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Employment Legal Business EmploymentThose who have subsidiary companies in the Peruvian country and wish to increase their financial capabilities must be aware of the capital increase in Peru and how it works correctly. So this time we will talk to you about everything you need to know about this topic.
The capital increase is one of the corporate operations most used by companies. companies seeking to strengthen their financial structure, finance growth projects or incorporate new investors.
Through this operation, the company increases the share capital registered in its statutes, increasing the company’s own resources and improving its investment and financing capacity.
In Peru, the capital increase is regulated by the General Law of Companies and must comply with a series of legal formalities so that it produces effects against third parties.
There are multiple reasons by which a company can choose to carry out a capital increase. Among the most common are:
For many foreign companies that enter the Peruvian market, capital increase is usually a key tool to accompany growth of its local operations.
Peruvian legislation contemplates different mechanisms through which a company can increase its social capital.
It is the most common modality. The partners or shareholders make additional contributions to the company, whether through money, goods or rights susceptible to economic valuation.
These contributions directly increase the company’s assets and strengthen its financial position.
In this modality, a creditor of the company converts existing debt into equity.
It is a common alternative when the partners have previously financed the company through loans and subsequently decide to transform those credits into share capital.
The company can allocate accumulated profits to increase its share capital.
Instead of distributing profits among partners, they are reinvested in the company, strengthening its assets.
It is also possible to use previously established reserves to increase share capital.
This modality allows reinforce the asset structure without the need to make new financial disbursements.
The process must follow a series of stages established by Peruvian corporate regulations.
The first step is to obtain approval for the capital increase by the corresponding corporate body.
The general meeting must approve:
As a consequence of the increase in social capital, it is necessary update the company’s statute reflecting the new capital amount.
This modification is part of the corporate agreement approved by the partners or shareholders.
Once the agreement is adopted, it must be formalized by public deed before a notary.
The deed will include the corporate agreements and the corresponding statutory modification.
Finally, the capital increase must register with the National Superintendency of Public Registries (SUNARP).
Registration is essential for the operation to produce effects against third parties and to be formally registered.
Although the capital increase constitutes a corporate operation, depending on the modality used There may be accounting and tax implications that must be analyzed previously..
For example:
Therefore, it is advisable to carry out a prior analysis to guarantee correct execution of the operation and minimize future risks.
An adequate capitalization strategy can provide significant benefits to the organization.
Among them stand out:
The increase in equity improves the economic capacity of the company and conveys an image of greater solvency.
Financial institutions usually positively value companies with solid asset structures, which can make it easier to obtain credit.
Additional capital allows financing expansion projects, acquisitions, new investments or entry into new markets.
A well-organized and properly capitalized corporate structure It is usually more attractive to potential partners and investors.
Companies with a robust equity base are better prepared to face adverse economic situations or changes in the market.
International companies operating in Peru frequently resort to capital increases to finance the growth of your local subsidiaries.
This operation allows Peruvian society to be provided with greater resources without the need to resort exclusively to debt, strengthening its operational capacity and its presence in the market.
Furthermore, correct corporate planning can facilitate future investments and regional expansion processes.
At UR Global we accompany national and international companies in all stages of their corporate growth.
Our specialized team advises on corporate operations, capital increases, company formation, regulatory compliance and international expansion, guaranteeing that each process is carried out safely, efficiently and in accordance with Peruvian legislation.
If your company is considering a capital increase in Peru, we can help you structure and execute the operation appropriately, minimizing risks and optimizing the process.
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