Uruguay Company Formation
Uruguay Company Formation: A Secure and Strategic Business Gateway in South America Main Characteristics and the basic rules of Company registration in Uruguay
BRIS Group provides professional Uruguay company formation services for entrepreneurs and international investors seeking a strategic South American base. Establishing a company in Uruguay offers limited liability protection, a favorable business and tax environment, and access to regional and international markets — making it an attractive choice for global business expansion.
Our specialists manage the complete Uruguay company registration process remotely, including corporate banking support, compliance, and ongoing administration. With BRIS Group, your Uruguayan company will be fully compliant and ready for seamless operations across South America and internationally.
A Comprehensive Guide for Non-Residents to Register a Company in Uruguay
Uruguay is one of South America’s most politically stable and economically secure countries, making it an increasingly popular destination for entrepreneurs and investors seeking to establish a foothold in the Latin American market. With its strong legal system, open economy, and favorable tax regime, Uruguay company formation provides an excellent platform for both local and foreign investors aiming to expand globally.
This comprehensive, guide explores everything you need to know about forming a company in Uruguay — from the key advantages and requirements to the tax system and incorporation process.
Why Choose Uruguay for Company Formation?
Uruguay is often referred to as the “Switzerland of South America” due to its strong rule of law, financial stability, and high level of transparency. It is also one of the few Latin American countries consistently ranked highly for economic freedom and low corruption.
Key Advantages of Uruguay Company Formation
- Political and Economic Stability: A democratic government, stable financial system, and consistent economic growth.
- 100% Foreign Ownership: Non-residents can fully own a Uruguayan company without the need for a local partner.
- Favorable Tax System: Territorial taxation means income earned outside Uruguay is not subject to local tax.
- No Currency Controls: Free movement of capital and profit repatriation.
- Double Tax Treaties: Uruguay has a growing network of double taxation agreements that help prevent double taxation.
- Strategic Location: Excellent logistics and access to both the Atlantic Ocean and Mercosur markets (Brazil, Argentina, Paraguay).
- Skilled Workforce: Highly educated professionals, with a strong focus on IT, finance, and international trade.
- Business-Friendly Environment: Efficient company registration process and modern digital infrastructure.
Types of Companies in Uruguay
When setting up a company in Uruguay, foreign investors can choose from several legal structures, depending on their business needs.
|
Company Type |
Description |
|
Sociedad Anónima (S.A.) |
A joint-stock company suitable for medium to large enterprises; shares can be registered or bearer. |
|
Sociedad de Responsabilidad Limitada (S.R.L.) |
A limited liability company (LLC) ideal for small and medium businesses; requires 2–50 partners. |
|
Branch Office |
Allows a foreign company to operate in Uruguay under its parent entity’s structure. |
|
Representative Office |
A non-trading entity used for liaison, research, or marketing purposes. |
Advantages of Uruguay Company Formation for Non-Residents
|
Feature |
Benefit |
|
Full Foreign Ownership |
100% ownership permitted for non-residents. |
|
Limited Liability |
Shareholders’ liability is limited to their capital contribution. |
|
Territorial Taxation |
Only income earned in Uruguay is taxable. |
|
No Minimum Capital Requirement |
Flexibility in structuring the business. |
|
Confidentiality |
Corporate details are not publicly disclosed unless required by law. |
|
Stable Banking Sector |
Secure and internationally integrated banking system. |
Requirements for Uruguay Company Registration
To register a company in Uruguay, the following requirements must be met:
- Company Name: Must be unique and approved by the National Trade Register (Registro Nacional de Comercio).
- Registered Office: A local address in Uruguay is mandatory.
- Shareholders: Minimum of two shareholders (individuals or legal entities, local or foreign).
- Directors: At least one director (can be non-resident).
- Share Capital: No minimum required for most entities, but typically UYU 100,000 (approx. USD 2,500) is recommended.
- Articles of Incorporation: Must outline the company’s structure, activities, and share distribution.
- Public Notary: All incorporation documents must be notarized.
- Tax Identification Number (RUT): Required for tax registration with the Dirección General Impositiva (DGI).
Procedure for Uruguay Company Formation
The Uruguay company registration process is transparent and well-structured.
Step 1 – Choose a Company Structure and Name
Select the appropriate legal form and verify your company name with the National Trade Register.
Step 2 – Draft Incorporation Documents
Prepare the Articles of Incorporation and shareholder agreements.
Step 3 – Notarization and Legalization
All incorporation documents must be notarized and legalized by a public notary in Uruguay.
Step 4 – Register with the National Trade Register
Submit the notarized documents for registration with the Registro Nacional de Comercio.
Step 5 – Obtain RUT (Tax ID)
Register the company with the Dirección General Impositiva (DGI) to receive your tax identification number.
Step 6 – Open a Bank Account
Open a corporate account with a local or international bank operating in Uruguay.
Step 7 – Register with the Social Security Administration (BPS)
If the company employs staff, registration with the Banco de Previsión Social (BPS) is required.
Timeframe for Company Formation in Uruguay
|
Stage |
Process |
Estimated Duration |
|
Name Approval |
Verification by National Trade Register |
1–2 business days |
|
Document Preparation and Notarization |
Drafting and notarizing incorporation papers |
3–5 business days |
|
Company Registration |
Approval and issuance of incorporation certificate |
5–10 business days |
|
Tax and Bank Registration |
Obtaining RUT and opening a corporate account |
5–7 business days |
|
Total Estimated Time |
Complete setup |
2–4 weeks |
Corporate Tax System in Uruguay
Uruguay’s territorial tax system is one of its most appealing features for international entrepreneurs. Companies are taxed only on income generated within Uruguay, not on foreign-sourced income.
