(Last updated: 28 July 2012)
Doing business
Business culture
Business tips
Initial correspondence with potential business partners should be in Spanish, as letters in English are more likely to be given lower priority.
The level of proficiency in English varies widely among Peruvian business executives - many understand and read more fluently than they are willing or able to speak, and therefore an interpreter may be useful.
Personal contacts do play a special role in Peru and can make the difference between finding an open or a closed door.
Peruvians are formal and generally conservative when it comes to dress. Business attire for men is a suit/jacket and tie except for certain sectors such as design, mining engineers or those working in ITC. For women, business dress is usually a suit or jacket and skirt. Many corporations expect their staff to wear uniforms. Evening functions are similarly dressy unless advised otherwise. Business or social clubs often enforce very conservative dress codes not allowing men to remove jackets, wear jeans or insisting on ‘whites’ for the tennis courts.
Corruption is on the decline, and is now being actively combated by the government.
Setting up in Peru
Finding the right partner
Partnerships and agreements such as joint venture partners offer advantages for Australians wishing to operate in Peru.
Austrade Lima can assist with partner searches reducing the time taken to locate potential business contacts.
In market representation
Local distributors, agents or representatives can facilitate business however finding the appropriate person or company to represent your company’s goods and services requires market insight and knowledge.
Austrade Lima can assist with market representation via services which include due diligence, access to credit checking agencies and reference checks.
Banking and finance
Peru’s banking system is relatively modern and Lima is home to several multi-national banks including Scotia Bank, HSBC, Citibank, Standard Chartered, USB and BBVA. Several sites include: www.standardchartered.com/pe and www.latinamerica.citibank.com/PEGCB/JPS/portal/Index.do.
Opening accounts without the correct documentation and resident papers may be difficult.
Peru works on a double currency system US dollar or Peruvian New Soles and accounts can be opened in either currency with out any restriction on foreign currency.
Global financial services are also available in Lima with KPMG amongst the better known financial institutions.
Top Business Risks
OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.
Extractive Industries Transparency Initiative
The Extractive Industries Transparency Initiative (EITI) is a voluntary mechanism which promotes and supports improved governance in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas, and mining.
The EITI is supported by governments, industry, and non-government organisations around the world. The Australian Government supports the EITI and encourages Australian companies operating internationally to comply with its recommendations.
APEC Business Travel Card Scheme
Managed by the Department of Immigration, the APEC Business Travel Card Scheme was developed to make travelling within the 21 APEC member countries much simpler and more efficient.