A sole proprietorship in Uruguay (empresa unipersonal) is the simplest way to start a business formally. It is designed for people who want to work on their own, with no partners or complex structures.

In this complete guide you will learn how to set up a sole proprietorship in Uruguay, the requirements for a sole proprietorship in Uruguay, its advantages, disadvantages and costs, and how to register a sole proprietorship in Uruguay correctly.

What is a sole proprietorship in Uruguay?

A sole proprietorship in Uruguay is an economic activity carried out by a single individual, who acts as the owner of the business.

Unlike other structures such as the SRL or the SA, a sole proprietorship has no separation between the person and the business. This means the owner is liable with their personal assets for the business’s obligations.

Features of a sole proprietorship in Uruguay

• It is formed by a single person.
• It requires no partners and no minimum capital.
• There is no legal separation between the business and its owner.
• It is the fastest way to start an activity.
• It has a lighter administrative burden than companies.

How to set up a sole proprietorship in Uruguay

If you are wondering how to set up a sole proprietorship in Uruguay, the process is simple and can be completed in a few days.

Requirements for a sole proprietorship in Uruguay

The requirements for a sole proprietorship in Uruguay are simple compared with other structures:

• Being an individual of legal age.
• Defining the economic activity.
• Having an ID document or passport.
• Declaring a tax address.
• Registering with DGI and BPS.

Registering a sole proprietorship in Uruguay

Registering a sole proprietorship in Uruguay is done mainly with the tax and social security agencies.

1. Registration with DGI

The sole proprietorship must register with DGI (the tax authority) to obtain its RUT (tax ID) and be authorised to issue invoices.

2. Registration with BPS

The activity must be registered with the Banco de Previsión Social (social security), either as the owner or as an employer if staff are hired.

3. Additional permits

Depending on the line of business, municipal permits or specific authorisations may be required.

Advantages of a sole proprietorship in Uruguay

The advantages of a sole proprietorship in Uruguay make it a very popular way to get started:

Simplicity

It requires no corporate structure or complex agreements.

Low cost

The initial cost is very low compared with other legal forms.

Fast setup

You can start your activity within a few days.

Full control

The owner makes all decisions without depending on partners.

Disadvantages of a sole proprietorship in Uruguay

It is also important to consider the disadvantages of a sole proprietorship in Uruguay before choosing this structure:

Unlimited liability

The owner is liable with their personal assets for debts or legal problems.

Limits to growth

It can be harder to scale or bring in investors.

Less formal

Some clients or suppliers prefer to work with companies.

How much does it cost to open a sole proprietorship in Uruguay?

If you are asking how much it costs to open a sole proprietorship in Uruguay, the cost is significantly lower than for other structures. It covers:

• DGI filings
• BPS registration
• Fees (if you use an agent or accountant)

In many cases the cost can be very low or close to zero if the owner handles it directly. With professional advice, it is usually between USD 100 and USD 300.

Sole proprietorship for foreigners in Uruguay

A sole proprietorship for foreigners in Uruguay is possible, but certain conditions must be met.

In general, foreigners can open a sole proprietorship if they have valid documentation in Uruguay and meet the applicable tax requirements.

Depending on the case, residence or additional procedures with local agencies may be required.

Who is a sole proprietorship ideal for?

• Freelancers
• Independent professionals
• Solo entrepreneurs
• Small shops
• Personal services

Conclusion

A sole proprietorship in Uruguay is the simplest and most affordable way to start a business. It is ideal for those who want to validate an idea, work independently or start an activity without large costs.

However, it is important to weigh the advantages and disadvantages of a sole proprietorship in Uruguay, especially regarding personal liability and the growth of the business.

If you are considering how to set up a sole proprietorship in Uruguay, it can be an excellent option to start quickly and flexibly.

Frequently asked questions about sole proprietorships in Uruguay

What is a sole proprietorship in Uruguay?

It is an economic activity carried out by a single individual, with no separation between the owner and the business.

What are the requirements to open a sole proprietorship in Uruguay?

Being an individual, defining the activity, registering with DGI and BPS and declaring a tax address.

How much does it cost to open a sole proprietorship in Uruguay?

It can be very low or even free if done directly, or between USD 100 and USD 300 with professional advice.

Does a sole proprietorship pay taxes?

Yes, it must register with DGI and meet its tax obligations.

Can a foreigner open a sole proprietorship in Uruguay?

Yes, although additional documentation or residence may be required depending on the case.

You may also find these guides useful:

• How to register a corporation (SA) in Uruguay
• How to register an SRL (limited liability company)
• How to register an SAS (simplified joint-stock company)
• How to register a sole proprietorship
• Buy a ready-made company in Uruguay (in Spanish)
• SRL, SA, SAS or sole proprietorship: comparison (in Spanish)
• Ready-made SAS for sale (in Spanish)