How do I start a business in Uruguay?

To start a business in Uruguay, follow 6 steps: Draft and notarize articles of incorporation, Register with the National Commerce Registry, Obtain RUT (tax ID), Register with BPS for social security, Register with MTSS for labor, Open corporate bank account. The process takes approximately 39 days and costs around $650 USD.

What types of business entities can I register in Uruguay?

Uruguay offers 4 entity types: Simplified Joint Stock Company (min capital: $0, foreign ownership: 100%); Limited Liability Company (min capital: $0, foreign ownership: 100%); Corporation (min capital: $0, foreign ownership: 100%); Branch of Foreign Company (min capital: $0, foreign ownership: 100%).

Can foreigners own a business in Uruguay?

Yes, foreigners can own businesses in Uruguay. Simplified Joint Stock Company allows up to 100% foreign ownership. Limited Liability Company allows up to 100% foreign ownership. Corporation allows up to 100% foreign ownership. Branch of Foreign Company allows up to 100% foreign ownership.

What is the minimum wage in Uruguay?

The minimum wage in Uruguay is $580/month (USD). Average monthly wage is approximately $1400. Standard work week is 44 hours with 20 paid leave days per year.

How much does it cost to run a business in Uruguay?

Estimated monthly overhead for a small business (5-10 employees) in Uruguay is approximately $11000. Office rent averages $18/sqm/month. Skilled workers average $2000/month. Typical break-even: Tech 10 months, Services 9 months, Retail 14 months.

Countries UruguayBusiness Guide

🇺🇾

Start a Business in Uruguay

Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis

~39 days

Setup Time

~$650

Setup Cost

25%

Corporate Tax

100%

Foreign Ownership

#101

Ease of Business

Entity Types

Entity	Min Capital	Foreign %	Liability	Min Shareholders	Best For
Simplified Joint Stock Company Sociedad por Acciones Simplificada (SAS)	None	100%	Limited	1	Newest and most flexible entity type - single shareholder, minimal formalities, ideal for startups and SMEs
Limited Liability Company Sociedad de Responsabilidad Limitada (SRL)	None	100%	Limited	2	Traditional structure for small to medium businesses with 2-50 partners - shares not freely transferable
Corporation Sociedad Anonima (SA)	None	100%	Limited	2	Larger businesses needing freely transferable shares - required for certain regulated activities
Branch of Foreign Company Sucursal	None	100%	Unlimited	0	Foreign companies seeking direct presence in Uruguay without forming a separate Uruguayan entity

Registration Steps

Draft and notarize articles of incorporation

Prepare the estatuto social (bylaws) before a Uruguayan notary public (escribano)

2-5 days

~$500

Escribano Publico (Notary)

File incorporation documents with the Registro Nacional de Comercio at the DGR

5-15 days

~$150

DGR (Direccion General de Registros)

Obtain RUT (tax ID)

1-3 days

Free

DGI (Direccion General Impositiva)

Enroll the company and employees with the Banco de Prevision Social for pension and social security contributions

1-3 days

Free

BPS (Banco de Prevision Social)

1-3 days

Free

MTSS (Ministerio de Trabajo y Seguridad Social)

Open corporate bank account

Open a business account at a Uruguayan bank with incorporation documents and RUT

3-10 days

Free

Commercial Bank

Total Estimated

39 days max$650

Tax Framework

Corporate Income Tax25%

Standard 25% IRAE (income tax on economic activities). Free trade zone companies enjoy 0% CIT on goods and services exported from the zone. Territorial taxation: only Uruguay-source income is taxed.

IVA22%

Personal Income Tax0-36%

Capital Gains Tax12%

Dividend Withholding7%

Tax Treaties20 countries

Tax Incentive Zones

Free trade zones (Zonamerica, Aguada Park, WTC Free Zone) offer 0% CIT, 0% customs duties, and exemption from all national taxes for qualifying companies.

Labor Laws & Costs

$580/mo

Minimum Wage

$1400/mo

Average Wage

44 hrs/week

Work Hours

20 days/year

Paid Leave

4 weeks/year

Severance

12.63% of salary

Employer Social Security

18.13% of salary

Employee Social Security

Required

Foreign Worker Permit

Foreign Worker Quota: No formal quota. Mercosur citizens have simplified work authorization. Non-Mercosur nationals need a work visa sponsored by the employer.

Visa & Immigration

Business Visa

Many nationalities can enter visa-free for up to 90 days for business purposes. Extensions available through DNM (National Migration Directorate).

4 weeks

Processing time

$300

Estimated cost

Investor Residence

Investor

Investors establishing a business in Uruguay can apply for temporary residence. No minimum investment threshold, but must demonstrate genuine economic activity.

