What are the most common types of companies in Uruguay? Incorporating a company in Uruguay is an attractive option for people interested in a new growing market, supported by alliances in the region and other parts of the world. Uruguay has a business-friendly environment that values foreign inversion since it helps with the country’s development. Choosing the right type of legal structure for your business in Uruguay is one of the key steps to guarantee success in the incorporation process.
It is important that in the beginning, everyone agrees on the type of company to avoid complications in the future. Nonetheless, partners can change the type of legal structure, but in most cases this is a long and expensive process.
What are the popular types of legal forms in Uruguay? What are their advantages and disadvantages? Which is the best type of company for my business? What are the most common types of companies in Uruguay?
‘Sociedad de Responsabilidad Limitada’ or Limited Liability Company (SRL)
In Uruguay, a Limited Liability Company or ‘SRL’ is similar to a Corporation. However, it is easier to form because it doesn’t require a big capital and the process is more straightforward.
It requires a minimum capital of UYU 20,531 (Uruguayan Pesos) or around 504 USD and the maximum allowed is UYU 923,403 or USD 22,697
An SRL needs at least 2 partners and can have a maximum of 50
The partners are only liable for their contribution to the company
Finally, at the moment of the incorporation, the partners have to pay 50% of their contribution. The other 50% can be paid in the following 2 years
‘Sociedad Anónima’ or Corporation (SA)
A ‘Sociedad Anónima’ (SA) or Corporation is a more complex type of legal form in Ecuador. This type of company requires significant capital that must be paid by the partners, divided into Stocks that can be freely transferred or sold if needed.
The partners have limited liability for their contribution to the share capital and have no responsibility over the management of the company
The partners can be local or foreign and it is not necessary that they live in Uruguay
The capital of a corporation is divided into Stocks
The minimum share capital required is UYU 18 million or around USD 400,000
At the moment of incorporation, it is necessary to pay at least 50% of the total capital and the rest in a maximum of 2 years
‘Empresa Unipersonal’ or Unipersonal Company
This legal form is the fastest and easiest to incorporate. It was created to promote the formalization of small businesses and entrepreneurs. Although in the future it can be transformed into a Corporation or Limited Liability Company.
It only needs one shareholder for the incorporation
There’s no requirement for minimum capital at the moment of incorporation
The shareholder has unlimited liability and has to report the earnings of the company in a personal affidavit
The shareholder can be either Uruguayan or a foreigner
How to register a company in Uruguay?
Choose the right type of company and legal structure for your business
Appoint a legal representative
Prepare the Articles of Incorporation and the bylaws of the company
Submit the bylaws and Articles of Incorporation to the National Audit Office (AIN) for approval
At Easyco, we can help you decide the best type of company for your business in Uruguay!
Uruguay is in constant growth and always looking to simplify its processes. To make sure you register your company in the right way, you can get in touch with us, and our team of experts is going to make sure the registration of your company in Uruguay is done successfully and in the least amount of time possible.
At Easyco, we make company formation in Uruguay easy; our team of corporate experts has vast experience helping companies and individuals register their business in Uruguay, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing a hassle-free online company registration experience. Start your company in Uruguay today!