Most Common Types of Companies in Uruguay

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 investment 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. For the full process, see how to set up a company in Uruguay.

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 por Acciones Simplificada’ or Simplified Stock Company (SAS)

Created by Law 19.820 in 2019, the SAS is a flexible structure and a common choice for founders and foreign investors.

• It can be formed by one or more shareholders, individuals or companies. A single shareholder cannot be a sociedad anónima

• Shareholders are liable only up to their contributions

• There is no minimum capital. At least 10% of cash contributions is paid in at incorporation, and the rest within 24 months

• It is formed by public or private document and registered with the National Trade Registry, with no AIN approval of the bylaws and no publication in the Official Gazette

• The legal representative can be local or foreign

‘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.

• There is no legal minimum or maximum capital

• 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 Uruguay. Its capital is 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

• There is no legal minimum or maximum share capital. The capital is expressed in Uruguayan pesos

• At incorporation, founders must pay in at least 25% of the capital and subscribe at least 50%

‘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?

1. Choose the right type of company and legal structure for your business

2. Appoint a legal representative

3. Prepare the Articles of Incorporation and the bylaws of the company

4. For an SA, submit the bylaws and Articles of Incorporation to the National Audit Office (AIN) for approval

5. Register the company with the National Trade Registry (RNC)

6. For an SA or SRL, publish an extract of the bylaws in the Official Gazette

7. Register your company at the Single Window to obtain a taxpayer ID number (RUT) and registration at the Social Security Administration (BPS)

8. Register the company with the State Insurance Bank (BSE)

9. Open a corporate bank account

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!

• Appointment of legal representation,

• Providing a registered office address

• Handling tax and accounting

• Hassle-free Payroll Services

• Recruiting and Hiring Talent

• Manage your company bank account opening

• Manage your Trademark Registration

• Corporate Legal Services