For foreign investors, choosing to incorporate a business in Puerto Rico offers many of the benefits of operating in Latin America, while also retaining some of the advantages enjoyed doing business at home. Atlantic Beach in San Juan, Puerto Rico. Incorporate a business in Puerto Rico. While Puerto Rico is a Spanish speaking territory with a distinctly Latin American and Caribbean culture, it is also a US territory, with strong links to the United States and similar administrative processes. For anyone planning a short-term or limited-scale engagement with the Puerto Rican market, hiring local staff via a professional employer organization (PEO) could be a good alternative to incorporating a company. When you hire through a PEO in Puerto Rico, you avoid the need to establish and later liquidate a local entity. And you are able to get to work quicker, waiting only as long as it takes to find staff. For those committed to entering the market on a more permanent basis, company incorporation in Puerto Rico requires five key steps, which are highlighted below after some insight into what makes the territory an enticing destination for investment. Contact us today to find out how we can support you doing business in Puerto Rico.
Puerto Rico Popular Among Investors Located in the Caribbean Sea between the Dominican Republic and the US Virgin Islands, Puerto Rico has a population of around 3.2 million people and registered a gross domestic product (GDP) of $103.1 billion in 2020. That represented a slight GDP decline compared to the previous year, owing to the turmoil caused by the COVID-19 pandemic. However, the Puerto Rican economy suffered relatively little compared to other economies in the region. As such, Puerto Rico remains one of the most prosperous territories in Latin America and the Caribbean, registering a gross national income (GNI) $21,740 per capita in 2020 — a figure only exceeded in the region by the Bahamas. Once a major producer of sugar, Puerto Rico now has a dynamic and diverse economy. Its well-developed manufacturing industry contributes more than 50% of total GDP and is a major draw for investors. Among the manufactured products representing key export goods to Puerto Rico are pharmaceuticals, medical equipment, garments, and computers. Tourism is a major industry in Puerto Rico. Incorporate a business in Puerto Rico. Call centers are also a growing business activity because of the high level of English proficiency on the island. Puerto Rico is also home to a dynamic startup scene and an increasing pool of tech talent. For investors looking to take advantage of these growing sectors and incorporate a business in Puerto Rico, the island has three free trade zones (FTZs) — known as foreign trade zones in the United States and its territories — that offer lucrative financial incentives to businesses located within their boundaries. Beyond the FTZs, the island also has a huge tourism sector that draws significant overseas investment. Being a US territory, Puerto Rico uses the US dollar, which creates stability for locally-based business. The island also boasts considerably better infrastructure than many other nations in Latin America and the Caribbean. Although a great deal of Puerto Rico’s trade is with the mainland United States, local businesses benefit from preferential access to a wide range of major global and regional markets, via US participation in a wide range of free trade agreements (FTAs). There are many benefits for investors looking to start a business in Puerto Rico.
5 Steps to Incorporate a Business in Puerto Rico You will need to follow these five key steps when you incorporate a business in Puerto Rico:
- Reserve the name of the business you wish to incorporate in Puerto Rico
- Appoint a legal representative
- Establish the company bylaws
- Register the company
- Open a corporate bank account
Frequently Asked Questions when Forming a Company in Puerto Rico
- Can a foreigner own a business in Puerto Rico?
- How long does it take to register a company in Puerto Rico?
- What does the SRL company name mean in Puerto Rico?
- What does Domestic Corporation mean in Puerto Rico?
- What entity types offer Limited Liability in Puerto Rico?
- Main differences between an S.R.L and a Domestic Company in Puerto Rico
Biz Latin Hub can help you incorporate a business in Puerto Rico At Biz Latin Hub, our local team of corporate support professionals is on hand to assist you when you incorporate a business in Puerto Rico. We offer a comprehensive portfolio of services, including company formation, accounting & taxation, legal services, visa processing, and hiring & PEO, meaning that we are able to assist with market entry and ongoing operations, and offer tailored packages of back-office support to suit every need. With offices in 16 markets around Latin America and the Caribbean and trusted partners taking our coverage to almost every corner of the region, we also specialize in multi-jurisdiction market entry and ongoing support. Contact us now to find out more about how we can support you doing business in Puerto Rico. Or learn more about our team and expert authors. Key services offered by Biz Latin Hub. Incorporate a business in Puerto Rico. The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is…
