56 year old “bank alternative” coming to an end in 45 days

After 56 years of existence, no new Uruguayan SAFI (Sociedad Anonima Financiera de Inversion) can be created after the end of December. To those not in the know, this may be a big yawn, but real players will be less than happy about losing this key tool.
The good news is that the SAFI will not actually be abolished, yet. No new SAFIs will be formed, but Uruguay will allow all existing SAFIs to continue their operations for 10 years, after which they will become regular Uruguayan Companies. 10 years is a long time in the offshore world, so I recommend you consider getting this tool while you can.

What good is a SAFI? It takes 2 or 3 months to form and is relatively expensive by offshore company standards. It even still uses early 20th century bound corporate “books” printed in purple ink. Why would anyone want one?
A Uruguay SAFI, working in conjunction with a friendly commercial bank can serve as “bank alternative” for its affiliates as a capital management company, payment company or treasury company that can be more useful than an offshore bank license for many payment operations.
In today’s world of ever greater restrictions on any kind of financial company, note the following taken directly from a Uruguay Government website:

  • The main object of these companies is to effect investments abroad, which is understood to be the typical activity carried out by a portfolio corporation…
  • They can also act for themselves or on behalf of third parties or for third parties…
  • They can hold bank accounts in foreign currency in the Uruguayan financial system…
  • They are especially suitable as vehicles for performing offshore operations with multinational companies that can use the Holding corporations even as a financial or treasury parking center…
  • Their main restrictions are that they cannot issue capital shares by means of public subscription or quoting them at the Stock Exchange, or effect banking operations entailing reciprocal credit or capitalization.

Article 1 of LAW Nº 11.073 – JUNE 24, 1948 as amended on May 21st. 1993, states:

Stock companies, the principal purpose of which is to effect directly or indirectly, for their own account or for the account of third parties, investments abroad, in securities, bonds, shares, certificates, debentures, drafts, personal or real properties…

The bottom line is that a Uruguayan SAFI can do everything claimed by the much more famous Panamanian Capital Management Company, but without the licensing or regulatory burden.
But they will only be available until the last week of December! If you are interested in buying a SAFI, while you can get one, please click here. The Navigator may also be able to help you arrange banking in order to use a SAFI for maximum effectiveness.

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