Uruguay Country Profile business trade issues

Uruguay

DOING BUSINESS

Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

Foreign companies benefit from the same aids and incentives as local companies. Employment aids in high priority zones do exist. Indeed, employment expenses can be deducted from the company tax from one half to twice the real amount. Scientific development aids and incentives could also be granted, research expenses can be deducted up to 50% of the real amount of the company tax. There are also other incentives such as exemptions from the reinvestment of profit, tax incentives etc...
The Uruguay XXI Investment and Export Promotion Agency, as well as the uruguayinvest.com web site, provide assistance and support to international investors.

Legal forms of companies

Form	Number of partners/shareholders	Minimum and/or maximum capital	Liability	Registration fee	Release of financial documents
Sociedad Anonima Commun is a Public Limited Company.	No minimum, it can be a proprietorship.	USD 50,000	Liability is limited to the amount contributed.
Sociedad de Responsabilidad Limitada (SRL) is a Private Limited Company.	Minimum 2. Maximum 50.	USD 1,100	Liability is limited to the amount contributed.
Sociedad Colectiva (SC) is a general partnership.	Minimum 2.	No minimum capital.	Liability is limited to the amount contributed.
Sociedad en Commandita Simple (SCS) is a limited partnership.	Minimum 2.	No minimum capital.	Liability is limited to the amount contributed.
Sociedades en Commandita por Acciones (SCA) is a partnership limited by shares.	Minimum 2.	No minimum capital.	Liability is limited to the amount contributed.

Registration and licensing procedures
In order to set up a Public Limited Company or a Private Limited Company, founders must subscribe a deed which contains the company's status. Then, a notary has to certify the deed's signatures and register it in his protocol.

Foreign exchange control
Currency exchange controls have been suppressed for good in 1974. Transactions in foreign currencies can be carried out. There are no restrictions on profits and capital repatriation.

Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal in Uruguay.

Foreign Direct Investment inflows in Uruguay

FDI inflows	2003	2004	2005	World rank (*) 2005
FDI inflows (USD million)	416	332	600	58/141

Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

Last modified in 2006 - ongoing update