APGI Uruguay SAFI Company Incorporation

Uruguay Offshore Company Incorporation

NOTE: ALL SAFI'S FROM URUGUAY WILL CONVERT TO A BASIC LOCAL COMPANY IN 2009. IN NO WAY SHOULD YOU PURCHASE ONE OF THESE COMPANIES FROM ANY PROVIDER OR ATTORNEY. WE HAVE REPLACED THIS SERVICE WITH THE PANAMANIAN OFFSHORE FINANCIAL COMPANY.

THE ONLY LOW TAX OFFSHORE JURISDICTION IN SOUTH AMERICA

An offshore jurisdiction that is not generally recognized as a tax haven jurisdiction, which is now becoming increasingly popular. Ideal for investment world wide.

OFFSHORE CORPORATIONS OF URUGUAY

Much in the same way as countries such as Holland, Uruguay offers offshore corporations to serve various needs - as low-tax holding companies, as a way to protect assets and income or as vehicles for sophisticated secured operations, to name a few examples which are covered below.

Uruguay's offshore corporations, regulated by Law 11,073 of 1948, have a beneficial tax treatment and provide anonymity for their shareholders, elements that allow for an efficient protection of assets and income.

Known as "SAFI - SOCIEDAD ANONIMA FINANCIERA DE INVERSIONES", for the Spanish acronym for "Financial Investment Corporations", these offshore corporations:

• Have a low incorporation / acquisition cost.
• Require minimal integration of capital.
• Guarantee anonymity for shareholders.
• Have a very favorable tax treatment.
• Are considered a very reliable vehicle internationally.
• Can operate freely.

THE RANGE OF PERMITTED ACTIVITIES OF THE URUGUAYAN OFFSHORE CORPORATIONS

SAFIs' corporate purpose is broad. The law allows them to "invest in securities, bonds, shares, notes, debentures, treasury notes or bills, any type of property or good, including real estate".

The investment / ownership can be done directly or indirectly, for its own purpose or on behalf of a third party.

The only restriction (and this defines their offshore nature) is that the majority (more than 50%) of the investment / ownership must be outside of Uruguay. Thus, for example, a SAFI may be utilized to own shares of various companies, but these companies cannot be Uruguayan companies (at least more than 50% must be shares of non-Uruguayan companies). It is important to notice, however, that to benefit from the favorable tax treatment that characterizes offshore corporations, all of the investment / ownership must be in goods outside of Uruguay, and this is usually the case for using SAFIs.

An important issue is that SAFIs can freely open bank accounts, in foreign currency, in any bank within Uruguay as well as outside of Uruguay in some cases.

Finally, SAFIs may seek and obtain authorization to operate as offshore banks and may provide services within Uruguay.

URUGUAY OFFSHORE CORPORATION'S PREFERENTIAL TAX TREATMENT

The main advantage offered by SAFIs is the special tax treatment they are granted.

Unlike regular corporations incorporated in Uruguay, SAFIs have no income tax of any kind, or any tax on any of the goods it owns. The only tax a SAFI must pay is an annual tax of 0.3% of its net worth. For all practical purposes, this tax can be reduced even more according to the SAFI's chosen capital structure (according to the amount of debt, the tax can be reduced).

OTHER ADVANTAGES OFFERED BY URUGUAYAN SAFI

SAFIs may be utilized to engage in any activity, offshore of Uruguay. Operating costs are extremely low.

SAFIs offer absolute anonymity for their shareholders. The SAFI's shareholders do not have to be registered in any book or before any local institution. A SAFI's Director or Board of Directors may be composed of third persons, unrelated to, but designated by its shareholders.

This protection is further enhanced by Uruguay's long tradition of banking, professional and fiscal secrecy, which are guaranteed by law.

A SAFI is an excellent offshore structure which allows individuals or companies to provide a wide range of financial services as well as conduct international business. We have taken the time to put together a comprehensive overview of the beneficial aspects of a SAFI. You may click on one of the links below in order to see more information under that topic.