The Government promotes investment in general, and keeps a favorable policy towards foreign investment. The general regime is totally open and does not make any discrimination at all between local and foreign investors from tributary point of view. Foreign investor has the same incentives as local ones. Previous authorization is not required for foreign investments.
Foreign investors can develop any kind of activity with the same conditions as the local ones. In some sectors of specially government regulated activities, the foreign investor can develop activities under the regime of concession of public work. Nevertheless, there is an exception for foreign investment access, which regards to broadcasting and television stations operation: the ownership of the enterprises demanding these services is restricted to Uruguayan citizens only.
Kinds of Companies:
The foreign investor can operate in the country, setting up an Uruguayan partnership company -which is the most frequently used in this country- in which the investor can have the 100% of the share capital. The investor can also operate through the setting up of a limited liability company or other kinds of personal companies integrated by foreign physical or juridical persons (legal status). In the same way, the foreign investor can choose to operate in the country through a foreign company, partnership, opening a branch in Uruguay.
According to the regulations currently in force, oriented to the creation of new working sources, setting up high technology industries and improve exportations, are available, so much for local investors, as for foreign ones. The most generic incentives refer to tax exemption in investments.
Company branches or local companies, can be financed either with local banks, or with foreign loans, or with the head office or with share holders.
Foreign exchange market, capital repatriation and utilities :
There are no limitations either to profit transfer or capital repatriation, for which Government authorization is not needed. Foreign exchange market is free, and there not exist any limitation for foreign money market, so the investments can be done in any foreign money.
Protection of foreign investments:
Uruguay has traditionally given security to the foreign investor, because of the effective currency of the rights and for economic stability. Besides, it is a member of investors protective international organizations, such as MIGA, International Center of Settlement of Differences Regarding Inversions, (the World Bank is the seat of this Center). Moreover, there is no limitation at all to contract foreign staff.
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