Regulations and Policies
As an entrepreneur, you are more competitive if you understand the laws and regulations that affect your business. Businesses need to comply with state policy, so it is important to keep up to date with all laws that apply to you.
In Peru, central and local government agencies are aware of the importance of technology and innovation for business development. The government has developed policies and regulations to help MSMEs become more competitive and sustainable.
These are some relevant topics:
● Registering or incorporating your business
● Name search and trademarks
● Permits and licenses
● Taxes and collecting sales tax
● Export and import procedures and rules
● Human resource management guidelines
● Social media
● Employee training and hiring legislation
● Employee regulations
● Workplace health and safety
● Industry or sector-specific policies
● National, regional, departmental, provincial and municipal practices
Local business associations, like chambers of commerce, provide specific information on laws and policies for specific business sectors. Take time to research and plan to ensure your business complies with all applicable laws and regulations. Decisions you make early on can set you up for success, while mistakes or oversights can create serious problems down the road.
Laws and policy change and you need to stay current to maintain a viable business. Business associations, sector-specific publications, or a good internet search can help you and your enterprise remain in compliance and in business.
Government Regulation and Policies
The Presidency of the Council of Ministers (PCM) coordinates and formulates multi-sector policy at national level. This organism executes processes for the decentralization and modernization of the Public Administration.
The PCM, through the Secretariat of Public Management, presented the strategy of Better Citizen Attention (MAC). MAC is an integrated platform that provides citizens with services by bringing together multiple public entities in one place with the objective of saving them both time and money. MAC offers citizens fast, trustworthy, transparent and comfortable services in one place.
If you need personalized information, visit one of the 17 centers that are open seven days a week. You can request information by email, online chat or by dialling 1 800. Agents speak Spanish and Quechua and are available 24 hours a day, seven days a week. You can also book an appointment online. Through its single point of contact ALO MAC, MAC is able to provide citizens support for more than 4000 procedures. MAC centers offer over 184 integrated services.
Some of the services offered by MAC that will help your business are:
- Incorporation of companies (Just for companies such as SAC, SA, EIRL, SRL; not for associations, Cooperatives or ONG)
- Brand search and registry
- Orientation in Labour requirements
- Citizenship identification
- Enrollment of health services
- Apostille of documents
By 2021, PAC plans to develop 24 MAC centers and more MAC EXPRESS modules.
The Center for the Better Citizen Services of the Micro and Small Enterprise (MACMYPE) brings together public entities that offer start-up and business development services. As an entrepreneur, you have access in one physical space to information and services for all your business needs.
At MACMYPE you will be able to open your business in 72 hours. You will receive information, training and advice to develop and sustain your enterprise. The center is open from Monday to Sunday including holidays. Everything you need for your business in one central location.
Both MAC and MACMYPE provide free training and informative sessions for micro, small enterprises and for citizens in general. Volunteer consultants also provide professional advice. At MACMYPE, you will also be able to keep up to date with changes in laws, regulations and policies that have to do with MSMEs. Learn how to export step-by-step, incorporate your business, about the integral health insurance for MSMEs, how to start a business and about all the benefits of the MYPE Law (Ley MYPE).
Follow this link to watch the interview video with Jeanette Noborikawa, Subsecretary of Public Administration, discussing the Strategy of MAC centers.
Ministry of Production (PRODUCE)
PRODUCE promotes MSMEs at the national level and delivers services through the following platforms, funds and programs:
Start-up Peru promotes the creation and consolidation of new businesses offering innovative products and services through contests and calls for proposals. It finances entrepreneurs and businesses with up to S/ 50,000 and S/ 500,000.
Emprendedor Peruano is a Business Development Services platform that offers free courses and training to improve competitiveness of Peruvian entrepreneurs. Services are available on-site and online.
Innóvate Perú is the National Program of Innovation for Competitiveness and Productivity. Innovate Peru has three objectives: 1. Increase the Innovation of Productive Business Processes, 2. Promote Innovation Entrepreneurship, and 3. Facilitate the Absorption and Adapting of Technologies for Businesses. To achieve these objectives, Innovate Peru administers four funds: Fund for Innovation, Science, and Technology (FINCyT I & II) 2), Fund for Investigation and Development for Competitiveness (FIDECOM), Frame Fund for Science, Innovation and Technology (FOMITEC) and MYPIME Fund. Innóvate Perú awards resources to MSMEs and entrepreneurs through competitions of national scope, for the non-reimbursable co-financing projects in all sectors of the productive activity.
