COMPANY FORMATION IN ARGENTINA

Introduction to the Incorporation of Companies in Argentina.

Argentina possesses many competitive advantages over the rest of the world, primarily in terms of natural resources. Its production capacity has transformed it over time into a major supplier to the global market. Today, it boasts a rapidly growing economy, averaging around 9% annually over the last nine years. Argentina offers numerous investment opportunities, mainly in the agricultural, grain, technology, services, and trade sectors, among others, incentivized by the low cost of human resources. Currently, there is a high influx of European and Asian investors into Argentina, primarily from Spain and China. However, the tax and administrative system is bureaucratically strict.  Contact us to ensure your new company in Argentina gets off to a good start and to learn more about incorporating a company in Argentina.

What are the most common types of companies in Argentina?  

The three most popular types of companies in Argentina are the following:

  • Public limited company (SA)
  • Limited liability company (LLC)
  • Trusts

What are the main characteristics of a public limited company?

  • Standard structure for large companies.
  • Minimum share capital of $12,000 (Argentine pesos – approximately €2,000), at least 25% must be paid up.
  • The minimum number of shareholders is two.
  • A Certified Public Accountant is required to comply with monthly and annual tax, accounting, legal, labor and financial obligations, regardless of the size of the company.

What are the main characteristics of a limited liability company?

  • It is the usual format for small and medium-sized enterprises.
  • The minimum share capital is $12,000 (Argentine pesos – approximately €2,000), at least 25% must be paid up.
  • The minimum number of members is two.
  • A Certified Public Accountant is required to comply with monthly and annual tax, accounting, legal, labor and financial obligations, regardless of the size of the company.

What are the main characteristics of a Trust?

  • It is the usual format for medium and large companies.
  • There is no minimum capital requirement.
  • It is a figure that protects the heritage against third parties.
  • The most common types of trusts are: Financial and real estate.
  • The minimum number of members is three.
  • A Certified Public Accountant is required to comply with monthly and annual tax, accounting, legal, labor and financial obligations, regardless of the size of the company.

What other types of companies exist in Argentina?

Other business formats, less common but equally valid, are the following:

  • Sole Proprietorship – an owner with unlimited liability
  • Monotributo
  • De Facto Company – does not require registration of statutes
  • Mixed capital company – with state participation
  • Foundation – non-profit
  • Cooperatives – a large number of members who share the profits

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What are the characteristics of banking services?

There are numerous regional and international banks in Argentina. The country's economic boom has made it a magnet for international financial institutions. While finding a bank is easy, opening an account is a complex process. We would be happy to handle the paperwork for you, allowing you to focus on your business.

How easy is it to hire staff in Argentina?

Recruitment is rarely a problem for foreign companies seeking local staff. The workforce is flexible and well-educated. Labor costs are low, and employment agencies are located throughout the country.  Contact us for recruitment assistance.

Is it complicated to set up a company in Argentina?

Over the past 15 years, Argentina has implemented stricter controls over its tax, administrative, and legal systems, resulting in significantly increased bureaucracy. Professional guidance is therefore crucial when establishing and advising a company. We are experts in company formation in Argentina, so please contact us  for more information.

What about corporate tax?

The Argentine tax system is diversified and complex. Basically, corporations have a general corporate income tax rate of 35%, applied to the profit for the fiscal year. There are also taxes that can be passed on to the price, such as VAT and gross income tax, etc.

What is the regulatory framework like for those considering setting up a company in Argentina?

Companies are required to register with various regulatory bodies, primarily the Federal Administration of Public Revenue (AFIP), the Governmental Administration of Public Revenue (AGIP), the General Inspectorate of Justice (IGJ), and other agencies depending on their business activities. Monthly and annual audits are mandatory for all companies. There are reporting requirements for branches of foreign companies and foreign investors. In the labor market, the maximum workweek is 40 hours, and companies are generally required to provide 14 days of annual vacation to all employees.

How can I get more information about setting up a company in Argentina?

Our specialists in company formation in Argentina make it easy for you to establish a business in that country, so please contact us for more details.