Expand Business in Peru
Global Upside helps businesses expand into Peru by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Peruvian laws and regulations.
The hiring and incorporation processes in Peru are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Peru. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
Peru’s economy is classified as an upper middle-class economy by the World Bank and the nation has become one of the fastest-growing economies globally. A wide array of imperative mineral resources can be found in the coastal and mountainous areas of Peru.
- Peru ranks as the 50th largest economy in the world in terms of nominal GDP.
- Peru ranks as the 5th largest economy in South America.
- Peru is one of the leading countries in fishing.
Peru ranks as the 2nd largest producer of silver in the global market.
Joint Stock Company (Sociedad Anónima/ S.A) is the most common form of establishment which requires a minimum of 2 investors. The liabilities are restricted to the amount of invested capital. An S.A must have a board of directors and a general manager.
Limited Liability Company (Sociedad de Responsabilidad Limitada/ S.R.L) is a form of an entity set up that requires two to twenty investors. All the associates have limited liabilities and the capital amount is divided equally amongst them.
Public Corporation (Sociedad Anónima Abierta) is an establishment that has a large number of investors and since it is a public corporation it is a convenient option.
Private Closed Corporation (Sociedad Anónima Cerrada/ S.A.C) needs two to twenty investors and this establishment needs to have a general manager.
A branch (Sucursal) is an independent entity and has to have the same activities as the parent company. A branch office must have a general manager or a permanent legal representative.
It takes approximately three months to establish a legal entity set up in Peru.
The Peruvian law regulates all employment bonds, according to which all employment agreements with overseas employees must be in a written format. All fixed-term agreements must be in writing that can be used for up to five years after which it can be renewed. Additionally, fixed-term contracts need to be registered with Peru’s Labor Ministry by the employers.
The terms that need to be stipulated in a Peruvian employment contract are:
- Working hours
- Job description
- Social benefits
- Probationary period
- Health and safety at work obligations
- Data protection obligations
- Termination policies
In Peru, it is a necessity that all financial reports are created under International Financial Reporting Standards (IFRS). This law has been issued by the International Accounting Standard Board (IASB).
In June 2011 the Personal Data Protection Law N° 29733, also known as PDPL, was ratified. Consequently, the Regulated got sanctioned in March 2013 by the Supreme Decree N° 003-2013-JUS. Collectively, both the decrees are the principal data protection laws in Peru.
Anti-Bribery & Anti-Corruption Law
The Peruvian rules and guidelines that enacts the ideologies, guiding principles, and consequences applicable to bribery of public officers are:
• Peruvian Criminal Code – Legislative Act N° 635 Articles 393 to 398
• Law No. 30424 – regulates the obligation of legal entities for the offense of active foreign bribery – with effect from 1 January 2018.
• Legislative Decree No. 1352 – Law that extends the obligation of legal entities – with effect from 1 January 2018.
• Supreme Decree – defines and ratifies the national compulsory plans for state entities – Supreme Decree No. 027-2007-PCM.
• Law No. 28024 – governs lobbying in the Public Administration. Its equivalent norm was accepted by Supreme Decree No. 099-2003-PCM.
• Law No. 27815 – Law of the Ethics Code in the Public Function.
• Law of Civil Service – Law N° 30057, and its equivalent norm Supreme Decree N° 040-2014-PCM.
1. Bribery of Public Officials:
i) Imprisonment for up to 8 years
ii) Monetary fine
i) Monetary fine
ii) Suspension from commercial activities
iii) Cancellation of permits and administrative rights
2. Bribery of Private Officials
Private bribery is not empowered by the Peruvian Law.