Personal service business

Personal service businesses are available to almost every profession and trade.¹ It allows the hiring of multiple employees. Its tax regime and payment system allows its owner to operate it with great ease and independence.²

All of the following services are included*:

  • Advice on required foreign documents.
  • Obtaining the required Uruguayan documents.
  • Interpreting and scheduling assistance with local offices.
  • Uruguayan business registration for small business owners before Social Security (BPS) and the Tax Administration (DGI).
  • Social Security (BPS) user setup for residency/banking purposes.
  • Tax Administration (DGI) user setup for sales receipts authorizations.
  • Abitab Mobile ID user setup (authentication service required to receive DGI notifications issue digital invoices and access your medical history).
  • Mercadolibre (Uruguayan version of Amazon) user setup (required to obtain certain products and to order a business receipt booklet).
  • Free Prex card (required to withdraw PayPal funds) order through Abitab.
  • Free bus pass.
  • Procurement of Uruguayan translator and notary documents.
  • Free Internet and/or cellphone service setup (for proof of address).
  • Power of attorney setup to perform payments and tax statements by proxy.
  • Free healthcare coverage setup for FONASA taxpayers and their dependents.³ ⁴
  • Hiring a Uruguayan digital invoicing software service approved by DGI.⁵
  • Adding employees to the payroll.

¹They’re divided into professional and non-professional:

• The former category requires its owner to have their college degree revalidated in Uruguay and also be a taxpayer to the corresponding Uruguayan professional retirement fund (College Graduate, Notary, Banking, etc).

• The latter category is available to everyone. Regardless of their academic background. They can file for a transfer to said category once they fulfill its requirements.

²Personal service businesses must pay 4 different types of taxes:

• 15% to retirement (Montepío) to BPS (it’s obligatory and always has a minimum 3733 UYU required contribution regardless of perceived income) or the corresponding professional retirement fund for non-professionals and professionals respectively.

• 4,5% (single people), 6% (added children coverage), 6,5% (added spouse coverage) or 8% (added spouse and children coverage) healthcare tax (FONASA) to BPS (it’s obligatory and always has a minimum 4041 UYU required contribution regardless of perceived income).

• 0% VAT in the case of sales to foreign entities (exportation exception under DGI Resolution N°: 220/1998, Article 34) or regular 22% VAT rate for all other services provided to Uruguayan people and entities.

• 12% Non-Resident Income Tax (IRNR) or Resident Income Tax (IRPF) dependent on tax residency. The latter reaches a significantly reduced amount upon computing the corresponding taxes already paid to BPS.

³The FONASA taxpayer and their dependents (if applicable) have 30 days to join an HMO after their business is registered, they will otherwise become members of ASSE, Uruguay’s public healthcare system for at least 2 years.

⁴The business owner’s dependents (spouse, underage children and handicapped children of age) can also receive FONASA coverage.

⁵ You can find the information for the bilingual software provider I recommend below:

*My services are available nationwide.

**All of my relocation services aren’t included.

Cost: 250 USD / 10000 UYU (60% up-front and 40% once the whole process is complete) or an hourly 50 USD / 2000 UYU rate.¹