Register a Company in India from Peru

Author: Manu Rao | Updated: March 2026

At a Glance

Why Peruvian Investors Are Setting Up Companies in India

The numbers are accelerating fast. Bilateral trade between India and Peru reached USD 5.98 billion in FY 2024-25, up from USD 2.34 billion in FY 2019-20 — a compound annual growth rate of 20.64%, per Department of Commerce data. India's exports to Peru stood at approximately USD 933 million in 2024, while imports from Peru hit USD 4.69 billion, driven overwhelmingly by gold and copper.

Peru is the world's third-largest copper producer — behind Chile and the Democratic Republic of the Congo, per USGS 2024 figures — and copper is the backbone of this trade relationship. India imported USD 372 million worth of Peruvian copper ores and concentrates in 2024 alone. With India's semiconductor ambitions (10 projects worth USD 18.2 billion approved in 2025) and renewable energy buildout demanding vast quantities of copper, Peru's strategic importance to India is only growing.

The India-Peru FTA negotiations are advancing rapidly. Nine rounds have been completed — the most recent in Lima in November 2025 — with both sides pushing to finalize the agreement by early 2026. The FTA covers trade in goods, services, critical minerals, customs procedures, and sanitary and phytosanitary standards. Once signed, it will lower tariffs across mining, agriculture, pharmaceuticals, IT, and clean energy sectors.

Peru accounts for 15.42% of India's total imports from all Latin American countries, per the Department of Commerce Annual Report 2023-24. Key Peruvian exports to India include gold (nearly 80% of India's imports from Peru), copper, zinc, silver, molybdenum, blueberries, avocados, quinoa, and asparagus. India exports pharmaceuticals, automobiles, IT solutions, and machinery to Peru.

Direct investment between the two countries is still modest compared with trade. Peru does not appear among DPIIT's significant sources of cumulative FDI equity inflow into India; the Peruvian corporate presence is a small group of companies, including Resemin (through Reliant Drilling in New Delhi), Opermin, AAC Mining Executors, and Vistony. Indian investment in Peru is estimated at around USD 65 million (Embassy of India, Lima), led by TCS, pharmaceutical companies, Bajaj Auto, and Mahindra & Mahindra, and it is growing as Indian companies expand into Latin American mining, pharmaceuticals, and IT services.

No DTAA: What Every Peruvian Investor Must Understand

India does not have a Double Taxation Avoidance Agreement (DTAA) with Peru. This is the single most important tax fact for Peruvian investors entering India.

Without a DTAA, full domestic withholding tax rates apply to all cross-border payments from India to Peru. That means 20% on dividends, 20% on interest, and 20% on royalties and fees for technical services — before surcharge and health and education cess push the effective rate to approximately 20.8% or higher.

Compare this with countries that have DTAAs with India — Singapore pays 10-15% on dividends, the UK pays 10-15%, and Japan pays 10%. As a Peruvian investor, you pay roughly double.

There are three practical implications. First, profit repatriation via dividends costs more. A USD 1 million dividend from your Indian subsidiary loses approximately USD 208,000 to withholding tax, versus USD 100,000-150,000 for investors from DTAA countries. Second, royalty and management fee structures between the Peruvian parent and Indian subsidiary attract the full 20% rate — making intercompany pricing less tax-efficient. Third, there is no treaty mechanism to resolve double taxation disputes; Peru's domestic foreign tax credit rules apply, but the process is more cumbersome than treaty-based relief.

The India-Peru FTA currently under negotiation does not include a tax treaty component. A separate DTAA would need to be negotiated. Until then, Peruvian investors should factor the higher withholding tax cost into their India entry financial models. Some investors structure through a third country with an India DTAA, but this approach requires genuine economic substance in that jurisdiction — India's GAAR rules (effective April 2017) and the Tiger Global Supreme Court ruling (January 2026) have made conduit structures extremely risky.

Choose Your Entity Type

Four main options exist for Peruvian investors entering India.

Private Limited Company — the most common choice for Latin American investors. Requires at least two directors (one must be an Indian resident who stayed 182+ days in India during the financial year). Allows 100% FDI through the automatic route in most sectors. Full limited liability. Mandatory statutory audit every year. This is what most Peruvian companies pick for an Indian subsidiary, especially in mining services, pharmaceuticals, and IT.

Limited Liability Partnership (LLP) — lighter compliance than a Private Limited company. No mandatory audit unless annual turnover exceeds INR 40 lakh or partner contribution exceeds INR 25 lakh. The designated partner must have stayed in India for 120 days. FDI in LLPs is allowed only under the automatic route in sectors where 100% FDI is permitted.

