Procedure to obtain Foreigner's Registration Card in Peru

REQUIREMENTS

Receipt of payment of the National Bank for processing fee (S /. 35.00 soles).

Copy and original passport

REGISTERING THE CARD

1. Foreigners card.

2. Receipt of payment of the National Bank of the fee for change of immigration status (resident: U.S. $ 200.00 U.S. dollars).

3. Receipt of payment of the National Bank of the rate change for change of migration status (resident Immigrant: U.S. $ 300.00 U.S. dollars).

4. Receipt of payment of the National Bank of the fee for registration in the Central Register of Foreigners:
Resident: $ 15.00 USD.
Resident Immigrant: 'U.S. $ 20.00 U.S. dollars.

5. Proof of payment of the Annual Rate Foreigners: $ 20.00

6. Card of international exchange (INTERPOL) for those who entered Peru with resident visa.

Peru signed Free Trade Agreement with UE

Peru and Colombia signed with the European Union (EU) Multiparty Trade Agreement, known as the Free Trade Agreement , the bloc's headquarters in the city of Brussels, Belgium.

Minister of Foreign Trade and Tourism of Peru, Jose Luis Silva Trade Commissioner of the European Union, Karel De Gucht and Minister of Commerce and Industry of Colombia, Sergio Diaz-Granados signed the agreement.

"I am pleased today to sign trade agreement with Colombia and Peru, which creates a stable framework to boost trade and investment between the EU and the Andean region," said De Gucht.

Meanwhile, Minister Silva welcomed the agreement: "The relationship between Latin America and the EU have centuries and it has been building a relationship in which trade has been part of daily walk. For Peru, the EU is its main trading partner. In the last ten years has quintupled trade between our countries and our exports grew 4 times in that same period. "

He added that the two countries are complementary in providing higher value added manufacturing and service sector. And he emphasized that Peru 95% of their trade under the protection of an FTA.

Meanwhile, Deputy Minister of Foreign Trade, Carlos Posada, said it has sent canned fish with great success and also identified potential products like maca, Sacha Inchi, Brazil nuts and mangos and organic bananas. In textiles and apparel, also opens the door for the export of alpaca wool garments.

Some Notes :

The EU is the second largest trading partner of the Andean region after the US.  In 2010, the Andean Community of Nations represented 0.7% of the EU's world trade, whereas the EU totaled 14% of CAN's trade (2009). In 2010,EU imports from Andean countries are predominantly primary products: agricultural products (41.1%); fuels and mining products (44.7%). EU exports consist mostly of manufactured goods (81.5%), notably machinery and transport equipment (46.5%) and chemical products (13.8%). The EU grants the Andean countries preferential access to its market under the EU's General System of Preferences(special incentive arrangement for sustainable development and good governance, known as GSP+).

Trade in goods

• EU goods exports to the Andean Community in 2010: €7.9 billion
• EU goods imports from the Andean Community in 2010: €12.2 billion

The agreement must be ratified by the European Parliament in October. You can download it here

Special Permission to Sign Contracts in Peru

If your are a tourist you can sign a contract of employment, first you must submit your file with all required documents, and an official will issue an order to pay 50.00 U.S. Dollars. After completing this procedure, request the "Special Permission to Sign Contracts"

General Requirements :

01. Form F-004 ( Here)
02. Receipt of payment of the National Bank for processing fee (S /. 12.25 soles).
03. Receipt of payment of the National Bank of the rate of immigration (U.S. $ 50.00) payment is made after the appropriate checks and money order issued by the official.
04. Copy and original passport.

Note:

Submit the signed Power of Attorney certified by Notary Public.
You must have a valid visa.

Ollanta Humala: "We welcome that Newmont has finally been identified with our proposal"

President Ollanta Humala said the Newmont "finally" was identified with the new environmental conditions to develop its Minas Conga megaproject, currently detained by protests from residents who fear that can contaminate water sources in Cajamarca.

Humala, however, did not say whether Newmont Mining has informed the Government to restart operations in Minas Conga project of 4.800 million, which could become the largest investment in a single mine in the history of Peru.

"We had already made an approach to this project and we welcome that they have finally identified with our proposal," Humala told reporters.

