Since 2003, Healy Consultants Group 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.

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Uruguay business setup summary

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• Advantages and disadvantages

  Advantages of Uruguay company registration

  

  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;
  2. 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.
  3. 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 65^th 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.