Branch Office — approved by RBI under FEMA regulations. Can carry out the same business activities as the Peruvian parent company. Profits are taxable in India at 35% plus surcharge and cess. Useful for Peruvian mining services companies that want to test the Indian market before full incorporation.

Liaison Office — the most restricted option. Cannot earn income in India. Limited to market research, communication, and promotional activities. RBI approval needed. Permission granted for 3 years, renewable. Good for Peruvian companies exploring the Indian market before committing capital.

FDI Route and Sector Rules

Peru is not a bordering country, so Press Note 3 (2020) does not apply. Peruvian investors can use the automatic route for most sectors without government approval.

Sectors allowing 100% FDI via automatic route include mining and mineral processing, IT and software, manufacturing, pharmaceuticals, e-commerce (marketplace model), food processing, renewable energy, healthcare, and single-brand retail (up to 100%).

Government approval is required for sectors like defence (beyond 74%), print media, multi-brand retail, and broadcasting.

Prohibited sectors remain off-limits regardless of origin: atomic energy, lottery, gambling, chit funds, Nidhi companies, tobacco manufacturing, and real estate (with exceptions for townships and construction-development).

For Peruvian mining companies specifically: India allows 100% FDI under the automatic route in mining and exploration of metals and non-metals (except for titanium-bearing minerals and its ores, for which government approval is required). This is a direct match for Peru's core competencies.

Step-by-Step Registration Process

Here is the actual process, step by step, with realistic timelines for a Peruvian investor.

Document Checklist for Peruvian Investors

For the foreign director or shareholder based in Peru, you will need:

• Passport (color scan, all pages)
• Address proof — utility bill or bank statement not older than 2 months
• Passport-size photograph
• Board resolution from Peruvian parent company authorizing India investment (if applicable)
• Certificate of Incorporation or equivalent registration certificate of the Peruvian company (Partida Registral from SUNARP, apostilled)
• Constitutive documents of the Peruvian company — Escritura Pública de Constitución (apostilled)
• Bank statement showing source of funds
• Power of attorney (if the Peruvian director is not physically present for filing)

Apostille through Peru's Ministry of Foreign Affairs (Ministerio de Relaciones Exteriores) is the standard route. Public documents go directly to the Ministry. Private documents (like board resolutions) need notarization first, then Ministry apostille. Budget 5-10 business days for the full process.

Common mistakes: submitting documents only in Spanish without certified English translations (MCA requires English), missing the apostille step entirely (MCA will reject the filing), and providing address proof older than 2 months. All Peruvian documents must be accompanied by a certified English translation, also apostilled.

Tax Rates: India and Peru (No DTAA)

Since India and Peru do not have a DTAA, full domestic withholding tax rates apply:

These rates are significantly higher than what investors from DTAA countries pay. For example, a Singapore investor pays 10-15% on dividends versus 20% for a Peruvian investor. Peru may offer a unilateral foreign tax credit for Indian taxes paid, reducing double taxation on the Peruvian side, but you should verify this with a Peruvian tax advisor. There is no treaty-based mechanism for mutual agreement or dispute resolution.

Critically, without a DTAA, there is no Tax Residency Certificate mechanism for claiming reduced rates. Your Indian company withholds tax at full domestic rates, and the Peruvian parent claims relief (if available) under Peru's domestic tax law.

Realistic Timeline

Total: 7-10 weeks from start to finish. Here is the honest breakdown.

• DSC + DIN: 1-3 days
• Name reservation: 1-4 days
• Document preparation, certified English translation, and apostille in Peru: 2-4 weeks (this is the step everyone underestimates — Peru's apostille process plus translation adds time)
• SPICe+ filing to Certificate of Incorporation: 5-15 working days
• Bank account opening: 2-4 weeks (enhanced KYC for foreign-owned entities)
• GST registration (if needed): 1-3 weeks

You may have read "7-15 days" on other websites. That timeline skips document authentication, certified translation, bank account setup, and the reality of coordinating between Lima and India across significant time zone differences (Peru is UTC-5, India is UTC+5:30 — an 10.5-hour gap). We give you the real number.

Post-Registration Compliance

Once your Indian company is incorporated, the compliance calendar starts immediately.

