--- title: "Peru EOR vs Entity 2026 | Crossover + When to Switch" description: "Peru EOR vs own entity. Crossover typically 6 to 9 staff. EsSalud employer rate 9%, plus July and December bonuses. Entity setup S/ 18k to 45k." canonical: https://www.teamed.global/country-hiring-guides/peru/eor-vs-entity --- Peru · EOR vs entity child Served by Teamed vetted partner-entity network in Peru # When do you graduate from an *EOR to your own Peru entity*? A Peruvian S.A.C. takes around 4 to 6 weeks to register through SUNARP and SUNAT. The paperwork is the easy part. The real load is the recurring benefits stack every Peru employer carries: EsSalud at 9%, two full-month gratifications in July and December, CTS deposits twice a year, and 30 days of paid leave. Here is the full cost comparison, and the decision factors that sit beyond the spreadsheet. Last reviewed 13 June 2026 · Peru guide ![Lima skyline at dusk over the Miraflores cliffs, with the Pacific Ocean catching the last warm light.](/images/country-guides/peru-eor-vs-entity.webp) Illustration · Lima, Peru Answer.cite this EOR is faster and cheaper at low headcount in Peru. Registering an S.A.C. typically takes 4 to 6 weeks. Formation typically costs S/ 18,000 to 45,000. Running a Peruvian entity costs roughly S/ 14,000 to 28,000 per month. These are typical market ranges, not law figures. They vary by outsourcing model and the size of your payroll. The crossover typically lands around 6 to 9 employees for common Lima salary bands. EsSalud employer health is 9% on both sides. Two full-month gratifications fall due in July and December on both sides. The entity side also carries formation costs and ongoing PLAME filing work. ## The crossover maths EOR cost scales with headcount. One fee per employee per month. Entity cost has a fixed overhead. That fixed line and the EOR line cross at around 6 to 9 employees for typical Lima salaries. Teamed charges from $599 per employee per month. A typical Peruvian entity carries a fixed monthly overhead of S/ 14,000 to 28,000 for payroll bureau, bookkeeping, PLAME filings, and HR admin. The table below uses S/ 2,200 as an illustrative PEN equivalent of the Teamed fee. This is illustrative. The actual PEN amount depends on the exchange rate at the time of invoice. Teamed charges from $599 USD with zero FX mark-up. All entity cost figures in this table are typical ranges. They cover outsourced payroll, bookkeeping, PLAME filings, and HR admin for a small Peruvian company. They are illustrative, not law figures. Actual costs vary with your outsourcing model and benefits programme. Peru loads more onto base salary than most Latin American markets, and that lifts the entity-side admin more than the headline crossover. EsSalud employer health is 9% of pay. On top of salary you fund two full-month gratifications, one in July and one in December, plus CTS deposits twice a year and 30 days of paid leave. These costs apply whether you use EOR or your own entity. They do not move the crossover much, but they make the monthly filing load on the entity side heavier. [Run the Crossover Calculator with your own headcount and salary band.](/tools/crossover-calculator/peru) 1. Calculate the EOR cost Multiply the Teamed fee (from $599 USD) by your planned Peru headcount. This is the fixed variable cost. It grows linearly as you hire. 2. Estimate the entity fixed overhead Typically S/ 14,000 to 28,000 per month for a small Peruvian company. This covers payroll bureau, bookkeeping, PLAME filings, EsSalud, gratifications, CTS administration, and first-point HR. This cost does not grow much until headcount exceeds twelve. 3. Find the crossover headcount The crossover is where EOR monthly cost equals entity monthly overhead. For most Lima salary bands, this is around six to nine employees. Use the Crossover Calculator for your own numbers. 4. Factor in non-financial triggers The maths gives you a headcount threshold. Local substance requirements, public procurement eligibility, and market-validation reversibility are separate questions that may override the cost crossover in either direction. 5. Plan the graduation date Allow four to six weeks for entity formation before the first payroll on your own entity. Factor in two to four weeks extra for bank account opening. Start the GEMO process while EOR continues running. ## Peru entity setup: what it actually costs Forming a Peruvian S.A.C. typically costs S/ 18,000 to 45,000 all-in. The SUNARP registry filing is modest. The gap between that fee and S/ 45,000 is notary, legal, and tax registration work. Allow roughly 4 to 6 weeks from the incorporation decision to your first payroll run. The RUC and SUNAT registrations run in parallel. Banking can take 2 to 4 weeks longer. These are typical ranges, not law figures. There is no law that sets what a Peruvian S.A.C. costs to form. The range reflects real professional services market rates in Lima. It varies with share structure