Uruguay SubsidiaryReading Time: 3 minutes
Your first step in any expansion is setting up a subsidiary. Once you have a Uruguay subsidiary in place, you’ll be free to hire talented employees, pay them, and start working in the country. However, it can take a significant amount of time, money, and energy to incorporate in Uruguay. If you don’t fully understand Uruguay’s subsidiary laws, you could end up facing fines or delays.
Many companies need an alternative to this costly and time-consuming process. Fortunately, Globalization Partners provides exactly what you need through Uruguay subsidiary outsourcing. As a global PEO, we allow companies to use our subsidiary infrastructure to run their businesses. With us, you’ll benefit from working in a matter of a day or two without worrying about Uruguay’s subsidiary laws.
How to Set up a Uruguay Subsidiary
While you’ve most likely put a lot of thought into your expansion, you need to consider many other aspects when you’re going through the Uruguay subsidiary setup process. Learning how to set up a Uruguay subsidiary starts with location. Your city or region within Uruguay impacts how you’ll set up your subsidiary. For example, some locations have better Uruguay subsidiary laws that can make it easier to incorporate. Always work with a third party if you’re not familiar with the country’s different locations and laws.
Another aspect of the Uruguay subsidiary setup process is what type of entity you choose for the incorporation process. Your options are a limited liability company (LLC), public limited company, free trade zone company, representative office, or branch. Every entity has different Uruguay subsidiary laws and regulations, so your choice depends on what type of activities you’ll perform in the country. Many companies incorporate as an LLC because it gives the most freedom to work in the country.
The steps to incorporate as an LLC include:
- Holding a meeting with a public notary where you talk about attendees’ names along with the company name, registered office, activities carried out, and more
- Registering with the National Trade Register
- Publishing your registration in the Official Gazette or another newspaper
- Submitting all documents through the one-stop-shop business service
- Obtaining Occupational Injuries and Illnesses insurance coverage from the State Insurance Bank
- Processing the entire setup process with the Inspector General of Employment and Social Security
Uruguay Subsidiary Laws
Every company has Uruguay subsidiary laws to follow regardless of what type of entity they choose. LLCs require at least two shareholders and one director, who can either be individuals or corporations. All individuals can be of any nationality and do not have to live in Uruguay to work for your company. You’ll also need share capital of at least one share in any currency for the incorporation process.
You can use your LLC as a legally tax-exempt company if you don’t have any staff or customers in the country. If you do, you’ll need to set up a corporate bank account in the country and follow the applicable tax laws.
Benefits of the Uruguay Subsidiary Setup Process
There are numerous benefits to choosing an LLC, such as limited operating restrictions, no restrictions on the repatriation of capital or profits, and protection for shareholders and your parent company. Despite these benefits, you’ll face some challenges of setting up your Uruguay subsidiary on your own. It can take you weeks, months, or up to a year to incorporate, and you’ll need to focus on many different aspects of an expansion while trying to run numerous company locations.
Globalization Partners will make sure you get only benefits throughout your expansion process and zero stress related to compliance. Uruguay subsidiary outsourcing with us means you can use our subsidiary for your work in the country. Our team will hire your employees, run payroll, handle compensation and benefits, and make sure you stay compliant. You won’t have to worry about Uruguay’s subsidiary laws or compliance, as we’ll manage the risks for you.
How to Prepare for the Incorporation Process
Companies that still decide to expand on their own will need to prepare for the Uruguay subsidiary setup process early. Find an expert or consultant who will help you stay compliant. Then, work with your accounting team to set a budget for your expansion and delegate tasks to other key company players.
Work With Globalization Partners for Your Expansion
The Globalization Partners team is here to help you with your expansion to Uruguay and beyond. Contact us today for more information about Uruguay subsidiary outsourcing.