Description

Legal Stability Agreement 

The Legal Stability Agreements are investment instruments promoters, which are implemented through the subscription of agreements with Peruvian Government, which stabilize guarantees for investors or companies receiving, as applicable, for its period of validity. These agreements may only be amended with the consent of both parties.

 
 
 
Characteristics It is a Law-Agreement of civil, non-administrative nature. It is governed by the provisions of the Civil Code.
Who can apply? Local and/or Foreign Investors and theReceiving companies of such investments.
Guarantees applicable to investors

Stability of non-discrimination rights, Tax Income Regime applicable to investors, free disposal of currencies and rights to make remittances of gains, profit and royalties, applicable to foreign capitals.

Guarantees applicable to receiving companies

Stability of Tax Income Regimen, staff hiring regulations and export promotion schemes, provided that they are applied by the company after applying for the benefits.

Requirements Make monetary contributions through the National Financial System, for no less than US$ 10 million, in the mining and hydrocarbon sectors, or US$ 5 million, in any other financial activities.
Modality Contributions can be made into the capital of an existing company or a company to be created, through high-risk investments formalized with third parties, into companies participating in concession contracts and, finally, into investments that require purchasing more than 50% of the shares owned by a government company in process of privatization.
Validity 10 years, except for concessions with duration subject to the validity period of the concession contract.
Dispute resolution Through arbitration tribunals, in accordance with the applicable Peruvian legislation on the matter.

 

 


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