and how much you outsource. | Cost item | Typical range | One-off or recurring | | --- | --- | --- | | Notary deed (escritura publica) and SUNARP registration | S/ 1,500 to 4,000 | One-off | | Company statutes drafting (legal fees) | S/ 2,500 to 8,000 | One-off | | RUC and SUNAT tax registration | S/ 0 direct (admin time) | One-off | | EsSalud and PLAME employer registration | S/ 0 direct (admin time) | One-off | | Business bank account opening | S/ 500 to 2,500 (setup costs vary) | One-off plus monthly fees | | Employment contract templates | S/ 2,000 to 6,000 | One-off | | Internal work rules (reglamento interno de trabajo) | S/ 2,500 to 7,000 | One-off | | Registered office and legal domicile (first year) | S/ 2,000 to 6,000 per year | Recurring | | Accounting setup and first-year compliance | S/ 4,000 to 12,000 | Recurring annually | | **Realistic total setup cost** | **S/ 18,000 to 45,000** | **Mostly one-off** | ### Why the bank account matters for payroll Most Peruvian banks require a fully registered company with a RUC number and the legal representative present before opening a business account. That means the registration sequence matters. Expect 2 to 4 weeks from incorporation to an opened account, assuming the legal representative is available for the bank KYC checks. Foreign-parented companies should budget up to 6 weeks. This turns a 4-week incorporation into a 6 to 10 week wait before first payroll if the sequence is not managed tightly. ## Peru entity ongoing cost: typically S/ 14,000 to 28,000 per month Running a small Peruvian S.A.C. typically costs S/ 14,000 to 28,000 per month. That covers outsourced payroll, bookkeeping, PLAME filings, and first-point HR. Below 5 employees, this fixed overhead dominates the per-head cost. Above 12 employees the overhead amortises and the entity starts to look cheaper. These figures are typical market ranges for a small Peruvian company with 1 to 12 employees. They are illustrative, not law figures. Actual costs depend on whether you outsource or hire in-house, and the size of your payroll and benefits programme. | Monthly cost item | Typical range (S/) | What it covers | | --- | --- | --- | | Outsourced bookkeeping and monthly accounts | 3,500 to 7,000 | Reconciliation, accruals, monthly management accounts | | Payroll service (1 to 12 employees) | 2,000 to 5,000 | EsSalud, ONP or AFP, gratifications, CTS, PLAME filings and payslips | | Annual SUNAT compliance (amortised) | 1,500 to 3,500 | S/ 18,000 to 42,000 per year divided by 12 | | Legal representative and corporate filings | 800 to 2,000 | SUNARP updates, statutory registrations | | HR and employment law advisory | 1,500 to 4,000 | Contract reviews, disciplinary support, policy updates | | Peru People Ops and first-point HR | 3,500 to 7,000 | Onboarding, leave admin, employee queries | | Software subscriptions (HRIS, payroll, accounting) | 700 to 2,000 | Per-user SaaS tools | | Insurance (EPS top-up, SCTR where applicable) | 1,200 to 3,000 | Supplementary health and high-risk work cover | | **Total ongoing monthly** | **14,000 to 28,000** | **1 to 12 employee company** | Above 12 employees, dedicated in-house HR and finance capacity typically becomes necessary. The cost band widens at that point. Private health cover through an EPS, common in competitive Lima hiring, can add S/ 150 to 400 per employee per month and is not included in the overhead estimates above. ## The cost nobody quotes: director liability Peruvian directors and the legal representative carry personal duties under the Ley General de Sociedades. These cannot be delegated to advisors. Late or incorrect filings attract personal fines and SUNAT or SUNAFIL penalties. EOR clients do not carry these duties. Teamed holds them as the legal employer. Most cost comparisons skip the director-liability dimension because it is hard to put a number on. It is worth naming before you decide. ### Personal duties under Peruvian law Under the Ley General de Sociedades, the directors and the legal representative (representante legal) of a Peruvian company must act with the diligence of an ordinary business person, in the best interest of the company, and they answer personally for losses caused by acts against the law or the statutes. These are personal duties. They cannot be outsourced to an accountant or adviser. ### The compliance treadmill - **PLAME monthly filing**: the electronic payroll return goes to [SUNAT](https://orientacion.sunat.gob.pe/pdt-plame) every month. Late or incorrect filing attracts SUNAT penalties. - **EsSalud remittance**: the 9% employer health contribution is due monthly. Non-payment is a labour and tax offence. - **Gratifications**: the July and December full-month bonuses must be paid by the 15th of each month. Missing the deadline triggers fines and interest. - **CTS deposits**: the severance savings fund is deposited in May and November. A missed or short deposit is a SUNAFIL