After graduating from Universidad Politécnica de Puerto Rico with a level in laptop engineering, Alberto Lugo knew he needed to be an entrepreneur, and he knew that he needed to construct his firm on the island. A university internship in Puerto Rico with Microsoft gave him the spark of an concept, and after working for six months in IT for a financial institution, additionally positioned on the island, he noticed his alternative. There was a big hole between the capabilities of the software program options that companies may purchase and the distinctive necessities that they’d for automating key enterprise processes.

Lugo based Web Imaginative and prescient Growth (INVID) to fill this hole, customizing off-the-shelf software program for purchasers. Enterprise was good, and the corporate grew, principally serving companies positioned in Puerto Rico. However when Hurricane Maria, a devastating category-5 storm, struck the island in September 2017, Lugo’s enterprise got here to a standstill. He continued to pay his 25 workers members, however even when INVID had been in a position to marshal the sources it wanted to renew coding, the corporate’s prospects had been on pause.

Lugo knew he needed to diversify his buyer base. So, he traveled to DC, the place he was in a position to safe contracts with corporations that offered software program to the U.S. Federal Authorities. In the end, Lugo diversified his enterprise in order that roughly 50% of the corporate’s income comes from corporations outdoors of Puerto Rico. However his intent was by no means to maneuver his enterprise to the continental United States. Some great benefits of Puerto Rico had been simply too nice.

“I all the time discuss in regards to the Puerto Rico benefit,” Lugo mentioned. “There’s Act 60, which gives buyers with a 100% tax exemption from Puerto Rico revenue taxes on dividends, capital features, and curiosity. And as for expertise, we’ve two of one of the best engineering colleges in the US proper right here. I’ve to compete with corporations like Lockheed and Accenture to rent graduates.”

However that’s only the start. Labor is more cost effective than it’s on the mainland, plus the island is positioned within the Japanese Time Zone. And each prospects and buyers which are U.S. residents can journey there with no passport. Moreover, any mental property developed in Puerto Rico is protected by U.S. legal guidelines and rules. It’s a really aggressive surroundings during which to develop services for mainland prospects.

“The tax benefits are large, our universities prove top-notch engineers, and we’re protected by U.S. legislation. Plus, the climate positive beats the mainland within the winter,” Lugo mentioned. “I can’t think about a greater place to do enterprise than Puerto Rico.”

The island has additionally hardened its infrastructure considerably since 2017. “Most corporations now have redundant, resilient energy, water, and different infrastructure. Nowadays, if we noticed one other storm like Maria, I do know that INVID can be again up and operating inside 24 hours,” Lugo mentioned.

And beginning a enterprise in Puerto Rico has gotten even simpler within the final 5 years. Immediately, there are incubators and accelerators like Parallel 18 and Grupo Guayacan that present huge help to younger corporations that features money awards with out giving up fairness, help in validating the corporate’s resolution, mentoring, and connections to potential buyers.

INVID is having its finest yr ever in 2023, and its future appears shiny. The corporate began the yr with 50 staff, has since grown to 75, and Lugo expects to be at 100 by December. His numerous buyer base consists of protection contractors, company shoppers within the banking business, giant software program corporations, and healthcare organizations.

To study extra in regards to the Puerto Rico benefit, go to InvestPR right here.