Uruguay- Tag Archives - Business News and Updates


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Latest Developments in MERCOSUR Trade Deals and Negotiations

Latest Developments in MERCOSUR Trade Deals and Negotiations

The Southern Common Market (MERCOSUR) brings new trade deals and negotiations to its participating countries Argentina, Brazil, Paraguay, and Uruguay. Its goal is to generate business and investment opportunities. It has driven agreements with other countries, and the so-called Associated States, which lead to meetings and activities between those South American countries. on top of that, MERCOSUR has also brought commercial and political partnerships with countries all over the world. We point out the trade deals and negotiations that MERCOSUR member countries have set and how buinesses in MERCOSUR member countries can benefit from them.  Formal trade agreements between MERCOSUR countries Argentina-Paraguay deal supports automotive sectors In October 2019, the governments of Paraguay and Argentina signed a bilateral free trade agreement for the automotive sector, which provides for the tariff reduction for all cars that Argentina exports to Paraguay. Trade brings in new automotive products produced in the territory of both countries benefit from a 100% preference, with the exception of passenger cars and cars designed for the transport of people, to which a reduction schedule will be applied annually and automatically as follows:  The Ministries of Finance for Argentina and Paraguay signed a Memorandum of Understanding on bilateral cooperation in fiscal, economic, and integration policies to favor the creation of joint work mechanisms. 2019: 25% 2020: 50%2021: 75% 2022: 100%. The total market for new cars sold per year in Paraguay is 40,000 units....

When Do You Need a Legal Representative in Uruguay?

When Do You Need a Legal Representative in Uruguay?

Countries in Latin America and in the rest of the world see Uruguay as an exemplary country in the region for business. Uruguay is socially, politically and economically stable with legal security and a good investment grade. Regardless of the type of legal entity you choose when incorporating your company, you will require a legal representative in Uruguay. The role of the legal representative in Uruguay Each type of legal entity requires a legal representative in Uruguay. Legal entities must appoint a legal representative to declare the company’s will. This is where the legal representative comes into play. The legal representative in Uruguay is the one who acts in front of third parties to express the company's will and celebrate consequent legal deals. As a result, the company is bounded by the acts and contracts presented in these deals. Therefore, the legal representative in Uruguay will assume commitments and make decisions attributed to the company. A legal representative in Uruguay carries the following main responsibilities: Sign contractsCarry out procedures before public and/or private entitiesRepresent the company in court, either as an actor or a defendant, duly assisted by a lawyerPerform administrative activities. In summary, the legal representative has the broadest powers and responsibilities regarding the administration and representation of the company. This person must carry out all business, acts, and contracts that are aligned with the corporate purpose. Which companies need a legal representative in Uruguay? The three most common types of legal...

Why are Foreign Companies Choosing to Do Business in Uruguay?

Why are Foreign Companies Choosing to Do Business in Uruguay?

Find out the benefits and incentives to do business in Uruguay in 2020. Despite turbulent economic times in Latin America due to COVID-19 restrictions, Uruguay remains an increasingly popular destination for expanding businesses. Uruguay is a small country with approximately 3,500,000 inhabitants. It is a founding member of Mercosur and for the last decade its political and economic stability has attracted the attention of foreign investors seeking to incorporate a company and do business in Uruguay. In Uruguay, foreign direct investment (FDI) has reached record levels, making the country one of the top receivers of FDI, in terms of GDP in South America. This growth in foreign investment is associated to its attractive free zones, free trade agreements, as well as its participation in Mercosur, ALADI and other regional blocks. Doing business in Uruguay is promising in 2020 given its pro-investment policies. Doing business in Uruguay The country has a pro-investment policy that eliminates restrictions on the use of foreign capital, allowing for free movement of capital and bank secrecy. In September 2019, the creation of a new legal entity, a Sociedad Anónima Simplificada, or SAS, sought to boost business in Uruguay. This new structure minimizes the costs of incorporation, streamlines the process of creating companies in Uruguay by promoting the use of digital platforms in all phases of the process, and allows companies already incorporated in the country to transform their legal entity to a SAS. Laws that promote business in Uruguay The Uruguayan...

