Uruguayan Financial Services Company Uruguayan Sociedad Financiera de Inversion (SAFI)
The Uruguayan SAFI is a type of Uruguayan offshore
company which is exempt from all forms of taxation on profit. SAFIs do pay
an annual licence fee to the government. This is calculated with reference
to the assets and liabilities and referred to below. SAFIs cannot trade or
own real estate within Uruguay but otherwise are subject to few restrictions
on their activities and little in the way of bureaucracy. Because of their
ease of use and the fact that Uruguay is not immediately perceived as a tax
haven jurisdiction, SAFIs can be extremely useful vehicles through which to
conduct trading and investment activities around the world.
Activity:
These companies can:
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Make direct or indirect investments, on their own or for third parties. These investments can be on titles, bonuses, shares, warrants, debentures, real property or movable goods.
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Use Uruguayan corporate vehicles to conduct brokerage, trading and money management for non-Uruguayan citizens worldwide.
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Hold assets and investments, under anonymity.
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Hold bank accounts for foreign citizens.
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Make trade structures to avoid excessive taxation in the countries where goods are imported to.
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SAFIs are commonly used to trade instruments, including currencies, etc. for itself or for third parties, as allowed by law, and operating through a website.
Main Advantages:
Complete anonymity with respect to the identity of the shareholders of
the corporation. Make direct or indirect investments, on their own or
for third parties. It is the tax haven OECD forgot.
Main Disadvantages:
Incorporation takes between 3 and 4 months but ready made companies are
available for immediate purchase. The main prohibitions are the public
offering or stock exchange offering of shares, their assets may not
include shares, debentures and other commercial papers issued by local
companies which are not SAFI´s.
Taxation:
As stated, the SAFI is not subject to tax on corporate profits but does
pay an annual tax or licence fee equal to 0.3% of the net asset value.
This somewhat complicated calculation normally results in only a nominal
figure becoming payable. The taxable base is calculated by taking the
amount of shareholder equity and adding to it a figure equal to all
liabilities minus twice the shareholder equity. This somewhat
complicated calculation normally results in only a nominal figure or
zero becoming payable.
Requirements:
Companies need have only one shareholder and shares can be issued in
bearer or registered form. There is no requirement to file the details
of shareholders on any public record. A minimum of one director is
required and corporate directors are permitted. There is no requirement
to file the details of directors on any public record, but their details
do have to be lodged with the tax office. Full accounts, in the
prescribed format, must be prepared, audited and presented to the tax
authorities within 4 months of the financial year end selected by the
company. There are few restrictions on name and activity. All company
names must end with the words "Sociedad Anonima" or its abbreviation
"SA". The company name cannot contain any words indicating that the
company is undertaking banking or insurance business without obtaining
the requisite licence. names which are considered undesirable or
offensive or implying government patronage would also be disallowed.
However, words which in other jurisdictions would not be allowed without
further procedure such as trust, and investment services are not
restricted nor is the company restricted from undertaking the indicated
activities.
Formation cost:
Total cost for company including all government and legal fees
USD5,300.00 plus cost for nominee services if you need them.
Contact us
for details.
