Tren Urbano, San Juan: Hato Rey /Dean
Business Center April-2004, By:Martha Dryer
Doing Business in Puerto Rico
Could this be the moment to consider opening a branch of your business in Puerto Rico ?
Kenneth W. McGrath, president and chief executive officer of Popular Securities, which last year alone did more than $14 billion in New York and other mainland transactions and is about to open an office in the Big Apple, describes opening a branch of your business here as a win-win deal. Admitting that there exists a great deal of red tape to get started, which he refers to as a “big hassle factor,” he noted that the ultimate returns make this business decision a palatable one.
“Get the right advisers, maybe take in a local partner or buy an existing business and keep management in place and you have a win-win deal profitwise,” says McGrath. Some 90% exemption from Puerto Rico income tax (for certain businesses) provides you with an effective rate on income of only between 2% and 3%, which is wonderful,” he said.
He noted that even with the phaseout of the federal government’s Section 936, which gave tremendous benefits to multinationals manufacturing on the Island, most have stayed due to a highly trained and productive work force and slightly lower wages than on the mainland.
Other benefits and incentives in effect today include a combination of tax exemptions, deductions and what are known as super-deductions which can go as high as 200%. The government provides training through the University of Puerto Rico, technical assistance, scholarships, and funds for training for manufacturing, tourism, and agriculture endeavors. More information is available through the commonwealth’s Puerto Rico Industrial Development Co., known as PRIDCO, which is there to make your transition easier through such programs as paying the salaries of technical instructors, paying the rent for your buildings and even paying all or some of the costs of moving machinery to Puerto Rico.
Take a few minutes from your fun in the sun and think how nice it might be to enjoy all this year-round.
| |
About/Advertise/Contact Us
©2010-1986 Travel and Sports, Inc.
travelandsports.com
Sponsors & Marketplace
