Peru remains a strategic destination for investment in the Andean region, consolidated by its trade openness and a legal framework that guarantees the protection of private property and the free movement of capital. The current administration has promoted the digitalization of registration processes. This institutional strategy ensures that business formalization is now more agile and accessible for foreign investors, eliminating unnecessary in-person barriers.

Various modalities exist (Branches, EIRL, etc.), although most foreign investors opt for the Closely Held Corporation (S.A.C.). This entity is the functional equivalent of the Chilean SpA due to its versatility: it allows full control among few partners (minimum 2, maximum 20); protects personal assets; and facilitates the transfer of shares without the need for public registration.

The incorporation process

The creation of an S.A.C. is a standardized process that can be broken down into the following technical stages:

1. Name reservation: search and reservation of the corporate name before SUNARP (Public Registry). Unlike in Chile, it is recommended to secure the name beforehand to avoid rejections during the deed process.
2. Powers of attorney abroad: signing of representation powers for incorporation. These must be apostilled in the country of origin to be valid in Peru.
3. Drafting of the "minuta": drafting of the constitutive act and bylaws by a local lawyer. This document defines the corporate purpose, capital, and power regime.
4. Public deed: elevating the minuta to a Public Deed before a Peruvian notary.
5. Registration: sending the notarial parts to SUNARP for the generation of the electronic entry (Registration Record).
6. Obtaining the RUC: registration before SUNAT to obtain the Taxpayer Identification Number (Registro Único de Contribuyentes). This procedure is usually integrated with the notary's office through the SID-SUNARP system.
7. Activation of the "Clave SOL": obtaining access to credentials for the virtual tax office and enabling electronic invoicing.
8. Bank account opening: deposit of the initial social capital and opening of operational accounts in soles or dollars.
9. Operating license: management before the corresponding municipality for the commercial authorization of the physical or virtual premises.

Relevant considerations

Entering the Peruvian market involves complying with a series of requirements and recommendations suitable for the correct creation of a company.

• Legal representation: at least one general manager or legal representative must reside in Peru (a Peruvian with a DNI or a foreigner with a Green Card/Business Visa).
• Optional Board of Directors: In an S.A.C., the Board of Directors is optional. The structure can be simplified by delegating all powers directly to the General Management.
• Tax domicile: it is mandatory to declare a domicile in Peru. SUNAT verifies this point to authorize the issuance of invoices; a physical office is recommended to avoid "Not Found" status.
• Signature permit for foreigners: if foreign partners sign in Peru, they must have a "Contract Signing" permit on their migration card or passport.
• Timeline: through the digital system (SID-SUNARP), a company can be registered in 1 to 2 weeks, although bank operations can extend the total process to 4 weeks.
• Ultimate Beneficial Owner: every new company must submit a sworn statement reporting to the natural persons who own more than 10% of the shares.

Legal framework for company incorporation

The incorporation of companies in Peru is designed to encourage private investment under a framework of equal treatment between nationals and foreigners. The process is primarily governed by several regulatory bodies.

1. Fundamental legal bases 

• Law No. 26887 – General Corporations Law (LGS): the master regulation governing the existence, organization, and operation of all companies (S.A.C., S.A., S.R.L., etc.). 

• Legislative Decree No. 662: Foreign Investment Promotion Law, which guarantees the right of foreign investors to transfer their capital and profits abroad. 

• Legislative Decree No. 943: taxpayer Identification Number (RUC) Law, regulating tax identification before SUNAT. 

2. Process structure and regulatory support 

• Name reservation (Art. 10 LGS): protects the corporate name for a period of 30 days. 

• Capital contributions (Art. 22 and 23 LGS): establishes that capital can be in cash or in-kind. Cash must be proven with a deposit in a local bank. 

• Legal representation (Art. 185 LGS): the company is represented by a general manager. Per immigration regulations (D.L. 1350), if the manager is a foreigner, they must have a migratory status allowing them to sign contracts. 

3. Tax and administrative considerations 

• Tax regimes (D.L. 1269): new companies can opt for the MYPE Tax Regime. This program offers progressive income tax rates (10% on the first 15 UIT of profit), ideal for landing new investments. 

• Corporate books: according to the LGS, every S.A.C. must maintain a Share Registry Book and a General Meeting Minutes Book. 

• Electronic invoicing: by SUNAT resolution, almost all new companies are designated as "Electronic Issuers" from their registration. 

Conclusions

The financial administration of a private entity is highly challenging, especially for multinational groups. Therefore, starting administrative management correctly requires formalizing the creation of the company in Peru by following the steps previously discussed.

Auxadi is an expert in corporate legal services through its division Afiens Legal Services. This section assists in the creation of companies in the 26 jurisdictions where the firm maintains offices, with Madrid, Miami, and Amsterdam serving as hubs.

At Auxadi, we offer comprehensive services in accounting, tax, payroll, transfer pricing and corporate legal services to multinationals and funds. With experience since 1979 and a presence in over 50 countries, including 26 proprietary subsidiaries, our advanced technological platform, MySPV, and proven methodology enable us to guarantee efficient management in compliance with local regulations.