Uruguay at a glance
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The Oriental Republic of Uruguay is a democratic republic with a presidential system. It has a land surface area of 176 215 km2, it is bounded on the north and northeast by Brazil; on the west by Argentina; and has coastlines on the Atlantic Ocean to the southeast and along the Rio de la Plata Estuary, to the south. According to the last census (2011) the population of Uruguay is 3.2 million, 95% lives in urban areas and about 60% lives in Montevideo, the capital. According to The Economist, it is considered the most democratic country in Latin America and is ranked #21 out of 167 countries worldwide. Moreover, is the LatinAmerican country with the lowest Corruption Perception Index.
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Source of information: Uruguay XXI, Deloitte, World Bank and National Statistics Institute.
Uruguay is an attractive gateway to the region, strengthened by MERCOSUR, which was created to facilitate trade and business between the member countries of the block. The territory has the densest highway system of the continent which along with the competitiveness of its financial services and the infrastructure to support entrepreneurship, facilitates trade withother countries and regions. The country has experienced sustained economic growth, being highly attractive to foreign capitals because it offers tax incentives, facilities to the movement of currencies around the world and a political stability that keeps the rules of the game clear. Uruguay is also a free of epidemics and natural disasters country, with a higher quality of living than the regional average and well positioned around the globe.
Why Invest in Uruguay? The country has grown at an average annual rate of almost 6% between 2005 and 2014, which enabled its GDP to reach a record high of almost US$ 57,600 million. This represents the highest and better distributed GDP per capita in the region: US $ 16,642.
Second largest FDI recipient in Latin America (5.6 % of GDP in 2005- 2014). It has a consolidated democratic system, in which the three major political parties have alternated in Government for 20 years, without changing the rules of the game. Offers great ease for currency movement with the world Payment for exports can be sent to accounts abroad. There are no limits for foreign capital endowment in companies. Favorable business climate, great social stability and incentives for investors. A comprehensive legal framework which provides for the amplest guarantees and clear rules. The country has a long established tradition of bank secrecy Free remittance of profits and dividends Equal treatment for foreign and local people/companies. Uruguay obtained an “investment grade” rating from five major credit rating agencies: Moody’s, Fitch, Standard & Poor’s, DBRS (Canada) and Rating and Investment Information (Japan). Finally, there are no restrictions on profit repatriation.
Political situation One of the most established democracies worldwide and strong legal certainty support the strong political and social stability of the country. Nowadays, the political system has three major parties which have kept a strong respect for the essentials of economic activity.. Trust in business environment is essential when choosing a place to Invest. Uruguay ranks among the top countries in Latin America -and is well positioned in the world- according to the main rankings designed by leading institutions which gather information on aspects of political stability and democratic soundness. These indicators reveal a country with a strong democratic tradition based on transparent government policy and broad economic freedom.
Ranking Democracy Index (Economist Intelligence Unit, 2014)
Global Peace Index (institute for Economics & Peace, 2014)
Low Corruption (Transparencia Internacional, 2014)
Prosperity Index (Legatum Institute, 2014)
Freedom of Press (Reporters without borders, 2014)
Economic Freedom (Heritage Foundation, 2015)
Worldwide Governance Indicators (World Bank, 2014)
Uruguay In Latin America 1 1 1 1 2 3 2
Economy Uruguayan economy has experienced 12 years of uninterrupted growth, which is the most important growth - in time and volume - achieved throughout its history. In 2014, Foreign Direct Investment was close to 3,000 million dollars for second consecutive year. This indicates the high confidence that investors have in the economy, the security of the country and the success of the investment promotion regime..
Strategic location in the region Uruguay has an excellent strategic location for the transit of goods in the region. It has very good sea, road, air and river connections through the Parana-Paraguay-Uruguay fluvial waterway. The Port of Montevideo handles about 7% of all MERCOSUR container shipping. It is particularly attractive relative to its neighbors because of its low costs, connection to interior areas (waterway), geographical location and free port legislation.
International Agreements MERCOSUR Full member of MERCOSUR Argentina, Brazil, Paraguay, Uruguay and Venezuela. The movement of goods among them is tax free. MERCOSUR has signed regional trade agreements with: Chile (1996), Bolivia (1996), Colombia, Ecuador and Venezuela (2004), Peru (2005) and Cuba (2006). With Mexico (2002) for the automotive sector. Outside the region, it has signed agreements with Israel (2007), India (2004), SACU (Southern African Customs Union 2008), Egypt (2010) and Palestine (2011). MERCOSUR is also part of the Global System of Trade Preferences among developing countries (GSTP), in force in Uruguay since 2005.
