Puerto Rico
Capital: San Juan.
Official languages: English and Spanish.
Currency: US dollar.
A US protectorate in the Caribbean, Puerto Rico offers a number of significant advantages for international business. Puerto Rico has a developed banking infrastructure, which makes financial transactions convenient for entrepreneurs. Opening corporate accounts and conducting banking transactions is relatively easy. There is also a potential opportunity to bring business to American stock exchanges, as well as simplified access to the US and Latin American markets.
Company registration provides the following benefits:
- Using American infrastructure when conducting international business.
- An option for obtaining an American EB-5 visa for investors when creating a business in Puerto Rico.
- No withholding tax on dividends and interest from sources outside Puerto Rico.
Puerto Rico is a Caribbean country, formerly part of the Spanish Empire, and currently Puerto Rico is an associated territory of the United States as a Commonwealth. This means a certain autonomy and self-government of the island while maintaining control by the US authorities.
Citizens of Puerto Rico have US citizenship, but the island is not a state and does not have full representation in the US Congress. Thus, this territory has a special status within the American statehood.
Features of taxation and reporting
All companies doing business in Puerto Rico must be registered with the State Registry of Corporations and Businesses. Such organizations are required to submit annual reports to the register.
- The federal income tax rate for LLC companies is 21% and can reach a maximum of 39%.
- AMT (Alternative Minimum Tax) – 30% (Companies incorporated after December 31, 2018 and regularly filing financial statements may qualify for reduced rates).
- Puerto Rico does not have its own VAT system.
- Tax on declared dividends – 10%
Company Registration
Registration period: 2-4 weeks from the date of submission of documents.
The most common form of company in this country is a limited liability company (LLC), as well as a corporation or foreign representative office (Corp).
After determining the type of company, you must register it under Puerto Rican law. This includes providing the required documents and paying registration fees.
To register a company remotely, you will need to provide the following information:
- Choosing a company name: three options are required.
- A document confirming the residence address of all participants (utility bills, bank statements indicating the address) with notarization.
- A document indicating the number of shares issued and the distribution of rights to a company's shareholders.
A document confirming the company's registered address.
A quick guide to registering a company in Puerto Rico:
To quickly register an LLC in Puerto Rico, contact the specialists at IT-OFFSHORE. The cost of our services includes:
- Preparation of documents (collection, filling, notarization, etc.).
- Company registration.
- Payment of all government fees.
- Registration agent services for 1 year with the possibility of extension.
- Translation services.
- Delivery of registration documents to any address.
The bottom line
Registering a company in Puerto Rico can be a complex process that requires understanding local laws and procedures. We recommend that you seek advice from qualified IT-OFFSHORE consulting specialists who have experience working with this jurisdiction and will be able to register your company in Puerto Rico in the shortest possible time.
We offer not only legal support for company registration, but also a wide range of services, which includes accounting services, nominee services, and full support of the company after its registration; Thus, we provide full year-round service to your company.
