Uruguay- Tag Archives - Business News and Updates


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Key Business Opportunities in Uruguay

Key Business Opportunities in Uruguay

Due to Uruguay's social and political stability, the country is positioned as a safe and friendly economy to do business in. Likewise, Uruguay's inhabitants enjoy a high level of equality and it's Per Capita Income (PCI) is relatively high compared to other Latin American nations. The country has also made important progress in tax regulations that have stimulated foreign investment over the last decade. Learn about the business opportunities in Uruguay and why the fastest-growing economy in Latin America can be your next business destination. Trade agreements stimulate Uruguay's business opportunities Uruguay is an official member of Mercosur and The Andean Community of Nations Foreign executives expanding in Latin America must take advantage of business opportunities in Uruguay driven by trade agreements with other major economies in the region. Trade agreements are essential to foreign companies as they stimulate favourable trading conditions, businesses expansion and decrease unemployment rates. Likewise, members have a greater incentive to do business and invest in new markets. Uruguay is an official member of multiple trade agreements, including Mercosur and The Andean Community of Nations. Mercosur Uruguay is considered as a regional hub with a strategic location to access other economies in South America, supported by its membership to Mercosur. The Southern common market known as Mercosur was founded in 1991 by Argentina, Brazil, Paraguay, Uruguay and Venezuela. This trade bloc seeks to create a free trade environment, stimulate investments and the fluid...

Manage Your Business Risks with Due Diligence in Uruguay

Manage Your Business Risks with Due Diligence in Uruguay

Discover the benefits of due diligence in Uruguay to make the best decisions when doing business in the country. Uruguay ranks amongst the top nations of Latin America in the Human Development, Human Opportunity and the Economic Freedom Index. The Stability of Uruguayan institutions and low levels of corruption stimulate a healthy and vibrant business environment. Currently, Uruguay is one of the most attractive destinations for foreign executives looking to do business in the region. Nevertheless, language barriers, local legislation and unknown tax system might represent a challenge for business owners expanding in the country. Therefore, managing your business risks with due diligence in Uruguay is essential to protect your company and ensure success. What is due diligence? Due diligence is essential to protect your company and ensure success. Due Diligence involves an investigation process in which a review of a company's financial, legal corporate, and employment status is carried out to prevent potential business risks. Due diligence also identifies hidden liabilities or other negligences. In Uruguay, by conducting comprehensive due diligence reports, you can rest assured that your investment will be safe and that you are making the right decisions in regards to your business. Standards & Poor's agency confirmed Uruguay as a country with a BBB credit rating -one step above the investment-grade- whilst maintaining and stable outlook. According to the agency, the country's rating is based on "its track record of implementing moderate and predictable economic...

What Are Companies’ Corporate Compliance Requirements in Uruguay?

What Are Companies’ Corporate Compliance Requirements in Uruguay?

Uruguay is a very politically stable country with high legal security. It has a non-discriminatory investment policy with no restrictions on the participation of foreign capital. However, as you establish your business, you must be aware of corporate compliance requirements in Uruguay. Legal structures in Uruguay Once a legal entity is duly incorporated in Uruguay, it must meet the necessary corporate compliance requirements to freely operate in the country. These legal obligations are not very complex or difficult to comply with as long as you understand them or seek the support of a local expert. Uruguay offers companies several legal structures to establish their business. Uruguay offers companies several legal structures to establish their business, from non-profit organizations to stock corporations. A foreign company may incorporate a legal entity in one of the following structures: Corporation (Sociedad Anónima- S.A.)Simplified Share Companies (Sociedad por Acciones Simplificadas- S.A.S.)Limited Liability Company (Sociedad de Responsabilidad Limitada- S.R.L.)Branch Office of a Foreign Company (Sucursal) Legal representation in Uruguay All established companies in Uruguay must appoint a legal representative, who will be in charge of representing the organization before third parties. Note that businesses expanding in the country must also appoint a legal representative during the company incorporation process. Some of the responsibilities of a legal representative include: Legally representing the company by expressing the will of the company.Following...

