years. ( 3 I think, but not sure )
Check out these requirements in real detail, maybe some forummembers will tell that their company never have been checked for that. That might be true, but the law does not work in that way here. They may take a long time to check your business out, but anything that is not within the law, gets punished at the moment of that 'fiscalization', and if you break the requirement to give employment to X peruvians, your whole basis for your visa falls away..
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Postby naturegirl » Mon Jan 05, 2009 11:36 am

Ditto that. If you don-t go through a company, you need to get an investor visa. Or you could do the appointed worker for a foreign firm/
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Postby Seb » Wed Sep 16, 2009 11:11 pm

Hello everyone,

I am new to this forum, so please allow me to introduce myself before asking for your help. My name is Seb. I am a Canadian citizen, but I have been living in Lima for a couple of years now.

I am not a Peruvian resident, nor do I have a worker's visa. Since moving here, I have been doing freelance work from home on a tourist visa. However, recently I have been thinking about opening a small business. The thing is, I was sort of hoping to keep it informal (i.e. unregistered).

I am hoping someone out there can share his or her experience of running a small, informal business in Lima. Are their any significant legal risks involved? If the authorities catch wind of my operation, will I be fined severely and/or banished from the country? Or will a small 'propina' keep me afloat?

I have noticed that small businesses are visited from time to time by municipal police asking for papers and whatnot. That being said, I have also noticed how legal issues down here are far from clear cut. If anyone has any input on this (successfully operating an unregistered business), I would love to get their take on it.

Thanks.
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Postby naturegirl » Thu Sep 17, 2009 10:35 am

Seb wrote:I am not a Peruvian resident, nor do I have a worker's visa. Since moving here, I have been doing freelance work from home on a tourist visa. However, recently I have been thinking about opening a small business. The thing is, I was sort of hoping to keep it informal (i.e. unregistered).

I am hoping someone out there can share his or her experience of running a small, informal business in Lima. Are their any significant legal risks involved? If the authorities catch wind of my operation, will I be fined severely and/or banished from the country? Or will a small 'propina' keep me afloat? .


If you do get caught, I'm sure you'd face fines, maybe deportation. If you're just doing a bit of business maybe like 1000usd a month, you might be able to get away with it.
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Postby american_in_lima » Thu Sep 17, 2009 11:48 am

naturegirl wrote:
Seb wrote:I am not a Peruvian resident, nor do I have a worker's visa. Since moving here, I have been doing freelance work from home on a tourist visa. However, recently I have been thinking about opening a small business. The thing is, I was sort of hoping to keep it informal (i.e. unregistered).

I am hoping someone out there can share his or her experience of running a small, informal business in Lima. Are their any significant legal risks involved? If the authorities catch wind of my operation, will I be fined severely and/or banished from the country? Or will a small 'propina' keep me afloat? .


If you do get caught, I'm sure you'd face fines, maybe deportation. If you're just doing a bit of business maybe like 1000usd a month, you might be able to get away with it.



Seb: I would not recommend it. If you rent an office from a place, eventually la defensa civil will come knocking. I have opened businesses here, so depends on the size of your business. Worse case scenario, you loose all assets and they kick you out. Plus a fine.

Lastly, if you have employees, I guarantee you if things go wrong, you will employees who start to threaten your existence. Not worth the risk.

Your small "propina" will only get you so far.



To be honest, the question you ask is a little off:

"I want to break the law - what do you think?"

Essentially, that is your question.
Regards,

George
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Postby markr » Thu Sep 17, 2009 12:23 pm

If you are going to come to Peru as anything other than a tourist (check the dictionary for the definition) then please do it legally.
One thing I hated back in the UK was the way certain groups of people thought they could enter the country and abuse the system.
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Postby jude » Thu Sep 17, 2009 4:25 pm

I'm with Markr on this. What you're proposing just seems really unethical.

Aside from anything else it's relatively easy to get an investor visa for Peru. (Well, aside from the life-draining paperwork.) Do it the right way, pay your taxes, make a real contribution to Peru.
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Postby american_in_lima » Thu Sep 17, 2009 11:56 pm

I know I already agreed the first time, but the best way to do things is the legal way.

I also agree, no one likes someone who tries to take advantage of the system. You could argue that lots of people here don't pay taxes, cut on things, etc...That doesn't make it right nor ethical.

Follow the law and you will sleep better at night.

George
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George
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Re: Open a business in Peru

Postby irasema39 » Wed Oct 16, 2013 10:19 am

I’m currently retail clothing on line from Lima. I am planning in moving to Peru for a year to open my own clothing manufacturing shop. I’m planning in buying a property in Lima for this purpose. Any suggestions or tips would be mostly appreciated.

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