The copper-gold project Minas Conga was arrested in November after a wave of protests in the northern region of Cajamarca, which generated the first crisis of the Government of Humala. The protest in Cajamarca was resumed for 22 days.

In an attempt to quell the movement, the government hired experts in the study that evaluated the environmental impact of the project, after which recommended keeping two of four lakes that would be affected by its operation and increase the capacity of water tanks provided.

President Humala asked Newmont and Buenaventura local partner to comply with the proposals of the experts to advance the project, which would produce between 580.000 and 680.000 ounces of gold annually.

Newmont said last month that he would report at the end of June its decision on the future of its Minas Conga project.

Residents of Cajamarca reject the Minas Conga operation for fear that its development affects natural water sources in the area, living mainly from agriculture and livestock. Other local groups support the development of the gigantic plan, which has polarized the population.

Peru, the second largest producer of copper and the sixth in gold, has vast mineral resources, but extraction often face rejection from people who fear environmental damage or demand a greater share of industry revenue.

Peru placed domestic bonds by S /. 150 million

Peru placed domestic bonds by S /. 150 million

The amount offered has an expiration date to September 12, 2023 and a coupon of 5.20%. And given the high demand auctioned S /. 75 million.

Peru placed sovereign bonds in the domestic market of 150 million soles (about 56.5 million dollars) and auctioned in a second round 75 million of soles due to the strong demand, reported the Ministry of Economy and Finance (MEF).

The portfolio placed bonds on September 12, 2023 and a coupon of 5.20%.

According to the MEF (Ministry of Finances and Economy), the papers showed a demand of 923.2 million soles.

This placement is the first bond issue of the year in the program of Market Makers.

Investor Visa for Peru

Visa for Investors in Peru

This Information is to apply a Peruvian Investor Visa, DIGEMIN stands for Inmigration Direction, SUNAT (National Superintendency of Taxes), you can find the application form here 

http://www.digemin.gob.pe/formularios/f-004.pdf

Requirements to apply:

Receipt of payment of the National Bank for processing fee (S/.56.70 soles).

• Copy  of the beneficiary legalized visa (passport)  by the Peruvian Consulate and the Ministry of Foreign or Consular representation in Peru or authenticated by the notary of the DIGEMIN.


• Copy notary or authenticated by the notary of the Testimony DIGEMIN of the Constitution of the Company registered in the public records where the person appears with a minimum representation in capital of U.S. $ 25,000.00 in cash or its equivalent in soles.

• In case of transfer of shares or submit a copy legally notarized or copy certified by the notary of the DIGEMIN the Minutes of the Annual General Meeting and Book Share Transfer Deed or transfer of shares.
• Project Feasibility of business (if it is a recently incorporated company) or the Business Plan for two years (if this is a company), including the creation of five (05) jobs within no more than two years.

In addition:

• The form must be signed by the applicant (the alien holding a visa or the legal representative of the Peruvian company which has invested abroad).
• The beneficiary of the visa must be in regular migration status.
• The RUC tab of the Peruvian company must be active and there.
• Original or certified copy notarized or authenticated by the notary of the Registry File DIGEMIN the company to date.
• Proof of professional skill of signing the Project Feasibility and Business Plan.
• Prove that the money invested comes from abroad, for this purpose must submit documents relating to the "Baggage Declaration - Income" SUNAT made at the time the alien to enter the country in case of cash and carry / or financial instruments (travelers checks, stocks, bonds, certificates of deposit or otherwise) in excess of U.S. $ 10,000.00 (ten thousand and 00/100 dollars) or documents relating to transactions with banks or other money transfer methods drawn from abroad for foreign and / or the Peruvian company where the foreign partner.
• If the form is signed by the attorney must be attached Power of Attorney to legally notarized signature of the applicant, if the power is granted abroad must be legalized by the Consulate of Peru and the Ministry of Foreign Affairs or Apostille.
• Copy of the identity of the agent, if applicable

Foreign Residents Taxes in Peru

Let´s look in a brief summary the tax legislation in Peru that foreign residents need to be aware of.


Foreign, must pay income tax for revenues they earn in Peru, the notion  income from Peruvian source is very extensive, such a notion includes a spectrum of types of revenues ranging from incomes generated by real estate located in Peru, commercial or civil activities developed in Peru, to Internet services provided abroad to clients who use such services in Peru.


