Doing business in Puerto Rico

You can operate a business activity in Puerto Rico as a proprietorship, a partnership or a corporation. In all three cases, you will most probably need to comply with the requirements listed below.

A special license, in the case of activities that require licensing. The list of such activities is rather large. Consult your accountant, tax specialist or lawyer.

A municipal business license patente municipal

A permit from the Department of Health if food or other items for human consumption will be handled.

An employer identification number (EIN) which in most cases will be the number assigned to your organization by the Internal Revenue Service of the United States of America.

A workmen’s insurance policy issued by Corporación del Fondo de Seguro del Estado (State Insurance Fund Corp.), telephone (787) 793-5959. Rates vary depending upon the type of activity.

By May 15th each year, you must file a report and pay the corresponding taxes on personal property to your municipality, through Centro de Recaudación de Ingresos Municipales (CRIM), telephone (787) 274-8503. Rates vary by municipality, not to exceed the limits established by State Law.

As an employer, you must withhold certain amounts from your employees’ paychecks. These include (a) social security and medicare taxes (b) Puerto Rico income taxes (c) Puerto Rico disability taxes (d) drivers’ insurance taxes.
(a) Social security and medicare taxes are collected by the Federal government through the Internal Revenue Service of the United States of America. Contact the IRS in the Metropolitan area through telephone number (787) 766-5040. Outside the Metropolitan area, call 1-800-829-1040.
(b) Puerto Rico Income Tax Withholdings are determined from tables issued by the Secretary of the Treasury of Puerto Rico. Contact “Negociado de Contribución sobre Ingresos” (Income Taxes) at (787) 721-2020, or visit any local office of the Collectors of Internal Revenue (“colecturías de rentas internas”).
(c) Puerto Rico Disability taxes are imposed and administered by “Negociado de Seguro por Incapacidad No Ocupacional de los Trabajadores” (SINOT), telephone (787)754-5774.
(d) Drivers’ insurance taxes are imposed and administered by “Negociado de Seguro Social para Choferes”, telephone (787) 754-5284.

As an employer, you may be required to file the following reports: a) quarterly report of taxes withheld to employees, to the Secretary of the Treasury. Payment of tax withholdings is due monthly.
b) payroll report covering the year ended June 30, must be filed with Corporación del Fondo de Seguro del Estado by July 20th of the same year. The agency will issue an invoice based upon the information provided in your report.
c) quarterly report on employment, along with payments of Puerto Rico Unemployment taxes and disability taxes, due thirty days after the end of each quarter, to the P.R. Department of Labor and Human Resources (Departamento del Trabajo y Recursos Humanos).
d) quarterly report on drivers’ insurance, and payment thereon, due fifteen days after the end of each quarter, to the P.R. Department of Labor and Human Resources (“Departamento del Trabajo y Recursos Humanos”), Bureau of Drivers’ Insurance (“Negociado de Seguro Social para Chóferes”), telephone (787) 754-5284.
e) quarterly report of employee salaries and withholdings, to the Internal Revenue Service. Payment dates for taxes and withholdings vary depending upon the amounts. Call the I R S at (787) 766-5040 to receive information booklets.
f) annual report and payment thereon regarding Federal Unemployment Compensation Insurance, to the Internal Revenue Service, by February 28th each year. Periodic payments may apply. Call the I R S at (787) 766-5040 to receive information booklets.


If you own a commercial structure, it should have a permit issued by the P.R. Fire Department (Cuerpo de Bomberos de Puerto Rico).

If your building has elevators, they must be inspected regularly by the P.R. Department of Labor and Human Resources.