Uruguay´s economy is one of the fastest growing in Latin America and the region becoming an attractive business destination for many foreign investors. See below some quick facts about the Uruguian economy:
- 38th freest economy in 2018
- Service based economy
- GDP was approx USD$78.41 billion in 2017
Forming a company in Uruguay is generally a simple process and can be completed within 6 to 8 weeks. Keep reading to learn how to incorporate a legal entity in Uruguay.
Type of Legal Structure
Uruguay has various options for legal structures, these include:
- Investment Financial Corporations (Sociedad Anónima Fianciera de Inversión – SAFI)
- Limited Liability Companies for Duty-Free Zones (Sociedades de Zona Franca – SAU)
- Branch Offices (Sucursal)
- Corporations (Sociedades Anónimas – SA)
The majority of companies in Uruguay are Corporations (S.A).
*Remember that the type of legal entity that you chose to incorporate will depend on your company´s business needs and requirements.
Power of Attorney / ´Poder´(POA)
Unknown to many, a POA (legal document) can be drafted and signed, allowing a local partner in Uruguay to form the company on your behalf, without the need for you to physically be in the country during the incorporation process.
Click on the following link for more information regarding Power of Attorneys in Latin America.
You must carry out a search of your company´s name and get it officially approved by the local government. Additionally, the company bylaws should include the following:
- Company purpose (‘objecto social’)
- Information regarding the partners involved
- Notarized signatures of the company´s owners
*Local legal entities in Uruguay must have at least (2) shareholders.
Company Incorporation Document
To register and formalize the company, it should be registered in the One-Stop Shop (Empresa en el día) of the National Government. All the registration fees for ‘SA’ companies are paid through this local authority.
The public notary will provide you with an official certificate that should be shown in the National Registry of Commerce in order to complete the company registration process.
Registration of Company with Local Tax Authorities
Tax Administration Directorate (Dirección General Impositiva) is the entity where the company will pay taxes. The National Registry will stamp the shares book, the letter copybook, the register of minutes of the board meetings and the register of minutes of shareholder´s meetings. Once this is completed, the company will be able to obtain its local Tax ID (‘RUT‘).
Open a Corporate Bank Account
The final step in forming a company in Uruguay is opening a corporate bank account. Once you have obtained your Ta company Tax ID, you will be able to open your corporate account.
Interested in Doing Business in Uruguay?
Uruguay holds great potential for business investors and entrepreneurs. However, doing business in a new environment can prove to be somewhat complicated. Working with a local partner who can support you throughout the entire incorporation process is highly recommended.
At Biz Latin Hub we offer a range of diverse range of tailored business services to assist you and your business in Uruguay and Latin America. For personalised information, reach out to Craig at [email protected].
To learn more about doing business in Latin America, watch the following video!