In addition, in the event if the foreigner is a resident in Peru, that person (colective or individual) must not only pay for incomes from Peruvian source, but also for income created anywhere in the world. For instance, an American citizen considered by the Peruvian Tax Authority (SUNAT) to be resident in Peru, will have to pay income tax even for incomes produced by real estate properties located in the US. Furthermore, note that when a foreigner carries out work in Peru for a company registered off-shore, always  is bound to pay income tax in Peru.


According to the Peruvian legislation, revenues are divided into the following categories:

• 1st category revenues:  income produced by rental lease agreements.
• 2nd category revenues: capital gains such as interest from loans and royalties.
• 3rd category revenues:  income produced by commercial and industrial activities.
• 4th category:  income produced by independent professionals.
• 5th category: income produced by employees.

The 1st, 2nd, 4th and 5th of the above mentioned categories refer to income produced by individuals or natural persons. The 3rd category refers to income produced by companies and/ or persons acting as entrepreneurs or businessmen


In the 3rd category, a 30% income tax is applied to net revenues. For the other categories of revenues, there will be different rates that are progressively applied in proportion to the amount of the global net revenue during a year.


Net revenue to 27 UIT: 15%


More than 27 UIT but less than 54 UIT: 21%


More than 54 UIT: 30%


Note:  UIT = 3600 PEN = 9720 $ (results may vary depending exchange rate)


("UIT". amount fixed by the government, stand as a Taxation Unit.)


The aforementioned rates only apply to taxpayers  in Peru. If the taxpayer is a natural person not resident in Peru, one single rate of 30% will apply! 


According to Peruvian regulation, foreigners that are considered to be resident in Peru if they comply with one of the following requirements:


(i)  Foreigners who have lived in Peru for 2 years without being abroad during each calendar year for a total period of more than 90 days.
(ii)  Foreigners who have lived in Peru for 6 month and are registered in the Registry of Taxpayers (RUC). (see article : Steps to start a business in Peru part II)
(iii)  Foreigners who have lived in Peru for 6 months and have asked their employer in Peru to be considered as being resident in Peru.
Note that the effects of "residency" begin to apply the year after the above mentioned requirements have been fulfilled. Consequently, the sooner in a calendar year a foreign employee arrives in Peru, the better chances he or she has to be considered as being resident in Peru from a tax viewpoint.


Source : Peruvian Income Tax Law (Ley General al Impuesto a la Renta)

Steps to start a Business in Peru - Part II

Obtaining the number of RUC

The RUC (Registry of Taxpayers) is what identifies a person or company at SUNAT (National Superintendency of Tax Administration) for the payment taxes.

Every natural or legal person is obligated to enroll in the RUC, otherwise they will be penalized according to the Tax Code.

To obtain it you must go to SUNAT, fill out a form and wait for the notification also in SUNAT while obtaining our RUC, we must determine which tax regime we will choose to pay taxes, either Single Simplified Regime (RUS) or the Special Regime of Income Tax (RER).

Once we have the number of our RUC, and designated the tax system, now, we can print and use for commercial transactions, payment receipts (such as ticket and bills).

Buying and Legalizing Accounting Books

In this step we buy the accounting books depending on wich tax regime we choose,, this accounting book has to be authenticated by a Public Notary.

Legalizing Payrolls Sheets

By the labour laws, all workers of a company, no matter how many hours they work, must be in payroll sheets (implying benefits such as bonuses, compensation for length of service, etc..).

For this step, we must go to the dependency of the Labour Ministry, where we legalize (before paying the fee) our payroll sheets,

Municipal License Application

We obtain the operating license in the City Government.

Generally, the documents to be presented are:

• Copy of the RUC.
• Zoning Certificate (industrial area, commercial area, residential area, etc..).
• Map of the Business location.
• Copy of rental agreement or property deed.
• Copy of the public deed.
• Receipt of the fee.
• Application form.

Well that's the basic steps to start a business in Peru, hope it was useful for all of you.

Steps to start a business in Peru - Part I

Steps to start a business in Peru - Part I

As you all know, Peru is the fastest growing economy in Latin America in 2012, despite the impact of the financial crisis in the U.S. and Europe so let's take a look at the steps to formalize or set up legally a Business in Peru.

