Name
Global FinTech Guide
Country _ Name
Uruguay
SectionTitle
Crowdfunding / crowdinvesting / crowdlending
Body
FinTechs belonging to this category operate crowdfunding, crowdinvesting and crowdlending platforms on which money is raised to invest in various projects, mainly start-up companies and real estate projects.

Crowdfunding is not a defined financial service, but generally used to describe donation-based crowdfunding (the investor donates the money to the project), reward-based crowdfunding (the investor receives an often symbolic consideration for his investment), equity-based crowdfunding (crowdinvesting: the investor participates in the profits of the financed project or acquires shares or debt instruments) or lending-based crowdfunding (crowdlending: the investor is reimbursed at the end of the project with or without interest).

Introduction

Attitude of the country towards crowdfunding, crowdinvesting and crowdlending platforms

No reservations; there is a growing interest in crowdfunding in Uruguay.

Legal affairs

Obligations and requirements to provide crowdfunding, crowdinvesting and crowdlending platforms described above

The applicable license for crowdfunding platforms is called Crowdfunding Platform’s Management Company (“Empresas Administradoras de Plataformas de Financiamiento Colectivo”), which is also granted by the CBU, taking into consideration reasons of legality,      opportunity, and convenience, thus having the discretion to grant the license or not.  

In order to obtain a Crowdfunding Company license, the applicant must submit the following information: 

    a. Corporate information: (as commercial name, address, taxpayer number, website, among others).
    b. Notarized copy of the bylaws or articles of incorporation.
    c. Information regarding the legal representatives.
    d. Information of its shareholders and senior personnel.
    e. Information regarding the person or legal entity who has the effective control over the Crowdfunding Company, who must comply with a series of requirements.
    f. Information regarding all the entities belonging to the economic group of the Portfolio Manager.
    g. Affidavit with signature certified by a notary public stating the legitimate origin of the capital, AML Manual describing the integral system for the prevention of money laundering and financing of terrorism, and appointment of a compliance officer.
    h. Accounting statements as at the end of the month preceding the date of the application for authorization, prepared in accordance with adequate accounting rules of Uruguay.
    i. Templates of the agreements to be entered among the Crowdfunding Company, the issuer of the publicly offered securities, and the investors.
    j. Feasibility study of the operations, which must contemplate the business plan and the organizational structure, describing both the human and material resources that are necessary for achieving its goals.
    k. Description of the crowdfunding platform’s functioning, including system requirements.
    l. Description of the services that will be outsourced and are essential for the operation of the company, attaching the model contracts to be signed and a risk assessment, provided that the outsourcee is located in, and performs its activity entirely from, Uruguay.
    m. Days and hours open to public.
    n. Code of Good Practices.
    o. Code of Ethics.
    p. Notarized copy of the board or the administrator’s meeting minutes that approved the regulation of the Crowdfunding Company, in accordance with the requirements set by the CBU.
    q. Provision of guarantees before the CBU, for the equivalent of approx. USD 30,000.
    r. Description of the corporate gove

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