FREE ZONE
The Free Trade Zones regime offers companies tax and customs benefits. It is a efficient tool for companies that locate in this region allowing them to avoid long and unnecessary administrative, giving attractive tax benefits for their settlement and development of activities. The free trade zones users are exempted from all national taxes existing and prospective. Uruguay is one of the most attractive jurisdictions of Latin America to establish a company, given that the country enables that local corporations can be 100% of foreign property and that they can be form by only one shareholder. Moreover, the goberment implementation of laws related to tax regime and free trade zones have transformed Uruguay in a logistic center for companies that seek to set their operations abroad. Nowadays, Uruguay possesses social and politic stability which makes the country the perfect place to invest. Those who live in or visit Uruguay, are witness of its high rates of security, institutional solvency and wellbeing. In addition to this, given its natural features, it is placed in a strategic location between Brasil and Argentina, it has an exceptional climate and its territory does not have significant geographic accidentslacks.
Benefits
The Free Trade Zones are under the supervision and control of the Ministry of Economy and Finances, through the General Management of Commerce - Free Trade Zones. In them:
- The State monopolies don't apply
- Trading activities of the companies that operate in this areas have tax and customs exemptions.
- There is total liberty for the income and outcome of goods, capital assets with taxes exemptions.
- The business man is able to send freely his assets and goods abroad whenever and wherever he wants.
- Companies can develop any kind of commercial, industrial or services activities in this areas.
- Instalation and operations of manufacture equipments can be done.
- Services of finances, IT, repair and maintenance and other types of proffesionals are available for the advance of activities.
- Those entities that provide port, energy or water supply services among others, can provide preferential fees to the users of Zona Franca Colonia.
How to proceed in Free Trade Zones?
Free Trade Zones are defined areas of national territory of public or private property which supervision and control is in charge of the Ministry of Economy and Finances (MEF) through the General Management of Commerce (DGC) - Free Trade Zones (AZF).
This body is the one which regulates, supervises and controles all the Free Trade Zone activities in the country. It is also enables users to proceed within the Free Trade Zone.
There are two types of Users:
- Direct User: This user obtains the right to proceed in Free Trade Zone and the process happens with a contract signature with the entity that administrates the Free Trade Zone.
- Indirect User: This user adquires the right to proceed in the Free Trade Zone by signing a contract with the Direct User to be able to use and benefit from its facilities and to develop in them his activities.
According to national laws, only the legal persons (meaning companies and partnerships) can proceed in Free Trade Zones. Often, Uruguay entities chose themselves as the vehicle to administrate procedures in this areas. Nevertheless, a branch of a foreign company can be used to perform commercial activities.