DOING BUSINESS IN URUGUAY IN 2023
Since 2003, Healy Consultants Group PLC 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.
| Compare different Uruguay entities | LLC | Fast solution | JSC | Holding JSC | Offshore | SAZF FZ | Representative Office | Branch Company | LLP |
|---|---|---|---|---|---|---|---|---|---|
| Also known as | Sociedad de Responsabilidad Limitada | Sociedad de Responsabilidad Limitada | Sociedad Anónima | Sociedad Anónima de Inversion Holding | Offshore | Sociedad Anonima Zona Franca | Oficina de Representacion | Sucursal | Sociedad en comanditas |
| Best use of company? | All products and services | Close a customer deal now | International Trading | Investment holding | International trading/holding | Manufacturing and export trading | Marketing & research | Specific projects | Professional Services |
| How soon can you invoice Clients/sign sales contracts? | 2 months | 1 month | 2 months | 2 months | 2 months | 2 months | Cannot invoice Clients | 3 months | 2 months |
| How soon can you hire staff? | 2 months | 1 month | 2 months | 2 months | 2 months | 2 months | 3 months | 3 months | 2 months |
| How soon can you sign a lease agreement? | 2 months | 1 month | 2 months | 2 months | 2 months | 2 months | 3 months | 3 months | 2 months |
| How long to supply corporate bank account numbers? | 3 months | 2 months | 3 months | 3 months | 3 months | 3 months | 4 months | 4 months | 32 months |
| How long to supply company registration/tax numbers? | 2 months | 1 month | 2 months | 2 months | 2 months | 2 months | 3 months | 3 months | 2 months |
| Corporate tax rate on annual net profits? | 25% | 25% | 25% | 0% | 100% | 0% | 0% | 25% | 0% |
| Limited liability entity? | Yes | Yes | Yes | Yes | Yes | Yes | No | No | Yes |
| Government grants available? | Yes | Yes | Yes | Yes | No | Yes | No | Yes | Yes |
| Resident director/partner/manager/ legal representative required? | No | No | No | No | No | No | No | Yes | No |
| minimum paid up share capital? | US$1 | US$1 | US$1 | US$1 | US$1 | US$1 | None | None | US$1 |
| Can bid for Government contracts? | Yes | Yes | Yes | No | No | Yes | No | Yes | Yes |
| Corporate bank account location? | HSBC | Banque Heritage | Scotiabank | Banco Bandes | BBVA | Santander | Citibank | Banque Heritage | Citibank |
| Can secure trade finance? | Yes | Yes | Yes | No | No | Yes | No | Yes | Yes |
| VAT payable on sales to local customers? | 22% | 22% | 22% | 0% | 0% | 0% | No local Sales | 22% | 22% |
| Average total business set up engagement costs? | US$22,105 | US$33,505 | US$20,105 | US$20,105 | US$20,105 | US$18,055 | US$22,905 | US$22,925 | US$20,955 |
| Average total engagement period? | 3 months | 3 months | 3 months | 3 months | 3 months | 3 months | 4 months | 4 months | 3 months |
| Accounting and tax considerations | LLC-SRL | Fast solution | SA | Holding JSC | Offshore | SAZF FZ | Representative Office | Branch Company | LLP |
|---|---|---|---|---|---|---|---|---|---|
| Statutory corporate tax payable? | 25% | 25% | 25% | 0% | 0% | 0% | 0% | 25% | 0% |
| Legally tax exempt if properly structured? | No | No | No | Yes | Yes | Yes | Yes | No | No |
| Subject to annual ICOSA tax? | No | Yes | Yes | Yes | Yes | Yes | No | No | No |
| Group HQ tax incentives? | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Must file an annual tax return? | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | No |
| Must file annual financial statements? | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes | Yes |
| Must appoint an auditor? | No | No | Yes | No | No | Yes | No | No | No |
| Access to double taxation treaties? | Yes | Yes | Yes | No | No | Yes | No | Yes | Yes |
| Withholding tax on payments to parent company? | 7% | 7% | 7% | 7% | 7% | 0% | 7% | 7% | NA |
| Company Registration | LLC-SRL | Fast solution | SA | Holding JSC | offshore | SAZF FZ | Representative Office | Branch Company | LLP |
| Resident director/partner/manager/ legal representative required? | No | No | No | No | No | No | Yes | Yes | No |
| Minimum number of shareholders/partners? | 2 | 2 | 2 | 2 | 2 | 2 | Parent Company | Parent Company | 2 |
| Maximum shareholding for foreigners? | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Minimum statutory paid up share capital? | US$1 | US$1 | US$1 | US$1 | US$1 | US$1 | None | None | US$1 |
| Security deposit to be kept with Government? | No | No | No | No | No | No | No | No | No |
| Shelf companies available? | Yes | Yes | Yes | Yes | Yes | Yes | No | No | No |
| Time to incorporate a new entity? | 2 months | 1 month | 2 months | 2 months | 3 months | 2 months | 3 months | 3 months | 2 months |
| Can easily convert to a PLC? | Yes | Yes | Yes | No | No | Yes | No | No | No |
| Public register of shareholders and directors? | Yes | Yes | Yes | Yes | Yes | Yes | No | No | Yes |
| Can have preference shareholders? | Yes | Yes | Yes | Yes | Yes | Yes | No | No | Yes |
| Business Considerations | LLC-SRL | Fast solution | SA | Holding JSC | Offshore | SAZF FZ | Representative Office | Branch Company | LLP |
| Good entity for trademark registration? | Yes | Yes | Yes | No | No | Yes | No | Yes | Yes |
| Can secure an import and export license? | Yes | Yes | Yes | No | No | Yes | No | Yes | Yes |
| 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$257 |
| Average monthly US$ salary for local skilled employees? | US$3785 |
| US$ deposit interest rate? (1 year average) | 0.18% |
| 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 |
Uruguay business setup summary
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Advantages and disadvantages
Advantages of Uruguay company registration
- 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.
- 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 65th 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
- 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;
- Uruguay has not signed yet a free trade agreement with the United States or the European Union;
- 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
- Uruguay is the prime location for registration of a legally tax exempt company in South America;
- 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.
