SAS (Sociedad pour acciones simplificadas) is known as a Simplified Stock Company in English.
Uruguay is one of the top Latin American countries for people looking to establish or develop a business. The country’s strong political, legal, and social stability and predictability make it a refuge for international investment, and there is no prejudice between local and foreign investors and businesses.
In 2015, the Global Benchmark Complex Index placed Uruguay as the most accessible Latin American country to conduct business in. In terms of accounting and tax compliance, the country was classified as one of the least complicated in Latin America by the Financial Complexity Index in 2017.
We look at Uruguay‘s recent effort to attract international investment: a new legal organization to enhance local commercial activity.
What is a Simplified Stock Company – Uruguay?
In April 2019, the Chamber of Deputies‘ Special Commission on Innovation, Science, and Technology (Comisión Especial de Innovación, Ciencia, y Tecnologia) answered to the needs of Uruguayan entrepreneurs by supporting a new legal organization for business: the SAS in Uruguay.
The development and regulation of a new business kind moved forward thanks to a statute that encouraged entrepreneurship by permitting regulating societies for simplified shares. The Simplified Stock Company was the name of this company.
To explain, the same business model is known by numerous distinct names: Simplified Stock Company, or Simplified Joint Stock Company, shortened to SAS in Uruguay. Furthermore, the Organization of American States (OAS) calls this type the Simplified Stock Corporation in its international law department.
Simplified Stock Company was founded in Europe around the close of the twentieth century, and it quickly made an effect in Latin America. Simplified Stock Company is advocated and implemented in countries like Chile, Mexico, Argentina, and Colombia. The Colombian SAS model was implemented in 2008, establishing over 500,000 businesses in the country. In reality, after one year of implementation of this model, SAS was far more favored by business owners than traditional forms.
In general, the Simplified Stock Company is a commercial firm with capital represented by capital shares. The goal is to develop modern concepts and connect these demands to businesses.
SAS receives the same tax status as personal corporations, although this does not cover share transactions.
Uruguay’s new corporate structure
The SAS in Uruguay governs business development, which is ideal for large-scale initiatives. The entity enables investors to self-regulate and independently establish the laws and regulations of their organization.
Thanks to a newly constructed online process, the SAS allows people to digitally incorporate corporations using digital documents and other verification methods. This framework also enables a digital platform for businesses to raise funds or crowd fund projects online.
Lowering liability
According to Article 2 of the United Nations Commission on International Trade Law (UNCITRAL), shareholders have limited responsibility. They are solely liable for paying the capital contributions committed to the simplified stock company.
This implies that stockholders’ assets are not in danger if the firm runs into financial difficulties.
How would SAS increase investment in Uruguay?
Uruguay is conscious of the modernization of business practices and recognizes that the SAS model assists in lowering entrance barriers. This strategy improves Uruguay’s commercial viability and may be changed in the future to enable a robust retail climate.
Uruguay’s SAS system, which is always searching for ways to improve, makes it simpler for international business persons wishing to develop in the country. The SAS is a simple capital symbol with minimum restrictions. This decreases formation process formality, ensuring compliance and transaction expenses. Furthermore, it encourages the development of new jobs. SAS assists in the rapid formation of a firm and in adapting the social type to the demands of a new enterprise.
SAS success evidence
According to research, the SAS approach is straightforward and cost-effective when starting a firm. The effectiveness of the SAS in Uruguay benefits large companies through incorporation, simplifying the procedure and encouraging foreign capital in many nations, including Uruguay’s economically successful allies.
The model is a substitute for standard corporate techniques since enterprises, by UNCITRAL Article 17, set their norms regarding structure and organizing.
Like many neighboring nations, a substantial component of Uruguay’s economy is based on small firms. A new business model with limited liability is an excellent method for the government to promote single owners and small franchisees.
The same is happening in the rest of the region, with Brazil’s recent implementation of a new company structure being a prime example.
The time is ideal: Uruguay’s participation in the MERCOSUR-EU trade agreement.
Uruguay’s participation in the MERCOSUR trade group grants it unfettered access to the markets of other MERCOSUR members. Argentina, Brazil, Paraguay, and Venezuela are also members (though the latter is currently suspended). The Secretariat and Parliament of the Organization of American States are now based in Montevideo, Uruguay.
Furthermore, the trade bloc recognizes seven Associate State members, all of which have lower trade barriers. This includes the following:
- Bolivia
- Peru
- Ecuador
- Colombia
- Chile
- Guyana
- Suriname.
Trade agreements with foreign partners allow for imports of $34.66 million and exports of $40.28 million to and from member and affiliated economies. Uruguayan enterprises benefit from this by having easy access to free-flowing trade channels.
Because of the new trade agreement between MERCOSUR and the European Union, enterprises operating out of Uruguay now have privileged trade access to other big economies in Europe.
Form a SAS in Uruguay with expert assistance.
Uruguay offers both local and large-scale commercial activity and viable business and investment prospects. With a new legal entity available, companies may benefit from lower entry barriers and government assistance for a multinational ownership-friendly business climate.
Nonetheless, the incorporation procedure might be tricky without a proper understanding of native Uruguayan law or regulation.
Seek advice from a local group to guarantee your company is founded and incorporated swiftly and successfully. Damalion Latin desk offers the experience and skills to provide tailored assistance in Uruguay and Latin America. We provide tailored business solutions to meet your specific requirements, ensuring compliance at every process step. Contact your Damalion Latin Desk to register your company in Uruguay.