July 2020 Regulatory Update: South and Central America

July 2020 Regulatory Update: South and Central America

Our professionals report notable regulatory updates for July 2020. Biz Latin Hub’s team of legal and accounting specialists operating across all key markets in Latin America report the following notable regulatory updates for July 2020 in Bolivia, Brazil, Chile, Costa Rica, Guatemala, Mexico, Panama, Paraguay, and Uruguay. We support foreign companies in Latin America comply with all corporate regulatory compliance obligations to ensure their success in new markets. For more information on how we can support your regulatory and annual compliance needs, contact us today. Bolivia RegulationDetailsOfficial Statement N° 37/2020   On 14 July, the Ministry of Labor announced that daily labor activities in private and public entities can last for up to 6 hours. Companies must alternate staff between working in their designated office and home-office working arrangements. Brazil RegulationDetailsOrdinance 340Prohibition of entry of foreigners in Brazil from 1-30 July.    Exceptions: 1. Immigrant with permanent residence; 2. Foreign professional on mission in the service of an international organization, as long as duly identified; 3. Passenger in international transit, as long as the passenger does not leave the international area of the airport and the country of destination admits his ticket; 4. Foreign employee accredited to the Brazilian Government; 5. Foreign national, spouse, son, daughter, father, mother or curator of a Brazilian; whose entry is specifically authorized by the Brazilian Government in view of the public interest or for humanitarian...

5G in Uruguay Improves Conditions for Doing Business

5G in Uruguay Improves Conditions for Doing Business

Uruguay is not only a country with a favourable investment climate, a promising macroeconomic performance and a strategic location for international trade. It is also one of 34 countries worldwide to deploy 5G network in its cities. Learn about the introduction of 5G in Uruguay and the advantages of doing business in the country. The introduction of 5G in Uruguay Uruguay is the third country in the world to start regular 5G operations. ANTEL has recently completed the installation of the first commercially available 5G network in Latin America. This makes Uruguay one of the first countries in the world to introduce the new 5G mobile communications standard.The telecommunications company built the infrastructure as part of a public-private partnership. According to the company, the new network enables the supply of up to one million devices per square kilometre with a transmission speed of one gigabyte per second. Likewise, as claimed by José Otero, President of the non-profit organization "5G Americas", Uruguay is the third country in the world to start regular 5G operations. What is 5G? 5G is the fifth generation of mobile radio and the direct successor to 4G, which is also known as Long Term Evolution (LTE). The main features of the new network are higher data rates and shorter latency times. The aim of 5G is to increase the transmission speed in the network and to reduce the latency times to enable real-time communication between devices. In comparison to the previous LTE standard, 5G allows: Up to a 10-fold increase in the data rate from previously a maximum of 1...

Explaining Developments in Digital Tax in Latin America

Explaining Developments in Digital Tax in Latin America

Economies in Latin America are changing rapidly. One important regulatory development for many countries in the region is digital tax, because it captures services delivered online or electronically. The OECD claims that Latin American economies are making real progress to address the tax challenges arising from the digitization of the economy. This international entity also expects that further digital tax developments in Latin America provides stability and certainty in the international tax system.  Managing your company while keeping a careful watch over new regulations is one of the challenges to overcome while doing business in Latin America.  We provide an explanation of digital tax developments in several emerging and developing economies in Latin America, so your business understands its obligations when offering digital services in these markets. Digital tax developments in Argentina  Latin American countries are adapting to a new digital age with the establishment of digital services taxes across the region. The Argentine government levied taxes for digital services under law 27,430 and on a general basis. This regulation includes services carried out through the Internet network or any adaptation or applications, platforms or technology used by the Internet or other networks through which equivalent services are provided. By their nature, these services are basically automated and require minimal human intervention, regardless of the device used for its download, display or use. The regulation of digital services in Argentina has been in place since 27...

Why Hire Staff Through an Employer of Record in Uruguay?

Why Hire Staff Through an Employer of Record in Uruguay?

More and more global commercial actors are seeing the value of hiring international employees through an Employer of Record in Uruguay to establish a footprint in this market. An Employer of Record in Uruguay is one of the best ways to ensure your company meets the legal employment standards to hire staff, enter the market, and operate efficiently. With a population of 3 million people, and sharing borders with major regional giants Argentina and Brazil, Uruguay is the ultimate place to expand into and have access to some of the world’s most rapidly developing markets. During an age of globalized information, the focal point of the global economy has changed from an industry-oriented one to a service-oriented one. The emerging markets of Latin America are no exception to this transition process and Uruguay is undoubtedly one of these emerging economies, with the highest growth rate in the last decade.  What is an Employer of Record in Uruguay? An Employer of Record (EOR) is an external partner of a business or company that hires staff locally on their behalf. EOR companies take legal responsibility for the formal employment tasks of your company and can manage payroll and other benefits for locally-employe staff. When expanding, a partnership with an EOR alleviates the administrative burden your company may face when navigating unfamiliar labor markets to hire staff. On behalf of your company, an Employer of Record in Uruguary will comply with all relevant labor requirements for your locally-employed staff (this includes immigration, benefits, social contributions and...

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