Doing business in Uruguay

How quickly can I set up a business?

Approximately 20 to 30 days.

What is the minimum investment needed?

There is no minimum Investment. The magnitude will depend on the Investment project.

How can I raise finance?

Investors must contribute a minimum personal capital to start and may raise financing from third parties or financial institutions, public or private.

What are the legal requirements for setting up my business?

Activity may be developed through:

• Corporations (SA or SA Simplified)
• LLP (SRL)
• Capital may be 100% foreign.
• Directors may be Uruguayan or foreign. Not necessarily more than one person/corporation.
• Shareholdings may be Uruguayan or foreign. In SA or SAS there is no minimum and LLP requires at least two shareholders.

The company may develop local business and international business, either in Uruguay or in a Free Trade Zone (in this last case, having some special taxing exonerations).

It may open bank accounts in Uruguay and abroad.

What structure should I consider?

There are advantages and disadvantages of each. It all depends on the specific business.

What advice can you give me in regards to payroll and taxation requirements?

Activities developed in Free Trade Zones are exonerated of taxes if they fulfil certain conditions.

Uruguayan taxing system is based on the source criteria, being taxed only activities within the Uruguayan territory, by:

Income Tax 25%

VAT 22%

Asset Tax 1,5%.

Contributions to Social Security (employee and employer) for payments of salary are mandatory.

Reporting is mandatory once a year, after each year-end.

Is there anything else that I should know?

• No worldwide income tax.
• Free foreign exchange market.
• There are no restrictions for the repatriation of profits.
• Uruguay is a very reliable country, with a secure institutional, legal, and economic framework, in a strategic location, with very good access to technology and networks, where doing business is easy.
• There are tax incentives for capital and working capital investments.
• Tax residence for foreign individuals, with a 10-year tax holiday.
• Investment promotion regime, where benefits on certain activities are offered for specific projects.