BASIC QUESTIONS ABOUT MICRO AND SMALL BUSINESSES

1. How are Micro and Small Enterprises conceived?

The Micro and Small Enterprise is the economic unit constituted by a natural person or
legal, under any form of organization or business management contemplated in the legislation
current, which aims to develop activities of extraction, transformation, production,
marketing of goods or provision of services. According to the Consolidated Text of the Law
of the Impulse for Productive Development and Business Growth approved by DS 013-
2013. PRODUCED on December 28, 2013

In Peru, it is a person who exercises rights and fulfills obligations on a personal basis.
to establish your business as a Natural Person, you assume all obligations. This means that...
you accept to take on the responsibility and guarantee with your assets and property the payment of the debts
and obligations that the company may incur

2. What is the importance of MSEs for the Peruvian economy?

SMEs are important in the Peruvian economy because they represent the main source of
job generation, according to ... Furthermore, its participation in the socioeconomic development of the
Areas where they are located is important.

Currently, MSEs represent a sector of vital importance within the structure.

productive of Peru, so that microenterprises represent 95.9% of the total
national establishments, a percentage that increases to 97.9% if the
small businesses

3. What percentage do MYPES contribute to GDP?

According to data from the Ministry of Labor, SMEs provide employment to more than 80% of the population.
economically active (EAP) and generate about 45% of the gross domestic product (GDP).
They constitute, therefore, the main engine of development of Peru, their importance is based on the fact that:

They provide abundant job opportunities.

They reduce poverty through income-generating activities.
They encourage entrepreneurship and the entrepreneurial spirit of the population.
They are the main source of development in the private sector.
They improve income distribution.
Contribuyen al ingreso nacional y al crecimiento económico.

When do Micro and Small Enterprises cease to have the status they hold?

The micro enterprise ceases to have that condition when the period of 1 year exceeds the amount.
of annual gross sales or when the annual average of workers during 2 consecutive years
exceed the limit of 10.
The small business ceases to be classified as such when, within a period of 2 years
consecutive, exceed the amount in gross sales or the maximum number of workers
5. What is the purpose of the existing norms and laws surrounding MSEs, what are the differences and
What coincidences do they have?

Its purpose is to promote the creation, protection, development, and strengthening of Micro and
Small Enterprises, hereinafter also referred to as MYPE, and contribute to strengthening the
competitiveness of the existing ones, in order to improve their job and value generating capacity
added to production; promote greater access for women to business development in
equity conditions, and constitutes the general framework for their integration into the
formal economy of the country, through the creation of a favorable, equitable, inclusive environment,
sustainable and competitive for the proper functioning and growth of this business sector.

6. What is the state policy regarding MYPES?

According to Article 11 of the consolidated text of the Law for Promoting Productive Development and Business Growth
the state policy regarding SMEs is to promote comprehensive development and facilitate access to the
business services and new ventures, in order to create a favorable environment
to its competitiveness, promoting the establishment of financial and non-financial service markets
financial, quality, decentralized and relevant to the needs and potential of the
MyPE..

7. What is the procedure to create a MYPE?

Generally, the constitution of a company in Peru involves the execution of 9 steps,

however, for the case of MYPES, an additional one is included which is to register the MYPE in
the National Registry of Micro and Small Enterprises (REMYPE), after having obtained its
Unique Taxpayer Registry (RUC) corresponding.

Step 1: Prepare the constitution minutes

Step 2: Public Deed
Step 3: Registration in the public records
Step 4: Process the unique taxpayer registration (RUC)
Step 5: Register the workers in essalud
Step 6: Request permission, authorization, or special registration
Step 7: Obtain Authorization for the template book
Step 8: Legalize the accounting books
Step 9: Process the municipal license

8. What are the guidelines regarding MYPES?

Taking as a reference Article 3 of the Consolidated Text of the Law for the Promotion of Productive Development and to
Business Growth the action of the State in the promotion of Micro and Small Enterprises is oriented
with the following strategic guidelines:

