Uruguay’s Strict Corporate Compliance Requirements: A Guide for Foreign Investors
Introduction
Uruguay has emerged as a prime destination for foreign investors, thanks to its stable economy and transparent business environment. However, navigating the country’s corporate compliance requirements can be complex and time-consuming.
In this article, we will provide an in-depth guide to help foreign companies understand the essential corporate compliance requirements in Uruguay. Our team at Biz Latin Hub has extensive experience in setting up businesses in Uruguay and can assist you with every step of the process.
Fiscal Corporate Compliance Requirements
To operate freely within Uruguay, a company must fulfill its essential corporate compliance requirements. These responsibilities are not arduous or intricate, but it is crucial to seek the assistance of a local specialist to ensure everything runs smoothly.
Uruguay presents various legal frameworks for enterprises to establish their operations, ranging from not-for-profit entities to publicly traded corporations. A foreign company can choose from:
- Societá Anónima (SA): The most common type of corporation in Uruguay.
- Sociedad de Responsabilidad Limitada (SRL): A limited liability company with a simpler structure.
Both types require a minimum capital of UYU 100,000 (approximately USD 3,400).
Statutory Appointments
The following are the most common statutory appointments for Uruguayan legal entities:
- Appointed Legal Representative: Personally liable, both legally and financially, for the good operation and standing of the company. This should be a local national or a foreigner with the right to live/work in the country.
- Auditor: Responsible for reviewing financial statements and ensuring compliance with Uruguayan accounting standards.
Registered Office Address
A registered office address or local fiscal address is required for all entities in Uruguay for the receipt of legal correspondence and governmental visits. This can be a physical location or a virtual office service.
Accounting and Taxation Compliance
The following are the key accounting and taxation compliance requirements in Uruguay:
- Monthly and Annual Tax Returns: Companies must submit tax returns every month and annually by March 31st.
- Tax Payments: Taxes must be paid every month, usually on the 25th of each month.
- Financial Statements: Financial statements must be prepared within 4 months from the date of closure of the fiscal period.
- Balance Sheets: Balance sheets must be submitted with the bank at the closure of the fiscal period.
UBO Report
Companies holding bearer or nominative shares are obligated to notify the Central Bank of Uruguay (CBU) regarding any changes pertaining to their shareholders and ultimate beneficiaries. This includes individuals who directly or indirectly hold a minimum of 15% of the total capital or equivalent assets, or possess a comparable percentage of voting rights.
Conclusion
Uruguay’s corporate compliance requirements may seem complex, but with the right guidance, foreign companies can navigate these regulations with ease. Our team at Biz Latin Hub is here to support you every step of the way. Whether it’s setting up your company, ensuring compliance, or providing 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.