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Americas

Starting a business in Uruguay

Plan Basics

Overview

Purchasing Products
All Amway Business Owners may purchase products directly from Amway.

PV/BV Transfers
PV/BV transfers are not available.

Single Line Of Sponsorship
Amway Latin America is integrated by 12 affiliates:
Argentina
Brazil
Colombia
Costa Rica
Chile
El Salvador
Honduras
Guatemala
Mexico
Panama
Uruguay
Venezuela
As of September 2007, Latin America began operating as a Consolidated Line of Sponsorship (consolidated market) where Amway Business Owners (ABOs) are able to personally sponsor from and to any market within the Latin America Region without the need to establish as second business. The consolidation of the Latin American line of sponsorship means very important opportunities for ABOs. Some of the benefits are:
– Cross border sponsoring allows for personal sponsoring in all markets
– ABOs can place orders in any market different from their home country, only to be shipped to local addresses within the affiliate where the order is placed
– Combined volume from all markets allows an ABO to reach the 21% level more quickly
– Regional Business Kit
– Regional SIP Program
– Regional Bonus Statement

Bonus Payment
Bonuses will be paid directly to all Amway Business Owners (ABO) who have earned the bonus. Bonus payments will be paid by check.

Beginning January 1, 2009, an ABO must generate 150 personal points in a month in order to receive a bonus. This applies to any bonuses (personal, group differential, leadership, etc.). This new requirement is a monthly requirement meaning that an ABO must generate 150 personal points every month that he is receiving a bonus to be eligible to keep it. This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market.

Performance Schedule

PV Performance Bonus
10000         21%
7000           18%
4000           15%
1,800           12%
600            9%

Retail Margin
Mark up for most Amway products is 25% when the monthly volume is less than $199 pvs (retail price before taxes) and the mark up reaches 30% when the monthly volume exceeds $200 pvs.

how to start

Starter Kit Purchasing
In order to buy a Business Starter Kit and become a new Amway Business Owner (ABO), the prospect must be at least 18 years age and contact an Amway Business Owner for purchase of the Starter Business Kit. The new Amway Business Owner must complete, sign and submit the Registration form (original) by post mail.

This process can also be completed using the Internet site www.amway.com.uy where the applicant, together with the sponsor, completes the Registration Form. The new Amway Business owner is registered at that moment and he/she can buy products on-line. The Business Starter Kit will be automatically included in the order. The Registration Form must be printed and signed by the applicant and submitted to Amway Uruguay within the first 30 days.

Cost of Starter Kit
1,111 Uruguayan Pesos (VAT included)

Sponsoring
In order to register a new Amway Business Owner, the sponsoring Amway Business Owner must ensure that all independent Amway Business Owners registered are provided with an official Amway Business Starter Kit (without substitution or alteration of the contents) and the ABO Contracts are completed, signed and submitted to Amway Uruguay.

Business Type

In addition to the Amway Business Owners, Amway Latin America established an alternative to have access to the Amway Products and Services called Client.

A Client is able to buy Products directly from Amway Uruguay at a retail price Clients can not sponsor and bonuses are not received.

To become a Client the person can be registered by internet, the 0800 number or in the Amway Shop by providing their name, telephone number, e-mail address, name of the ABO who is registering them. In case the person has not been referred and does not an Amway Business Owner, Amway will assign one based on a data base of retailers of the affiliate. There is no cost to become a client.

A sponsor is required to be register as a client and the person can choose if he/she wants to be contacted by the sponsor. Legal entities can become clients.

Establish a Second Business

Amway Business Owner Registration Requirements
Please check the following website for visa information:

http://minterior.gub.uy/tramites_residencias.php

Please check the following website for information on taxpayer registry:

http://www.dgi.gub.uy

ABOs are required to have a Uruguayan address, but an office is not necessary.

ABOs are responsible for complying with any local business, commercial and/or trade authority licensing issues.

Doing business by a foreigner includes but is not limited to selling products, receiving bonuses and sponsoring.

Visa Requirements
Please check the following website for visa requirements and information:

http://www.dnm.minterior.gub.uy/tramites_residencias.php

Legal residency is requested in the case the business is run by a single person.

Your passport will be used in order to start your residency proceeding but a Uruguayan ID will be required.

It is not necessary to have citizenship to start a second business.

Formation and Registration of Your Business
Any foreign ABO can have a business in Uruguay as an International Sponsor (as outlined in the Business Reference Guide) or as a Local Sponsor.

As in other countries, it is necessary to define the kind of ABO business is desired:
– A Single Person ABO (we recommend this option), or
– A legal Entity ABO

Single Person ABO
– Buy a local starter kit, to be sponsored (payment in local currency)

Legal Entity ABO (Corporation or LLC)
An ABO can choose to be an owner of a legal entity. In this case, it is necessary to open a Uruguayan company, which must be registered before the Tax Office and the Social Security Office. The Registration form must be submitted and processed in the individual name(s) of the ABO. The ABO can then request the transfer of ownership to the company through the affiliate. Please note the sole purpose of the company must be the operation of the Amway business. No other business activity can be conducted through the company.

