Business
Uruguay — Company Formation
Uruguay is reported to have a straightforward company formation process, with the S.A. (Sociedad Anónima) and S.R.L. (Sociedad de Responsabilidad Limitada) as the two most common entity types for foreign-owned businesses. Registration typically involves notarized incorporation documents, registration with DGI (tax authority) and BPS (social security), and can often be completed within a few weeks with a local lawyer/accountant. 100% foreign ownership is reported as permitted in most sectors, with no general requirement for a local partner.
Key facts
- 100% foreign ownership is reported as permitted in most sectors, with no general requirement for a local partner.
Steps
- Step 1 — Engage a local lawyer/accountant and draft the founding deed (estatuto)
- Step 2 — Notarize the incorporation documents
- Step 3 — Register with the National Business Registry (Registro Nacional de Comercio)
- Step 4 — Obtain a RUT (tax ID) from DGI
- Step 5 — Register with BPS (social security) before hiring employees
Costs
- Registration Fee: US$ 65
Timelines
- Formation, engagement to operational: ~30 business days
Required documents
- Founding deed (estatuto)
- Notarized incorporation documents
- RUT tax ID
Common mistakes
- Defaulting to an S.A. without comparing it against an S.R.L.'s simpler, more restricted-transfer structure, which is often a better fit for a small owner-operated business.