Your Company’s Name Is Part of Its Legal and Commercial Identity

When you decide to set up a company in Uruguay, one of the first technical steps is choosing and reserving its official name with the State. This procedure, known as reserving the company name (reserva de denominación social), is carried out with the General Registry Office (DGR) of the Ministry of Education and Culture. Its purpose is to ensure that the name you chose does not cause confusion with companies already registered and is reserved exclusively for you during the incorporation process.

The company name is not just a formal requirement: it is the legal identity under which your company will operate, sign contracts, issue invoices and be known to bodies such as DGI, BPS, AIN and the banking system. That is why choosing it well and reserving it in time is essential to avoid delays, rejections and later operational problems. In this article we explain how the procedure works, the criteria to consider, the requirements to avoid rejection because of a similar name, and how long it takes depending on the company type you have chosen.

What Is a Company Name Reservation and Why Is It Required?

A company name reservation is the administrative act by which the DGR certifies that the proposed name is not used by another company registered in Uruguay and, once approved, reserves it for you for a set period so you can complete the incorporation without the risk of another applicant registering it first.

The procedure applies to the types of companies in Uruguay that require registration: limited liability companies (SRL), corporations (SA) and simplified joint-stock companies (SAS). A sole proprietorship, by contrast, is not a company and operates under its owner’s name, so it does not go through this procedure (although it can use a trade name).

The main purpose of the reservation is to avoid name clashes: two different companies operating under identical names or names so similar that they confuse the public, customers, suppliers or the State itself. This protects both the general interest and each company’s right to stand out in the market. Without an approved reservation, you cannot move forward with the deed of incorporation or final registration.

Requirements and Criteria for Choosing the Company Name

The name of your company must meet certain legal and practical requirements. These are the key points to consider before applying to the DGR:

Descriptive, Fanciful or Mixed Names

In Uruguay, you can choose between three types of name:

• Descriptive name: refers to the company’s purpose or activity (for example, “Servicios de Logística del Plata”).
• Fanciful name: a creative name with no direct relation to the purpose (for example, “Alfa Omega”).
• Mixed name: combines a fanciful element with a description or includes the founding partners’ surnames.

The law does not require the name to reflect the activity, so you are free to choose. However, a fanciful name may be easier to approve, as it is less likely to clash with existing names in the same sector. If you decide to include your surname or a partner’s, bear in mind that this may raise issues if others with the same surname are already registered.

Including the Company Type

The company name must identify the type of company: an SRL must include the words “Sociedad de Responsabilidad Limitada” or the abbreviation “S.R.L.”; an SA must include “Sociedad Anónima” or “S.A.”; and an SAS must include “Sociedad por Acciones Simplificada” or “S.A.S.”. This is not part of the reservation itself, but it must appear in the deed of incorporation and all official documents.

Avoiding Prohibited or Restricted Names

The DGR will reject names that:

• Could be confused with public bodies, state entities or official institutions.
• Include terms that require special authorisation (such as “Bank”, “Insurance”, “University”) without the corresponding sector authorisation.
• Reproduce third parties’ registered trademarks or infringe intellectual property rights.
• Are identical or very similar to names already registered.

The similarity test is not automatic: the DGR assesses whether the resemblance could cause real confusion in the market, considering the corporate purpose, the activity and where the company operates.

Procedure and Timeframe for Reserving a Name with the DGR

The procedure starts with an application to the DGR, which can be filed by the interested party or, in practice, through the notary or professional handling the incorporation. The application states the proposed name, the company type and a brief description of the corporate purpose.

Once received, the DGR searches its database of registered companies to check that there is no conflicting name. If there are no objections, the reservation is approved and remains valid for a limited period, during which the name is blocked in the applicant’s favour and no one else can register it.

The DGR usually responds within a few business days for traditional companies (SRL and SA). For SAS incorporated through the fast online procedures, the name check is handled together with the incorporation and can be resolved almost immediately. This speed is one of the advantages of buying a ready-made SAS, where the name is already registered and the company is ready to operate straight away.

What If Your Name Is Rejected?

If the DGR detects a conflicting name or another obstacle, it will issue a reasoned objection or rejection. You then have two options: change the proposed name and submit a new application, or argue that there is no real risk of confusion (for example, if the corporate purpose is different or the other company is inactive). It is advisable to search existing registered names before filing the formal application, to reduce the risk of rejection.

