News: Registration of company in Uruguay SA

The Republic of Uruguay is a country of Latin America, but it would be wrong to equate it to any of the Latin American countries, because nowadays Uruguay is characterized by enviable political stability and has extremely progressive social legislation. And, of course, the political stability is one of the decisive factors influencing the formation of reputation of the offshore jurisdiction.

Uruguay is the third most reliable country in Latin America. Therefore, more and more entrepreneurs are tending to buy or register company in Uruguay.

The geographical location of Uruguay is the Atlantic coast of South America. Uruguay shares its borders with such countries as Brazil (land border) and Argentina (the border passes through the Uruguay river). The country is poor in subsoil resources.

The population of the republic (and it is more than 3 million people) is mostly immigrants from the European countries, such as Spain and Italy. There are French people, British people, and natives of Brazil.

Spanish language has the status of the state language. At the same time, most Uruguayans use English and other European languages.

The national currency is the Uruguayan peso.

The capital of Uruguay in Montevideo is major financial and banking center of the country to date.

The level of GNP per capita in Uruguay is one of the highest in Latin America.

The economy is based on agriculture (production and export of raw materials and finished goods).

The main trading partners of the country are Brazil, Nigeria, the USA, Argentina, Germany and Canada.

Why is it profitable to register company in Uruguay?

The main reasons are:

- democratic policy of the government;
- liberal tax legislation;
- lack of currency control;
- existence of such free zones as Nueva Palmyra, Colonia and Carrasco, etc.;
- progressive conditions for doing offshore business in Uruguay;
- principle of preservation of bank secrecy, underlying the functioning of the financial sector.

The Government of Uruguay encourages the investors in every possible way. There are important aspects for consideration of potential owner of the company in Uruguay:

The law on the stimulation of industrial production stipulates that all the projects aimed at expanding or modernizing production in the republic are not subject to taxation. Such projects are considered as priority. The law provides for the possibility of obtaining benefits regarding tax on the import of productive capital, income tax, and inheritance tax.

There is temporary tax abatements for importation of industrial products used in the production of export goods. The stage of their processing does not matter. It is also possible to refund indirect tax, and the company is admitted to special loans. It is possible to obtain them both in US dollars and in local currency.

In order to protect their own interests, foreign investors prefer to conclude contracts with the government, guaranteeing the preservation of imported funds.

Forms of doing business in Uruguay

Registration of business in Uruguay can be carried out in several forms. Among them there are:
- Limited Liability Company (Sociedad de Responsabilidad Limitada), SRL;
- Anonymous society (Sociedad Anonima), SA.

The companies with limited liability (SRL) are usually established by the representatives of small business in Uruguay.
SA company in Uruguay is the corporate structure.

Registration of the SA companies in Uruguay. The main provisions

• The company's capital is divided into shares.
• The shares of the company can be issued to the bearer or be nominal.
• One shareholder can own 100% of the shares.
• Bearer shares can be transferred by simple conveying.
• There is no minimum requirement for the amount of capital; and there are no restrictions on its maximum amount.
• Liability of each participant is limited to prepaid capital.
• The company is represented by two bodies: the Meeting of Shareholders and the Board of Directors.
• The functions of the Meeting of Shareholders are the following:
  - appointment of the Board of Directors;
  - approval of financial (accounting) statements;
  - distribution of dividends.

The shareholders can be the foreign persons (natural persons or legal entities).

The shareholders' meeting shall be held at least once a year, and the shareholders can be represented by the authorized persons.

• The Board of Directors can consist of one or more participants. There can be legal entities, not necessarily the shareholders of the company. This body is supplementary one. Its powers can be limited and unlimited. The Board of Directors meets at least once a year in any country of the world. It is permitted to hold the meeting of the Board on behalf of the persons by power of attorney.
• The company can conduct investment, holding, trading activities, engage in credit granting and protection of foreign assets, provide professional or consulting services, and be the copyright holder.
• The person of any citizenship can buy company in Uruguay.
• It is necessary to select the name and appoint the director.
• Non-residents can open bank account in any currency in Uruguay. In order to do that, the foreigners shall submit the passport, assert the authenticity of the residence address (by utility bills), provide the letter of recommendation from the bank. The explanation of the source of income can be additionally required.

Bookkeeping of the SA company in Uruguay

The company shall maintain accounting records and submit financial reports annually.

Taxes of the SA company in Uruguay

The company submits tax form and pays annual fixed tax in the amount of $ 400.

There is no tax on foreign assets or income tax.

There is no tax on distribution of dividends.

We will register ready made company in Uruguay for you within the shortest time possible. It is now easier than ever to buy company in Uruguay. Registration of company in Uruguay is one of the simplest and cheapest ways to start a legitimate international business. Company formation in Uruguay is one of the main directions of our work.