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How to start a business in Puerto Rico as a foreigner (2026)

Starting a business in Puerto Rico as a foreigner: easy.

Puerto Rico permits 100% foreign ownership of corporations and LLCs with no nationality or residency requirement for owners, and imposes no minimum capital. Domestic entities are formed via online filing with the Department of State (typically processed within ~24 hours), and a Puerto Rico resident agent is required; foreign entities already organized elsewhere file a Certificate of Authorization to do business.

Last verified Official sources first · MethodologyCompare Puerto Rico with other countries

Legal framework

Puerto Rico General Corporations Act (Act No. 164 of 2009), administered by the Puerto Rico Department of State (Registro de Corporaciones); as a U.S. territory, federal law (IRS, immigration) also applies.

Key points: starting a business in Puerto Rico

  1. Foreign ownership

    There are no restrictions on foreign-owned businesses; foreigners may own 100% of a Puerto Rico LLC or corporation, and shareholders/members (individuals or entities) have no Puerto Rico residency requirement.

    statedepartment.pr.gov bizlatinhub.com

  2. Minimum capital

    No minimum paid-in or authorized share capital is required to form an LLC or corporation under the General Corporations Act.

    law.justia.com statedepartment.pr.gov

  3. Setup steps (domestic entity)

    File a Certificate of Incorporation (corporation) or Certificate of Formation (LLC) with the Department of State online; appoint a Puerto Rico resident agent with a local address; an LLC also needs an operating agreement and at least one member and one manager.

    statedepartment.pr.gov law.justia.com

  4. Foreign (already-formed) entity registration

    A company organized outside Puerto Rico must file a Certificate of Authorization to do Business under the Foreign Corporation provisions, submitting a certificate of existence (under 3 months old, with sworn translation if not in Spanish/English), resident agent details, business purpose, assets/liabilities, and current directors.

    statedepartment.pr.gov statedepartment.pr.gov

  5. Timeline and fees

    Online registrations are generally processed within about 24 hours; the foreign corporation Certificate of Authority filing fee is around $150, and an annual report (approx. $150) must be filed each year.

    statedepartment.pr.gov statedepartment.pr.gov

  6. Additional federal/local steps

    As a U.S. territory, businesses obtain a federal EIN from the IRS and must register with Hacienda (Treasury) for the Merchants' Registration Certificate; foreign individuals seeking to physically work in PR require separate U.S. immigration authorization, though ownership itself does not.

    statedepartment.pr.gov estado.pr.gov

Sources

  1. statedepartment.pr.gov/registration-of-legal-entities
  2. statedepartment.pr.gov/services-coporations
  3. estado.pr.gov/en/services/services-corporations
  4. law.justia.com/codes/puerto-rico/title-fourteen/subtitle-5/chapter-221/3501/
  5. law.justia.com/codes/puerto-rico/title-fourteen/subtitle-5/chapter-240/4023/
  6. bizlatinhub.com/entity-types-puerto-rico/

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Orientation, not legal advice: verify against the primary sources linked above. Last verified 24 May 2026. Methodology & how to cite · State of Technology Regulation 2026