Practical Considerations: Legal Name vs. Trade Name

It is important to distinguish between the company name (the legal name registered with the DGR) and the trade name or brand you will use in your communication, marketing and products. The company name is required to sign contracts, issue invoices with DGI, register with BPS and carry out any legal act. The trade name, by contrast, is optional and can be registered as a trademark with the National Directorate of Industrial Property (DNPI).

Many entrepreneurs choose a generic or descriptive company name (to ease approval by the DGR) and then build a distinctive brand to position themselves in the market. For example, a company can be legally registered as “Servicios Digitales del Sur S.R.L.” but trade under the brand “DigitalSur”, previously registered as a trademark with the DNPI.

Before deciding on your company name, consider whether you want it to double as your brand or prefer to keep them separate. If you want them to match, check that the name is available both at the DGR and in the trademark register to avoid future conflicts. If you plan to operate internationally or in regulated sectors, also check the availability of web domains and social media handles.

Another relevant point is the registration of a foreign company in Uruguay: if you already operate through a company incorporated abroad and want to register a branch or representation in Uruguay, the name must identify the country of origin and meet the same no-conflict requirements with the DGR.

If you need help with this, see this page on trademark registration in Uruguay.

Name Reservation by Company Type

Although the general procedure is similar for all company types, there are practical differences depending on the legal structure you choose. If you are still deciding which legal structure to choose, bear in mind that the company type affects the timing and flexibility of the reservation.

Reservation for an SAS: Fast Incorporation

An SAS can be incorporated through simplified, largely digital procedures in which the name check, bylaws, registration and RUT are handled in a coordinated way, so the company can start operating very quickly. The name is checked at the same time as the incorporation.

Reservation for an SRL and SA: Standard Timeframe

For SRLs and SAs, the reservation follows the traditional procedure: application to the DGR, similarity check and approval. Once the name is reserved, the notary can draft the deed of incorporation and apply for final registration in the corresponding registry of the DGR. The total time from reservation to final registration can range from a couple of weeks to a month or more, depending on the registry’s workload and the complexity of the bylaws.

Frequently Asked Questions

How long does a company name reservation last in Uruguay?

The reservation is valid for a limited period from its approval by the DGR. During that period, the name is reserved exclusively for the applicant and the company’s incorporation and final registration must be completed. If the period expires before the company is registered, the reservation lapses and the name becomes available to other applicants again.

Can I change my company’s name after incorporation?

Yes, the name of a registered company can be changed through an amendment to the bylaws approved at a shareholders’ or partners’ meeting, formalised before a notary and registered with the DGR. Changing the name also means updating the RUT with DGI and the BPS registration, and notifying banks, clients and suppliers. The process is similar to the initial incorporation and involves notary and registry costs.

Do I need to reserve a name if I buy an existing company?

No. If you buy a company that is already registered and operating, its legal name is already registered. You can operate under that name without any further procedure, or change it later through an amendment to the bylaws. This is one of the advantages of buying a company in Uruguay or acquiring a ready-made SAS: the legal structure, RUT and name are ready, and you only need to update the partners, board and beneficial owners.

Conclusion: Secure Your Company Name with Professional Advice

Reserving the company name is a key technical step in incorporating your company in Uruguay. Choosing the name well, meeting the legal requirements, avoiding rejections because of similar names and respecting the reservation deadlines can speed up or delay your start. A poorly chosen name can cause legal problems, market confusion or unnecessary registration delays.

Although the procedure is relatively simple, professional support helps you minimise risks, save time and make sure your name is properly reserved, registered and protected. At sociedadesanonimas.uy we handle the whole name reservation procedure with the DGR, check availability beforehand, advise you on the most suitable name for your activity and corporate structure, and coordinate with notaries and public bodies so your company is incorporated as quickly as possible.

With more than 500 companies incorporated and procedures 100% online, we offer the complete incorporation service with name reservation included, so you can focus on your business while we make sure every legal and administrative step is handled correctly. If you already have a name in mind or need help choosing one that meets all the requirements and reflects your brand, book a consultation with our team and let’s move ahead with incorporating your company in Uruguay.