1- Basic issues & Free Trade Zone Regime

1.1. Legal vehicle

A foreign company who is subcontracted by a main contractor to develop activities in Uruguay and such activity exceeds from 3 months (in the case of construction or assembly activities) will constitute permanent establishment in Uruguay.

Although in theory it would be possible to register the foreign company in Uruguay as permanent establishment or establish a local branch of the foreign company, our advice is to establish a local subsidiary corporation (“sociedad anónima local”) specifically for the project.

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