<< Back July 2005

Money Matters
Starting a Business in Peru - II
By Carlos Vega Cumberland

The Branch:

A company, whether or not legally domiciled in the country, may freely establish one or more branches in Peru by registering them in the Mercantile Registry of the Public Registry in the place(s) where they operate. The branch has its own permanent legal representation and it enjoys management autonomy within the scope of the activities that the home office assigns to it.

At a mimimum, the establishment of a branch requires:

• Authorization from the home office. Societies constituted abroad will also have to present proof that the company, agreement, or statutes do not prohibit the establishment of branches abroad.
• Copy of the document accrediting the company and the statute or equivalent instruments in the country of origin and,
• The document in which the competent organ of the home office agrees to establish the branch, which must indicate: the amount of capital that is assigned to the branch; its activities in the country; the address of the branch; the designation of at least one permanent legal representative in the country; the powers conferred on the legal representative; and a declaration of its submission to the laws of Peru and of its responsibility for the obligations contracted by the branch in the country.

The legal representative of the branch must have the power to resolve any questions related to the activities of the company, the operations conducted by the branch as well as the general procedures of representation, as required by law.

Another thing you must know is that the Peruvian Taxation Administration (SUNAT) is responsible for the registration of tax contributors, inscribing them into Registro Unico de Contribuyentes (R.U.C.), and assigning a R.U.C. number.

To obtain a R.U.C., you must present the following documentation:

• SUNAT form for inscription.
• Articles of incorporation of the company.
• Water or light bills from the location intended for business.
• Identity card (original) of the designated legal representative.

On a final note, once you decide what sort of company satisfies your personal needs, the process for incorporation and start up of the business is as follows:

• Search of the intended name of the company in the Public Registry.
• Reservation of the name in the Public Registry.
• Articles of incorporation of the company, signed by a lawyer.
• Affidavit of the legal instrument of the constitution of the firm.
• Inscription in the Public Registry.
• R.U.C. number.
• Business license from the Municipality of the district where the office will be located.

Though it may seem complicated, starting a business is actually much simpler now than in the past as a result of the major organizational restructuring of the Public Registry.