Uruguay company registration

Uruguay company registration

DOING BUSINESS IN URUGUAY

Since 2003, Healy Consultants has assisted our Clients with doing business in Uruguay. Our services include i) Uruguay business registration ii) registration of the company in Uruguay export processing zones iii) corporate bank account opening services in Uruguay and abroad iv) employee recruitment strategies and v) office rental solutions.

SummaryLLCFast solutionJSCHolding JSCOffshoreSAZF FZRepresentative OfficeBranch CompanyLLP
Also known asSociedad de Responsabilidad LimitadaSociedad de Responsabilidad LimitadaSociedad AnónimaSociedad Anónima de Inversion HoldingOffshoreSociedad Anonima Zona FrancaOficina de RepresentacionSucursalSociedad en comanditas
Best use of company?All products and servicesClose a customer deal nowInternational TradingInvestment holdingInternational trading/holdingManufacturing and export tradingMarketing & researchSpecific projectsProfessional Services
How soon can you invoice Clients/sign sales contracts?2 months1 month2 months2 months2 months2 monthsCannot invoice Clients3 months2 months
How soon can you hire staff?2 months1 month2 months2 months2 months2 months3 months3 months2 months
How soon can you sign a lease agreement?2 months1 month2 months2 months2 months2 months3 months3 months2 months
How long to supply corporate bank account numbers?3 months2 months3 months3 months3 months3 months4 months4 months32 months
How long to supply company registration/tax numbers?2 months1 month2 months2 months2 months2 months3 months3 months2 months
Corporate tax rate on annual net profits?25%25%25%0%100%0%0%25%0%
Limited liability entity?YesYesYesYesYesYesNoNoYes
Government grants available?YesYesYesYesNoYesNoYesYes
Resident director/partner/manager/ legal representative required?NoNoNoNoNoNoNoYesNo
minimum paid up share capital?US$1US$1US$1US$1US$1US$1NoneNoneUS$1
Can bid for Government contracts?YesYesYesNoNoYesNoYesYes
Corporate bank account location?HSBCBanque HeritageScotiabankBanco BandesBBVASantanderCitibankBanque HeritageCitibank
Can secure trade finance?YesYesYesNoNoYesNoYesYes
VAT payable on sales to local customers?22%22%22%0%0%0%No local Sales22%22%
Average total business set up engagement costs?US$20,105US$33,505US$20,105US$20,105US$20,105US$18,055US$22,905US$22,925US$20,955
Average total engagement period?3 months3 months3 months3 months3 months3 months4 months4 months3 months

See full table

Accounting and tax considerationsLLC-SRLFast solutionSAHolding JSCOffshoreSAZF FZRepresentative OfficeBranch CompanyLLP
Statutory corporate tax payable?25%25%25%0%0%0%0%25%0%
Legally tax exempt if properly structured?NoNoNoYesYesYesYesNoNo
Subject to annual ICOSA tax?NoYesYesYesYesYesNoNoNo
Group HQ tax incentives?YesYesYesYesYesYesYesNoYes
Must file an annual tax return?YesYesYesYesYesYesYesNoNo
Must file annual financial statements?YesYesYesYesYesYesNoYesYes
Must appoint an auditor?NoNoYesNoNoYesNoNoNo
Access to double taxation treaties?YesYesYesNoNoYesNoYesYes
Withholding tax on payments to parent company?7%7%7%7%7%0%7%7%NA
Company RegistrationLLC-SRLFast solutionSAHolding JSCoffshoreSAZF FZRepresentative OfficeBranch CompanyLLP
Resident director/partner/manager/ legal representative required?NoNoNoNoNoNoYesYesNo
Minimum number of shareholders/partners?222222Parent CompanyParent Company2
Maximum shareholding for foreigners?100%100%100%100%100%100%100%100%100%
Minimum statutory paid up share capital?US$1US$1US$1US$1US$1US$1NoneNoneUS$1
Security deposit to be kept with Government?NoNoNoNoNoNoNoNoNo
Shelf companies available?YesYesYesYesYesYesNoNoNo
Time to incorporate a new entity?2 months1 month2 months2 months3 months2 months3 months3 months2 months
Can easily convert to a PLC?YesYesYesNoNoYesNoNoNo
Public register of shareholders and directors?YesYesYesYesYesYesNoNoYes
Can have preference shareholders?YesYesYesYesYesYesNoNoYes
Business ConsiderationsLLC-SRLFast solutionSAHolding JSCOffshoreSAZF FZRepresentative OfficeBranch CompanyLLP
Good entity for trademark registration?YesYesYesNoNoYesNoYesYes
Can secure an import and export license?YesYesYesNoNoYesNoYesYes

