Company Formation in Peru
Andean economic powerhouse · 4–6 weeks · RUC · Local director required
4-6 weeks
RUC
Required
Formation Process
Company formation in Peru involves notarization, registration with SUNARP (the national public registry), and RUC registration with SUNAT. Peru requires a qualified Gerente General (General Manager) who is a Peruvian national or holds a valid work visa. The Sociedad Anónima Cerrada (SAC) is the most common structure for foreign investors.
Formation Steps
- 1
Notarization of articles of incorporation (escritura pública) before a Peruvian notary
- 2
Registration with SUNARP (Superintendencia Nacional de Registros Públicos)
- 3
RUC registration with SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria)
- 4
Municipal business license (Licencia de Funcionamiento) from the operating municipality
- 5
Appointment of a qualifying Gerente General (Peruvian national or foreign resident with work visa)
Foreign Ownership
Peru permits 100% foreign ownership in most sectors. All economic ownership can be held by foreign nationals, but a Peruvian national or foreign resident with a valid work visa must serve as Gerente General. Restrictions apply in broadcasting, commercial aviation, and land within 50km of national borders. Foreign investment registration with PROINVERSIÓN is optional but recommended for stabilization agreements and investment recovery guarantees.
Local Director: Required
Legal Entity Types
SAC (Sociedad Anónima Cerrada)
Closed stock corporation, the most common structure for foreign businesses due to its flexibility and limited shareholder requirements
SRL (Sociedad de Responsabilidad Limitada)
Limited liability company, suitable for smaller operations with a defined ownership structure
SA (Sociedad Anónima)
Open stock corporation, used for larger companies or those planning to access public capital markets
Accounting & Tax
All entities operating in Peru must register with SUNAT and obtain a RUC before commencing business. Peru's tax system uses a progressive advance payment mechanism (pagos a cuenta) and mandatory electronic invoicing for all commercial transactions.
RUC
The RUC (Registro Único de Contribuyentes) is Peru's unique taxpayer registry number, issued by SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria). It is required for all tax and business activities.
VAT / IVA
Peru's VAT (IGV — Impuesto General a las Ventas) is levied at 18% (16% IGV + 2% municipal promotion tax — IPM). Monthly IGV declarations are filed electronically through the SUNAT portal. Electronic invoicing (comprobantes electrónicos) is mandatory.
Corporate Tax
Peru's corporate income tax (Impuesto a la Renta de Tercera Categoría) is levied at 29.5% on net taxable income. Monthly advance payments (pagos a cuenta) of approximately 1.5% of net monthly revenue are required throughout the year, with a final settlement in April.
Compliance Requirements
Annual Obligations
Annual corporate income tax return filed with SUNAT — deadline April 30
Annual statutory financial statements and mandatory shareholders meeting
Annual DAOT declaration (declaration of operations with third parties)
Monthly Obligations
Monthly IGV (VAT) declaration and payment filed electronically with SUNAT
Monthly pago a cuenta (income tax advance payment) — approximately 1.5% of net monthly revenue
Electronic invoicing (comprobantes electrónicos) for all commercial transactions via SUNAT-authorized systems
Monthly PLAME (payroll electronic declaration) and EsSalud/ONP contributions if employing staff
Payroll & Employment
Peru's labor framework is governed by the Decreto Legislativo 728 (LPCL). Employers must budget for mandatory CTS (severance), profit sharing (under certain conditions), and social security contributions.
Mandatory benefits include 30 days paid vacation per year, CTS (compensation for time of service — 1 month salary per year deposited in a bank account), two annual bonuses (Fiestas Patrias and Christmas), and gratificaciones (each equal to 1 month salary)
EsSalud (health) contribution: employer pays 9% of gross salary; ONP (pension) or AFP: employee contributes approximately 13%
PLAME (Planilla Mensual de Pagos) must be filed electronically with SUNAT monthly — mandatory for all employers
NavviPal coordinates payroll processing and LPCL compliance through vetted Peruvian in-country partners. Contact our team before your first hire to understand the full employer cost structure.
Talk To An ExpertWhy Peru
Peru is one of Latin America's fastest-growing economies of the past two decades, driven by mining, agriculture, and a rapidly expanding services sector. Lima is an increasingly significant regional business hub, and Peru's macroeconomic management has been relatively sound despite political volatility.
33M
Population
~B USD
GDP (2024 est.)
~3.0% p.a.
GDP Growth
Sol (PEN)
Currency
Managing Your Entity with NavviPal
NavviPal's platform tracks your Peruvian entity's RUC status, SUNAT filing calendar, IGV declarations, and pago a cuenta deadlines in one compliance dashboard.
Key Authorities
SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria)
Peru's tax and customs authority responsible for RUC issuance, tax compliance, and customs administration
Local Director Requirement
Peru requires companies to have a legal representative (Gerente General) who is a Peruvian national or legal resident. NavviPal provides a qualified local legal representative who acts solely on your company's instructions with full indemnity protections.
Frequently Asked Questions
How long does company formation take in Peru?
Company formation in Peru typically takes 4-6 weeks. The process includes notarization of incorporation documents (escritura pública), registration with SUNARP (Superintendencia Nacional de Registros Públicos), and RUC registration with SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria).
Do I need a local director or legal representative in Peru?
Yes. Peru requires companies to appoint a Gerente General (General Manager) who is a Peruvian national or a foreigner with a valid Peruvian visa permitting work activities. The Gerente General has legal representation authority and is responsible for signing documents and managing regulatory compliance with SUNAT and SUNARP.
Can foreigners own 100% of a company in Peru?
Yes, 100% foreign ownership is permitted in most sectors. A local Gerente General is required, but all economic ownership can be held by foreign nationals. Restrictions apply in broadcasting, commercial aviation, and land within 50km of national borders. Foreign investment registration with PROINVERSIÓN is optional but recommended for investment recovery guarantees.
What does it cost to form a company in Peru?
Company formation in Peru typically ranges from ,000 to ,000 USD for the core process, including notarization, SUNARP registration, and RUC setup. Ongoing costs include monthly accounting, VAT and income tax filings, and the Gerente General. NavviPal provides transparent, itemized quotes—contact us for your specific scenario.
What is the RUC and why is it needed?
The RUC (Registro Único de Contribuyentes) is Peru's unique taxpayer registry number, issued by SUNAT. It is required for all tax filings, electronic invoicing (comprobantes electrónicos), banking, import/export operations, and business transactions. The RUC must be activated before the company can begin commercial operations.
What are the ongoing compliance obligations in Peru?
Peruvian entities must file monthly tax declarations with SUNAT (including IGV/VAT and income tax withholdings), maintain monthly accounting records, issue electronic invoices for all transactions, submit annual tax returns and statutory financial statements, and comply with corporate governance requirements including annual shareholder meetings.
What documents are needed to incorporate in Peru?
Core requirements include: notarized articles of incorporation (escritura pública) executed before a Peruvian notary, registration with SUNARP, RUC registration with SUNAT, apostilled and officially translated copies of foreign shareholder identification documents, and appointment of a qualifying Gerente General with a valid Peruvian visa or Peruvian identity.
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