Bilateral Trade Agreement with MĂŠxico
Post-establishment agreements Germany, The Netherlands, Switzerland, Hungary, Italy, Romania, Poland, United Kingdom, Belgium, Spain, France, China, Malaysia, Canada, Bolivia, Czech Republic, Venezuela, Sweden, Portugal, Panama, Israel, El Salvador, Australia, Finland, Armenia, Vietnam and Korea.
Government procurement agreements Agreement with Chile and negotiations with other countries
current
Uruguay features an open market as regards public procurement, where foreign investors and bidders are eligible.
Enables the free movement of goods and services between both countries.
Agreements to avoid double taxation
Invest promotion and protection agreements
Various agreements in force
32 bilateral investment agreements
Spain, Switzerland, Portugal, Mexico, Malta, Liechtenstein, India, Korea, Finland, Ecuador, Germany, Hungary and Argentina.
Germany, Armenia, Australia, Belgium, Luxembourg, Canada, Chile, China, Korea, El Salvador, Spain, United States, Finland, France, Hungary, Italy, Israel, India, Malaysia, Mexico, The Netherlands, Panama, Peru, Poland, Portugal, Sweden, Switzerland, United Kingdom, Czech Republic, Romania, Vietnam, Venezuela.
3 Pre-establishment agreements Chile, Mexico and United States.
Different tax criteria may cause companies or individuals to be subject to taxes for the same source of earned income in more than one country when operating at international level. Uruguay has agreements that eliminate double taxation regarding income and wealth taxes, and guarantee non-discrimination regarding taxes.
Investment incentives Investment Promotion Law By means of Law No. 16,906, the promotion and protection of investments made by national and foreign investors in the national territory was declared of national interest. Thereby, companies or individuals can obtain automatic benefits from specific investments.
Tax rebate, temporary admission and draw-back are some of the highlights of the foreign trade system. Through the Temporary Admission it is possible to enter goods into the market, exempt from taxes. After specific transformation, manufacturing, repair or value-adding processes, the merchandise should be exported.
Companies can access benefits such as the exemption from Corporate Income Tax (IRAE) for a maximum of 100% of the total investment, exemption from Wealth Tax (IP), recovery of Value Added Tax (VAT) paid on purchases of materials and services; exemption from payment of fees and taxes on goods’ imports do not compete with domestic industry.
Sector schemes
Between 2005 and 2013 more than 4,000 projects were approved to benefit from the tax benefits offered by the investment law, for a total of 11,700 million.
This law encourages diverse sectors, such as: call centers, shipbuilding and electronics industry, manufacturing of agricultural machinery and equipment, power generation, tourism, forestry industry, treatment and final disposal of industrial solid waste, vehicle manufacturing and freight transportation equipment, hydrocarbon and biotechnology industry. Regardless of the provisions set forth by the Investment Law, the country has other sectorial benefits granted to: External financial intermediation, forestry, graphic industry, maritime and air navigation, software, vehicle and auto parts, biofuel, communication and housing Industry.
Free ports and airports The free port regime allows free circulation of goods without required authorizations or formal procedures. During their stay at the port customs area, goods are exempt from all import-related taxes. Also, some activities related to the goods or services provided to the merchandise can be carried out in customs area.
Free-trade zones This is a key tool created to encourage the development and export of goods and services to the world. Freetrade zones offer exemption from all taxes. Legal entities, set up as free zone users, are exempt from all national taxes, present or to be created. These exemptions are not applicable to social security contributions, except for foreign personnel who may choose to contribute in their country of origin. Tax exemptions:
Income Tax VAT Wealth Tax (IP) Excise Tax Corporation Control Tax
Tax System Non-Resident Income Tax (IRNR): 3% to 12%
Corporate Income Tax (IRAE): 25%
IRAE
Tax on income from Uruguayan source is levied, partially adjusted to inflation. No tax credit is granted for taxes levied abroad (except double taxation agreements)
IRNR
Personal Income Tax (IRPF)
IRPF
IP
Personal and direct tax which levies the income obtained by natural persons residing in Uruguay. The rate increases according to the income received and it applies to natural persons staying in Uruguay for more than 183 days during a calendar year, and who establish their main core or center of activities or have economic or vital interests in Uruguay.
