Starting a Business in Uruguay: Guide 2025

Why Start a Business in Uruguay?

Uruguay has become a go-to destination for international companies seeking stable and secure growth in Latin America. Below are seven compelling reasons why Uruguay stands out as a strategic base for your business expansion:

Access to a Resilient and Growing Market

Uruguay offers a stable macroeconomic environment with consistent GDP growth, prudent fiscal policies, and low inflation compared to regional peers. The GDP was estimated at USD 79.7 billion in 2024 and projected to reach USD 79.73 billion in 2025, making it one of the most resilient economies in Latin America. As a member of the MERCOSUR trade bloc, businesses based in Uruguay gain preferential access to a combined market of over 270 million people in South America.

Attractive Tax Incentives and Free Zones

Uruguay provides a competitive tax framework for foreign investors. The Free Zone Law allows companies operating within designated zones to enjoy full exemption from corporate income tax, import duties, and VAT. There are also investment promotion laws offering tax breaks and benefits in high-priority sectors like technology, logistics, renewable energy, and agro-industry.

Skilled and Educated Workforce

With a literacy rate close to 98% and a strong public education system, Uruguay produces a steady supply of highly educated professionals. The country has a growing tech ecosystem supported by university programs in software development, engineering, and sciences, ideal for startups and tech companies seeking talent.

Political Stability and Strong Rule of Law

Uruguay ranks as one of the most politically stable and transparent countries in Latin America, offering a secure and predictable environment for investors. In the 2024 Corruption Perceptions Index, it scored 76/100, placing 13th globally and 1st in the Americas, ahead of the U.S. and Canada. The World Justice Project Rule of Law Index 2024 also ranks Uruguay 24th out of 142 countries, and 1st in Latin America, reflecting the strength of its legal institutions and governance. Additionally, the Economist Intelligence Unit’s 2024 Democracy Index classifies Uruguay as a “full democracy,” making it the only country in the region with this status.

High Quality of Life for Founders and Employees

Uruguay is considered one of the safest and most livable countries in the region. It offers modern infrastructure, high-quality healthcare and education, and a relaxed lifestyle. As of mid‑2025, it ranked 48th globally in the Numbeo Quality‑of‑Life Index, placing ahead of many South American nations and underlining its overall livability. Montevideo, the capital, consistently ranks high in Latin American quality-of-life indexes, making it attractive for expatriates, remote workers, and even retirees. 

Business-Friendly Environment and Efficient Processes

Setting up a company in Uruguay is relatively fast and efficient. The government has made significant efforts to simplify bureaucratic procedures through digital platforms and pro-business policies. Foreigners can own 100% of a local company without requiring a local partner or director.

Strategic Location and Trade Connectivity

Uruguay’s geographic location, situated between Brazil and Argentina, makes it a strategic logistics and distribution hub. Its deep-water ports, efficient customs procedures, and top-tier infrastructure support regional trade and e-commerce. Additionally, it has strong connectivity with Europe and the U.S. through sea and air routes.

These advantages make Uruguay not only a secure place to invest but also a smart launching pad for scaling operations across Latin America.

Eligibility for Residency through Investment

One of the most practical advantages of starting a business in Uruguay is that it opens the door to legal residency. Foreign entrepreneurs who establish and actively manage a business in Uruguay can apply for residency under the Investment Visa pathway. This visa allows you and your family to live in Uruguay while managing your operations, offering long-term stability, access to local benefits, and a clear path to permanent residency and eventual citizenship. The process is straightforward and does not require large capital outlays compared to other countries, making Uruguay especially appealing for small and medium international investors.

Who Can Register a Company in Uruguay?

Uruguay allows both foreigners and non-residents to register and fully own companies, making it one of the most accessible jurisdictions in Latin America for international entrepreneurs. There are no citizenship or residency requirements to become a shareholder or director of a company in Uruguay. Whether an individual or a foreign legal entity, anyone can own 100% of a local company, with no obligation to partner with a Uruguayan national.

The process is straightforward, but it does require the appointment of a local legal representative, typically a lawyer or accountant based in Uruguay, who handles interactions with government bodies such as the tax office and social security authorities. This representative ensures compliance but does not have control over the business itself.

While company registration is open to all, those seeking easier access to banking and long-term operations often pair incorporation with a residency application. This dual-track approach simplifies many procedures and enhances the company’s credibility in the eyes of local institutions.