Kit Digital promotes the growth of MSMEs through digitalization and offers tools, services, and courses to help businesses generate greater opportunities and savings by increasing online sales.
Produce Virtual provides services and apps for citizens and public officials. Users can access automated government services and processes to save time and money.
CODEMYPE the National Council for the Development of MSMEs has eight responsibilities:
a) Approving the National Plan for Promotion and Formalization of Competitiveness and Development of MSMEs
b) Coordinate sectorial policies and actions to support MSMEs at the local, regional and national level
c) Supervise policy compliance
d) Promote cooperation among public sector and private entities in programme execution
e) Foster MSME associations
f) Promote access for MSMEs to financial markets
g) Foster alignment of MSMEs with medium and large enterprises to strengthen and develop the productive structure
h) Contribute to capturing and generating a database of MSME statistical information
Ministry of Development and Social Inclusion (MIDIS)
MYPERU is a platform that allows FONCODES, a MIDIS program, to acquire goods and services only from MYPEs.
PAIS (Action Programme for Social Inclusion) is a national social program that aims to bring the services of the State to vulnerable populations in rural disperse zones contributing to the reduction of poverty and lack of public services through the implementation of two platforms: PIAS and Tambos.
With PIAS (Itinerant Social Action Platforms) inland waterway vessels travel the Peruvian Amazons to deliver state services to remote populations in the country. On the riverboats, people can access offices of the Bank of the Nation, RENIEC, Office of the Minister of Women and Vulnerable Populations, and the Minister of Development and Social Inclusion.
The Tambos Service Platform provides a state presence in isolated rural areas. Tambos enclosures are staffed with qualified personnel and have modern equipment to provide impoverished populations access to free social services and business assistance. Tambos enclosures are always located next to main roads and can double as shelters and storage centers.
Ministry of Foreign Trade and Tourism (MINCETUR)
Since 2003, MINCETUR has used the Strategic National Exporter Plan (PENX) to help transform Peru to an exporting country that provides a competitive, modern, diversified and value-added offer of goods and services.
This entity focuses on four strategic objectives to achieve its vision:
a) Development of an exportable offer
b) Facilitating foreign trade
c) Development of new markets and consolidation of current ones
d) Development of an exporting culture
Nighty percent of Peru’s exports are done through trade agreements.
The new version of the Strategic National Exporter Plan PENX 2025 adapts to the new international scenery and changing local reality. This new version will consolidate Peru’s MSMEs global presence through the internationalization of the Peruvian enterprise.
Ministry of Economy and Finance
The Special Program of Financial Support for Micro and Small Enterprises (PROMYPE) provides financial resources to entities that specialize in providing financing to MSMEs while making sure funds are used exclusively in the MSME sector. Intermediary Financial Institutions have access to a reliable source of financial resources so they can provide services to the MSMEs. The PROMYPE Credit Line is destined to finance IFI services provided through the Ventanilla PYME and it is designed for MSMEs that need to finance Human Capital and Fixed Assets.
MSMEs can benefit both from increased investment availability and by having access to formal credit through their shared office Ventanilla MYPE.
This list provides you with all the agencies that deliver the Ventanilla MYPE service in Peru.
The central bank of Peru also helps promote and sustain MSMEs by easing access to formal financial services using a shared office with Intermediary Financial Institutions (IFIs). IFIs can access new markets, offering financing alternatives to MSMEs, while having a robust and efficient government-backed product. MSMEs get access to formal credit and investment in their business growth.
The CRECER Fund (DECRETO LEGISLATIVO No 1399) was created by the Peruvian government to foster productivity and business development of MSMEs and exporting businesses which have high national economic impact. There are sufficient resources offered by the CRECER Fund to assist 340,000 MSMEs through financial products such as financing and guarantees. It is managed by COFIDE, the Financial Development Corporation.
Four funds compose CRECER:
The resources to finance CRECER and managed by COFIDE and come from money distributed to these funds and from the capital generated from management and investment.
A new norm created a bond whose objective is to promote the timely fulfillment of payments derived from the financing of working capital and fixed assets. The bond is offered through companies that participate in the financial system.
Peru’s Government expands the range of collateral to improve MSME financing by considering patents, copyrights, and brands as property assets. A change in the Civil Code established that ships and vessels are now be considered real estate. In addition, author economic rights, patent, trade names, trademarks and other intellectual property rights are considered as personal property.
