Opening a company in Uruguay, as well as setting up an account with the Uruguayan bank, will be a promising solution for investment, as well as the launching an international business from scratch.
Uruguay is an independent country, located in the southeast of South Asia and washed by waters of the Atlantic Ocean. The Eastern Republic of Uruguay occupies the smallest territory among the countries of South America after Suriname.
Among the closest neighbors of the state are Argentina and Brazil. Among the main economic sectors, in which it is beneficial to establish a commercial organization in Uruguay, are services, a banking, a textile and the footwear, a leather, a tourism, a food processing, the agriculture (a livestock), a fishing. The capital is Montevideo. Largest cities are: Salto, Ciudad de la Costa, Maldonado. The national language is Spanish. The currency is the Uruguayan Peso (UYU).
Uruguay is a member of the World Trade Organization, the Non-Aligned Movement, the UN, and is also a member of such regional organizations as the Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean, the Organization of American States, others.
The benefits of doing business in Uruguay
The Eastern Republic of Uruguay is considered one of the most economically developed countries in Latin America. In the ranking of Doing Business magazine, it ranks 65th in the business registration and 95th in the ease of doing business among 190 countries.
If you want to register a company in Uruguay, then the following business advantages will be presented to your attention:
- a stable sociopolitical situation;
- one of the safest countries in South America;
- a minimum level of corruption;
- a developed banking sector;
- the positive attitude of authorities towards foreign investment;
- broad prospects for the development of small, medium and large businesses;
- the availability of skilled labor;
- a flexible tax system;
- the presence of more than 12 free economic zones (Libertad, Canelones, Nueva Palmira, Montevideo and others);
- more than 11 DTA agreements with countries in Europe, Asia and Latin America.
The most priority business areas in 2021, in which there are many prospects for the registration of companies in Uruguay, are as follows: pharmaceuticals, a hospitality, a catering, the light industry, a real estate, a tourism. If you decide to establish a commercial enterprise in Uruguay and to open a corporate account with a bank in Uruguay, we recommend you to choose one of the above options.
Popular types of companies
If you want to open a company in Uruguay, then local authorities can offer you a choice of one of the following forms of business activity:
- a Limited Liability Company (SRL);
- a Joint Stock Company (SA);
- a Free Zone Company (FZC).
If you are interested in the registration of companies in Uruguay remotely, then we draw your attention to the fact, that these forms are almost equally popular among foreign entrepreneurs. All of them do not require large time expenses for registration, and are also characterized by a simplicity and an ease of management.
If you intend to open a business for trading in Uruguay, we recommend giving your preference to the Free Zone Company, for which a special tax regime is provided.
Business registration procedure in Uruguay
If you intend to register a company in Uruguay remotely and to open an account with a bank in Uruguay, then first of all, you will need to fulfill the following conditions of the local Regulator without fail:
- Choose a unique name of the company and translate into Spanish (at the end indicate: Limited, Corporation, Incorporated);
- Appoint directors/shareholders: from 1 or more (individuals/legal entities, both residents and non-residents);
- Create key management bodies (Meeting of shareholders, Board of Directors);
- Divide a declared capital into shares. Bearer shares are allowed. There is no fixed amount of authorized capital;
- Open a bank account in Uruguay;
- Pay the state fee in the amount of 400 USD (about 14 041 UYU).
The registration of a company in Uruguay will be the right decision, because of favorable corporate tax conditions. Enterprises, operating in the territory of the jurisdiction, do not pay a tax on income received abroad. Also, when you open Sociedad Anonima/Sociedad de Responsabilidad Limitada, you are exempted from the following taxes:
- An income tax (base rate 25%);
- A dividend tax (rate of 12%);
- A Capital Gains tax.
Resident trading companies pay income tax of 3% of total gross profit.
How to start a business in Uruguay?
If you decide to register a company in Uruguay remotely, YB Case specialists will provide you with a full range of legal services, in particular: a detailed business analysis of the chosen jurisdiction, legal advice on opening an account with Uruguayan banks, as well as legal assistance in the preparation of all necessary documents.
Please, check with our specialists for possible solutions for your business.