These steps are necessary to start a business in Peru, but may provide guidance in other countries under the CIVIL LAW, which usually have similar processes.

1. Search and reserve your company name in the Public Registry

We must first go to the Public Registries Office, and verify that the name of your future company isn’t similar or identical to any existing business in the market.

When searching existing names, we must ensure that they do not look or sound like we're going to use, there must be a minimum of 3 different letters.

Once the search is done and confirmed that there are no same or similar names that we will use, we must reserve our name for in order that other company cannot sign with that name you choose, this “reserve” has a time limit of 30 days.

2.  Elaboration of the Company’s Conformation Contract 

This contract is a preliminary document in which the members of the future business express its willingness to establish the company, and which they pointed out all agreements.

This document contains information such as when it will begin commercial activities, where society is going to work (business address), what is the corporate name of the company, who will manage or represent the company, the social capital or assets (contribution of the partners), among other data.

It is recommended elaborate this contract with the help of a reliable lawyer.

3. Turning the contract into a Public Deed 

With the conformation contract of the business we go to a notary public to turn this contract into a public deed.

Usually the documents that we carry along with the contract are: the evidence or proof (Voucher) of the cash deposit into a bank account in the name of the company, a detailed inventory of non-cash company properties, a certificate by the Mercantile Public Registries Office of the absence of the same or similar name given to the business you created.

Once you are done, your Public Deed or Partnership Testimonial   must be signed and stamped by the notary.

4. Registering the public deed in the Public Registry

Once we have obtained the public Deed, we take it to the Public Registries exactly to  a sub-office called Mercantile Registry and inscribe there, once done, your business has  “formal and legal life” in our civil law, it should be noted that in our law and mainly in civil law, companies are called societies with the commonly use of Anonymus Societys name;  for more information about this form you can visit this link http://en.wikipedia.org/wiki/S.A._(corporation)

Well that’s all, the next article I will write  the second part ending, covering the Tax and the Administrative procedures.  

Don't cry for me Argentina

After weeks of speculation, Argentinean President Cristina Fernández de Kirchner announced that her government is going to nationalize the Spanish Repsol subsidiary YPF, declaring that her country’s hydrocarbon industry was a sector of “public interest.”

Argentina's move to seize control of this Energy Company, will probably hurt in short terms the investment in Latin America. The impact of the intervention of YPF in investments Argentina will be negative and will reinforce the negative view of certain countries such as Venezuela, Ecuador and Bolivia because the nationalization of their industries are inefficient. In the long run, I believe they will not have an impact on the region, at least, Chile, Brazil, Peru, Colombia, Mexico and Uruguay have taken more serious attitude and consistent attitudes.

Concerning this controversy in our region, The General Secretary of the Union of South American Nations (UNASUR), Maria Emma Mejia, said today in Brazil his "respect" for Argentina's decision to expropriate 51% of Repsol YPF describing the move as an "internal affair".

Gladly, Peru's foreign minister speak on the issue: "We respect but do not share the position of the Argentine government" Peru is "a country with stable and clear rules".

The Argentinean Government will reimburse YPF for its shares?  the price of compensation for the expropriation of 51% of YPF. Brufau (YPF) claimed 10,500 million dollars (8,000 millions of euros), while Kicillof (Argentinean Economy Vice- Minister, the intellectual author of the YPF expropriation) seemed to shoot down the numbers saying the company owes 9,000 million dollars and threaten to charge the alleged environmental damage.

On the expropriation in Peru, the Constitutional Law states that no one may be deprived of his property but solely because of national security or public necessity, declared by law, upon the payment in cash compensation, including appraised value compensation for the damage incurred.

It also indicates how it should be the procedure of expropriation: there must be a prepayment or an advance payment of the compensation that includes any damage (economic damage and moral damage) affected and the right to appeal to the court if the “injured” does not agree with the appraised value or valuation of the expropriated property.

Considering that the concept of public necessity is defined as the satisfaction of a requirement for a community, unlike Perú, Argentina's case,  does not support the advance payment of compensation to the detriment of an expropriation.

Peruvian Business Legal Adviser

xthianc@gmail.com