The Legislative Decree also establishes that in the constitution of the security interest, procedures and mechanisms can be agreed with the purpose of ensuring the delivery of the property in warranty.
This new regulation will allow loan interest rates for MSMEs to drop and will be published within the next 120 days.
A security interest allows the use of an asset that ensures the payment of the principal debt, interest, commissions, expenses, insurance premiums, penalties, and any other concept agreed between the creditor and the debtor.
Ministry of Energy and Mines
The Ministry of Energy and Mines will help the artisanal miner in a tutelary role of strength-oriented towards its entrepreneurial consolidation, for a period up to 24 months covering the following:
- Operative and administrative, technological training that enables rational exploitation of the mineral deposit
- Channelling of business process information that allows the artisanal miner to make use of opportunities that could arise and those provided by the current legislation
- Facilitate suppliers and customers that are convenient, locally and internationally.
- Facilitate Artisanal Miner with direct access to production input that is controlled by the State
- Advisory services to identify funding sources
By supreme decree, in 2019 the Ministry of Economy and Finance will establish a tariff regime for the import of machinery and equipment that is new or used.
Regional Government Participation
Regional governments will participate through their regional energy and mining directives, by formulizing accords and exploitation contracts between artisanal miners and mining right holders. Regional governments fulfill a tutelary function for the following:
- Pursuing operative, administrative and technological training to enable rational exploitation of the mineral deposit. Support for artisanal mining producers is delivered through collaboration agreements with universities and other technical/technological institutions.
- Instruct artisanal mining producers about their rights, obligations and administrative process compliance.
- Help producers gain access to local and international suppliers and customers.
- Help with accessing state-controlled production input.
- Advisory services to identify funding sources and trade
The Ministry of Energy and Mines can support and collaborate with regional governments, to promote, mediate, strengthen and consolidate ASMs.
Artisanal Mining Development Plan
The Ministry of Energy and Mines will elaborate on the Artisanal Mining Development Plan, which will include the following activities:
- In castrated mining areas owned by the State, granting of mining rights for artisanal miners who are mining in those areas will be promoted
- In castrated mining areas owned by in favour or formal miners, the Ministry of Energy and Mines will be an intermediary to facilitate and foster the adoption of legal mechanisms to reach an agreement of exploitation, which contains acceptable conditions for both parts in all the titled area or part of it.
- Commission the formulation of an annual plan of support for the Small-Scale Miners, related to the analysis of samples and promotion of mining projects presented by the small-scale mining producers and artisanal mining producers.
Work for people under 18 years of age in any activity related to mining is forbidden. Children and teenagers have the right to be removed from mining activities that represent a risk for their health and security.
Families of children that are removed from mining work or that abstain from this activity will have priority access to social programs that fight against poverty and promote employment, as long as they are able to demonstrate the compliance with rules to protect children and adolescents.
The Law for the Formalization and Promotion of Small-Scale Mining and Artisanal Mining (LEY No 27651) introduces a legal framework in the Mining Legislation to enable efficient regulation of mining activities carried out by small-scale miners and artisanal miners, and therefore facilitating their formalization, promotion and development. This law provides mining MSMEs with a promotional regimen that aims to strengthen its national level, improving quality of life for nearby populations by employing local labour.
Bill of Law that Modifies the General Law of Mining (PROYECTO DE LEY No 3791/2018-CR)
Ministry of Women and Social Development
The Ministry of Women and Social Development creates the Programme for Attention for Children and Teenagers Withdrawn from Mining Work (LEY Nº 28992).
The National Program Against Family and Sexual Violence formulates, designs, promotes and executes plans, projects, and prevention-attention programs, in addition to promoting protection and recovery actions against family and sexual violence.
The Gender Violence, Autonomy and Economic Empowerment of Women of North Peru: issues and challenges is a forum at Expo Peru Norte 2018 in the city of Chilcayo. Networks of women receive training and support from the ministry to promote their micro-entrepreneurship projects as part of the strategy of economic empowerment.
Budget Program 0080 Fight Against Family Violence – Activity 5003446 Develop economic entrepreneurship programs as a preventive strategy, assumes alliances with institutions that can introduce trained women into economic enterprises. In coordination with local and regional governments, work is arranged with economic development managers to provide training and technical advice in business management to women who promote entrepreneurship activities.