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.

SummaryLLC - SRLSASA OffshoreSAZF FZRepresentative officeBranch company
Best use of company?Uruguay headquartersInternational tradingInternational tradingProfessional servicesMarketing and researchBank branches
Legally tax exempt if properly structured?NoNoYesYesYesNo
Corporate bank account location?HSBCBBVACitibankSantanderBanco BandesScotiabank
Client must travel to Uruguay?NoNoNoNoNoNo
Can secure trade finance?YesYesYesYesNoYes
Limited liability entity?YesYesYesYesNoNo
GST payable on sales to local customers22%22%0%0%22%22%
Withholding tax on payments to shareholders?12%12%12%12%12%7%
Average total engagement costs?US$20,105US$20,105US$20,105US$18,055US$22,905US$22,995
Average total engagement period?9 weeks9 weeks9 weeks9 weeks12 weeks12 weeks
Accounting and tax considerationsLLC - SRLSASA OffshoreSAZF FZRepresentative officeBranch company
Statutory corporation tax payable?25%25%0%0%0%0%
Must file an annual Uruguayan tax return?YesYesYesYesNoYes
Effective corporation tax rate on net profits of US$ 250,00025%25%0%0%0%25%
Must file annual financial statements?YesYesYesYesYesYes
Access to double taxation treaties?YesYesNoYesNoNo
This entity enjoys Government incentives?YesYesNoYesNoYes
Monthly GST reporting to the Government?YesYesNoYesYesYes
Legally tax exempt entity?NoNoYesNoYesNo
Dividends received are legally tax exempt?NoNoNoNoNoNo
Company registrationLLC - SRLSASA OffshoreSAZF FZRepresentative officeBranch company
Resident director\partner\manager required?NoNoNoNoNoYes
Minimum number of shareholders\partners?2222Parent companyParent company
Minimum number of directors/managers?111111
Minimum paid up share capital?US$1US$1US$1US$50,000N/AN/A
Shelf companies available?YesYesNoNoNoNo
Time to incorporate a new entity?9 weeks9 weeks9 weeks9 weeks12 weeks12 weeks
Can easily convert to a local PLC company?YesYesYesYesNoNo
Can have preference shareholders?YesYesYesYesNoNo
Business considerationsLLC - SRLSASA OffshoreSAZF FZRepresentative officeBranch company
Can invoice local customers?YesYesNoYesNoYes
Can hire local staff?YesYesNoYesYesYes
Can rent local office space?YesYesNoYesYesYes
Secures a residence visa for business owner?YesYesYesYesYesYes
Good entity for trademark registration?YesYesYesYesNoNo
Other useful informationLLC - SRLSASA OffshoreSAZF FZRepresentative officeBranch company

Uruguay has signed free trade agreements?Yes, see this page
This country is a member of WIPO and TRIPS?Yes
The country is a member of the ICSID?Yes
Average customs duties suffered?22.27%
Government foreign investment approval is required?No
Average monthly office rental? (US$ per sq m)US$30
Minimum statutory annual salary?US$93 per month
Average monthly US$ salary for local employees?US$416
Uruguayan peso deposit interest rate? (1 year average)4.9%
US$ deposit interest rate? (1 year average)0.75%
Overseas remittance currency controls?None
Public register of shareholders and directors?Yes
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

Press the link headings below to read detailed, relevant, up to date information.

  • 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