For many expats, Uruguay offers an appealing environment not only for living, but also for starting a business. Thanks to its stability, straightforward legal framework, and welcoming attitude toward foreign entrepreneurs, setting up a business is often easier here than in many neighboring countries.
If you’re considering entrepreneurship as part of your relocation or residency plans, here’s a simple overview of the main types of businesses expats can open in Uruguay.
Sole Proprietorships and Small-Scale Businesses
One of the most accessible options for expats is opening a small sole-proprietor business, especially if you provide services such as consulting, design, tutoring, IT support, coaching, real estate assistance, or any freelance-based work.
Many expats begin this way because the structure is flexible, affordable, and ideal for individuals or couples who want to work independently.
Understanding the Types of Businesses in Uruguay
Expats who plan to build something larger, hire staff, or operate a more formal business often consider:
- SAS (Sociedad por Acciones Simplificada) – the most popular modern business structure, flexible and suitable for small or medium enterprises.
- SRL (Sociedad de Responsabilidad Limitada) – similar to an LLC, good for businesses with multiple partners.
- SA (Sociedad Anónima) – used for larger companies and more regulated industries.
These structures are ideal if you need to invoice clients, import or export goods, operate a brick-and-mortar business, or build something long-term.
The Monotributo Option: A Simple Pathway for Expats
For expats who want the simplest possible option, Uruguay offers the monotributo, a unique small-business category that:
- Requires no accounting, no VAT reporting, and no income tax filing
- Allows you to legally invoice clients
- Automatically enrolls you in BPS and Fonasa (public health fund)
- Makes it easy for expats to start working quickly
It’s ideal for small service providers, freelancers, and newcomers who want a low-cost way to start earning legally from day one.
We created a full guide to explain how it works, who qualifies, costs, pros and cons, and how to register.
Access the private Monotributo guide: Monotributo Businesses
Which Option Is Best for You?
Choosing the right business type depends on:
- Whether your business is just you, or multiple partners
- How much income you expect
- Whether you’ll hire people
- Whether you need to import, export, or hold assets
- Your long-term goals in Uruguay
Most expats start simple and upgrade their business structure later as their needs grow.
