Why Incorporate in Puerto Rico?

Become a member of The Puerto Rican Chamber of Commerce.

We also provide Form Preparation Services in Puerto Rico. If you wish to incorporate by yourself, don't take unnecessary risks: our inexpensive service will save you time and money. More info here.

The Puerto Rico's Advantage

Puerto Rico provides benefits that any other state can provide. It is another territory of United States of America and  maintains its own tax structure. In this sense, Puerto Rico represents the best of both worlds: Access to the biggest market in the world, the US and a friendly tax system. For instance, profits derived from sales in any of the  50 States are not taxable by the IRS. At the same time, products that are sent from Puerto Rico to mainland, are not subject to import taxes.

Additionally, Puerto Rico offers several tax incentives that make this jurisdiction in a very attractive business opportunity.

Puerto Rican Entities *

• Domestic for profit corporations
• Domestic nonprofit corporations
• Professional Corporations
• Close Corporations
• Foreign for profit corporations
• Foreign nonprofit corporations
• Professional Corporations
• Special Workers owned corporations
• Municipal Development Corporations
• Nonprofit Municipal corporations
• Limited Liability Companies
  
• Banks
  
• International Banking Centers.
  
• Insurrance Companies
  
• Trusts
  
• Cooperatives (three different types)

* At this time, Active Filings supports the following foreign and domestic entities

• For profit corporations
• Non profit Corporations
• Limited Liability Companies

Requirements to incorporate a business in Puerto Rico

• Only one person is required to register a Corporation (Corp) or Limited Liability Company (LLC)
  
  
• Directors and Members are not required to be listed in the articles of incorporation
  
  
• Companies are required to maintain a Registered Office in Puerto Rico.
  
  
• Companies can perform all lawful activities. However, corporations and LLC are not allowed to own property larger than 500 acres and cannot engage in real estate transactions (buy and sell). Additionally, a corporation or LLC cannot provide professional services (as in the case of licensed activities, it will be necessary to form a Professional Corporation instead).
  
  
• Turnaround: Expedited orders take an average of 3 weeks. Regular filings can take up to 6 weeks.

Taxes in Puerto Rico

• 7% maximum corporate income tax rate with some qualified companies paying as little as 2 % when they are considered "Pioneer Industries". Other qualified industries like textile, shoes, leather products, canned fish, are taxed at 4%.
  
  
• 200% deduction for research and development;
  
  
• 200% deduction for job training costs;
  
  
• Accelerated depreciation for investment in buildings, machinery and equipment with unlimited loss carry forwards;
  
  
• 100 % deduction on real and personal property taxes during initial construction and first-year of operations;
  
  
• The opportunity to conduct business in the most comprehensive, noncontiguous Foreign Trade Zone system in the U.S.

Annual Reporting

Corporations and LLC are required to file an annual report on or before April 15 each year with the Department of State. This report shall also include the following information:

• Financial Statements certified by a Puerto Rican CPA or an oath before Notary Public when the volumen of business (gross income) is more than one million dollars or when the corporation is a nonprofit corporation. Foreign corporations are required to get a certificate from a local CPA, regardles of the amount of business.
  
  
• Name and address of all directors and officers and their term.
  
  
• Filing fee for annual reports is $100.00 for for profit entities (domestic or foreign, corporations or llc) and $10.00 for nonprofit corporations. Religious organizations are not required to file annual reports and pay the associated state fee.

Active Filings's Services

Active Filings can assist you with the following services:

1. Incorporation and LLC formation services
2. Internal Revenue Certificate (required to incorporate a business)
3. EIN (Company Tax ID)
4. Foreign Qualifications (Certificate of Authority to do business in PR)
5. Registered Agent services
6. Corporate Kits, including stock certificates and corporate seals
7. Business licenses
8. Fire Rescue endorsement certificate
9. Use permit
10. Health license
11. Enviromental Agency permit
12. Natural Resources permit.
13. Trademarks
14. Corporate insurrance issued by the State Agency.
15. Labor department insurrance policy
16. Business plans
17. Chamber of Commerce affiliation
18. Other services include links with finantial institutions, tax planning (individual and corporate) State tax advice and Municipal tax advice.

Click here to start your corporation or LLC in Puerto Rico!