| Criteria | Score (4-0) | Rationale |
| Laws on VC/PE fund formation and operation | 1 | Fideicomiso (trust) legal figure exists but it's less than ideal and not designed specifically for PV/VE funds (interview) |
| Tax treatment of VC/PE funds & investments | 2 | Corporate tax rate is relatively low (30%) but individuals and locally constituted firms and financial institution pay a net worth tax on assets held in country; it stands at 2.8% for financial institutions. Stocks issued on the exchange are not counted against the issuer's net worth. Capital gains are taxed as part of normal corporate income and are inflation-adjusted. Dividends to local shareholders are tax-exempt, as are paid by one company to another. Dividends remitted abroad are taxed at 30%. There is no double taxation where profits are also subject to foreign taxation and there is no provision for deduction of taxes paid in Uruguay (EIU Country Commerce Report). |
| Protection of minority shareholder rights | 1 | Weak legal protections for minority rights make shareholder agreements a common resource (CC, interview). However, minority shareholders have fairly strong ability to take legal action against board decisions (World Bank). |
| Restrictions on institutional investors (pension funds, insurance firms) investing in VC/PE | 1 | Institutional investors may only invest in rated instruments (interview). |
| Protection of intellectual property rights | 2 | Economist Intelligence Unit IP Protection Index. Assessment of the protection of intellectual property in this country. |
| Bankruptcy procedures/creditors' rights/partner liability in cases of an invested company's bankruptcy | 1 | Lengthiness of bankruptcy proceedings a concern, and partner liability remains considerable (interview, EIU Country Commerce Report). |
| Capital markets development and feasibility of exits (ie, local IPOs) | 1 | Average of Economist Intelligence Unit's Indices for Stockmarket, Financial distortions, Foreigners' access to capital market and Access to investment finance |
| Registration/reserve requirements on inward investments | 3 | Simple registration rules, no reserve requirements (interview, EIU Country Commerce Report). |
| Corporate governance requirements | 1 | Weak transparency of finances and decision-making. Weak disclosure requirements and board review powers (EIU Country Commerce Report, World Bank, interview). |
| Strength of the judicial system | 2 | Economist Intelligence Unit's Fairness of judicial process ranking. Assessment of the extent to which the legal process/the courts can be interfered with or distorted to serve particular interests. |
| Perceived corruption | 2 | Economist Intelligence Unit's Corruption Index. Assessment of the pervasiveness of corruption among public officials. |
| Quality of local accounting industry/use of international standards | 4 | International standards in use (interview). |