Doing business in Argentina has many benefits, with the country being full of exciting investment opportunities.
Recently, the Argentina government has been facilitating multinational investment and businesses to start operating in Argentina. This has given the country a very friendly environment, with simplified processes and great advantages.
Being a country with such an active and developed economy, many foreign investors and entrepreneurs choose to form a company in Argentina.
If you are thinking of entering the South American markets, Argentina offers substantial opportunities that will help you to expand your business profile globally.
Outlined below are the steps to take in order to enter the Argentine market.
How to Register a Company in Argentina
Decide among the types of legal companies in Argentina
Before you start your Argentine business, you have to make sure that you are clear on your business plan and type. This way, you will be able to specify the legal entity that suits your business the best.
The Companies Law in Argentina gives several legal entity options for those looking to begin a business in the country. Some of the most generally used legal entities are:
- Corporation (Sociedad Anónima or S.A.): this type of business entity imposes a minimum of two shareholders and a minimum investment of A$12,000 for registration. Anyone can register this kind of company in Argentina irrespective of his or her nationality. Also, every shareholder must own a minimum of 5% to 10% of the company shares and it has to be evaluated by the Entity of Legal Persons to prove the legality of the corporation.
- Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL): this type of business entity requires at least 2 shareholders, with a maximum of 50. It doesn’t have a minimum capital, but the capital must correspond to its business area.
- Simplified Shares Company (Sociedad por Acciones Simplificadas or S.A.S): this is a company type developed in 2017 with the purpose of simplifying the process of incorporating a company in Argentina. It only imposes 1 shareholder and low minimum capital.
- Branch offices: a branch office, which is created when a foreign company establishes a branch in Argentina, does not indicate the creation of a new legal entity. Even though a branch must be registered with the Registry of Companies, the laws regulating its existence and validity are mainly the laws of the company’s home country. A branch may embark on all activities pursued by a company’s headquarters through the person appointed as the company’s representative.
Name the business
The next step is deciding on a corporate name for the new business and the name must be reserved for the new company. In Argentina, the new corporate name is verified by the Office of Corporations (Inspección General de Justiciav or IGJ).
Appoint a Legal representative
In specific cases, such as those in which the shareholders of the company are based outside Argentina, a Power of Attorney will be required that enables a legal representative to carry out the company formation process locally. This Power of Attorney has to be signed by the corresponding party.
Any individual, local or foreign, can be assigned as the legal representative of a company in Argentina, given they are over 18 years old, have a Unique Tax Identification Code, and have a domicile in the country.
Prepare the bylaws
The company bylaws are basically its constitution and specify the way the company will be run and summarize the commercial intentions of the business. Every company shareholder must sign the bylaws, and the signatures will have to be validated through a specific Public Notary.
Before you can start your business in Argentina, you will have to get in touch with the Public Registry of Commerce and get your bylaws approved.
Deposit initial capital
A minimum of 25% of the initial capital must be deposited in the National Bank and you have to collect proof of payment for incorporation purposes. The deposited amount can then be withdrawn once the company’s bylaws are registered by the Office of Corporations.
Publish the company’s formation
The next step is to publicly declare the new business through the Official Gazette, one of Argentina’s national publications.
You will need a lawyer or any other authorized individual to perform this particular step.
Paying Incorporation fee
When you submit the documents for your new Argentine business, there are attached payments in form of the processing costs and forms. You can perform this process through the Ministry of Justice and Human Rights website.
Register the company books
Establishing an Argentine company requires you to register several accounting books along with other books containing the meeting minutes, board minutes, share deposit details, a record of actions, and meeting attendance details.
You are required to submit all of these books to the Public Registry of Commerce in order to get them formalized.
Obtain the Unique Tax Identification Code
You will have to go to the Federal Public Revenue Administration to obtain your CUIT. A tax identification number (Código de Identificación Tributaria or CUIT) can be attained from the National Tax Office (Administración Federal de Ingresos Públicos or AFIP).
After attaining the CUIT, you can visit the AFIP’s page and get registered for social security and taxes.
Open a business bank account
The final step in your company formation in Argentina is to get a corporate bank account for the company that will be used to execute all commercial transactions.
The documentation required for this purpose will differ, depending upon the bank that selected, but generally, you will be required to procure identification proof for your shareholders, along with your new business details.
In general, company incorporation processes in Argentina can take weeks or months, and laws in Argentina change continually, so it is important to have the right firm to guide you through the incorporation process.
If you are interested in registering and incorporating your company in Argentina, let’s go ahead and contact your Damalion expert now.
