What legal business forms exist in Uruguay

Before you start, one distinction helps: the legal form is your business's “legal structure” (who owns it and who is liable for its debts), and the tax regime is how you pay taxes. Here is every legal form that exists in Uruguay, in plain words, with the official quote beside it. Tributo, for now, focuses on the sole proprietorship (unipersonal) and monotributo — but it's good to know the full landscape.

On your own (a single person)

The simplest and most common form for someone working alone. You don't create a company “separate” from you — you are the business. You register with DGI and BPS under your RUT and start invoicing in your own name. The flip side: because there's no separate legal entity, if the business ends up owing money, you're liable with your personal assets. Typical examples: a programmer, an electrician or a shopkeeper invoicing on their own.

«Mediante una Empresa Unipersonal una persona natural o jurídica, podrá destinar sus activos para la realización de una o varias actividades de carácter mercantil. Ésta no posee personería jurídica y el titular de la empresa responde personal e ilimitadamente por las obligaciones de la misma.»

In English: Through a Sole Proprietorship, an individual or legal entity may allocate its assets to carry out one or more commercial activities. It has no separate legal personality, and the owner is personally and unlimitedly liable for its obligations.

Companies (with legal personality)

Companies do have their own legal personality: the business is “someone” distinct from its owners. The three most used are the SRL, the SA and the SAS.

«Los tipos societarios comúnmente más utilizados son: Sociedades Anónimas, Sociedades de Responsabilidad Limitada y Sociedades por Acciones Simplificadas.»

In English: The most commonly used company types are: Corporations (SA), Limited Liability Companies (SRL) and Simplified Joint-Stock Companies (SAS).

SRL (Limited Liability Company): designed for a few partners. The capital is split into “quotas” (not freely traded like shares) and each partner only risks what they put in.

«El capital se dividirá en cuotas de igual valor, acumulables e indivisibles, que no podrán ser representadas por títulos negociables. La responsabilidad de los socios se limitará a la integración de sus cuotas.»

In English: The capital is divided into quotas of equal value, cumulative and indivisible, which cannot be represented by negotiable certificates. The partners' liability is limited to paying in their quotas.

SA (Corporation): the capital is divided into shares that can be transferred. It's the classic form for larger companies or several investors; shareholders only risk what they put in.

«El capital se dividirá en acciones, las que podrán representarse en títulos negociables. La responsabilidad de los accionistas se limitará a la integración de las acciones que suscriban.»

In English: The capital is divided into shares, which may be represented by negotiable certificates. Shareholders' liability is limited to paying in the shares they subscribe.

SAS (Simplified Joint-Stock Company): a modern, flexible version, popular with startups. It can be created by one person or several, with simpler paperwork.

«Las sociedades por acciones simplificadas (SAS) pueden ser constituidas por personas físicas o jurídicas, en forma individual o colectiva, para el desarrollo de actividades rurales, industriales o comerciales.»

In English: Simplified joint-stock companies (SAS) may be formed by individuals or legal entities, individually or collectively, to carry out rural, industrial or commercial activities.

Other forms

There are also less common forms: de facto partnership (partners with no formal contract), general partnership, limited partnership, capital-and-industry partnership, plus cooperatives, branches of foreign companies and groupings like consortia and economic-interest groups (GIE).

«Otros tipos societarios menos utilizados son sociedades colectivas, sociedades en comandita, sociedades de Capital e Industria y sociedades de Hecho. También se puede operar como cooperativas, sucursales extranjeras, consorcios y grupos de interés económico (GIE) y, en caso de emprendimientos individuales, empresas unipersonales.»

In English: Less commonly used company types are general partnerships, limited partnerships, capital-and-industry partnerships and de facto partnerships. One can also operate as cooperatives, foreign branches, consortia and economic-interest groups (GIE) and, for individual ventures, sole proprietorships.

Summary: every legal form

• Unipersonal (sole proprietorship) — a single person; you are the business and you're liable with your personal assets.
• De facto partnership — two or more people working together with no formal contract.
• SRL — a few partners, capital in quotas, each risks only what they put in.
• SA (corporation) — capital in transferable shares; for larger companies or with investors.
• SAS — a modern, flexible joint-stock company; can be created by a single person.
• General, limited and capital-and-industry partnerships — classic company forms, rarely used today.
• Cooperatives — businesses collectively owned by their members.
• Foreign branch — a company from another country operating in Uruguay.
• Consortia and economic-interest groups (GIE) — agreements between companies for a shared goal.

And monotributo? It's deliberately not in this list: it's not a legal form but a tax regime that a sole proprietorship or de facto partnership can use.

Monotributo is a tax regime, not a legal form

Monotributo is not another type of business: it's a “simplified plan” for very small ventures. If your activity is small and you meet the requirements, instead of paying VAT, IRAE and contributions separately, you pay a single low monthly fee to the BPS that bundles almost everything. Underneath you're still a sole proprietorship (or a de facto partnership): monotributo is only the way you're taxed. Ideal for market stalls, small shops or low-revenue services.

«El titular, cónyuge o socio en el régimen de Monotributo, realizan sus aportes jubilatorios y el Fondo de Reconversión Laboral (FRL) sobre la base de un monto predeterminado que equivale a 5 BFC.»

In English: The holder, spouse or partner under the Monotributo regime make their pension and Labour Reconversion Fund (FRL) contributions on a predetermined base equivalent to 5 BFC.

In short: if you work alone, the typical form is the sole proprietorship; if you have partners or want to limit your liability, you look at an SRL, SA or SAS. Monotributo is separate: it's not a form but a tax regime a small sole proprietorship can choose to pay more simply. To choose well, talk to an accountant — and always verify on the official sites. Tributo builds your calendar of taxes and contributions once you have your unipersonal (with or without monotributo).