Countries › Peru › Guide › 4. Entities and setup › Branch of a foreign company in Peru (sucursal): deed, permanent representative, parent liability and branch profits tax

Branch of a foreign company in Peru (sucursal): deed, permanent representative, parent liability and branch profits tax

Last verified: 2026-10-28 · Status: Stable

A foreign company that habitually does business in Peru may open a branch by public deed registered at SUNARP, attaching its certificate of good standing, its bylaws and a resolution assigning capital and naming a permanent legal representative. The branch has no separate legal personality, so the parent answers for all its debts and any contrary agreement is void; it pays 29.5 percent income tax on its Peruvian source income only. Its after tax profit is deemed remitted to the parent on the annual return due date and taxed at 5 percent, whether or not cash leaves Peru, and registry fees are 1.20 percent of the UIT plus 0.3 percent of assigned capital.

USD figures use S/ 3.452 per US dollar, the banking system selling rate published by the Superintendencia de Banca, Seguros y AFP for 27 October 2026, the latest value in the Banco Central de Reserva del Perú statistics series PD04640PD on the verification date. Fees stated as a percentage of the UIT use the 2026 UIT of S/ 5,500 (Decreto Supremo Nº 301-2025-EF, as cited by Resolución de Superintendencia Nº 000016-2026/SUNAT). Conversions are for orientation only.

Key facts

Parent liable for branch debts	Yes, contrary agreements void Ley 26887 art. 397, as of 2026-10-28 · in force
Branch has separate legal personality	No Ley 26887 art. 396, as of 2026-10-28 · in force
Days of representative vacancy before registry may cancel the branch	90 daysLey 26887 art. 401, as of 2026-10-28 · in force
SUNARP foreign branch qualification fee	1.20 % of UITTUPA SUNARP 3.1 procedure 15, as of 2026-10-28 · in force
SUNARP foreign branch inscription fee	0.3 % of assigned capitalTUPA SUNARP 3.1 procedure 15, as of 2026-10-28 · in force
Corporate income tax rate (general regime)	29.5 %TUO LIR art. 55, as of 2026-10-28 · in force
Tax on branch profits deemed remitted	5 %TUO LIR art. 56 e), as of 2026-10-28 · in force
Withholding on dividends to non residents	5 %TUO LIR art. 56 e), as of 2026-10-28 · in force

The rule

1. Concept and domicile. A branch is a secondary establishment through which a company carries on, away from its domicile, activities within its purpose. It has no legal personality separate from its principal, but it has a permanent legal representative and management autonomy within the activities and powers assigned. A company formed and domiciled abroad that habitually carries on activities in Peru may set up a branch or offices and fix a Peruvian domicile; if it does not, it is presumed domiciled in Lima.Ley Nº 26887, Ley General de Sociedades, Art. 21 and art. 396, 1997-12-09 official text · verified 2026-10-28

2. Parent liability. The principal company is liable for the obligations of the branch, and any agreement to the contrary is void.Ley Nº 26887, Ley General de Sociedades, Art. 397, 1997-12-09 official text · verified 2026-10-28

3. Contents of the deed. The branch of a foreign company is established by public deed registered in the Registry containing at least: (1) the parent's certificate of good standing in its home country, stating that its articles and bylaws do not prevent it from opening branches abroad; (2) a copy of the articles and bylaws or equivalent instruments; and (3) the resolution of the competent body to open the Peruvian branch, stating the capital assigned to it, that its activities fall within the corporate purpose, its domicile, the appointment of at least one permanent legal representative in Peru, his or her powers, and submission to Peruvian law for the branch's obligations.Ley Nº 26887, Ley General de Sociedades, Art. 403, 1997-12-09 official text · verified 2026-10-28

4. Permanent representative. The resolution must appoint a permanent legal representative with at least the powers needed to bind the company for the branch's operations and general litigation powers; other powers go in the power of attorney, and a certified copy of the registered appointment is enough to act. The representative is governed by the rules for a general manager. If the post stays vacant for ninety days, the Registry may cancel the branch's registration at the request of an interested party, without affecting the parent's liability.Ley Nº 26887, Ley General de Sociedades, Art. 399, art. 400 and art. 401, 1997-12-09 official text · verified 2026-10-28

5. Closing a branch. A branch is cancelled by resolution of the competent corporate body, registered with a certified copy of the resolution and a closing balance sheet listing the branch's outstanding obligations, which remain the parent's responsibility.Ley Nº 26887, Ley General de Sociedades, Art. 402, 1997-12-09 official text · verified 2026-10-28

