Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Uruguay. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Select and reserve the name of the company from a list of names provided by the online portal of the one-stop shop (www.portaldelaempresa.guy.uy) | 1 day | UYU 543 |
| 2 | Open a bank account and deposit the capital | 1 day | USD 200 (Varies by bank) |
| 3 | Notarize company's bylaws and signatures | 1 day | 0.5% of capital, minimum 40 U.R. + 18.5% notary tax |
| 4 | Incorporation and registration of the company at one of the offices of "Empresa en el DÃa" | 3 days | Included in procedure 5. |
| 5 | Pay fees and taxes in any local Payment Agency | 1 day | UYU 1610 (registration fee) + UYU 1610 (book registration) + UYU 510 per book (stamp fee)+ UYU 2916 (approval of public deed) +UYU 3664 ( publication in the Official Gazette) + UYU 20104 (ICOSA tax) + UYU 100 (professional stamp on forms 351 and 352) |