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Ease of Doing Business in

Puerto Rico US

Puerto Rico US Download Profile (1760.9KB, pdf)
Region Latin America & Caribbean
Income Category High income
Population 3,474,182
GNI Per Capita (US$) 19,149
City covered San Juan

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 55 56 up
1
69.82 69.18 down
0.64
Starting a Business 51 47 down
4
91.23 91.11 up
0.12
Dealing with Construction Permits 131 132 up
1
62.17 62.21 down
0.04
Getting Electricity 65 62 down
3
76.55 76.58 down
0.03
Registering Property 153 164 up
11
47.29 42.43 up
4.86
Getting Credit 7 7
-
85.00 85.00
-
Protecting Minority Investors 87 85 down
2
53.33 53.33
-
Paying Taxes 135 137 up
2
59.82 58.30 up
1.52
Trading across Borders 62 61 down
1
81.86 81.86
-
Enforcing Contracts 97 96 down
1
56.13 56.13
-
Resolving Insolvency 9 7 down
2
84.84 84.84
-

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 51

DB 2016 Rank: 47

Change in Rank: down4

DB 2017 DTF (% points): 91.23

DB 2016 DTF (% points): 91.11

Change in DTF (% points): up0.12

Standardized Company
Legal form: Limited Liability Company
Paid-in minimum capital requirement: USD 0
City: San Juan
Indicator Puerto Rico US Latin America & Caribbean OECD high income
Procedure – Men (number) info_outline 6.0 8.3 4.8
Time – Men (days) info_outline 5.5 31.6 8.3
Cost – Men (% of income per capita) info_outline 1.3 31.5 3.1
Procedure – Women (number) info_outline 6.0 8.3 4.8
Time – Women (days) info_outline 5.5 31.6 8.3
Cost – Women (% of income per capita) info_outline 1.3 31.5 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 2.3 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Check the uniqueness of the company name and register online to obtain a business certificate

    Agency: Corporate Registry (Registro de Corporaciones y Entidades) of the Puerto Rico Department of State

    Each company must be registered at Puerto Rico Department of State. The General Corporations Act (Act No. 164 of 2009) provides online application for company’s Certificate of Incorporation (found online here: https://prcorpfiling.f1hst.com/).

    The certificate of incorporation generally sets forth the company’s business purposes, the address of registered office, the number in each authorized class, and the rights of stockholders in each of these classes. If all documents are duly filed, the corporation could be formed and incorporated and start operations the same day.

    The minimum fee for incorporation of an LLC is USD 250.

    Less than one day (online procedure) USD 250
    2

    Apply for an employer identification number (EIN)

    Agency: Internal Revenue Service of the United States and the Puerto Rico Department of Treasury

    The employer must apply for an employer identification number (EIN) with the U. S. Internal Revenue Service. Upon receipt of the EIN, the employer must submit the EIN to the Puerto Rico Treasury Department (using Form 4809), and each employee must complete Form 499-R-4 for Puerto Rico tax withholding.
    1 day no charge
    3

    Apply for a municipal business license (patente municipal)

    Agency: Municipality

    Within 30 days of commencing operations, any person (natural or juridical) must apply for a municipal business license in the municipality where the company will conduct business. The law exempts the company from paying tax during the first semester of operation (January 1st to June 30th or July 1st to December 31th). Upon request and compliance with certain requirements, the Company will be issued a provisional license.

    Commonwealth of Puerto Rico law establishes the right of every municipality to impose and collect municipal license taxes (patentes municipales) based on the volume of business of up to 5% of gross sales. Most for-profit activities that generate revenues in excess of USD 5,000 per year are covered.
    1 day no charge
    4

    Request unemployment and disability account numbers

    Agency: Puerto Rico Department of Labor and Human Resources

    Unemployment insurance tax is administered by the Commonwealth of Puerto Rico Department of Labor and Human Resources. Temporary disability insurance may be obtained privately, and proof of such insurance should be filed with the Department of Labor.
    1 day no charge
    5

    Subscribe to a workmen’s insurance policy

    Agency: Private Insurer

    Workers' compensation insurance is provided by the State Insurance Fund Corporation (Corporación del Fondo de Seguro del Estado). Insurance premiums vary with the type of business activity.
    1 day no charge
    6

    File an application to get the Merchant Certificate

    Agency: Puerto Rico Treasury Department

    The new company must obtain a Merchant Certificate.
    1 day no charge