infraction. - **Income tax withholding**: fifth-category tax on labour income must be withheld and remitted monthly. - **[Annual accounts and SUNAT returns](/country-hiring-guides/peru/tax-and-payroll)**: filed each year, with deadlines set by RUC number. Each filing is individually manageable. Stacked across a year, they consume real management attention and carry personal liability for the legal representative on every missed deadline. An EOR carries all of these on its own entity. ## When you should stay on EOR Below 5 employees, during market validation, or on project-based hires, the EOR is the right answer. The crossover is a maths threshold. It is not a strategic verdict. Reversibility matters in Peru. Winding down an EOR relationship is straightforward. Winding down a Peruvian S.A.C. involves SUNARP dissolution, SUNAT clearance, and settling CTS and gratification balances for every employee. It is not fast. - **Under 5 Peru employees at typical Lima salaries**: EOR is cheaper every month. The entity overhead has nothing to amortise against at that headcount. - **Market validation phase**: you are hiring 1 or 2 people to test commercial fit. Entity setup commits capital and management attention before you know whether Peru will deliver. - **Project-based hires**: 6 to 12 month engagements where the formation cost will not amortise before the project ends. - **Uncertain headcount trajectory**: Peru is a priority market but you have not yet committed to long-term headcount growth. EOR preserves optionality. - **High wind-down risk**: post-acquisition holding patterns or pilot programmes where adding a local entity creates exit complexity later. ## When you should switch to your own entity Above 9 employees consistently, with a multi-year Peru plan, or where local substance matters to enterprise customers or regulators, your own entity starts winning on cost. It also unlocks capabilities the EOR structure cannot provide. Peru rewards genuine local presence. Public sector contracting, certain regulated industries, and tax-residency planning all favour a registered Peruvian company over EOR employment. - **Sustained headcount above 9 Peru employees** at typical salaries: the entity overhead amortises across enough people that per-head cost falls below the EOR fee. - **Local substance requirements**: regulated sectors such as financial services, mining, and telecoms require a registered Peruvian entity with a physical presence and local representation. EOR employment does not provide the required substance. - **Public procurement eligibility**: Peru's state contracting rules give standing to locally registered companies in many tender categories. An EOR employer does not qualify as a locally registered business for these purposes. - **Employee profit sharing and share schemes**: senior hires expecting equity or formal profit participation at a Peruvian-registered company need a local entity to structure those arrangements. - **Multi-year growth plan**: you have line of sight to 12 or more Peru employees over 24 months. Starting formation early means your entity is ready before the crossover, not after it. ## How Teamed's Graduation Model handles the transition Teamed graduates customers from EOR to their own entity on the same platform. Same Peru specialist. Same employment contracts, novated to the new entity. No break in employee tenure or benefits. Most providers treat graduation as a re-onboarding event. Employees re-sign, sometimes lose continuous service, and lose accrued CTS or leave. Teamed treats it as a stage of the employment lifecycle. The technical mechanic is **contract novation**: the employment contract transfers from Teamed's partner entity to your new Peruvian company on a specified date. All terms carry across. Salary, EsSalud cover, accrued CTS, gratification entitlement, annual leave, and the continuous service date all remain unchanged. The employee sees a different employer name on their payslip. Nothing else changes. What we do operationally: - Stand up your Peru entity through [GEMO](/entity-management), typically around 4 to 6 weeks, while EOR continues running in parallel. - Register the new entity with SUNAT for the RUC, EsSalud, and PLAME, and set up the ONP or AFP pension mandate. - Open the entity bank account and payroll mandate. - Novate every active employment contract on a single effective date. - Migrate ongoing benefits, including any EPS health cover, without any lapse. - File final EOR-period PLAME returns and open new filings on the entity from the novation date. - Provide the same People Ops specialist as the post-graduation primary contact. The Graduation Model exists because every other EOR makes this hard. We treat the move as something we help you plan for from the day you hire your first employee through us. ## How does Teamed handle Peru employment for you? Teamed becomes your legal [employer of record](/lp/employer-of-record) in Peru for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Payroll, benefits, and the full Peru employment law stack run on **one platform**. **Real HR and legal experts** handle your Peru hires from the first offer letter through every PLAME submission and gratification cycle. