A new company form, the Simplified Corporation (Sociedad Anónima Simplificada – SAS) has been introduced by Law on Promoting Entrepreneurs, published 27th September 2019.

It is a commercial enterprise with its capital represented by shares. Most importantly, the liability of its shareholders is limited to their respective capital contributions.

Unlike any other company forms, it may be formed by just one or more natural or legal individuals, which makes it an appropriate vehicle for foreign investments.

They can be established completely online and registered within 24 hours following the business day of submission of the required documentation.

Capital contributions for this new type of trade company may be made either in cash or in kind. If cash payment is chosen, a minimum of 10% must be paid at the time of training, taking into account that the total contribution must be paid within 24 months. On the other hand, contributions in kind must be paid in full (100%) after formation.

The conversion of a one-person company into a SAS may be subject to some additional requirements, but some tax benefits are also available

All in all, this new company SAS is expected to ease and simplify the implantation of a business and the investment activity in Uruguay.

In Auxadi we connect America with Europe, LATAM and Asia, providing value-added services to more than 1,000 clients in 50 jurisdictions. If you have any questions, please do not hesitate to contact us..

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Augusto Berutich
Director. Global Tax

All information contained in this publication is up to date on 2019. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.