Benefits and Process of How to Start a Business in Peru
Peru’s economy has been widely known by foreign investors with its stable and rapid growth of their economy. Also, Peru has experienced growth in their metal exports. After the election of their president Pedro Pablo Kuczynski improvements have been visible in the economic governance. With the good governance, the country is expected to have a prosperous 2017. Peru has proven itself as one of the best countries to start a business with. These are the two reasons why you should start a business in Peru.
We all know that Peru is a resource-rich country which means that they are abundant of natural resources. With Peru’s abundance it can offer a wide opportunity, not only for trading, but also with exporting it worldwide. In line with its favorable regulations in international trade Peru has experience an estimated annual growth of 5.5% in the export of goods and services since 2000. While the country may be rich with its natural resources the people of country has been specializing their skills in turning raw goods into high quality intermediate or final goods which means more opportunities to start up a business.
Business in Peru
It may be that it’s good to start a business in Peru but we may keep in mind that Peru is still a developing country. They are still in need of development when it comes to technology, communications and variety of product supplies. But this can also be an opportunity for those who want to start a business in Peru wherein they can offer locals a wider range of services and industries that may be unavailable to the country. Without a doubt Peru’s imports will be composed mainly by final and intermediate goods unlike their exports. With this the country will continue to experience an influx in the importation of goods and services. Peru needs more of outside knowledge that can help contribute diversity to their economy.
It’s still advisable to start a business in Peru because of the numerable business opportunities which can be explore by both local and foreign business entrepreneurs and investors. Good internal relations is one important factor that can contribute to Peru’s development. Peru has recently opened new international markets and signed Free Trade Agreements (FTAs) which made the country accomplish a more dynamic economy. It has also increased export trade. Peru has currently signed FTAs with over 7 countries such as Canada, Chile, China, Mexico, Panama, United States and even the European Union.
Peru is also a member of Andean Community of Nations which is known to promote trade liberalizations and has reduced tax obligations within these regions.
Peru is also known for its mining sector. It has been recognized as the best mining destination in Latin America. Also, another thing to consider why you should start in business in Peru is their people. Peruvians are known to be patriotic and warm creating a very friendly business environment for foreign business entrepreneurs.
Already convinced that you need to start a business in Peru? These are the benefits you will get. First, Peru allows 100% foreign ownership. You do not need to be a citizen of Peru to start a business. It may be your shareholders, director or staff. Second, the minimum share capital requirement at a very low cost which is approximately USD$150. Third benefit is that company’s bank account opening deposits are also low with a cost of USD$500. The company can also decide if you can open single or multiple bank accounts. Fourth, processing a legal corporate entity can only take 2-3 weeks. It includes company legal constitution, registration with the local tax authorities, acquiring a unique company tax reference number, acquiring the company’s official legalized social and accounting books which is mandatory in Peru and processing of application of opening a local company bank account. All of that in just a short span of time.
Peru might still be a developing country but it has surely making its name in the business world.