Uruguay Bank Accounts and IBCs
Bank Accounts in Uruguay for Offshore Corporations, IBCs etc
As a stable democracy with a history of freedom from exchange controls, Uruguay certainly makes a good base for Latin American operations - and indeed for all global business activities.
Through our professional relationship with the Uruguayan subsidiary of a European private bank, we are now able to offer Uruguay bank accounts for offshore corporations, IBCs, foundations and SRLs. This offers an excellent banking alternative backed up by a secure, long-established European bank.
Main features:
- No need to travel to Uruguay to open the account
- Full multi-currency account
- Opening deposit from just $500 or equivalent
- Sophisticated and secure access to dedicated Uruguayan internet banking platform
- Major credit and debit cards may be linked to the account
- Full service bank with cash operations possible
- Brokerage facilities available on all major world markets
- Bearer share corporations are accepted
- The bank already knows our nominee directors, so no problems there
- Credit card merchant accounts may be possible
Please note although you don’t have to travel to Uruguay, it is required to have a personal meeting with the bank’s representative to open this account. This meeting may be held at the bank’s head office in Europe, or the bank’s representative will travel almost anywhere in the world to meet you (except USA) provided expenses are paid.
Documents required to open your Uruguay bank account:
- Corporate documents (we provide this)
- Passport (bank representative will certify copy at meeting)
- Bank reference
- Standard disclosures on expected activity
The Uruguay SAFI or Financial Services Company
Uruguay’s offshore company legislation dates back to 1948 when Sociedad Anonima Financiera de Inversion - or SAFI - was launched.
SAFI has many of the attractions of a typical tax haven corporation, without being immediately known as such:
- SAFI directors and shareholders may be of any nationality. Whilst a single director is sufficient, there must be at least two shareholders. Nominee directors and shareholders are available.
- There is no requirement that the beneficial owner is revealed to any governmental authority.
- Bearer shares are permitted.
- Paid-up capital requirements are set at a minimum of $2,500.
So far so good, but the SAFI has one aspect not traditionally associated with offshore companies: the SAFI must, like all Uruguayan companies, file audited financial statements. These financial statements are then published locally and presented to the tax authorities. However, the only reason for the tax declaration is to validate the calculation and payment of an annual licence fee.
The actual amount of the annual licence fee that a SAFI must pay is determined from a taxable base, which is calculated as equity plus profit and reserves, plus liabilities less equity multiplied by two. The licence fee is then calculated against the base at a rate of 0.3% (zero point three). The maintenance of an adequate ratio of assets to capital allows the reduction of the tax to a value equivalent to an annual 0.1% of the corporate assets.
The licence fee essentially means that a SAFI is not tax-free — but it is certainly tax competitive.
Whilst the owners of the SAFI can remain anonymous, it must be noted that the annual publication of the SAFI’s accounts opens the company’s assets to public scrutiny.
Uses of a SAFI as a Financial Services Company
There are many uses to which a SAFI can be put to, that would normally require a more specialized licence in other jurisdictions. The key of course would depend on where the operations office is physically located since local laws may conflict. Some xamples of businesses being operated as SAFIs include:
- Investment fund management
- Investment trading operations
- Fiduciary services
- Securities transactions on behalf of third parties
- Banking services related activities
- Debit/credit card issuance and management
- Foreign Exchange activities
The Uruguay SAZF or Free Zone Company
1987 saw the launch on the market of the SAZF - the Uruguayan Free Trade Zone Corporation.
The SAZF has several benefits over the SAFI, including exemption from all taxes through the Total Tax Exemption System, plus a waiver of the requirement to file accounts.
The capital and accounting entries may be expressed in any currency. At the end of every fiscal year, the company is required to draw up the corresponding balance sheet and refer it to the Shareholders’ Meeting.