Wealth Tax (IP): 1.5% The tax levies on individuals and companies’ amount of net assets located or economically used in Uruguay. It can be deducted from existing debts.
IVA
IMESI
Tax which levies the income from Uruguayan sources obtained by non-resident natural or legal persons.
Value Added Tax (VAT): Basic rate 22% Uruguayan VAT is a non-cumulative tax levied at a general rate of 22% on the provision of services and on the circulations of goods within the limits of the Uruguayan territory. A minimum rate of 10% applies applicable to certain products and services. Exports and circulation of most agricultural products are applied the zero rate regime. Disposal of goods and services to final consumers has a reduction of 4% in the rate (whilst is paid with debit cards or electronic money instruments.)
Excise Tax (IMESI) It is applied on the first transaction made in the domestic market by producers or importers of certain goods (alcohol, tobacco, cars, etc).
Ease of doing business The types of business entities that exist in Uruguay are practically all the existing types of the world. It is feasible to create societies and establish foreign entities branches. The most frequently used business types are Stock Corporation (SA) and Limited Liability Partnership (SRL). There are also other corporate types such as general partnerships (sociedades colectivas), limited partnerships (sociedades en comandita), labor and capital partnerships (sociedades de capital e industria) and De Facto partnerships (sociedades de hecho). Furthermore, it is possible to operate as cooperatives, foreign branches, consortia and economic interest groups (GIEs) and single-member companies.
Uruguay is ranked 82 in Doing Business 2015 ranking of the World Bank, above the average for Latin America and the Caribbean.
Ease to start a business (Doing Business 2015) Chile
89.83
Uruguay
89.68
Media regional
78.29
Argentina
72.58
Brazil
63.37
Ease cross-border transactions (Doing Business 2015) Chile
82.05
Uruguay
74.6
Media regional
72.47
Brazil
66.11
Argentina
65.11
Infrastructure Uruguay has 100% of its telecommunications digitized, 75% of Internet penetration and the highest density in Latin America.
It has a top-class port infrastructure and is considered a major gateway to the region.
According to The World Bank's Doing Business report Uruguay ranks 23rd on access to electricity, with 90% of its energy mainly sustained by renewable energies, which is the highest rate in Latin America.
According to the UN ranking about e-government, the country ranks in first place in Latin America and the Caribbean and 26th in the world. It also holds the 14th place worldwide in online services, an indicator that assesses critical issues as information security, data protection, online services provision, etc.
The Carrasco International Airport was awarded in 2009 with the Architizer A+ award in New York. The building has 45,000 m2 and more than 4 million people circulate per year.
Uruguay also has the densest road network in Latin America.
Workforce and quality of life The education in Uruguay is free and mandatory. According to National Statistics Institute 98.4% of the population is literate. 72% of teenagers (12 to 17 years) are enrolled in secondary education. The country has implemented the ¨one laptop per child¨ initiative, known as Plan Ceibal. The initiative makes Uruguay the first country in the world that ensures that 100% of their children have Internet access regardless of their social class. The program has proved to have a strong positive impact not only on children but also on the family. Tertiary education is also free in Uruguay and 72% of enrollment takes place at the public university. The enrollment rate in 2012 surpassed 100,000 students.
The high level of training of the workforce explains the ease of workers to adapt to new production processes or technologies and the development of new technological tools for enterprises. This enables a steady increase in both quality and productivity levels. Historically, the level of training of Uruguayan human resources has been one of the main comparative advantages of the country, which is particularly evident when both domestic and foreign companies make strategic decisions. Montevideo is the best city to live in the region according to Mercer (2015), a consulting firm which evaluates the quality of life in cities. The city is located in the 78th place globally, followed by Buenos Aires (91), Santiago (93) and Brasilia (107). Uruguay ranks first in prosperity in the region according to the Legatum Prosperity Index 2014. Is internationally ranked 30th, highlighting its excellent positioning in personal liberty (8) and safety (27).
It is an Uruguayan company of regional scope with over 30 years experience, aimed to provide solutions for serigraph and digital printing. The company has a wide range of products and services covering all sector needs. It specializes in: Manufacturing and distribution of screen printing (serigraph) inks and supplies. Sale of equipment and supplies for digital printing. Service and maintenance of digital printers. Safety signs (Photo luminescent) approved by the relevant authorities.
