How to Register a Sole Proprietorship (Empresa Individual) in Peru

For many professionals in Peru, setting up as an independent contractor is an attractive way to start working on your own terms. The process is relatively straightforward compared to forming a company, and it allows you to begin operating quickly with minimal upfront costs. While there are some bureaucratic steps—such as registering with the tax authority (Superintendencia Nacional de Aduanas y de Administración Tributaria, or SUNAT) and managing invoices—the overall procedure is faster and more accessible than other business structures.

The main hurdles tend to be understanding tax obligations, keeping up with required filings, and managing the risks of unlimited liability. On the other hand, the freedom, flexibility, and independence of running your own business often outweigh these challenges, especially for freelancers, consultants, and small service providers.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Peru?

In Peru, a sole proprietorship is officially known as an Empresa Individual. It’s the simplest way for one person to run a business, since there’s no separate legal entity—the individual and the business are treated as the same. This makes it easy to set up, but also means the owner is personally liable for all obligations.
It may also be called:

• Sole trader
• Independent professional
• Self-employed worker

All of these terms describe the same structure: a single individual running their business independently, without partners or shareholders. This setup is especially common among freelancers, consultants, and small service providers who want flexibility with minimal bureaucracy.

How does a sole proprietorship (Empresa Individual) work in Peru?

Empresa Individual vs. other business structures in Peru

When deciding how to set up a business in Peru, it’s useful to compare an Empresa Individual with other common structures, such as an Individual Limited Liability Company (E.I.R.L.) or a Sociedad de Responsabilidad Limitada (SRL). Each option comes with different costs, risks, and obligations.

Step-by-step: How to register a sole proprietorship in Peru

Step 1: Check eligibility

You must have legal residency or a work permit to operate as a self-employed individual. Foreigners need a valid work visa or residency permit to register with SUNAT.

Step 2: Choose your business name

You can use your own name or adopt a trade name. If using a unique name, check availability via SUNARP’s online platform. Information about reserving a name is available on the government website.

Step 3: Gather required documents

To register as a sole proprietorship in Peru, you'll need:

• Valid ID: National ID card (DNI) for Peruvians, and residency documents for foreigners
• Proof of address if different from your national ID card address (e.g., utility bill, rental contract)
• Formulario 2119 (RUC registration form) if applying in person
• Formulario 2046 (for declaring additional business premises), if applicable

Step 4: Register with SUNAT (RUC)

To legally operate as a sole proprietor, you must obtain a RUC from SUNAT, Peru’s tax authority. You can complete the registration online through SUNAT’s virtual platform by submitting your details and uploading the required documents. The process usually takes only a few minutes if you are a resident. If you prefer, you can also register in person at a SUNAT Taxpayer Services office.

Step 5: Pay registration fees and contributions

Obtaining a RUC as an individual is free of charge. However, if you choose to register a trade name through SUNARP, you will need to pay a fee (currently around S/. 24.60 for a name reservation).

Step 6: Complete post-registration obligations

Once registered, you must issue electronic invoices or receipts (Recibo por Honorarios) for the services you provide. You are also required to charge and pay VAT (IGV) at 18% on taxable sales or services starting from your first transaction. It is also essential to maintain accurate accounting records to support your income tax filings and ensure compliance with SUNAT regulations.

Financial and Tax Obligations for Sole Proprietors in Peru

You are responsible for:

• Income tax (Impuesto a la Renta): Sole proprietors are taxed through SUNAT’s business tax regimes. Filing is annual, with payments made monthly or quarterly depending on the regime:
  • NRUS: Flat monthly fee (S/. 20–50) for very small businesses
  • RER: Percentage-based tax on sales and purchases
  • MYPE Tributario: 10% on net income up to 15 UIT (≈ S/. 82,500 in 2025), 29.5% above that
  • Régimen General: 29.5% on net profit
• VAT (Impuesto General a las Ventas – IGV): 18% on all taxable sales or services from the first transaction; returns are usually filed monthly via SUNAT’s online system.
• Social security contributions: Not automatic; you may contribute voluntarily to ONP (public pension) or a private AFP, and arrange health insurance separately through EsSalud or private providers.
• Record-keeping: Must issue electronic invoices or receipts (Recibo por Honorarios), keep proper accounting records, and retain documentation for at least five years for SUNAT audits.

Launch your contracting career and stay compliant with Deel

Registering a sole proprietorship gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start an Empresa Individual in Peru?
None—it’s a low-cost structure with no minimum capital requirement.

Do Empresas Individuales need to register for VAT?
Yes. VAT (IGV) applies from the first taxable sale or service at a rate of 18%.

How much are the standard monthly or annual contributions?
There is no fee to register for a RUC. The amount you pay in taxes depends on your income and the tax system you are enrolled in. For most sole proprietors, this means either paying progressive income tax at rates between 8% and 30%, or a simplified flat monthly fee if you qualify for the small-business regime (NRUS).

Can an Empresa Individual hire employees?
Yes, but you must comply with employment law and payroll tax obligations.

How long does it take to register as an Empresa Individual in Peru?
RUC registration can be done instantly online if you’re a resident; a full commercial registry may take days to weeks.

Can foreign nationals register as Empresa Individual in Peru?
Yes—if you have a valid work visa or residency permit.

Do Empresas Individuales need a separate business bank account?
Not mandatory—but highly recommended for clarity and professionalism.

What happens if I stop working as an Empresa Individual?
You should deregister your RUC via SUNAT and settle any pending tax obligations.

Are there any government incentives or reduced rates for a new Empresa Individual?
Not specifically for sole proprietors; incentives usually target formal companies or specific sectors.

Can I use Deel as an Empresa Individual to get paid by international clients?
Yes. Deel allows Empresa Individuals and freelancers to receive payments globally in multiple currencies, with low fees and transparent rates.

Does Deel generate compliant invoices for Empresa Individuals?
Absolutely. Deel automatically generates legally compliant invoices, helping you stay on the right side of Peruvian tax requirements.

Can Deel help me with taxes as a sole proprietor in Peru?
Yes. Deel provides downloadable tax reports and payment records useful when filing taxes. While it doesn't replace an accountant, it streamlines record-keeping and compliance.

Does Deel offer contracts for freelancers and Empresa Individuals?
Yes. Deel offers contract templates compliant with local law so you can work confidently and professionally.

Can I access benefits through Deel as an Empresa Individual?
Yes. Deel offers optional perks like health coverage, retirement plans, and other benefits that typically are reserved for employees—giving freelancers more security.