a) Promotes and develops programs and instruments that stimulate the creation, development, and
competitiveness of SMEs, in the short and long term that promote sustainability
economic, financial, and social of the actors involved.
b) Promotes and facilitates the consolidation of business activity and fabric, through the
inter- and intra-sectoral, regional articulation and the relationships between productive units of
different sizes, promoting at the same time the associativity of MyPE and integration
in productive and distributive chains and lines of activity with distinctive advantages for the
job creation and socio-economic development.
c) Fosters the entrepreneurial and creative spirit of the population and promotes initiative and investment.
private, intervening in those activities where it is necessary to complement the
actions carried out by the private sector in support of MyPEs.
d) Seeks the efficiency of public intervention through specialization by activity
economic and the coordination and inter-institutional agreement.
e) Disseminate the information and statistical data available to the State and that is managed by
public or private way represents an element of promotion, competitiveness and
knowledge of the reality of MyPEs.
f) Prioritize the use of resources allocated for promotion, financing, and formalization.
of the MyPE organized in consortia, conglomerates or associations.
g) Promotes access, under conditions of gender equity, for men and women who
they lead or work in the MyPE, to the opportunities offered by the service programs
of promotion, formalization, and development.
h) Promotes the participation of representative local actors of the corresponding
productive activity of MyPEs, in the implementation of policies and instruments, seeking
the convergence of instruments and actions in regional and local spaces or in the
productive and distributive chains.
i) Promotes associativity and business association as a strategy for strengthening
the MyPE.
j) Prioritize and ensure access for MyPE to efficient protection mechanisms.
intellectual property rights.
k) Promotes the contribution of technical cooperation from international organizations, aimed at
development and growth of SMEs.
l) It promotes the provision of business services by universities, through
incentives in the different stages of investment projects, feasibility studies and
facilitation mechanisms for its implementation.
9. How does formalization contribute to the development of micro and small enterprises (MYPES) and what is the procedure for it?

follow?

As we know, the micro and smallcompany(hereinafter Mype) plays a prominent role in

thesocial developmentand economic of our country, being the largest generating source ofemploymenty
dynamic agent of [Link] a country where the lack of employment is one of
theproblemsmore serious, it is essential to reflect on what the promoting role is that it
corresponds toState.
OurConstitutionconsecrates aEconomyMarket Social as emphasized by the Court
Constitutional (hereinafter TC) is an important condition of the Social and Democratic State of
Right that must be exercised withsocial responsibility and under thebudgetofthe
valuesconstitutional [Link] this context, it is the responsibility of the State to exercise
its role as a promoter of employment respecting the Principle ofEqualityaccording to which it must be dealt with
equal to the equals and unequal to the unequal.
Nobody doubts that one of the ways thatthe Stateto promote employment is through the
legislation. Therefore, the State has established a regulatory framework promoting Mype, in order to
that the labor overruns, thecostsof the transaction, and the tax burden does not hinder its
formalization and growth.

10. Under what modalities can MYPES be organized?

Article 4 of the MYPE Law establishes theconceptof Micro and Small Enterprise, it literally says:
It is an economic unit that operates apersonnatural or legal, in any form
oforganizationobusiness managementthat develops extraction activities,
transformationproductionymarketingofgoodsor provision ofservices,what is it
regulated in the TUO(TEXTUNIQUE ORDERED), of the Competition Law,
Formalization and development of Micro and Small Enterprises and Access to Decent Employment (Dec.
Leg. No. 1086
It is important to emphasize that, themicroenterpriseit does not need to be established as a legal entity,
being able to be driven directly by its owner individual person. However, it will be able to,
voluntarily adopt the form of Sole Proprietorship ofResponsibilityLimited, or
any of the corporate forms provided for by law. The characteristics that must be met by a
SMEs are the following:

11. Is it possible for a natural person to organize a small and medium-sized enterprise (SME)?

According to Article 8 of the Consolidated Text of the Law for the Promotion of Productive Development and Business Growth
the microenterprise does not need to be established as a legal entity, and can be run
directly by its owner, an individual. However, it may voluntarily adopt
the form of Individual Limited Liability Company, or any of the forms
corporate entities provided for by law

12. What is a Joint Venture?

The joint venture in Spanish, a joint company is a strategic partnership that can be
short, medium, or long term, a grouping or alliance of people or groups of companies
that maintain their individuality and legal independence but act together under the same
direction and rules, to carry out a specific commercial operation, where
they distribute investments, control, responsibilities, personnel, risks, expenses, and benefits.
CHARACTERISTICS

It is an unnamed business collaboration contract.

Companies maintain their own individuality, which means the opposite of merging.
Companies are pre-existing.
Through this contract, the parties seek a common utility.
There is a contribution to the losses, profits, functions, and investment.
The purpose of the joint venture is varied, it does not necessarily require a financial contribution.
but the contribution will be defined by the needs that lead to the collaboration
business.
The contributions that the contractors must fulfill may consist of money, goods,
technology, services, strategies, etc.
Ad hoc character, which is basically intended for a project, without that
to be of short duration, since this will be designated by virtue of the principle of autonomy
will, but it will always have a limited duration.
Contributions and grouping of the parties' interests.
There is a possibility of generating a reciprocal representation of the other party.
There is a joint control of business collaboration.
There is an agreement, which consists of a declaration of common will aimed at
regular his rights in this agreement.
The common objective, which must be indicated in the agreement.

13. What is the REMYPE and what functions does it perform?

The REMYPE, the National Register of Micro and Small Enterprises, is a register where
register the MSEs whose administration is under the responsibility of SUNAT, in order to access
the benefits of the MYPE Law. This registration can be done online by following the following
steps:

14. What is PROCOMPITE?

Law 29337 – PROCOMPITE Law allows Regional and Local Governments to implement
Competitive Funds for Co-financing Productive Proposals (Business Plans)
presented by an organization of small producers of productive chains that the
subnational government has prioritized. The objective of the Law constitutes a priority strategy
from the State with the goal of improving the competitiveness of production chains through the
development, adaptation, improvement or technology transfer.

