Facts Worth Knowing to Form a Company in Uruguay
To form a company in Uruguay, one must be aware that Uruguay is growing at a faster rate and that is attractive the foreign investors to make business here. Forming a company in Uruguay is easier and consumes less time where the entire set up can be completed within 6 to 8 weeks. For more facts regarding how to form a company in Uruguay, this article might be proven useful for startups and entrepreneurs. Some facts about the country include:
- The economy of Uruguay is growing at a rapid rate
- It is ranked as 38th freest economy for the year 2018
- The GDP of Uruguay was USD78.41 billion as on 2017
Legal Structure of Uruguay
Uruguay has different legal structure which must be well understood before forming a company in this region. The structure of the company is defined by the purpose of the business and its respective requirements. The common types of legal structure in Uruguay are:
- Sociedad Anonima Fianciera de Inversion – SAFI (Investment Financial Corporation)
- Sociedades de Zona Franca – SAU (Limited Liability Company)
- Sucursal (Branch office)
- Sociedades Anonima – SA (Corporations)
Most of the companies based out of Uruguay is Corporations which is easier and simpler to form.
Power of Attorney (POA)
POA is a legal document that has been drafted by the local agent based out of Uruguay who duly signs it to give himself power of attorney, i.e. act on behalf of you to form a company in Uruguay. Giving a local agent POA will reduce your hassle of being physically present in Uruguay to complete the formation of the company.
Company’s name must be registered and it must be approved by the local agent based out of Uruguay. The company’s bylaw must include the following details:
- The purpose behind establishing a company in Uruguay
- Details about all the partners involved in business
- Signatures of the company’s owners or board of directors
According to the law of Uruguay, every company formed in Uruguay must have a legal representative, who is a citizen/resident of Uruguay.
Documents to incorporate a company
All the registrations of the company is done through one-stop shop of the Uruguay’s government. The registration fees of the company are paid through this government’s entity one-stop shop. You will then receive a certificate from the public notary which must be presented before the National Registry of Commerce to complete the registration process of the company.
Registering the company with tax authorities
Direccion General Impositiva or Tax Administration Directorate is the tax authority of Uruguay where all the companies of Uruguay must pay their taxes. All the important books of the company must be stamped by National Registry, such as shares book, details of board meetings, letter copybook and the minutes of the meetings of shareholders. Once this process has been completed, the company will receive a tax ID.
Opening a bank account
The most important and the last step to form a company in Uruguay is to open a bank account after receiving a tax id. Only after you have received your tax id, will you be able to open a corporate bank account in Uruguay.
Forming a company in Uruguay is profitable for its wide market potential. The foreigners are taking a lot of interest in investing in Uruguay as the economy of this country is rapidly increasing. Through a local agent, the foreigners are sorting out their hassles of establishing a new company in Uruguay.