Type of Companies in Uruguay

Uruguay offers several legal entity types suitable for different business goals, whether you are a local entrepreneur, a small business owner, or a foreign corporation. Each type has its own legal framework, flexibility, and tax implications. Below are the main company structures in Uruguay:

Corporation (Sociedad Anónima – S.A.)

The S.A. is ideal for large enterprises and companies aiming to attract public investment or issue shares. There are two types:

• Open Corporation - shares may be listed on the Montevideo Stock Exchange (BVM).
• Closed Corporation has a limited number of shareholders and is not publicly traded.

An S.A. requires at least two shareholders, who can be residents or foreigners. The board of directors can also include foreign or local individuals. There are no activity restrictions, except for financial and insurance businesses, which require special authorization.

Limited Liability Partnership (Sociedad de Responsabilidad Limitada – S.R.L.)

The S.R.L. is the most popular structure among small and medium-sized enterprises (SMEs) in Uruguay. It offers management and accounting simplicity and can accommodate between 2 and 50 partners. Just like the S.A., it has no restrictions on business activities. Compliance obligations are lighter than for an S.A.

Simplified Stock Company (S.A.S.)

Introduced to provide a more agile and flexible structure, the S.A.S. is widely used by startups and foreign entrepreneurs. It provides limited liability, independent legal status, and quick setup. The major downside is the social security contributions required, even when no employees are present, starting from about USD 250/month.

Foreign Branch Office

Foreign companies can also open a branch in Uruguay as an extension of the parent company. While they must be incorporated locally, they don’t require local capital and are ideal for multinational expansion. The branch must follow the strategy of its parent and register in Uruguay’s National Trade Register.

Comparison Table – Company Types in Uruguay

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Requirements to Open a Company in Uruguay

Uruguay welcomes foreign entrepreneurs, but company formation involves meeting specific legal and regulatory obligations. Below are the main requirements every investor should be aware of:

Appointment of a Local Legal Representative

All companies in Uruguay must designate a local legal representative. This person must reside in the country and can be either a Uruguayan national or a foreigner holding legal residency. The representative plays a crucial role: they are authorized to sign contracts, handle official documentation, and represent the company before tax, labor, and regulatory bodies. More importantly, they ensure that the company remains compliant with national legislation.

Registration with the Tax Authority (DGI)

Once the company is formed, it must register with the Dirección General Impositiva (DGI), Uruguay’s national tax authority. This process results in the issuance of a unique tax identification number known as RUT (Registro Único Tributario). The RUT is essential for conducting business in Uruguay, it is used for issuing invoices, submitting tax returns, and maintaining financial records.

Registration with the Social Security Institution (BPS)

If the company plans to hire employees, it is mandatory to register with the Banco de Previsión Social (BPS). This registration allows the business to comply with employment regulations related to payroll, social security, healthcare contributions, and pensions. Without BPS registration, a company cannot legally employ staff in Uruguay.

Optional Support from a Corporate Services Provider

While not a legal requirement, many foreign investors choose to work with  experienced service providers. These professionals can streamline the incorporation process, handle registrations with DGI and BPS, and, if needed, provide a qualified legal representative to act on the company’s behalf. This kind of support helps ensure full compliance and avoids administrative delays.

Costs of Opening a Company in Uruguay

When planning to launch a business in Uruguay, it's essential to understand the associated setup and ongoing costs. While the country offers a favorable environment for foreign investment, budgeting accurately will help ensure a smooth entry and sustainable operations.

Initial Company Registration Costs

Establishing a legal entity in Uruguay involves several one-time fees:

1. Company registration fee. Around $65 to register your business with the National Registry of Commerce (RNC), according to Uruguay XXI (the national investment promotion agency).
2. Notary fees.Typically 5% of the company’s capital, with a minimum charge of $1,638.85 for notarial services.
3. Publication of bylaws. Approximately $315 to publish the company’s bylaws in the Official Gazette (standard format).
4. Other registrations. Enrolling with the Ministry of Labour (MTSS), the Social Security Bank (BPS), and the State Insurance Bank (BSE) is free.

Ongoing Costs and Tax Obligations

• Corporate income tax. Uruguay imposes a 25% IRAE (corporate tax) on profits. Understanding your tax obligations early is critical for compliance and financial planning.
• Administrative and professional services. Accounting, legal, and tax services can vary based on the complexity of your business. On average, these annual maintenance costs range between $1,425 and $7,450.

Note: These figures are subject to change. It’s highly recommended to consult a local expert for up-to-date and tailored cost estimates.