The company may be a “Sociedad Anonima” (Corporation) or a “Sociedad de Responsabilidad Limitada” (LLC).

The LLC must be incorporated by two or more partners. The Corporation can be either incorporated (by two or more shareholders) or all its stock acquired by a single person. Uruguayan law does not require a minimum capital either for starting a business as s single person or through a legal entity.

The decision regarding the type of business will depend on the activity that will be developed, the income that may be obtained, etc. Therefore, it should be analyzed in a case by case basis. Amway recommends that you consult qualified professionals and pertinent government authorities to prepare the required documents.

The representatives of the company (Board of Directors) are not required to be residents of Uruguay. The members of the Board must be communicated to the Trade Registry, the Tax Office and the Social Security Office.

As with your primary business, your second business must be renewed each year with the affiliate.

Please go to the following site for information regarding registration with the Tax Office and Social Security Office:

http://www.dgi.gub.uy

To open an Amway Business the only capital required is the starter kit cost (approximately UYU$1,410,00 or US$67.00).

Submit your paperwork to:

Amway Uruguay.
Juan Benito Blanco 1271 – Montevideo
C.P.: 11300

Required Documents for Registration
Please check the following website for legal residency information:

http://www.dnm.minterior.gub.uy/tramites_residencias.php

Please check the following website for information on taxpayer registry:

http://www.dgi.gub.uy

Cost

Costs to open a company
– Lawyer and accounting costs
– Additional fees for translating, notary and maintenance costs. These are dependent on the size and volume of the activity of the company.

how to order

Ordering
ABOs and Clients can order Amway products from Amway Argentina by:

Order Entry, phone 000 405 210 117 (local)

Following the next steps:

– Provide your ABO or Client Number to place an order.
– Confirm that the code number of the Products is correct when you are ordering; you can verify this number in the price list.
– Have handy the address where you wish Amway Uruguay to deliver your order. This address has to be within the country of Uruguay.
– Hours of Operation: 9:00 am to 9:00 pm. Monday through Friday
9:00 am to 3:00 pm. Saturday.

Internet Orders
You can also order products through our web site: www.amway.com.uy

Amway Shops

Located in Juan B. Blanco 1271 – Montevideo.
Phone numbers: 5982 706-9276.
Hours of Operation: 10:00 am to 7:30 pm. Monday through Friday.
10:00 am to 1:00 pm. Saturday.

Payment Methods

Order Entry and Internet Orders
– Credit Card (Visa and Diners)

Amway Shops
– Credit Card (Visa, Mastercard and Diners)
– Cash
– Bonus Check

Returns/Refunds
Sales Kit and Products returns will be accepted 90 days from date of purchase. ABOs and Clients must have the invoice purchase available of those sales kit/products returned.

Products may be returned personally in the Amway Shop or sended by mail
to Juan Benito Blanco 1271 – Montevideo.

If the ABOs and Clients are in an overstock situation, it will be necessary the Customer Service Supervisor approval. A 10% handling fee will be charged up to the returns credit. The returns credit will be paid through the bonus check.

how to manage

Access Information

– In person – at the offices through a representative from Amway Business Owner and Customer Service Department
– By phone – 5982 706-9276
– By e-mail: dac.uy@amway

Receive Bonus Payment
Beginning January 1, 2009, an ABO must generate 150 personal points in a month in order to receive a bonus. This applies to any bonuses (personal, group differential, leadership, etc.). This new requirement is a monthly requirement meaning that an ABO must generate 150 personal points every month that he is receiving a bonus to be eligible to keep it.

This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market.

ABOs, who have earned a bonus, will have a check generated automatically and submitted by post mail to their mailing address.

Also the ABO can choose that all the bonus payments earnings stay in A/R forward so that amount can be use for future purchases.

Renew
All ABOs need to renew their Contract.

An ABO’s initial contract year terminates on December 31, if it is signed prior to August 31, or on December 31 of the next year if the ABO Contract is signed after August 31. The renewal fee and procedures are published yearly in Amway Publications.

Renewal Methods
– Amway Shops
– Order Entry
– Internet web site: www.amway.com.uy

Payment Methods
– Credit Card (Visa, Diner and (Masters only in Amway Shop)
– Cash (Only in Amway Shop)

contact

Amway Uruguay

Juan Benito Blanco 1271
Montevideo
Uruguay

Phone: 598-2-706-9276
Fax: 598-2-706-9280

www.amway.com.uy (Public & Distributor Website)
dac.uy@amway.com (Email)

Opened November 1995