• FC-GPR filing with RBI — within 30 days of share allotment to the foreign investor. This is mandatory under FEMA. Miss it and you face penalties.
• Board meetings — 4 per year for a Private Limited company. First meeting within 30 days of incorporation.
• Annual General Meeting — by September 30 each year.
• AOC-4 filing — financial statements filed with MCA within 30 days of the AGM.
• MGT-7 annual return — filed within 60 days of the AGM.
• Statutory audit — mandatory every year, regardless of turnover.
• Income tax return — due by November 30 for companies that must file a transfer pricing report in Form 3CEB (which any company with related-party transactions with a Peruvian parent will need); October 31 for other audited companies.
• GST returns — monthly or quarterly if registered.
• Transfer pricing documentation — required for all related-party transactions between the Peruvian parent and Indian subsidiary. Without a DTAA, the Indian tax authorities will scrutinize intercompany pricing aggressively.

Bank Account Opening

Plan for 2-4 weeks. Not "a few days."

Foreign-owned companies face enhanced KYC requirements. You will need FATCA/CRS declarations, verification through an Authorized Dealer (AD) bank, and the AD bank will scrutinize the source of initial capital — especially given the absence of a DTAA, which sometimes triggers additional compliance checks.

Some banks are more foreigner-friendly than others. HDFC Bank, ICICI Bank, and Yes Bank have dedicated desks for foreign-invested companies. Public sector banks like SBI can work but tend to be slower.

Tip: start the bank account process the day you receive your Certificate of Incorporation. Do not wait for GST registration first. The time zone difference between Lima and Indian banking hours (9:30 AM to 3:30 PM IST) means communication will be asynchronous — factor that in.

Profit Repatriation

Getting money back to Peru involves several steps and significant tax consideration given the absence of a DTAA.

Dividends — the most common method. TDS at 20% (no treaty rate available). DDT was abolished in April 2020, so the shareholder pays tax directly. Process: declare dividend, deduct TDS at 20%, issue Form 16A, obtain CA certificate (Form 15CB), file Form 15CA with the income tax portal, instruct the AD bank to remit.

Royalties and management fees — 20% withholding. Requires a proper intercompany agreement and arm's-length pricing documentation. Without a DTAA, the Indian tax authorities may be particularly aggressive in challenging the pricing.

Share buyback — the company-level buyback tax under Section 115QA stopped applying for buybacks on or after 1 October 2024. Buybacks completed between 1 October 2024 and 31 March 2026 were taxed as deemed dividend income on the full consideration in the shareholder's hands. Since 1 April 2026, buyback proceeds are once again taxed as capital gains under the Income-tax Act, 2025: long-term gains (shares held over 24 months) at 12.5% plus surcharge and cess, short-term gains at the ordinary 35% foreign-company rate plus surcharge and cess, with no treaty relief available since Peru has no DTAA with India. A Peruvian parent holding more than 10% of an unlisted Indian company is treated as a "promoter" and pays an additional 17.5% tax on long-term gains. Still a workable exit mechanism.

Peru's domestic corporate tax rate is 29.5%. Check with a Peruvian tax advisor whether Peru allows a unilateral foreign tax credit for Indian withholding tax paid — this is the only mechanism to avoid double taxation in the absence of a DTAA.

Exit Strategy

If your India venture does not work out, here are your options.

Strike-off under Section 248 of the Companies Act, 2013 — for dormant companies with no assets or liabilities. File STK-2 with MCA. Takes 3-6 months. You need nil tax liabilities and closed bank accounts.

Voluntary liquidation under the Insolvency and Bankruptcy Code, 2016 — for active companies. Requires a special resolution, appointment of a liquidator, and — under the IBBI voluntary liquidation regulations — completion within 270 days of the liquidation commencement date where creditor approval was needed, or 90 days in other cases. More involved but cleaner for companies with actual operations.

How Beacon Filing Helps

We handle the complete India entry process for investors based in Peru. From initial structuring through post-incorporation compliance, here is what we cover:

• Foreign Direct Investment advisory — route selection, sector analysis, RBI compliance, and FC-GPR filing
• Resident Director services — appointment of a qualified Indian resident director who meets the 182-day requirement
• Company setup and incorporation — SPICe+ filing, DSC, DIN, name reservation, and Certificate of Incorporation
• Tax advisory — structuring to minimize withholding tax impact in the absence of a DTAA, transfer pricing documentation
• Accounting and statutory audit — bookkeeping, financial statements, ROC filings, and GST returns

Related Country Guides

Setting up from a different country? These guides cover similar territory:

• Register a Company in India from Brazil
• Register a Company in India from Chile
• Register a Company in India from Colombia
• Register a Company in India from Argentina
• Register a Company in India from Mexico
• Register a Company in India from USA

Get in Touch

Setting up an Indian company from Peru? Talk to us. No commitment, no generic sales pitch. We will walk you through the structure, timeline, and costs specific to your situation.

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