How to Form an NGO in Uruguay

How to Form an NGO in Uruguay

Find out how to form an NGO in Uruguay and develop your social cause in a steadily developing country. In Uruguay, Law 17.613 recognizes and regulates the existence of two types of non-governmental organizations (NGOs): Civil Associations and Foundations. Both NGO types are non-profit organizations in Uruguay. However, they possess some regulatory differences, and impose different obligations on NGO operators in Uruguay. Understand the requirements for the constitution and subsequent operation of NGOs in Uruguay, and make the right choice for your cause on the type of NGO you want to establish. Forming an NGO in Uruguay: Foundation and Civil Association There are 2 types of NGO in Uruguay: the Foundation and Civil Association. Foundation Law 17.613 regarding NGOs in Uruguay establishes that “Foundations are legal persons recognized as such by the competent authority, which are constituted by the contribution of goods, rights or resources, carried out by one or more natural or legal persons and who pursue an object of general non-profit interest”. Civil Association There is no specific rule that defines or regulates Civil Associations. Article 21 of the Civil Code makes reference to this type of NGO in Uruguay. Generally, speaking, Civil Associations are a voluntary, lasting, and organized group of people who invest assets into an entity to carry out non-profit economic activity. For example, they may have the objective of carrying out a cultural, social, sports, or union activity. The role of the Ministry of Education and Culture Decree-Law 15.089 states that the Ministry...

Enter the Market With a Professional Employer Organisation (PEO) in Uruguay

Enter the Market With a Professional Employer Organisation (PEO) in Uruguay

A Professional Employer Organisation (PEO) in Uruguay can offer significant advantages when entering the Uruguayan market. Uruguay's tranquility and security has led foreigners from different parts of the world to do business in the country. Additionally, its attractive business environment and lower costs of production compared to struggling neighbor Argentina is enticing businesses across its borders. If you are looking to expand abroad and do business in Uruguay, a PEO can help with the process of hiring staff without needing to formally incorporate a company. A PEO supports your business with the all aspects of hiring employees in Uruguay, from payroll to employee benefits.  How does a PEO in Uruguay support business expansion? A PEO in Uruguay relieves the burden of hiring and managing staff in a new and unfamiliar market, where a foreign business may otherwise struggle to understand their legal obligations. A PEO supports companies with their human resources functions, from the early stages of recruitment to the payment of taxes and benefits. A PEO in Uruguay will hire staff inside the country on behalf of the company, and manage their payroll, social security contributions and other needs within the country, so the hiring company has a presence in the market and can focus on developing their commercial activities. PEO companies can achieve this through a 'co-employment' relationship with the hiring company. In hiring staff on behalf of the company, the PEO becomes the employees' Employer of Record in the eyes of the government. This means that they are liable for...

Overview: Argentina, Uruguay and Paraguay Trade Relations

Overview: Argentina, Uruguay and Paraguay Trade Relations

Companies seeking to expand to Latin America should consider the commercial opportunities generated by trade agreements between Argentina, Uruguay and Paraguay. As Latin American countries promote regional relationships to support each other, growth and free trade agreements offer new opportunities for business owners seeking to access important benefits and new markets abroad. As one of the largest economies in Latin America, Argentina draws focus for foreign expanding companies. Expanding multinationals should pay attention to the close relationship Argentina maintains with neighboring countries, especially as these countries work to reduce bureaucratic barriers to doing business – such as the introduction of a new legal entity structure in Uruguay. We provide a comprehensive overview of the trade agreements between Argentina, Paraguay and Uruguay. We also share some of the opportunities available to executives considering entering these markets. Argentina-Uruguay-Paraguay trade relations and agreements The economic relations between Argentina, Uruguay and Paraguay are comprehensive. Several different trade agreements in force between these nations reflect the efforts of their governments to maintain and strengthen trade ties. Several different trade agreements in force between these nations reflect the efforts of their governments to maintain and strengthen trade ties. However, in addition to strengthening relations with neighboring countries, each country has worked to diversify its trade profile not only within the region, but outside it with important trade partners...

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