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Every employer cost **passes through at cost, itemised** on every invoice. You see the EsSalud employer line at 9%, the July and December gratifications, the CTS deposits, and the annual leave accrual for 30 days. Nothing is hidden inside the management fee. EOR payroll, contractor onboarding, and entity setup all live on **one platform**. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. Start from [the Peru hiring overview](/country-hiring-guides/peru). Key sources: [EsSalud](https://www.gob.pe/essalud) and the [Ministerio de Trabajo (MTPE)](https://www.gob.pe/mtpe). ## Frequently asked questions At what headcount does an EOR stop being cheaper than a Peru entity? The crossover typically lands around six to nine Peru employees at typical Lima salaries. Below that, the EOR fee (from $599 per employee per month) is cheaper than the typical entity overhead of S/ 14,000 to 28,000 per month. Above it, the entity overhead amortises and per-employee cost falls below the EOR fee. Use the Crossover Calculator to run your own salary band. How much does it cost to set up a Peruvian S.A.C.? Typically S/ 18,000 to 45,000 all-in. The SUNARP registry filing is modest. The rest is professional fees: notary deed, company statutes, employment contract templates, internal work rules, bank account setup, and the first year of accounting and compliance. The range varies with share structure and how much you outsource to a local professional services firm. How long does it take to set up a Peru entity and run the first payroll? Around four to six weeks from the incorporation decision to first payroll if you use a local corporate services firm or Teamed GEMO. The bank account is the common gating step. Budget two to four weeks for a business account to open after registration, particularly if the legal representative is not Peru-resident. What are the statutory employer costs on both sides of the comparison? The EsSalud employer health contribution is 9% of pay. On top of base salary, every employer funds two full-month gratifications in July and December, CTS deposits twice a year, and 30 days of paid annual leave. There is no separate statutory employer pension contribution in Peru. The pension contribution comes off the employee side, through the public ONP or a private AFP. These costs apply whether you employ via EOR or your own entity. What is Teamed's Graduation Model for Peru? Teamed graduates customers from EOR to their own Peru entity on the same platform. Employment contracts are novated to the new entity on a single date. Salary, EsSalud cover, accrued CTS, gratification entitlement, annual leave, and continuous service date all carry over unchanged. Teamed handles entity formation through GEMO, registers the new entity with SUNAT for the RUC, EsSalud, and PLAME, and migrates benefits without any lapse. Teamed Legal Operations Peru's benefits calendar never stops. Gratifications fall due in July and December, CTS deposits in May and November, EsSalud and income tax every month. Miss any one as a new entity legal representative and the penalty clock starts immediately. The EOR absorbs that rhythm on day one. The entity clock does not start until your RUC is live and your payroll bureau is running. A note from Tom Price-Daniel EOR wins in Peru up to the crossover. Around six to nine employees at Lima salaries. Past that, a Peru entity typically costs S/ 18,000 to 45,000 to form. Bank account adds two to four weeks. When the maths flips, we tell you and move you across. That is the only honest version of this. Tom Price-Daniel · Co-founder, Teamed ## Related Peru guides - [Hiring in Peru, overview](/country-hiring-guides/peru)parent - [Peru employer cost breakdown](/country-hiring-guides/peru/cost-breakdown)sibling - [Peru tax and payroll guide](/country-hiring-guides/peru/tax-and-payroll)sibling - [Peru termination and severance](/country-hiring-guides/peru/termination-and-severance)sibling - [Employer of Record overview](/lp/employer-of-record)core - The Graduation Modelcore - [Entity Management (GEMO)](/entity-management)core - [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator/peru)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with SUNAT, EsSalud, and the Ministerio de Trabajo y Promocion del Empleo before relying on any specific framework. Entity setup cost ranges and ongoing cost ranges in this guide are typical market figures based on professional services pricing in Peru. They are illustrative only and not law figures. Rates cited (EsSalud employer contribution and annual leave) are verified figures from EsSalud and MTPE official sources as at June 2026.