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.
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