15. What is an entrepreneurship?

It is as much the study of how new businesses are created as the actual process of starting.
a new business. An entrepreneur is someone who has an idea and works to create one.
product or service that people will buy, and that creates an organization to support those sales.
Currently, entrepreneurship is a popular field of study at the university, focused on studying the
creation of the new business.

16. How does the state promote training and technical assistance to MSEs?

In law 28015 Art. 16° Service Offers and Training and Technical Assistance The State
promotes, through CODEMYPE and its Programs and Projects, the supply and demand of
services and training and technical assistance actions in the established priority subjects
in the Strategic Plans and Programs for promotion and formalization for competitiveness and
development of MSEs, as well as the mechanisms to address them. The programs of
training and technical assistance are primarily aimed at :

The creation of companies

The organization and business associativity
Business management
Production and productivity
Marketing and merchandise
Financing
Strategic economic activities
The legal and tax aspects

The training and technical assistance programs should be related to indicators.

approved by CODEMYPE that include minimum coverage levels, periodicity,
content, quality, and impact on productivity.

17. What is the tax regime for MSEs?

Starting from the 2017 fiscal year, the tax regimes have undergone modifications. Before
we only had three regimes: NRUS, Special Regime, and General Regime, since
In January of this year, taxpayers can also benefit from the MYPE Tax Regime.

Concepts NRUS RER RMT RG

Natural Person Yes Yes Yes Yes
Legal Entity No Yes Yes Yes
 Net income that does not
Until $
Until surpass 1700 UIT in
Limit 96,000 annual
S/.525,000 the taxable exercise Without limit
income S/ 8,000
annual. (projected or of
monthly.
previous exercise).
Until S/.
Until
Limit 96,000 annually
S/.525,000 Without limit Unlimited
purchases S/. 8,000
annual.
monthly.
Sales receipt
Receipts and tickets that do not Invoice, receipt and
Invoice,
Invoice,
receipt
receipt and
and all the
that can grant rights to everyone else everyone else
others
issue tax credit, allowed. allowed.
permitted.
expense or cost.
DJ annual - No Rent No Yes Yes
Rent: If they do not exceed
the 300 UIT of Income: Payment to
Minimum payment S/
net income monthly account.
20 and maximum
annual: will pay the one that results
S/50, Rent: Installment of
1% of the income as
agreement on a 1.5% of income
nets obtained in the coefficient or the
table of monthly net income
month. If in any 1.5% according to the
income y/o (Canceling).
Payment of taxespurchases by they exceed 300 Law del
monthly From net income Tax on the
category.
annuals will pay Rent.
1.5% of the coefficient.

The IGV is IGV: 18% IGV: 18%

included in the (includes the VAT: 18% (includes the (includesthe
single fee that tax of tax of tax from
it is paid in this promotion municipal promotion). promotion
regime. municipal. municipal.
Restriction by If you have If you have Does not have Does not have
type of activity
Workers Without limits 10 per shift Without limits Without limit
Value of assets Without limits
S/ 70,000 S/ 126,000 Without limit
fixed
Possibility of It does not have It does not have If you have If you have
deduct expenses
Payment of
Annual Tax It does not have Does not have If you have If you have
based on the
utility

NRUS Shelter RER RMT RG

 Only with the With the statement
With the Only with the
affection to the monthly what
Requirements declaration and declaration
corresponds to the month of
moment of the
monthly payment. monthly.
registration.* start of activities.*

18. Why do MSEs prefer informality?

legal or bureaucratic obstacles in Peru, the main problem is the high costs that
it involves being formal. Among these reasons, we can find:

The tax and labor burdens

The implementation of adequate infrastructure
The issuance of operating licenses.
The recurring municipal inspections.
19. What is the role of the National and Subnational governments in supporting SMEs?

National governments establish a legal framework and encourage private investment, generating or promoting
a service offer aimed at improving levels of organization, administration,
Technification and productive and commercial articulation of the MYPE, establishing policies that allow for
organization and business association for economic growth with sustained employment

In this context, the role of subnational governments in social investment and development of the
childhood, is established with relative clarity in the Organic Law of Regional Governments, as in the
Organic Law of Municipalities. In the case of the first, Article 60 establishes the functions in the area
of social development and equal opportunities.

20. What is the role of the Local Economic Development area?

Develop executive management functions for (i) Promotion of business development

providing business information, technical assistance, training, market access,
financing and technology for economic activities in trade, agriculture,
livestock farming, craftsmanship and tourism; and (ii) business formalization and occupational reconversion
for informal and ambulatory commerce activities.