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URUGUAY CORRECTLY NAVIGATES CORPORATE COMPLIANCE REQUIREMENTS

In recent years, Uruguay has established itself as a promising destination for investors and entrepreneurs alike. With its stable economy, transparent government systems, and highly developed infrastructure, the country has attracted significant attention from foreign investors looking to expand their operations into Latin America.

However, setting up shop in Uruguay requires careful adherence to local corporate compliance requirements. Failure to comply with these regulations can result in costly fines, reputational damage, and even the revocation of business licenses. In this article, we’ll explore the key corporate compliance requirements in Uruguay that businesses need to be aware of.

Fiscal Corporate Compliance Requirements in Uruguay

When establishing a company in Uruguay, it’s essential to understand the country’s unique fiscal regulations. This includes:

  • Filing monthly and annual tax returns
  • Paying taxes on time
  • Submitting tax statements at the closure of the fiscal period
  • Renewing certificates and policies
  • Preparing financial statements
  • Submitting balance sheets with the bank

Annual General Meeting and Financial Statements

Uruguayan companies are required to hold an ordinary general meeting within 180 days following the closure of the fiscal year. During this meeting, shareholders must approve and endorse the company’s balance sheet. Financial statements must also be reviewed and approved by partners or shareholders.

UBO Reporting Requirements

Companies holding bearer or nominative shares in Uruguay are required to notify the Central Bank of Uruguay (CBU) regarding any changes pertaining to their shareholders and ultimate beneficiaries. This includes disclosing information about beneficial owners who hold a minimum of 15% of the total capital or equivalent assets, or possess comparable voting rights.

Frequently Asked Questions (FAQs) for Corporate Compliance Requirements in Uruguay

Q1: What are the common statutory appointments for a company in Uruguay?

A1: The most common statutory appointments for Uruguayan legal entities include an appointed legal representative who will be personally liable for the good operation and standing of the company.

A2: Yes, a registered office address or local fiscal address is required for all entities in Uruguay for the receipt of legal correspondence and governmental visits.

Q3: How long do companies have to submit their annual income tax declaration in Uruguay?

A3: Companies in Uruguay have 3 months to submit their annual income tax declaration by the deadline of March 31st.

Q4: When should a company hold a general shareholders meeting in Uruguay?

A4: In the case of closed joint-stock companies, the ordinary shareholders meeting must be held within 180 days following the closure of the fiscal year. For open joint-stock companies, the ordinary shareholders meeting should take place within a period not exceeding 120 days from the end of the fiscal year.

Working with Biz Latin Hub

To ensure that your business is correctly navigating corporate compliance requirements in Uruguay, it’s essential to work with a trusted legal and accounting firm. At Biz Latin Hub, our team of experts provides comprehensive company formation advice and guidance to support your expansion into Latin America.

With our full suite of bilingual market entry and back-office services, we are your single point of contact in Uruguay and Latin America. Reach out to us now to make the most of our market-leading services, and get a customized quote from our team.