Puerto Rico corporations work and are made under the General Corporations Act of 2009. Furthermore, Puerto Rico likewise has a Tax Incentives Act which directs the corporate income tax at a fixed rate of 7%. The Controlled Foreign Corporation (“CFC”) framework, expresses that a Puerto Rican subsidiary of a foreign partnership might be taxed at a 7% rate as its greatest corporate rate with no retention tax.
There are a few advantages for joining in Puerto Rico which include:
• Protection by the U.S.: Puerto Rico is ensured by the U.S. military and government, As a U.S. territory,
• Exempt from U.S. Assessments: Puerto Rico’s Controlled Foreign Corporation (CFC) structure permits income created from pitching items to the United States absolved from U.S. taxes. Likewise, items imported from the U.S. are excluded from Duty Taxes.
• Low Corporate Taxes: The most extreme tax rate for Puerto Rico organizations is 7%. A few corporations may fit the bill for a max tax rate of just 2% (at times, could be 0%) by meeting all requirements for the “Pioneer Industries” program
• One Shareholder: At least just a single shareholder/investor is taken into consideration for Puerto Rico partnerships.
• No Authorized Capital: There is no minimum capital prerequisite.
• Nominees: Nominee director and shareholders/investors can be selected.
Puerto Rican partnerships must choose a corporate name which is one of a kind and not comparative
Office Address and Local Agent
Puerto Rio corporations must delegate a nearby registered specialist and have a neighbourhood office address to acknowledge process servers and authority takes note.
Puerto Rico corporations must have one shareholder at least. The shareholders can be foreign residents.
Directors and Executives
At least one director is required to be appointed by each Puerto Rico corporations. DIrectors can be foreign residents and can be investors.
There is no capital authorization required for corporations in Puerto Rico.
In Puerto Rico the maximum corporate tax is 7%.
Corporations in Puerto Rico pay $150USD approx to incorporate and as their yearly renewal fee.
The names of investors, directors, and officers of Puerto Rico corporation are incorporated into the public records. Nonetheless, in order to acquire security, shareholders and nominee directors can be appointed.
Accounting and bookkeeping Audit Requirements
Corporations are required to keep up the accounting and financial so as to decide their net income under General Accepted Accounting Principles and to demonstrated taxable income under the P.R. Revenue Code. Likewise, the General Corporation Act of 2009 requires all companies, foreign or others, doing business together in Puerto Rico to maintain bookkeeping and accounting books, financial records and documents.
What’s more, every corporation occupied with an exchange or business where the volume surpasses $3million USD,(approx) must file financial reports. These statements must be affirmed and certified by a public accountant authorized in Puerto Rico, alongside an income tax, property tax, and volume of business returns.
Yearly General Meeting
A yearly general meeting is required for each Puerto Rico organization.
Time Required for Incorporation
The assessed time required to finish incorporation in Puerto Rico is about a month or so. This turnaround time relies upon the corporation’s name enlistment and the culmination of required documents.
Shelf corporations are accessible to accelerate the incorporation procedure.
As a secured U.S. territory, Puerto Rico offers extraordinary advantages to its corporations including no U.S. taxes for selling items in the U.S., duty free importing in of items from the U.S., low corporate tax rates, real estate and individual property tax are excluded amid the first year, one shareholder/investor can frame a corporation, no minimum authorized capital, and nominee shareholder/investors and director can be designated.