Digital Nomad Visa

Remote Work

Introduced in 2024 for remote workers. Allows 6-month stay (renewable for 6 more months) with proof of foreign employment or freelance income.

Work Permit Process: Employer sponsors work visa application through the National Migration Directorate (DNM). Mercosur nationals benefit from simplified procedures under the Mercosur Residence Agreement.

Business Environment

#101/190

Ease of Business Rank

7 days

Starting a Business

66 days

Registering Property

725 days

Enforcing Contracts

74/100

Corruption Perception

87%

Internet Penetration

UYU

Currency

UTC-3

Time Zone

GoodCould be betterHover a dot for the threshold and source. Sources: World Bank, Transparency International, ITU.

Spanish

Investment Zones & Provinces

Zonamerica

Free Zone

Montevideo (northeastern suburb)

Incentives

0% CIT (IRAE) for all activities within the zone0% customs duties on imports and exportsExemption from all national taxesFull repatriation of capital and profitsModern campus with 450+ companies

Key Sectors

IT ServicesFinancial ServicesShared Services CentersBiotechnologyLogistics

Full tax exemption reduces effective operating costs by 35-45% compared to operating outside the free zone

Aguada Park

Free Zone

Montevideo (Aguada neighborhood, city center)

Incentives

0% CIT for zone users0% withholding on dividends and royaltiesModern A-grade office space in urban settingTax-free import of equipment and supplies

Key Sectors

Software DevelopmentBPOProfessional ServicesDigital ContentConsulting

Urban free zone location provides tax benefits without isolation - reduces costs by 30-40% while maintaining city center access

Punta del Este Tech Hub

Tech Hub

Punta del Este, Maldonado Department

Incentives

Emerging tech community targeting remote workersFree zone benefits available in Maldonado departmentHigh quality of life attracting international talentGovernment support for tech ecosystem development

Key Sectors

FintechEdTechRemote WorkStartup EcosystemCreative Industries

Quality of life and tech community growth make Punta del Este increasingly attractive for talent retention at 15-20% lower costs than Buenos Aires

Break-Even Analysis

Retail (months)

F&B (months)

Tech (months)

Manufacturing (months)

Services (months)

Typical Operating Costs in Uruguay

Per-person or per-unit costs. Multiply by your team size for total estimates.

Office Rent	$18	per sqm/month
Skilled Worker Salary	$2,000	per 1 worker/month
Unskilled Worker Salary	$600	per 1 worker/month
Electricity	$0.15	per kWh
Business Internet	$35	per 1 connection/month
Est. Monthly Overhead (5-10 staff)	$11,000	total/month

Sources: World Bank Open Data, ILO, Numbeo Cost of Living Index, local government publications. Salaries reflect market averages and may vary by city, industry, and experience level. Last updated 2025.

Break-Even Calculator

Total Investment (USD)

Monthly Revenue (USD)

Monthly Costs (USD)

Tax rate applied: 25% (corporate rate)

months to break even

$3,000

monthly net profit

72%

annual ROI

$237,000

total cost to break even

Break-even progressModerate recovery

Next Steps

Your Action Checklist

0/12 completed

Need help setting up in Uruguay?

Find verified lawyers, accountants, formation agents, and recruitment agencies in our Service Providers directory.

Key Considerations for Foreign Investors

Free trade zones (Zonamerica, Aguada Park) offer 0% CIT and full tax exemption - Uruguay's most powerful incentive for export-oriented services and tech companies

Most stable democracy in Latin America with strong rule of law, transparent institutions, and low corruption (Transparency International rank 74)

Territorial taxation means only Uruguay-source income is taxed - foreign-source income is exempt from corporate income tax

High social security contributions (employer 12.63% + employee 18.13%) make total labor costs significantly higher than base salaries suggest

Mercosur membership provides access to Brazil, Argentina, and Paraguay markets, plus simplified work permits for Mercosur citizens

IVA (VAT) rate of 22% is among the highest in Latin America - factor this into consumer-facing pricing strategies

Uruguay has the highest GDP per capita in South America and a strong banking system - considered the Switzerland of Latin America

Last updated: 2025-Q4

Loading Macroeconomic Data

Fetching live data from World Bank...

Start a Business in Uruguay

Entity Types

Registration Steps

Tax Framework

Labor Laws & Costs

Visa & Immigration

Business Environment

Investment Zones & Provinces

Break-Even Analysis

Next Steps

Legal & Registration

Financial & Tax

Operational

Immigration & Visas

Key Considerations for Foreign Investors

Start a Business in Uruguay

Entity Types

Registration Steps

Tax Framework

Labor Laws & Costs

Visa & Immigration

Business Environment

Investment Zones & Provinces

Break-Even Analysis

Next Steps

Legal & Registration

Financial & Tax

Operational

Immigration & Visas

Key Considerations for Foreign Investors