Company Formation in Argentina : Key Considerations for Entrepreneurs 

• Company formation in Argentina is primarily on the rise. Known for its rich cultural heritage and dynamic consumer market, Argentina is a member of the G-15 and G-20 economies and has the third-largest economy in Latin America. The country provides multiple business opportunities across various sectors, from agriculture to renewable energy. However, it is often difficult to navigate the difficulties of Argentina company registration and regulatory framework. This article provides the main considerations of company formation in Argentina, assisting business owners to make better decisions.  

Why Opt for Company Formation in Argentina? 

• Argentina is an appealing destination for companies wanting to establish their operations in South America. Here are the main reasons why companies are considering this country: 

Government support  

• The Argentine government supports and has started various incentives to attract foreign investment, such as eliminating foreign exchange controls and establishing the Simplified Stock Corporation to streamline the procedure of starting a business. The country also has a simplified tax regime that eases the administrative burdens of the business and facilitates quick market entry.  

Market access 

• The country is a member of the MERCOSUR trade agreement, which provides businesses with easy access to regional markets. With a population of more than 46 million, Argentina has a substantial domestic market with a large customer base.  

Labor market  

• Argentina has an educated and multilingual workforce. The country has placed a strong emphasis on STEM fields and has produced a steady stream of talented and skilled professionals in technology, science, and engineering. When compared to other regions, the labor costs in Argentina are low which makes it a suitable option for businesses wanting to manage their operational costs effectively. 

Suitable Business Structures for Company Formation in Argentina 

• To start a business in Argentina, companies can select from several types of legal structures each has its own distinct qualities and requirements. The most common forms of business structures are: 

Sociedad de Responsabilidad Limitada (S.R.L.)  

• This structure is similar to a limited liability company and can be created with 2-50 partners. The minimum capital requirement for this entity is based on the type of business activity and can be divided into shares. For this entity, a manager who is a resident of Argentina should be administered, and annual meetings should be conducted at least once in year to evaluate financial statements.  

Sociedad por Acciones Simplificadas (S.A.S.) 

• It is a simplified shares company that was introduced in the year 2017 to facilitate company formation in Argentina. This entity requires a single shareholder and the minimum capital requirement is twice the minimum wage. The formation of SAS is approved within 24 hours which makes it an easy option for establishment.  

Branch office 

• Foreign companies can also establish their branch in Argentina which will be operated under the same legal framework as local companies. The parent company is liable for all the obligations of the branch.  

Sociedad Anónima (S.A) 

• It stands for a corporation and requires at least two shareholders who can either be foreigners or local residents. The minimum capital investment for this entity is AR$100,000. It is mandatory to have a board of directors and most of the members should be residents of Argentina, annual shareholders meetings should be held once a year to evaluate the financial status of the company.  

Legal and Regulatory Requirements for Company Formation in Argentina  

• Navigating the legal framework of Argentina is a crucial step in the process of company formation in Argentina. The process consists of the following key steps: 

Get a unique tax identification code  

• Companies should be registered with the AFIP (Federal Administration of Public Revenue) to get a unique tax identification code (CUIT), which is significant for doing any economic activity in Argentina.  

Articles of incorporation  

Prepare the articles of incorporation or bylaws which should consist of the following documents: 

• Purpose of the company 

• Governance structure 

• Name and address of the company  

• Rights and duties of the partners 

• Details of the share capital 

These documents should be signed by all the shareholders and notarized.  

Shareholders and directors 

• A minimum of two shareholders is required for the formation of a company. These stakeholders can be individuals or legal entities. If the shareholders are not residents of Argentina, the company should appoint a local legal representative through the means of Power of Attorney.  

Name reservation 

• The name of the company should be registered through the Inspeccion General de Justicia (IGJ) which ensures that it follows all the legal requirements. To register a company name, submit the application online and then pay the verification fees.  

Deposit initial capital  

• It is necessary to deposit at least 25% of the subscribed share capital into an account at the Banco de la Nación Argentina (Bank of Argentina). This will act as proof of your financial stability and the receipt of this deposit is needed for the registration.  

Publication requirement 

• You need to submit the required documents such as notarized laws and proof of capital deposit to the Public Registry of Commerce to officially register your company. After the registration, publish a notice for the company formation in the Official Gazette, outlining the necessary information regarding the company. 

Foreign Investment Regulations for Company Formation in Argentina 

No restriction on foreign investment  

• The Argentine government has not imposed restrictions on foreign investment enabling full foreign ownership of the companies. This openness is especially appealing to international business owners wanting to enter the Argentina market.  

Capital requirements  

• While business organizations have a specific minimum capital requirement in Argentina, limited liability companies do not have a fixed minimum requirement. However, they should have enough capital in order to complete their day-to-day business operations.  

Registration requirements  

• It is compulsory for foreign companies to register with the Public Registry of Commerce in order to establish their business operations. This process consists of submitting multiple documents such as legalized documents provided by the parent company, tangible proof of the substantial business operations operating outside of the country, and registration of the bylaws.  

Conclusion  

• In conclusion, company formation in Argentina provides business owners with lots of potential. It is necessary to have a thorough understanding of the regulatory environment of the country, and the current economic situation, and choose the appropriate business structure. To successfully open a company in Argentina, contact Tetra Consultants and our team of experts will help you in the Argentina company registration process. 

• Contact us and our team will get back to you within 24 hours.