Key Corporate Tax Features
- Corporate Income Tax (IRAE): 25% on income earned within Uruguay.
- VAT: 22% standard rate (applicable on local transactions).
- Dividend Tax: 7% withholding tax on dividends paid to foreign shareholders.
- Capital Gains Tax: Taxed as part of corporate income.
- No Tax on Foreign Income: Offshore income is completely exempt.
- Double Taxation Treaties: Signed with numerous countries to prevent double taxation.
This makes Uruguay company formation especially attractive for holding, trading, and consulting companies with global operations.
How We Can Help You
Our expert team provides full professional support for Uruguay company formation, ensuring compliance and efficiency at every stage.
Our Services Include:
- Company structure consultation and strategic planning
- Name reservation and document preparation
- Legal drafting and notarization of incorporation papers
- Registration with the National Trade Register and DGI
- Bank account setup assistance
- Accounting, bookkeeping, and tax compliance services
- Registered office and virtual office solutions
- Ongoing business support and advisory services
Start Your Uruguay Company Formation Today
With its stable political environment, advantageous tax system, and global business credibility, Uruguay stands out as one of the most attractive jurisdictions in South America for international investors.
Whether you are establishing a holding company, trading entity, or regional headquarters, Uruguay company formation offers flexibility, confidentiality, and long-term security.
Contact us today to begin your Uruguay company formation and benefit from our professional guidance in setting up your business successfully in this dynamic South American hub.
Questions & Answers
1. What is the corporate tax rate in Uruguay?
Uruguay imposes a corporate tax rate of 25% on resident corporations. Non-residents are subject to a 25% tax on profits sourced within Uruguay. Certain incentives may apply for specific sectors, such as technology and renewable energy.
2. How is income tax calculated for individuals in Uruguay?
Individual income tax in Uruguay ranges from 0% to 36%, depending on income levels. The tax is progressive, meaning higher income brackets are taxed at higher rates. Tax residents may deduct certain expenses, and the tax is calculated on worldwide income.
3. What is the VAT rate in Uruguay?
In Uruguay, the standard Value Added Tax (VAT) rate is 22%, applicable to most goods and services. A reduced rate of 10% applies to some essential goods and services, such as basic food items and healthcare. Certain transactions, like exports, are exempt from VAT.
4. Are dividends taxed in Uruguay?
Dividends distributed to individuals are subject to a 7% withholding tax. For corporate shareholders, the tax rate may vary based on laws applicable to specific legal entities. Foreign investors might be eligible for reduced rates under double taxation treaties.
5. What other taxes should I be aware of in Uruguay?
In addition to the aforementioned taxes, Uruguay has a wealth tax, property tax, and social security contributions. The wealth tax applies to net assets exceeding a certain threshold, while property tax varies depending on location and property type. Social security contributions are mandatory for both employers and employees.
This FAQ aims to provide essential information regarding the tax landscape in Uruguay, relevant for both individuals and businesses. Always consult a tax professional for detailed advice tailored to your specific situation.
Learn more: Visit our Full Uruguay FAQ page
or contact our tax and company formation team at[email protected]
Do I need to be physically present in Uruguay to register a company?
No, physical presence in Uruguay is not a prerequisite for non-residents to register a company. You can complete most of the process through your appointed local representative or legal agent. This includes signing necessary documents and applying for the required permits. However, attending a meeting or signing documents in person may sometimes be beneficial, particularly for establishing business relationships. Be sure to discuss this with your attorney to understand what personal involvement may be helpful or required.
What types of companies can non-residents form in Uruguay?
Non-residents in Uruguay can form various types of companies, including a Limited Liability Company (Sociedad de Responsabilidad Limitada – SRL), a Corporation (Sociedad Anónima – SA), or even a Sole Proprietorship. The choice of company structure will depend on factors such as the nature of the business, investment goals, and desired flexibility. An SRL is ideal for smaller businesses with a limited number of partners, while an SA is suitable for larger ventures looking to attract investors.
Are there special tax considerations for non-resident companies in Uruguay?
Yes, non-resident companies in Uruguay face specific tax considerations. Typically, the corporate tax rate is 30% on net income, and there may be additional taxes depending on the type of activities conducted. Non-residents may also benefit from various double taxation treaties that Uruguay has with other countries, which can reduce tax liabilities. It’s crucial to consult with a tax advisor familiar with Uruguayan laws to structure your business in a tax-efficient manner and ensure compliance.
What are the costs associated with forming a company in Uruguay as a non-resident?
The costs of forming a company in Uruguay can vary based on the type of company and services required. Generally, you should expect to pay fees for legal services, registration fees, notary public fees, and any necessary permits. Additionally, initial capital requirements may apply depending on the company type. While the overall costs are relatively low compared to many countries, it’s essential to budget appropriately and consult with professionals to get accurate estimates tailored to your specific situation.
How long does it take to register a company in Uruguay for non-residents?
The time it takes to register a company in Uruguay can vary, but the process usually takes between two to four weeks, depending on the specific requirements and the responsiveness of the involved parties. Factors such as the completeness of documentation, the chosen legal representation, and government processing times can influence the duration. Engaging an experienced local attorney can help streamline the process, ensuring all paperwork is correctly completed and submitted promptly.
Learn more: Visit our Full Uruguay FAQ page
or contact our tax and company formation team at
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Uruguay
Country: Uruguay
Capital: Montevideo
Continent: North America
Language: Spanish
Currency: Uruguayan peso (UYU)
Time Zones: GMT -2
Dial Code: +598
Abbreviations: UY
Helping Your Company Thrive in Uruguay With us, starting and running a business in Uruguay will be easy and efficient!
- Full support of the company’s registration in Uruguay: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.