Peru is one of the fastest growing Latin American economies in recent decades. Several factors have made the country an attractive destination for investment. Business is booming in Peru, as foreign companies bet on Peruvian talent and take advantage of exploitable, high-dividend industries like mining.
Fintechs and other tech businesses are also on the rise. No wonder that according to the Ministry of Foreign Trade and Tourism, foreign trade in 2021 exceeded 56 billion dollars – a significant increase on the previous year, and higher than pre-pandemic figures.
According to the National Institute of Statistics and Informatics (INEI), 3 million companies were operating in Peru in early 2021, up 2.6% compared to the previous year. Almost 69,000 new companies were set up in this period, as many people decided that now was the perfect time to start a business.
These figures are also reflected in the considerable foreign investment in Peru, in energy, mining, chemical, textile and fishing companies, but also in the search for qualified personnel for both remote and on-site jobs.
In this article we’ll look at some tips for connecting with the Peruvian market, whether your company is an industry leader or a startup looking for new talent.
1. Research Peruvian taxes
This is probably one of the most important issues to know about if you are looking to do business in Peru. The country’s many income tax categories vary according to income earned, and the earning activity, during the fiscal year.
The main taxes to watch out for are the general sales tax (IGV), the RUS (Single Simplified Regime) which is for small businesses domiciled in Peru, and the tax on financial transactions (ITF) to other people for significant amounts. Finally, the temporary tax on net assets (ITAN) is based on assets up to 31 December of the previous year.
Peru’s tax regimes include the general regime, the MSE tax regime, the special income regime and the single simplified regime. It is important to know which one your company qualifies for, as each one has specific benefits and requirements to be fulfilled.
2. Communicate clearly
If your company is looking to position itself in Peru, entering the market strongly is essential. Many brands are well- known to the public, across multiple industries, so it’s vital to communicate clear messages. A public relations agency in Peru can help here, creating the right communication strategy and identifying the right channels for your brand.
A press release may not be enough for a new player in the market, and you may wish to consider interviews in the country’s main media, as well as a social media strategy and all other channels through which you can reach your target audience.
3. Get to know the country’s political landscape
Political crises are a constant feature throughout Latin America, and they can affect laws that seek to boost certain businesses or industries, such as mining or the gambling industry. Peru has seen a total of 6 Presidents in the last 7 years, due to political instability and occasional vacancy protocols.
Understanding the potential political impact on your industry is to succeed in Peru. Especially since the Inca country has managed to keep its head above water despite the global economic crisis, and remains an attractive destination for investors.
4. Learn some Spanish
This may seem like a minor consideration, but in some cases it can help to close deals, connect with Peruvian business people or partners, and put them at ease. Even if it’s just a quick “hello” or “goodbye”, they will be sure to appreciate the effort.
Moreover, if you enter a meeting that has already started (which should be avoided if possible), then you’ll be able to pick up on the essentials. In addition, Spanish is spoken in practically all South American markets, so a little knowledge of the language can be very useful.
Having reviewed the keys to business success in Peru, consider that its job market continues to grow, and so do the opportunities for doing business. That is why this country is one of the most attractive destinations for investors and entrepreneurs across Latin America and beyond.
This content is a joint venture between our publication and our partner. We do not endorse any product or service in the article.