The jurisdiction of Puerto Rico is an island state of the Greater Antilles group, in which business is conducted according to the laws of America, it is important to know, when planning to register a company in Puerto Rico. In this jurisdiction, respectively, the same regulators operate as the United States. The population of the island is also considered American and enjoys appropriate preferences. The currency of jurisdiction is the American dollar. Besides the fact, that jurisdiction is in the status of an unincorporated organized territory, in other matters Puerto Rico is an independent. The capital and the largest city in the country is San Juan, which is located on the Caribbean coast. On the opposite side of the island state is the Atlantic Ocean. Largest islands of the archipelago are Vekuez, Culebra, Mona, Descecho, Caga de Muertos.The country has the highest GDP in Latin America.
In order to register a business in Puerto Rico, you can use the best practices in one of the sectors of the economy:
- a tourism and services (souvenirs, festivals in fortresses, a hotel business, casinos, bars);
- a development of oil deposits;
- oil refining technologies;
- a nickel and copper mining;
- the export trade in rum, tobacco, chemical products, electronics;
- the assembly of radio electronics;
- an agricultural sector (grow bananas, pineapples, tobacco, sugarcane);
- a medicine;
- chemical pharmaceuticals;
- the tailoring.
First of all, foreign investors are interested in registering an LLC in Puerto Rico (a company in the field of services and leisure, gambling establishments)
Puerto Rico tax rates
- A corporate tax varies from 20% to 39%;
- A differential income tax is 5%-19%;
- The alternative tax is from 18,5% to 23% (when providing financial statements); and from 30% without a financial reporting;
- A dividend tax is 10%.
There are three legal forms, in which you can establish a company in Puerto Rico:
- a Corporation or the Representative Office, Corp;
- DBA: in such a legal form, you can register a company in Puerto Rico on behalf of an existing company, but with a new name.
To open a business in Puerto Rico, the following conditions of the Regulator must be met:
- you need use a unique name;
- enough for 1 shareholder and 1 director;
- a physical office in Puerto Rico must be registered;
- obtain a business license in Puerto Rico (Patente Municipal);
- register an EIN number in the US Internal Revenue Service;
- draw up account numbers at the Department of Labor and Personal Resources;
- get an account with the Puerto Rico Social Security Fund;
- submit audit data and financial statements annually.
Subject to above requirements, it is possible to register a company in Puerto Rico remotely
To set up a firm in Puerto Rico remotely, you need to add the company to the Register of Trade and Other Companies in the Business Development Department. Also, in order to register an enterprise in Puerto Rico, copies of documents are submitted with notarization of their translations into English or Spanish. Such services can be provided to you by YB Case, and you can also choose the form, in which it will be most profitable to establish a company in Puerto Rico, to open a bank account without a personal visit. Telephone numbers of our experts are listed in the “Contact Us” section.
Which banks of Puerto Rico open a corporate account?
- Banco Popular (this bank has Internet banking, that is, the ability to open an account in Puerto Rico remotely);
- Popular Bank;
- Banco Santander;
- Oriental Bank;
- Noble Bank International;
- Euro Pacific Bank;
- Activo International Bank;
- Nodus International Bank;
- Arca International Bank;
- Elite International Bank;
- Puerto Rico Farm Credit.
In order to avoid any unnecessary problems in registering a business in Puerto Rico, we advise you to order legal assistance at all stages of the registration process from YB Case specialists.