Government approval required for foreign owners?No
Sponsorship by a local citizen required?No
Our Client needs to travel to Uruguay for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
The entity will likely be regulated by?MEF
Minimum number of directors/managers?1
Monthly VAT reporting to the Government?Yes
Must sign an office lease agreement during incorporation?No
Shareholders & directors documents to be attested/translated?Yes
Each foreign director needs a personal income tax number?No
Foreign director needs a residence visa?No
Maximum number of staff allowed?Unlimited
Expatriate to local staff ratio?3 to 1 in the Free Zone
Can secure residence visa for business owner?Yes
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?Yes
Average custom duties suffered?22.27%
Government foreign investment approval required?No
Average monthly office rental? (US$ per sq m)US$22-36
Minimum statutory monthly salary?US$93
Average monthly US$ salary for local skilled employees?US$416
US$ deposit interest rate? (1 year average)0.75%
Overseas remittance currency controls?None
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Good
Crowd funding available in this country?Yes

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  • Advantages and disadvantages

    Advantages of Uruguay company registration

      new business registration guides in Uruguay
    1. Registering a company in Uruguay only requires i) a minimum of two shareholders ii) the appointment of one director, who are not required to be of Uruguay nationality or to live in the country. There is no minimum share capital required and our Clients are not required to travel to Uruguay to complete the engagement;

      Uruguay is the best place to form a legally tax exempt company because:

      • Thanks to Uruguay’s territorial taxation system, companies incorporated in Uruguay are legally exempt from corporate income tax in Uruguay provided they do not have i) staff in Uruguay and ii) customers in Uruguay;
      • Uruguay companies distributing income sourced from overseas also benefit from legal exemption from Uruguay withholding tax;
      • Unlike Caribbean jurisdictions, Uruguay companies are reputable business entities, which will not be viewed as a potential risk of AML/CFT risk or tax evasion by Governments, banks and financial institutions.

    2. Uruguay is also a good place to form a manufacturing business because:
      • The country provides for several export processing zones, with tax incentives including: i) exemption from corporate income tax on sales of goods and services produced within the free zone ii) exemption from custom duties on imported equipment and raw materials and iii) simplified custom procedures. Withholding tax however applies to dividends if the corresponding income has been sourced from Uruguay;
      • Uruguay has relatively good sea transportation infrastructure, ranked as the 43th best in the world by the World Economic Forum;
      • Average salaries in Uruguay are less than US$2,000 a month and the minimum salary is only US$370 per month;
      • Thanks to its Mercosur membership, Uruguay has access to several free trade agreements, notably with India and Mexico.

    Disadvantages of Uruguay company registration

    1. Uruguay companies have access to double taxation avoidance agreements with only thirteen countries. An Uruguay offshore company is hence not an optimal vehicle for asset holding activities;
    2. Uruguay has not signed yet a free trade agreement with the United States or the European Union;
    3. Uruguay is a small market of only 3.4 million inhabitants. Our Clients willing to make sales in South America usually prefer to register their trading company in Brazil or Argentina.
  • Best uses for an Uruguay company

    1. Uruguay is the prime location for registration of a legally tax exempt company in South America;
    2. Uruguay also provides free trade zones which are attractive for businessmen willing to manufacture products then export them to Brazil and other large South American markets.

Company registration

  • Time to incorporate: Nine weeks
  • Cost to set up: US$20,105
  • Minimum capital: US$1
  • Physical office required: No

Required appointments

  • Shareholders: 2
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 25%
  • Corporate tax base: Territorial
  • Shelf companies: No
  • Main company type: Corporation

Frequently asked questions

Contact us

For additional information on our company registration services in Uruguay, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi