25 de Mayo 741 of 203
Zip Code 11000 Montevideo, Uruguay
Phone: +598 2901 0708

The office is located in a very strategic place in Montevideo. It is in the heart of the Old City, near all government offices, Banks and International Companies.

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Economic Situation in Uruguay

The Uruguayan Economy is characterized by a complete freedom in the investments, as well as in the financial and exchange market, with equal treatment to the national and foreign investors and with no restrictions to the movement of capitals, utilities, dividends, royalties or technical assistance.
Uruguay Is developing a process of deregulating the economy and both entrepreneurs as well as business organizations maintain a positive attitude towards the investors and to the foreign investors that visit Uruguay.
Meanwhile, the tax system is neutral regarding the foreign investment.
Its geographical location, between Argentina and Brazil, with its traditional reputation of social and economical stability as well as its financial centre role give Uruguay a favorable position when evaluation the location of the industries that have the MERCOSUR as a consumer market for their products and as a supplier of raw materials.

Constitution of Business Companies

There is an easy and quick procedure for the formation of companies in our country. The participation of two natural or legal persons to make up a Business Company. It allows you to possess the ownership of the company by the form of bearer shares or registered shares.
There are no restrictions regarding nationality, address or residence of the founders, shareholders or directors.
The Uruguayan corporations can be established from the moment of the subscription of the Social Contract (in formation) completing the administrative red tape of its constitution in relatively short periods of time.
The Capital of the Corporations does not have minimums or maximums. According to the legal framework it has to integrate the 25% of the Social capital and such amount does not limit the operations of the Corporation.

Taxes in Uruguay

The corporations constituted in Uruguay are considered taxable or Tax-payers.
The concept that prevails in Uruguayan law is to tax the income from «Uruguayan Sources» thereby identifying the taxable income as the place of production or where it is generated.
According to Law.18.083 Incomes generated by activities developed in Uruguay are considered Uruguayan incomes. as well as goods located or Rights economically used in Uruguay regardless their nationality, address or residence of the people taking part in the operations and the venue of legal transactions. Within the income taxes in Uruguay there is the Non-Resident income Tax of Natural Persons which is levied in principle, both Uruguayan sources of residents and of non residents.
The traditional taxes in Uruguay are the above mentioned income taxes together with the Heritage Tax and indirect taxes such as the VAT (Valued Added Tax) and the IMESI (Excise Tax) levied on certain goods.

Law of Investment

Our country has an incentive to investments that seek to promote those enterprises that settle in our Country by exempting them of direct and indirect taxes. The Enterprises that present an investment project are promoted by the Executive Power, and will benefit from broad tax exemptions in Income Tax, Net Worth Value Added Tax, refund in Civil Engineering and import charge.
The eligible investment is detailed in the tax legislation, but in summary it consists in property, machinery and civil works needed for the production, trade or generation services In return of the potential exemption of taxes, the Executive Power expects the Company to commit itself with certain benefits to our society, such as employment, increase in exports, development of new technologies, geographical decentralization, etc.
The Comap (Commission of Application) is in charge of analyzing the documentation submitted and to reccommend to the Executive Power the promotion of the investment.
Currently this commission has the task of tracking the aims of the investments promoted and to do a surveyallance of the indicators commited by the enterprise.

Free Zone

There are areas in Uruguay where tax exemptions and customs benefits take place. These zones are among the country´s customs exclave the breadth of its exemptions.
The specific regime of Free Zones (law 15.921) looks forward to promoting investments, exportations, employment and economic integration constituting itself as a strategy for industrial development, and commercial services within a country that acts as a hub for regional distribution and for South América.

To operate in the Free Zone a special type of Corporation is required; A Free Zone User Corporation.

Tax benefits for the users of the Free Zone:

Current exemption of national taxes and other exemptions to be created.
Exemption from customs charges and duty fees for the goods that are in transit within the Free Zone.
Exemption from employers contributions to foreign staff, staff which can not be over the 25% of the company´s personnel.
Monopolies are left without effect within the Free Zone.