Uruguay offers Offshore Companies:
- Known as Sociedades Anónimas, SAs, whose foreign assets, and income generated abroad, are untaxed
And it also offers Free Trade Zones:
- Geographic areas in which companies have local operations, and are exempted them from all taxes, even import duties
Uruguay's Free Trade Zones
- Free Trade Zones (FTZs) are specific geographic areas with a special regulatory status: Companies that operate within them face no taxation
- Uruguay has a dozen FTZs to choose from, in different parts of the country (near airports, ports, inland, or in Montevideo's business district)
Are there any special requirements?
- The only requirement that a FTZ user company has, is that 75% of its workforce must be Uruguayan nationals (although exceptions can be obtained, lowering the requirement)
- The company's directors/principals do not need to be Uruguayan nationals
The Key Advantage of FTZs
- When a company establishes itself in a FTZ, it faces no Uruguayan taxes, except social security taxes on its employees (like any employer).
- Thus, the company will
not pay:
- Import taxes or duties
- Corporate Income Tax (IRAE)
- Dividends distribution tax
- Net Worth Tax (IP)
- Value Added Tax (VAT) on goods or services
Types of Possible Activities in FTZs
- Companies established in a FTZ can engage in any type of commercial or industrial activity.
- Thus, companies may:
- Have logistics, merchandise handling and storage operations
- Sell services, globally (including financial services, insurance and professional services)
- Manufacture goods
Examples of Operations in FTZs
- Some common uses of Uruguay's
FTZs, and global companies that operate in the FTZs:
- Financial services: Merrill Lynch, RBC, BBVA, Citigroup, Raymond James
- Call Centers: Sabre, RCI
- IT: Tata Consulting Services, Veriphone
- Distribution: Epson, Ricoh, Lexmark, Sony, SKF
Setting up a FTZ Company
- Simple, clear, process:
- The Company chooses the FTZ which best fits its needs in terms of infrastructure, location, etc.
- Incorporate a fully-owned local vehicle (SA or SRL) to operate as the FTZ user
- Sign the user/lease agreement
- Submit a memorandum explaining the company's intended activity and operations, which the Finance Ministry approves
The local vehicle
- Companies may choose a shares corporation (SA) or an LLC (SRL)
- SAs offer simplicity and
flexibility:
- Shares may be bearer or nominative
- No minimum capital requirement
- It does not require more than one director or shareholder
- Directors may be non-Uruguayan
- Presence of directors and shareholders is not required in Uruguay
Uruguay's Other Advantages: the Business Environment
- Uruguay offers a business-friendly environment
- Free inflow and outflow of capital and repatriation of profits
- Open financial system, with no capital controls
- Free exchange and use of foreign currency
- Solid banking system
Our Services
- Incorporating the Uruguayan FTZ vehicle
- Providing the company's annual maintenance, tax and accounting services
- Introducing to and advising on the different FTZs available in Uruguay
- Legal services in general, including the set-up of the contract for FTZ user status, and drafting of the Memorandum submitted to the Ministry of Finance
Fischer & Schickendantz: Who We Are
- Full-Service Law Firm
- Clients: mostly foreign companies and individuals
- Staff:
- Bilingual
- Attorneys, Accountants, Tax Advisors, Notaries
- Services:
- Legal advice
- Legal Assistance in the Purchase Process
- Tax, Accounting Services
- Company Incorporation
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.