With a strong track record of working with leading global brands, Cromos has the know-how and experience that allows the company to offer customers a quality-based service. That characteristic has contributed to develop business with several countries in the region, and enabled Cromos to be pioneers in the country in multiple techniques. All this would not be possible without the excellent logistic infrastructure that exists in Uruguay, in a privileged spot with top-class safety standards.
International experience The company has managed to build multiple contacts with several countries thanks to diverse business linkages: exports, imports, training, representation of international premium brands, development of R&D, networking, visits to international fairs and brand positioning With a constant ambition for the quality of its products and services, Cromos has adapted to new technologies and processes, and it is recognized for its quality. This attitude has allowed them to join international premium brands. The trust of these companies is an example of the potential and capacity of the company at the national and regional level.
Brand representation of the following countries:
Countries to which exports:
Countries with trade, training and R&D linkages:
Work Philosophy Customer focus, consistency in quality, R&D investment and support and technical service are the basic principles of Cromos philosophy.. Born as a family business, its staff has extensive experience and training in the field, with multiple capabilities developed from the wide range of products and services that the firm offers.
Results of our latest customer satisfaction survey:
More than 80% believe that the company has an excellent service.
More than 80% qualify as excellent products.
100% of the survey rate the technical service with maximum score.
More than 80% think that the level of R&D of the company is excellent.
Philosophy: Be prepared to meet the most demanding needs of the market
“The customer is not doing us a favor by buying our products, is giving us the opportunity to serve him.” Bernardo Shuster CEO and Founder of Cromos
Own brands Serie 2003
Policrom
Water printing paste for light fabrics. Free of Phtalo
Solvent based ink of two components.
Serie Cobertura
Selectacrom
Water printing paste for dark fabrics. Free of Phtalo.
Plastisol Phtalate free for light and dark fabrics.
Vinicrom Solvent based ink for rigid and flexible vinyls.
Plasticrom Solvent based ink for Coroplast without pretreatment.
Flexicrom Solvent based ink very flexible for PVC, ACRYLIC.
Solvent based ink high gloss.
EPS Solvent based ink FDA for Expanded Polystyrene.
Polycrom Photographic Emulsion 100% photopolymer.
Dualcrom Photographic Emulsion 100% Double Cure.
Pregatex Auxiliary products.
Infrastructure Industrial plant Located in a logistically privileged spot, Cromos plant is located just 5 minutes from the port of Montevideo, one of the most important in the region and the gateway to the Paraná-Paraguay-Uruguay waterway. The plant has 3,300 m2, 30 meters front and a depth of 115 meters. It has all the required authorizations to operate in perfect safety, including anti explosion electrical installations specific for industrial activities with highly dangerous products. It also has access to a reserve water tank of 12,000 liters and a pit of river water to explode. The area is divided into:
Local with two areas, the first to manufacture water-based product and the second for the production of solvent base Warehouse for finished goods and raw materials Infraestructure for R&D and quality testing Infraestructure for solvents Staff facilities, dining room, dressing room and bathroom. Barbecue with 50 seats and specific bathrooms.
The property also has ample space for expansion of existing buildings or building of new facilities.
Free areas
Allied brands
Products and services Adhesives
Auxiliary Emulsion
Textile auxiliaries
Aluminum racks
Thinners and retarders
Photographic emulsions
Aluminum spatula
Sources of Heat Stroke
Printing gums
Reflective Material
Transfer paper for Ink Jet
Transfer papers for Screen Printing
Textile printing pastes
Textile pigments
Auxiliary Products
Squeegees of emulsification
Emulsion remover
Dry Ink Remover
Silkscreen Technical Fabrics
Inks
Special inks and varnishes
Textile Transfer for Plotter Cutting
Key Information 1
Its production plant is 5 minutes from the main port of the country, which handles 7% of trade in MERCOSUR.
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Its facilities were designed to meet German standards of production. It has all its structures in order and meets existing regulations security.
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The site where the plant is located has great potential for expansion.
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Specific know-how on serigraphy, developed through training, experience, alliances and R&D.
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Cromos has pioneered the development of photopolymer emulsions in Uruguay.
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It has business contacts and export experience to multiple countries in the region.