Doing
Business in PR
Type
of Business
Puerto Rico recognizes a wide range of business entities. Thus, any establishment conducting business in Puerto Rico has a variety of options for optimizing liability shield and tax treatment characteristics, but must first determine the type of business they wish to create or maintain. Some of the business forms to do business in Puerto Rico are:
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Sole Proprietorship
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Partnerships
(1) Civil Code Partnerships
(2) Commercial Code Partnerships
(3) Limited Liability Partnerships
(4) Partnership Tax Treatment and the Subchapter K Election (Special Partnerships)
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Corporations
(1) Domestic Corporations
(2) Foreign Corporations
(3) Professional Corporations
(4) Close Corporations
(5) Non-Profit Organizations
(6) Corporation Tax Treatment and the Subchapter N Election (Corporations of Individuals)
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Limited Liability Company
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Business Trusts
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Joint-Ventures
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Cooperatives
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Special Employee-Owned Corporation
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Public-Private Partnerships
Basic
Requirements & Procedures that may apply for
starting a Business in Puerto Rico*
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Requesting and Registering an Employer Identification Number
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Merchant’s Registration Certificate
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Compulsory Business Registry
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Municipal License Taxes
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Bidders Registry
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Financial and Accounting Records
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Audited Financial Statements
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Internal Revenue Licenses
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Municipal Revenue Collection Center (CRIM)
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Construction and Use Permits
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Department of Labor and Human Resources (unemployment and disability insurance)
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State Insurance Fund Corporation (workmen's compensation insurance)
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Sanitary License
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Fire Department Inspection
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Emergency Generator Operation Permit
* Depending on the nature of the business, a company may also be required to obtain licenses particular to its industry and special legislation may apply. Contact us for further information regarding your business.
Special
Economic Incentives for Industries and Service Units
Act 73 of 2008, the “Economic Incentives for the Development of Puerto Rico Act” (“EIA”), offers special economic incentives to eligible business engaged in a particular industry or service. In general, some of the special incentives offered by the EIA that may apply to eligible businesses include (i) fixed income tax rates, exemption from property taxes, exemption from municipal license tax, exemption from sales and use tax, and tax credits and/or deductions for equipment, investment, job creation and reduction of electricity cost.
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