How to Register a Company in Uruguay?

Uruguay offers a stable and investor-friendly environment, but starting a business still requires following a number of formal steps. Here's a streamlined overview of the company registration process for foreign and local entrepreneurs alike:

Step 1 – Choose a Business Structure

Begin by selecting the most appropriate legal structure for your business. Common options include Simplified Joint Stock Companies (S.A.S.), Stock Corporations (S.A.), and Limited Liability Companies (LLC). Each structure offers different levels of flexibility, liability protection, and compliance requirements, depending on your business goals.

Step 2 – Search and Reserve a Company Name

Although optional, reserving your company name through the National Internal Audit Office (AIN) can help prevent conflicts and delays. You may submit up to three name options, and once approved, your chosen name will be held for 60 days.

Step 3 – Submit Company Bylaws for Approval

Once your structure is chosen and name reserved, the next step is drafting your company’s bylaws. These must be submitted to AIN for official approval and serve as the legal foundation for your business operations and governance.

Step 4 – Register with the National Commerce Registry

After receiving approval from AIN, your company must be officially registered with the National Registry of Legal Entities – National Commerce Registry Section (Registro Nacional de Comercio). This step gives your company full legal standing.

Step 5 – Publish an Excerpt of Your Bylaws

To make the formation of your business public, a summary of your bylaws must be published both in the Official Gazette and in a widely circulated Uruguayan newspaper. This ensures transparency and public record of the new company.

Step 6 – Obtain a Tax Identification Number (RUT)

All companies operating in Uruguay are required to obtain a RUT (Registro Único Tributario) from the Dirección General Impositiva (DGI), the national tax authority. The RUT is mandatory for issuing invoices, filing taxes, and financial reporting.

Should you consider setting up a business presence in Uruguay, Golden Harbors provides full-service support for entrepreneurs and foreign investors looking to establish a company there. From choosing the right business structure and handling legal paperwork to completing all required registrations and providing a local legal representative, we ensure that your incorporation process is smooth, compliant, and efficient, so you can start operating confidently and without delay.

FAQ About Registering a Company in Uruguay

Can a Foreigner Own a Business in Uruguay?

Yes, foreigners can fully own and operate a business in Uruguay without any local partner or residency requirement. Uruguay offers a business-friendly environment with equal treatment for both residents and non-residents, allowing foreign entrepreneurs to own 100% of company shares and enjoy full control over operations and profits.

Can an American Open a Business in Uruguay?

Absolutely. American citizens can open and own a business in Uruguay under the same conditions as locals. There are no restrictions based on nationality, and the process can be completed remotely with the help of a local representative or notary. Many Americans choose Uruguay due to its political stability, transparent legal system, and access to Mercosur markets.

How Long Does it Take to Incorporate a Company in Uruguay?

On average, it takes around 4 to 6 weeks to fully incorporate a company in Uruguay. The timeline may vary depending on the legal structure chosen (e.g., S.A.S. or S.R.L.), the speed of document preparation and notarization, and the efficiency of local registrations, including the tax authority and social security institutions.

Can You Get Uruguay Residency by Starting a Business in Uruguay?

Yes, starting a business in Uruguay can support your residency application, especially if the business is active, contributes to the local economy, and creates employment. While there is no dedicated "entrepreneur visa," business owners can apply for standard residency and demonstrate their economic activity as part of their proof of income and local ties.

Do You Need to Have a Bank Account in Uruguay to Register a Company?

You don’t need to have a bank account to formally register a company, but opening one is essential shortly after incorporation to operate the business, receive payments, and fulfill tax obligations. Most banks require in-person visits and compliance checks, making this a key step in the setup process.

Do You Need to Be in Uruguay to Open a Company?

No, you do not need to be in Uruguay to open a company. Company formation can be done remotely. Founders are not required to be physically present in Uruguay. Legal documents can be signed abroad and apostilled, and a power of attorney can be granted to a local professional to handle the entire incorporation process on the foreigner’s behalf. However, opening a corporate bank account often requires at least one in-person visit due to Uruguay’s strict anti-money laundering regulations.

What Are the Easiest Countries to Register a Company?

Some of the easiest countries to register a company include Estonia, Singapore, Andorra, the United Kingdom, the United States (Delaware), and the UAE (Dubai free zones). These jurisdictions are known for their fast online registration processes, minimal capital requirements, and business-friendly regulatory frameworks. Uruguay also ranks well in Latin America for its transparent and straightforward company incorporation system.