Doing Business In Uruguay: What You Need To Know

• Published date: 26 June 2023
• Subject Matter: Corporate/Commercial Law, Corporate and Company Law
• Law Firm: TMF Group BV
• Author: TMF Group

Uruguay is a country with high economic freedom with an extensive infrastructure network that offers excellent access not only to Latin America, but also the rest of the world. Its location, infrastructure and natural resources position Uruguay as a strategic location for major business and industrial centres in the region.

Uruguay has strong political and social stability, supported by a consolidated democracy and strong rule of law. The country offers good prospects for internal development by local companies or as a hub for global or regional services. Here we take a look at how to get set up in Uruguay, as well as touching upon the economic and political conditions within the country, and the benefits of its free trade zones.

Incorporating a company

There are a number of steps to take for incorporating a company, but first you will need to decide on the type of company to establish, depending on your business needs.

The three most common types of company are:

• Corporation
• Simplified share company (SAS)
• Limited liability company

The following steps then need to be followed:

• Appoint a legal representative
• Prepare articles of incorporation and bylaws of the company
• Submit the articles of incorporation and bylaws to the National Audit Office
• Register the company with the National Trade Registry
• Publish an extract of the bylaws in the Official Gazette
• Register the company at the Single Window and at the Social Security Administration
• Register the company with the State Insurance Bank
• Open a corporate bank account

Economic outlook

Uruguay's economy has grown year-on-year for the past 30 years, based on its impressive institutional stability, relative to its Latin American counterparts.

Since 2003, Uruguay has grown at rates above the regional average, exceeding 7% on several occasions.

Despite a slowdown at the beginning of 2023 amid global uncertainties, economic growth is expected to be nearly 2% for 2023 and inflation is expected to remain around 7% this year.

Political stability

Uruguay has maintained a stable democracy for almost 40 years, with a commitment to facilitate and set clear rules to investors, whether they are Uruguayan or from overseas.

Government elections are due to be held next year, but this should not generate doubts among investors, because the investments promotion framework is well maintained.

A clear example is what is established in the Free Zones Law. The State, under liability for damages, assures the free zone user - during...