Starting a business in Puerto Rico comes with unique licensing requirements. This guide breaks down the permits you’ll need to stay compliant and maximize Act 60 tax benefits.

Many entrepreneurs are choosing to relocate from the U.S. mainland to Puerto Rico, and it’s easy to see why. The island offers a warm climate, a vibrant culture, and significant tax incentives through Act 60 that can help you keep more of what you earn. If you’re planning to run a business here, you’ll need to secure the right licenses to operate legally and fully benefit from these savings. This article walks you through the key requirements to get started.

Merchant’s Registration Certificate

If your business sells taxable goods or services in Puerto Rico, you’ll need to register with the Merchant’s Registry. This is a requirement set by the Puerto Rico Department of Treasury.

Here’s what to know:

• Where to register: You can complete the registration form through the SURI platform, Puerto Rico’s official digital system for tax administration.
• What you’ll need to provide:
  • Business name
  • Business address
  • Type of commercial activity
• Display requirement: The Merchant’s Certificate must be visibly posted at your place of business.
• Penalties: Operating without this certificate can result in fines of up to $10,000.

Certificate of Authorization to Do Business

This certificate allows foreign entities, including companies from the U.S. mainland, to legally operate in Puerto Rico. Its main purpose is to confirm that your business is registered with the Puerto Rico Department of State and meets the necessary filing requirements. It’s often required for tasks such as opening a local bank account, applying for government contracts, or verifying your legal status when applying for licenses and permits.

To obtain this certificate, you’ll need to provide key details about your business, including a description of your activities, a breakdown of your assets and liabilities, and a certificate of good standing from your home jurisdiction. There is also a filing fee that must be paid as part of the application process.

Municipal Business License

To operate within a specific municipality in Puerto Rico, you’ll need a local business license. This license requires you to provide your Certificate of Authorization to Do Business, along with a rental agreement or proof that you own the property where the business is located. Municipalities charge a tax based on your gross income, but if you notify the local government within 30 days of starting operations, you’re typically exempt from this tax for the first six months.

Additional Considerations

Here are a few additional factors to keep in mind when relocating your business operations to Puerto Rico.

1. Zoning Permits

A zoning permit confirms that your business location meets local zoning regulations. It’s essential for any business with a physical space, as it verifies the property is approved for the type of operations you plan to run. These permits are issued by the Office of Permit Management (OGPe).

2. Environmental Permits

If your business activities affect the environment—such as those in construction or manufacturing—you’ll need to obtain specific permits to meet environmental regulations. Examples of these permits include building plans and land use for sediment control and hazardous waste permits. These approvals are issued by the Puerto Rico Environmental Quality Board.

3. Health Department Permits

If your business operates in healthcare or food service, you’ll need permits from the Puerto Rico Department of Health. These permits confirm that your business meets required health and safety standards and must be secured before you begin operations.

Set Yourself Up for Success

When running a business in Puerto Rico, staying compliant means researching industry-specific requirements, registering with agencies like the Department of Treasury and Department of State, and obtaining local approvals. Meeting these legal requirements allows you to fully benefit from the tax advantages available under Act 60. If you’d like help navigating the Act 60 process, schedule a free call with one of our experts, and we’ll walk you through each step.