🇵🇪 Legal System

Peru is a civil law country with a democratic unitary government composed of 24 decentralized regions (states), the Provincia de Lima (metropolitan area), and the Provincia Constitucional del Callao. Each region has its own budget, regulations, and a Governor. The Governor and the Regional Council, both elected by local residents, constitute the executive body of the region.

“Local” laws are those enacted by regional governments and apply only within their respective jurisdictions. Certain areas of law—such as patents and copyrights, foreign relations, and other matters of national interest—are governed exclusively by the central government.

🌐 Foreign Investment

The Peruvian government actively promotes foreign investment. Peruvian legislation upholds the principle of equal treatment for national and foreign capital. As a result, foreign capital may be invested in all sectors of economic activity without prior authorization, except in a few restricted areas.

🏢 Entity Choice

A foreign company entering Peru must choose the legal structure through which it will operate. The two most common forms are:

• Sociedad Anónima (S.A.), including the Sociedad Anónima Cerrada (S.A.C.) – equivalent to a Corporation.
• Sociedad Comercial de Responsabilidad Limitada (S.C.R.L.) – equivalent to a Limited Liability Company.

Each entity type has its own legal framework, and the choice depends on specific legal and business considerations. Alternatively, a foreign company may operate through a branch office, which—unlike a subsidiary—is not a separate legal entity. A branch office is considered an extension of the foreign company itself. Foreign nationals may be appointed as Directors or Managers of Peruvian entities.

🧾 Obtaining a R.U.C. (Registro Único del Contribuyente)

To operate in Peru, a company must obtain a Registro Único del Contribuyente (R.U.C.) number from SUNAT, the national tax authority. The R.U.C. is required to legally conduct business, issue invoices, and open bank accounts.

💰 Taxes

Companies in Peru are subject to:

• Income tax
• Capital gains tax
• Taxes on dividends, interest, and other passive income
• Payroll taxes for employees

The Goods and Services Tax in Peru is known as I.G.V. (Impuesto General a las Ventas). It is an incremental tax levied at each stage of production, distribution, or sale to the final consumer—similar to the Value-Added Tax (VAT) used globally.
I.G.V. rate: 18%

👥 Labor

There are three primary types of employment contracts in Peru:

1. Indefinite-term contracts
2. Fixed-term contracts
3. Part-time contracts

Additionally, companies may hire independent contractors for specific tasks.

Employees under indefinite-term contracts typically undergo a trial period of up to three months, during which they may be dismissed without severance. In certain cases, this trial period may be extended to six months.