The business landscape is changing, and sometimes it happens rapidly. There are some popular jurisdictions that are under the scrutiny of the world’s regulators and they may be under pressure, which is not very good for businesses. Entrepreneurs are looking for safe havens to set up their companies, and Uruguay seems to be one of these. It is a stable country with business-friendly laws that does its best to attract foreign capital – and it succeeds! Read this post to see what perks it may offer to non-resident business owners.
If you want to know more about the popular and less-known destinations where you can establish your company, you are welcome to our website. Our portal contains up-to-date articles on international business and related topics that are written by our experts. We also help entrepreneurs from across the globe set up their companies in different countries. You can book an individual session with our expert to get advice on choosing the right jurisdiction for your business (it’s free!). And if you want to set up a company without much hassle, you can delegate this procedure to us at a fee.
Company formation in Uruguay: main advantages
Company registration in Uruguay is not a complicated procedure and it will not take much time: if you get the assistance of our experts, you will receive a fully operational company within no more than 45 days. The costs are lower than in other countries as this is a less-known jurisdiction. Choose us to be your guide in the process of company incorporation and get a corporate account in Uruguay or abroad as a pleasant bonus!
Here are the main advantages for those who decide to form their company in Uruguay:
- The country’s economy is steadily growing, the political system is stable, and the living standards are quite high.
- Uruguay is interested in attracting foreign capital, so it provides certain tax benefits in free economic zones to the companies that generate 100% of their income abroad.
- The jurisdiction is the South American leader by the level of democratic freedoms, which practically means that it gives equal rights to foreign and local entrepreneurs and investors.
- Foreign companies are entitled to lower customs/tax rates if they need to import appliances/equipment on a temporary basis.
- Uruguay does not impose any currency control, which means that you can freely make transactions in any currency and withdraw your profits from the country.
As the world is becoming less stable, you may wish to change your legal and tax residence – and Uruguay is a good choice! In addition to the perfect climate and low taxes, it provides a residence permit to foreigners for a moderate fee. And if you want to become a citizen, it will not be long or difficult: citizenship by naturalization is provided after 2 years of permanent residence in Uruguay.
Uruguay’s free economic zones
Uruguay has established special zones that help its economy develop and accumulate industrial capital in the country, and they offer beneficial conditions for company formation or relocation. If you decide to use a free economic zone to set up a non-resident company, you will be exempt from the taxes below:
- Property tax
- Corporate tax
- Tax on goods/services imported to the free economic zone
- Tax on dividends paid to foreigners
- State duties payable by companies that conduct their activities in the free economic zone and export goods
In fact, the only tax you will have to pay is the one on the salaries of employees, which explains why entrepreneurs from all over the world find this offer attractive.
Companies you can register in Uruguay
You are not required to be a resident or citizen of Uruguay to register a company in the country. You don’t even need to have a local partner! And if we talk about the limitations on the kind of activities, you can start virtually any kind of business except for those monopolized by the state:
- Banking sector
- Means of communication
- Insurance/reinsurance services
- Water purification
Joint-stock company (JSC) in Uruguay
Large business owners usually opt for this legal form, and you can open an open or a closed joint-stock company. Its business is specified in the Articles of Association. You can start a new company or buy a ready-made structure.
Requirements for Uruguay’s JSCs:
- The company requires one director and two shareholders (residents of any country, individuals or legal entities).
- The amount of share capital is not limited, and one investor can own 100% of the shares.
- The company’s authorized capital should be paid in the amount of at least 25% before it is entered into the State Register.
- Each shareholder guarantees payment of no less than 50% of the amount set in the Articles of Association upon registration.
- A JSC needs to have a local registered office to keep its documents, as well as a registered agent who is a resident of Uruguay.
- Financial reports should be kept and submitted on a regular basis.
Limited liability partnership
This is a good structure for small and medium businesses, and you cannot buy a ready-made legal entity of this type. It is established by signing a corporate agreement between partners whose number may vary from 2 to 50.
As you see from the name, the liability of partners is limited. Here are other features of the limited liability partnership:
- The partnership’s capital is made up of each partner’s contribution and can be increased over time.
- The liability of each partner is limited by the share invested in the partnership.
- Each partner is required to pay up at least 50% of the amount declared in the agreement.
- If the LLP has more than 5 members, it can only be assigned to a third party if 75% of partners that possess the partnership’s capital give their consent.
- The partnership’s corporate agreement is made in Spanish.
- An extract from the Register of Commerce should be published in the official private printed edition of Uruguay after the LLP registration is complete.
- An LLP is established via a registered agent.
Need more information about Uruguay or help with some aspects of business registration? Click on the above link to use our free initial session with an expert!