Starting a business in Uruguay in 2026: legal form, tax regime and registrations

Starting in Uruguay is not about picking the tax with the lowest headline payment. First define the activity, whether you will operate personally or through a company, where the work is performed, who the customers are and whether you will hire employees.

Sole proprietorship or SAS?

A sole proprietorship operates in the individual's name. A SAS is a separate legal entity with its own corporate structure. A SAS does not automatically mean lower tax, and a sole proprietorship does not automatically mean IRPF.

Then determine the tax treatment

• Personal Services: common starting point for independent professional and non-professional services.
• Minimum VAT / Small Enterprise: available for qualifying small business activities.
• Monotributo: a narrower simplified regime with activity and other eligibility restrictions.
• IRAE: may be mandatory or optional depending on the facts; voluntary elections can bind the taxpayer for multiple fiscal years.

DGI and BPS are separate axes

DGI administers taxes; BPS administers social-security registration and contributions. For non-professional personal services, BPS states that retirement contributions run through Industry & Commerce while the Personal Services registration generates SNIS/Fonasa obligations.

Registration and e-invoicing

BPS provides a coordinated online DGI-BPS registration for qualifying sole proprietorships. SAS has its own digital route for qualifying cases. VAT taxpayers are generally required to use electronic invoicing, subject to specific exceptions.

Before registering, write down

• Exact activity and real start date.
• Uruguayan, foreign or mixed customer base.
• Where work is performed and economically used.
• Reason for choosing a sole proprietorship or company.
• DGI regime and BPS profile separately.
• Family situation for Fonasa.
• Electronic invoicing setup.
• First tax and contribution deadlines.

Solo.uy collects these facts to build a tax and contribution calendar. When a treatment depends on evidence the platform cannot verify, it is flagged for review rather than silently assumed.