Doing business in Uruguay

#1 17 February 2012 10:42:22

Julien
Julien
Grand Baie

Doing business in Uruguay

Hi,

are foreign investors welcome in Uruguay?

Is it complicated to register a company in Uruguay? What is the procedure?

What is the corporate tax rate in Uruguay?

Is it easy to recruit?

Any advice you would share with us?

Thank you very much for your participation,

Julien

#2 20 February 2012 20:56:43

Pieter Prinsloo

Re: Doing business in Uruguay

Hallo Julien,

Uruguay welcomes investors. They have several favourable conditions for investors. To register a business is both simple and complicated.Lots of red tape.You need professional advice to navigate this process.Recruitement should not pose much of a problem. The following link is to a reputable company that could help you: fischer.com.uy/

Last edited by Pieter Prinsloo (20 February 2012 20:59:42)

#4 25 February 2012 23:04:37

Pieter Prinsloo

Re: Doing business in Uruguay

There was a case of squatting in the far North of the country by some sugercane workers a while back. However property rights are defended (protected) and respected as many foreigners own property in Uruguay.

#5 25 February 2012 23:15:37

niceNMguy
niceNMguy
Tularosa, NM

Re: Doing business in Uruguay

Thanks Pieter for the quick answer.  Do you find the total cost of living in Uruguay to be much more expensive than other neighboring countries?  Sometimes other countries report the price of something without added sales tax whereas Uruguay quotes prices including sales tax.  Just wondered what your thoughts are about quality of life versus what you are spending per month?

#6 26 February 2012 14:05:08

Pieter Prinsloo

Re: Doing business in Uruguay

The cost of living is a complicated subject. Quality of life in terms of standards applicable in North America measured in monetary terms could be considered by some to be lower.Quality of life is a personal issue. I like the Uruguayan lifestyle that is less focused on having lots of things(less consumption driven) The focus is more in line with what I perceive to be a good quality of life.The focus is on family and friends, good food, theatre etc and a balance between work and play.As for neighbouring countries,Argentina offers the same in certain geographical areas and also good value. Politics are however very unpredictable there.It is difficult to plan as you dont know when to expect what.Most South American countries are in a social process to eradicate inequality and therefore experience political engeneering that can be unpredictable, volatile and focussed on populist policies to consolidate political power.Investor are seen by many as Oligargs that come to exploit the country. I dont need that type of animosity. Uruguay,s politicians know and understand that stability is paramount if you want to attract investors.Uruguay and Chile are the most stable and predictable countries in the region.I as an investor would not invest in the others because of their risk profiles as assessed by me ( personal)Others might only want to retire in a save environment. For them there are possible options all over South America depending on money issues.

#7 26 February 2012 14:15:40

Pieter Prinsloo

Re: Doing business in Uruguay

I did not really answer you. Cost of living with inflation (+/- 6-9%) fairly high is affordable (to me) but can become problematic should inflation continue on its current trend.To lead a comfortable middleclass life, own a house( bought cash) and car (bought cash) etc I would not budget at less than $ 2400 - $3000 US per month.This for a family of 3.I know I can probably live cheaper in Paraguay or Colombia but Uruguay offers what I need.The above mentioned figures are higher than what the average Uruguayn spends.

#8 21 March 2012 21:11:21

thanos47
thanos47
merida yucatan

Re: Doing business in Uruguay

I am from europe and i lived in uruguay 4 years with my family.2007-2011.I think its the worst place in latin america.Very expensive life and miserable quality while lacking basic goods.The electicity for a house of 150sq.m  that i had with all the comforts costs U$400  a month.There is a site to see how expensive is.www.numbeo.com
I live now in mexico and the life is 50% down maybe 60%.I had a chevrolet 1.6 mondel 1999 and i sold in 2011 U$13.000.Here in Mexico i bought BMW X5 for U$15.000 mondel 2006.There is no quality in uruguay.There are 3 shopping in montevideo and all have the same shops.Its crazy!!!My opinion is that the neighborhood countries like Argentina or Paraguay or chile are better.My best is Argentina.Uruguay never,never

#11 25 April 2012 17:55:07

freedom36
freedom36
Atlanta

Re: Doing business in Uruguay

What sort of license is needed for a foreigner.  I would like to vend on the beach.  I was wondering if anyone might have information.  Thank you.

#12 09 February 2013 10:02:42

dnb
dnb
Chicago

Re: Doing business in Uruguay

Some answers in bold in-text below...

Julien wrote:

Hi,

are foreign investors welcome in Uruguay?

yes, Uruguay is VERY friendly to foreign investment.

Is it complicated to register a company in Uruguay? What is the procedure?

I have used the firm of Fischer & Schickendanz where Juan Fischer speaks english like you and is US trained as a lawyer.  There are various forms of companies, and some more expensive than others.  Drop him an email for costs.

What is the corporate tax rate in Uruguay?

in general 25% though there may be exceptions

Is it easy to recruit?

probably depends upon the business you have in mind.

Any advice you would share with us?

things 'work' in Uruguay, and it is rated fairly high in the World Freedom Index, including doing business.  However, it is not a 'cheap' country to live in by any means.  You either want to do business there for a particular reason (I farm there) or you love the country in general.  If not, there are better places that would be cheaper (definitely not Chile).  I would also ignore Brasil as overly complex, same for Argentina.

Thank you very much for your participation,

Julien

Last edited by dnb (09 February 2013 10:03:48)

#13 25 September 2013 20:01:27

alanh74
alanh74
Montevideo

Re: Doing business in Uruguay

Hi Julien,
I am from California been living here in Uruguay for about 2 years now.
I do tv production, photography and some marketing too.
Uruguayans are indeed open to foreign investors.
your post is old so I don't know what step you are at this date.
DNB and Pieter Prinsloo, answered spot on that Uruguay is not cheap for cost of living but it offers quality of life and some stability and a safe environment.


alanhernandez106[at]gmail.com

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