The non-tax company - the SAFI

Uruguay has a special regime for companies which are only expected to operate overseas. The Law number 11,073 of 1948 is the reference legislation for the Sociedades Anónimas Financieras de Inversión (SAFI). It is likely that these companies will not be allowed to be incorporated in the future, and those in existence will have to be wound up by a date stated in legislation. This means that the emphasis will be on the standard "SA" companies; which are free of tax, for non-Uruguay activities.

The SAFIs are worth looking at presently because of:

• There have always been pro-investment governments in Uruguay.
• There is free movement of any capital, both into and out of Uruguay.
• There is banking secrecy, guaranteed by law.

The Company Object

Objects are usually related to international holdings, with the following being acceptable:

• The holding, and trading of real estate outside Uruguay.
• The acquiring, holding and trading in the share capital of companies who trade outside Uruguay.
• Making loans to people or companies outside Uruguay and the investing in foreign companies.
• General trading outside Uruguay.

Notes about incorporating the Company

Two people or two legal entities (like companies) are needed.

The shareholders can have their holdings held by nominees, or they can have "bearer" shares.

There is no limit in the number of shareholders, and no restriction about who can be a shareholder. The law is indifferent about the nationality, domicile or residency of the subscribers, the shareholders or the directors.

The SAFIs could start to operate from the moment when the statutes "contrato social (en formación)" are signed-up.

There are a number of ready-made companies available, which can start to trade as soon as share capital is subscribed to.