Build what’s next
in Puerto Rico.

The starting point is how the business will operate, who will own it and where its customers and activities will be located.

Entity selection, ownership interests, management responsibilities and governing documents establish the foundation. Puerto Rico and federal tax classifications and elections require coordinated consideration.

Depending on the structure, initial steps generally include forming an entity or obtaining authorization to do business in Puerto Rico, obtaining an employer identification number, and registering with the Puerto Rico Treasury Department through SURI.

Merchant registration and the applicable tax accounts should reflect the business’s actual activities and locations.

The location and type of activity determine the applicable permits, licenses and municipal requirements.

These may include a Permiso Único, industry-specific authorizations and a provisional municipal business license. Municipal registration, operational permits and tax registrations serve different purposes and should be considered together.

Business banking, accounting records and financial reporting support the operation from the start.

Hiring employees brings additional responsibilities, including employer registrations, payroll withholding and reporting, labor requirements and workers’ compensation coverage. Businesses purchasing or importing goods and services may also have sales and use tax, excise tax or other obligations.

Act 60 and other programs provide incentives for qualifying activities and investments.

Eligibility depends on the project and the applicable program. Applications, decrees, operating commitments and ongoing compliance form part of the evaluation, together with the interaction between Puerto Rico and federal tax treatment.

Once operations begin, recurring obligations may include income tax returns, estimated payments, sales and use tax filings, withholding and information returns, municipal volume-of-business declarations, and property tax filings with CRIM.

Department of State annual reports or fees, permit renewals and incentive reports may also apply. Financial statement and audit requirements depend on the business and the applicable rules.