Form Your Company |
|
| |
Uruguay Domestic Company
Introduction
Uruguayan domestic companies (SA’s) are just about the only fully tax paying companies in the world that you can structure to pay no taxes. This is because Uruguay still taxes on a territorial basis, so if all a Uruguayan Domestic company does is hold an offshore company, then all the dividends flowing into the Uruguayan company from the offshore company - though still reportable, are tax free.
Since it officially pays tax and is located in a stable country that is not blacklisted as a tax haven, you can count on your company to be recognized and favorably-received worldwide. We at Capital Conservator are headquartered in Montevideo, the Capital of Uruguay and so are especially well placed to handle the opening of your Company.
A Uruguayan SA is not suitable for every investor. Compared to most offshore companies it is relatively expensive to set up and maintain. However some investors require an additional presence in a foreign country to enable them to deduct tax from invoices sent by their foreign companies. We can provide you with that presence – a totally legal tax-paying company in Uruguay with an address (we can even rent out office space for you), phone number and fax number – but structured for you so that you pay little or no tax.
What has been done is to create a regular offshore company with the same name as a Uruguayan company, and receive funds (e.g. invoices) into that company tax free. The profits can then be remitted to the Uruguayan company tax free, because they would be profits from an offshore operation. Invoices can then be sent back to your home country ‘taxed’ at a great discount.
The company that we offer is a ‘Sociedad Anonima’ (akin to Germany's "Ags", Italy's "SpAs", or Britain's "PLCs").
Formation and Benefits
- The company can be incorporated immediately (if a shelf company)
- The company is a limited-liability one.
- The company may have one sole owner (an individual or a company).
- The company's shares can be in the form of bearer shares.
- The company can name directors other than their shareholders. Capital Conservator can also provide you with Nominee Directors.
- The company's annual formal requirements are minimal (mandatory approval of financial statements, and filing of tax forms).
- There are no conditions, or necessary authorizations, for a foreign investor.
- There are no restrictions in the repatriation of capitals or utilities.
- They don't have operative limitations of any kind and are able to develop any activity type (turnaround).
- The responsibility of the investors, as soon as they become shareholders, is limited to the amount of capital that they have committed to contribute, completely detaching the shareholder of the Company.
We offer both shelf companies and companies created especially for you. Shelf companies will be ready to use within a week, companies created for you require due diligence that will take approximately 90 days.
Taxes
- Direct taxes are levied on the income of corporations at a rate of 35%. So long as you do not generate your income within Uruguay these will not be applicable.
- Taxes on Capital - Both corporations and individuals are taxed on their net worth. In the case of individuals, there is a minimum non-taxable amount of approximately USD 50,000. The tax rate ranges from 0.7 to 3% of the net worth in the case of individuals, and between 1.5% and 2.8% for corporations. However, this tax only takes into account assets located within the country.
- All properties owned by your Uruguayan company that are located abroad incur no taxes.
- Vat applies for goods sold within Uruguay. The profit from the sale and purchase of goods carried out entirely outside of Uruguay is taxed at 3%.
- Nominal taxes apply for the rental of property (e.g. office space).
- There is a flat tax for limited liability companies of approximately USD 380 per year.
Capital Conservator can provide advice on structuring your operations to pay as little tax as possible.
Privacy
Uruguay benefits from one of the strongest bank secrecy laws in the world. Its key provisions state that covered persons:
“may not provide any information regarding funds or securities in checking, savings or any other account belonging to a natural person or juridical entity. They also may not report confidential information received from clients or regarding their clients. Referred operations and information are protected by professional secrecy and may only be revealed by the express written authorization of the interested party or by a well-founded resolution by Criminal Justice or competent Judicial authority when child support is at stake and in all cases, shall be subject to the strictest responsibilities of any damages stemming from lack of a well-founded request. No exceptions other than those established under this law shall be admitted. Those who do not comply with this article will be punished by three months to three years of prison.”
|
