Uruguay is considered the smallest country on the South American continent. But the small size of the state did not prevent it from obtaining the status "The most prosperous country in Latin America". Its jurisdiction is considered one of the most stable and safe for entrepreneurs, its geographical location is very profitable. The political direction has not changed for many years, which creates a favorable atmosphere in the cultural, social and business spheres. The Uruguayan government is interested in capital inflows, so the financiers from all over the world consider this country as a profitable business area.
Business etiquette of Uruguayans is characterized by the following features:
The government of the country does its best to attract investors and tries to create favorable conditions for them. The main advantages of the registration of a legal entity in Uruguay:
You can register the following types of companies in the country:
Let’s consider briefly the features of operation of each type.
1. Features of registration of SRL:
The owners of the firms should be prepared for the fact that at the initial stage of the foundation it is necessary to introduce a minimum amount of their share of capital (50%), and pay the rest during 2 years. All manipulations to accept and exclude the partners, change of shares should be coordinated with all the founders without exception.
2. Features of registration of SA:
The creation of free economic zones is intended to stimulate commercial activity by introducing special tax conditions in a certain territory for industrial and commercial activities. The benefits are valid only if the legally established requirements and the provision of services are complied with in the foreign market. They include exemption from nationwide or local tax obligations.
The companies are also exempted from profit taxation outside the free zone if they produce services outside Uruguay.
Trade regimes in the country can be divided into two types:
The zero rate of dividend income taxation is applied at the holding mode.
The tax policy for the firms registered in Uruguay is formed in such a way that only those profits that are received on the territory of the country will be taxed. The rate will be 25 percent. There is no dividend tax which attracts shareholders. The financial reports and forms are issued every year.