6. Registry fees. Registration of a branch in Peru of a company formed abroad costs 1.20 percent of the UIT as qualification fee plus 3 per 1,000 of the assigned capital as inscription fee. Registration of powers granted by companies formed abroad costs 1.20 percent of the UIT plus 0.24 percent of the UIT.
Cost to do it: On assigned capital of S/ 50,000: S/ 66 plus S/ 150 = S/ 216 (about US$62.57). Each later registration of foreign granted powers S/ 79.20 (about US$22.94). Notary, apostille and sworn translation costs are market priced.
Example: Branch with S/ 50,000 assigned capital: S/ 216 in SUNARP fees. / About US$62.57.Texto Único de Procedimientos Administrativos de la SUNARP, approved by Decreto Supremo Nº 008-2004-JUS, TUPA section III, 3.1 Sociedades, procedures 15 and 20, 2004-07-27 official text · verified 2026-10-28

7. Income tax. Branches, agencies and other permanent establishments in Peru of foreign entities are treated as domiciled, but only for their Peruvian source income, which is taxed at the corporate rate of 29.5 percent on net income.Texto Único Ordenado de la Ley del Impuesto a la Renta, Decreto Supremo Nº 179-2004-EF, Art. 6 second paragraph, art. 7 e) (text by Decreto Legislativo Nº 1424) and art. 55, 2004-12-08 official text · verified 2026-10-28 · changed: Decreto Legislativo Nº 1424 (13 Sep 2018) reworded art. 7 e) to cover permanent establishments of sole proprietorships, companies and entities of any kind formed abroad, in force 1 Jan 2019.

8. Branch profits tax. Dividends and other profit distributions to non residents are taxed at 5 percent. For branches and other permanent establishments of foreign entities, profits are deemed distributed on the due date of the annual income tax return, the amount being the income available to the foreign owner: the branch's net income increased by exempt interest, dividends received and other available items, less the income tax.
Example: Branch net taxable income S/ 1,000,000: income tax S/ 295,000; available income about S/ 705,000; deemed remittance tax 5 percent = S/ 35,250; total S/ 330,250 (simplified, no adjustments). / On about US$289,687.14 of income: about US$85,457.71 income tax plus US$10,211.47 branch profits tax.Texto Único Ordenado de la Ley del Impuesto a la Renta, Decreto Supremo Nº 179-2004-EF, Art. 56 e), first and second paragraphs (second paragraph as amended by Decreto Legislativo Nº 1424), 2004-12-08 official text · verified 2026-10-28

Item	Branch	S.A.C. subsidiary
Income tax 29.5%	S/ 295,000	S/ 295,000
5% on profits	S/ 35,250, due at the annual return date	S/ 35,250, only when a dividend is declared
Liability for local debts	Parent, unlimited	Limited to the subsidiary's assets
Registry fee basis	1.20% of UIT plus 0.3% of assigned capital	1.08% of UIT plus 0.3% of capital

Branch versus S.A.C. subsidiary, tax on S/ 1,000,000 of Peruvian profit (simplified)

Worked example

A Canadian engineering firm opens a Lima branch with S/ 50,000 assigned capital (about US$14,484.36). It pays S/ 216 in SUNARP fees, appoints a resident permanent representative and, in its first profitable year, earns S/ 1,000,000: S/ 295,000 income tax and a further S/ 35,250 at 5 percent on the deemed remittance at the annual return date, even though it reinvests the cash in Peru.

Step by step

Board of the foreign parent resolves to open the branch, assigns capital and names the permanent representative with powers.
Obtain the certificate of good standing and certified bylaws, apostille them (or legalise them) and have them translated into Spanish.
Sign the establishment deed before a Peruvian notary and file it with SUNARP; register later foreign granted powers separately.
Register the branch with SUNAT for a RUC, keep separate Peruvian accounting and file monthly and annual returns.
Replace the permanent representative immediately on departure to avoid the ninety day cancellation risk.

Common traps

The 5 percent branch profits tax is triggered every year at the annual return due date on available income; a subsidiary can defer the 5 percent until it actually declares dividends.
The parent is liable for all branch obligations, including labour and tax, and the law voids any cap.
The deed must attach the parent's certificate of good standing stating its bylaws allow foreign branches; a certificate without that statement does not meet art. 403.
A branch is taxed only on Peruvian source income, so contracts that mix work inside and outside Peru need clear allocation.

Sources

← Sociedad comercial de responsabilidad limitada (S.R.L.) in Peru: participations, managers and transfersSociedad por acciones cerrada simplificada (S.A.C.S.) in Peru: online company for individual founders →

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