Uruguay has long had a reputation as one of the region's most stable and business-friendly jurisdictions, and it remains a common base for foreign investment into the Southern Cone. When investors set up a local entity, the choice usually comes down to a traditional corporate vehicle and a newer, simplified one.
The main entity types
Two structures account for the large majority of new formations by foreign investors:
- Sociedad Anónima (S.A.) — the traditional corporation. For many years it was the default vehicle, and it is still common for regulated activities and larger businesses that expect to bring in outside capital or operate at scale.
- Sociedad por Acciones Simplificada (SAS) — a newer, more flexible vehicle that has become popular for its faster, lighter formation and its single-shareholder option. It tends to suit smaller and closely held ventures.
In general, foreign individuals and foreign companies can be shareholders of either structure, which makes both workable for inbound investment.
The steps
The path to an operating entity typically runs through these stages:
- Prepare the company's bylaws or constitution and execute the formation documents.
- Register the company with the national registry.
- Obtain the tax identification number (RUT) from the tax authority (DGI).
- Register with social security (BPS).
- Complete any sector-specific licensing or registration the activity requires.
What foreign investors should plan for
Beyond the formation steps themselves, inbound investors should expect a few recurring requirements. A local representative and a registered domicile in Uruguay are generally needed. Foreign corporate documents — incorporation papers, good-standing certificates, board resolutions — usually have to be apostilled and accompanied by a certified Spanish translation. Where the shareholders or directors act from abroad, powers of attorney must be executed and authenticated for use in Uruguay. Banking setup is a separate step with its own onboarding checks. In our experience, a gap somewhere in that authentication chain is the usual cause of delay, so it is worth getting the document trail right before filing rather than after.
What we handle
For formations in Uruguay, we coordinate the full process through admitted local professionals — the incorporation, the tax and social-security registrations, and the sector requirements — alongside the apostille, certified-translation, and power-of-attorney work that foreign shareholders need. You deal with one point of contact, who reports progress back to your team.