Form of government:Republic
Area:9 104 км2
Offshore Registration in Puerto Rico
Organizational and legal forms
Closed joint-stock company (Uždaroji akcinė bendrovė), due to the status of limited liability and relatively simple management, is the most common legal entity in business. Joint stock companies (JSC) are less common. The establishment and management of legal entities is regulated by the Civil Code and the Joint Stock Companies Act. In addition to joint stock companies, there are also other types of legal entities: personal (individual) enterprises, business partnerships, funds, public organizations/institutions. However, their number is small, therefore “Teisės tiltas” CJSC registers such enterprises only by special order of the client.
Types of companies
The enterprises of the following organizational and legal forms can be opened in Puerto Rico:
- Limited Liability Companies. It is necessary to submit an online application to register them, as well as make a one-time state fee. In addition, annual fixed fees are collected from the owners of the company.
- Corporations or their foreign representative offices.
- Individual possessions. Such a company is not subject to registration.
- DBA is a company under an assumed name. This form of ownership stipulates that the owner registers the company under one name and is engaged in commercial activities under a different name. It concerns mostly partnerships, limited liability companies and firms with sole ownership. Trademarks and fictitious names of such a type are recorded by the Department of State Register of Trademarks and Commercial Names in Puerto Rico.
In order to register a company in Puerto Rico, the founder must choose a name, check it for uniqueness and enter it in the register of the State Department. This procedure can be done online. The owner is also issued a certificate of company establishment through the Internet. It should contain the following information:
- commercial goals of the company;
- address of the legal entity;
- number and rights of shareholders.
Each registered company receives an individual identification number, which is the basis for paying taxes.
Annual reporting and audit
All companies involved in commercial activities in Puerto Rico necessarily enter their data in the Register of Trade and Other Companies. Filling in the registration form is carried out annually, not later than July 15.
Puerto Rico has a simplified taxation system that provides for the payment of a 0.5% tax to the state treasury. This amount is charged from the annual income of the enterprise, exceeding 5 thousand dollars.