Foreign investors can choose to set up a Puerto Rican business. This allows them to reap the many benefits of Latin America while still enjoying some of the same advantages as doing business here.
This is because Puerto Rico, a Spanish-speaking territory, has a distinct Latin American culture and is considered a terror state by the United States. It also retains strong American links, such as similar administrative processes.
A professional employer group (PEO), which can hire local workers for a limited or short-term engagement in Puerto Rico, could offer a great alternative.
You can’t go wrong with a good book. hire through a PEO in Puerto RicoThis allows you to avoid having to create and liquidate local entities later. You are also able to go to work quickly because of the fact that the employees can be found in less time.
For those looking to enter the Puerto Rico market more permanently, there are five steps that you need to follow. These are highlighted following an explanation of what makes Puerto Rico such a desirable investment destination.
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Puerto Rico popular among investors
Puerto Rico is located in the Caribbean Sea, between the Dominican Republic (the Dominican Republic) and the US Virgin Islands. It has an estimated population of 3.2 million. registered a gross domestic product (GDP) of $103.1 billion2020
This was a small GDP decrease compared with the prior year due to the chaos caused by COVID-19, but the Puerto Rican economy experienced relatively low losses compared to other regions.
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
Puerto Rico, once an important sugar-producing country, now boasts a vibrant and varied economy that includes a highly developed manufacturing sector. contributing more than 50% of total GDPInvestors find the island attractive and a great place to do business. Pharmaceuticals, medical equipment and garments are just a few of the key manufactured goods that Puerto Rico exports.
Due to the excellent English proficiency of the island, call centres are a growing industry. Puerto Rico also has a rising pool of talent in tech and thriving startup scene.
For investors looking to incorporate a business in Puerto Rico to engage in any of these endeavors, the island has three free trade zones (FTZs) — known as foreign trade zones in the United States and its territories — offering lucrative financial incentives to businesses located in them. The island also has an extensive tourism industry that attracts significant foreign investment.
Puerto Rico, a US territory is an American territory uses the US dollarIt is a stable country that offers stability to local-based businesses and boasts a much better infrastructure than most other Latin American and Caribbean countries.
Although a great deal of Puerto Rico’s trade is with the mainland United States, local businesses also 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).
Here are 5 ways to create a Puerto Rico business.
These are the five steps you need to take when you set up a Puerto Rican business.
1. You can reserve the name and address of the company you would like to incorporate in Puerto Rico
Reserve your company’s name before you can incorporate in Puerto Rico. You must register potential names into the official database to make sure they aren’t already used or identical to any other businesses in Puerto Rico.
2. Designate a legal representative
A legal representative will need be appointed if your Puerto Rican business interests are being managed from abroad or you intend to travel long distances. You must appoint a legal representative to be authorized to sign important documents and act for you.
3. The company’s bylaws should be established
After you’ve completed the first two steps, the next step is to create the company’s bylaws. These documents will outline the objectives and activities of the company, as well as the shareholders.
4. Register your company
Once you have the bylaws in place, your representative or yourself can apply for the registration of the company to the local authorities.
5. Register for a Corporate Bank Account
To incorporate your business in Puerto Rico, the final step is opening a corporate account. This will allow all company transactions to pass through. Your lawyer will help you find the most suitable provider based on where you live and your business activity.
Biz Latin Hub will help you to incorporate your business in Puerto Rico
Biz Latin Hub’s local support team is available to help you when you set up a Puerto Rican business.
Our services include a wide range of products and solutions. company formation, accounting & taxation, legal services, visa processing, and hiring & PEOThis means that we can assist you with your market entry or ongoing operations. We also offer tailor-made back-office support plans to fit every requirement.
We have 16 offices across Latin America and Caribbean, as well as trusted partners that provide coverage in almost all corners of the region. Our specialty is multi-jurisdictional market entry and support.
Contact us nowFind out how we can help you do business in Puerto Rico.
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