Being one of the wealthiest nations in the world, Argentina offers big appealing business opportunities to entrepreneurs and investors looking to enter the Latin American market.
Argentina operates a stable political and economic environment that offers a strong business infrastructure. Also, being an active member of MERCOSUR (Southern Common Market), Argentina represents an opportunity for business regarding international trading.
What’s more, the Argentine Government supports investors as much as possible to develop a new company or expand the existing one, so opening a company in Argentina will bring ample business possibilities to entrepreneurs and investors.
Types of corporations in Argentina
As an entrepreneur looking to enter the Argentina rich market, one way to do this is by incorporating a company. The following options are the primary legal structures by which an entrepreneur can start a business in Argentina.
- Corporation or Sociedad Anónima (S.A.): this is a popular form of company that is convenient to foreign investors. Under this legal form, shares can be freely transferred to third parties, and two founders are enough to create this type of company. This type of company needs to have a board of Directors residing in Argentina and the capital of the company is divided into stocks.
- Limited Liability Company or Sociedad de Responsabilidad Limitada (S.R.L.): this type of company functions through partners, who can be individuals or companies. Under this company structure partners have limited liability, and foreign partnerships must have the partnership’s ordinances submitted to the Public Registry of Commerce.
- Simplified Shares Company or Sociedad por Acciones Simplificadas (S.A.S): this is a company type that was created not too long ago with the objective to simplify the process of incorporating a company in Argentina. It only mandates 1 shareholder and low minimum capital.
- Branch: this is a suitable option for a foreign enterprise that wants to conduct in Argentina the same business activities as abroad. The foreign branch in Argentina is not regarded as a separate legal entity, but an extension of the overseas parent company.
Argentina company registration requirements and steps
Are you interested in starting a business in Argentina? Below are the points to consider and the steps involved:
Choose the right company for the business
The first step in starting a business in Argentina is defining your business goals and then choosing the most suitable business structure for the business. The structure chosen will depend on the nature of the company’s needs, objectives, and goals for the future.
Select the company’s name
Entrepreneurs/Investors must choose a relevant name for the company. The name must be checked for availability at Argentina’s General Inspection of Justice (Inspección General de Justicia or IGJ). Once it’s checked and verified that there are no other companies with the same name, the name registration can be completed online.
Appoint a legal representative
A legal representative must be appointed via a power of attorney (POA), which will give them the ability to act on the founder’s behalf, including signing legal documents, in order to oversee the company establishment process.
Draft the company bylaws
The company’s articles of association and the bylaws enable the establishment of the company in Argentina. This document is crucial for business formation as it is going to work as the backbone of the company and decree the way it is run. Consider this document has to include full details pertaining to the company, such as legal representative information, legal address, management structure, etc.
This document needs the legal advice and signature of a lawyer in Argentina to make sure that it covers all mandatory aspects. The bylaws must also be signed by all the shareholders, and the signatures must be notarized.
Deposit the company’s initial share capital in the National Bank
In Argentina, the company founder must deposit 25% of the initial capital to the National Bank of Argentina (Banco Nación de Argentina) to complete the process of starting a business. Once the company’s bylaws have been successfully registered, you will be able the withdraw the capital and deposit it in any other bank.
Pay the incorporation fee and submit the company documents
With the above steps completed, you will have to pay a fee for submitting all of the essential documents to execute the process of incorporation through the website of the Ministry of Justice and Human Rights. This step is essential for the registration of the business and the final incorporation of the company in Argentina.
Publish the company formation notice in the Official Gazette
The company founder must publish the new company’s establishment notice in the Official Gazette. This step has to be done by a registered lawyer in Argentina, to acknowledge all the requirements.
Register the company books
The registration of the company’s accounting books is a crucial step that must be completed to avoid any penalties. You must also register other books which contain the minutes of the meeting, board minutes, deposit of shares, and record of actions.
Obtain a Tax Identification Number
Once the business is registered, it’ll be allocated a Tax Identification Number (Código Único de Identificación Tributaria or CUIT). This process can be completed online if the company has an Argentinian legal representative. But, if the legal representative is a foreigner, the process has to be finalized in person at the offices of the Federal Public Revenue Administration (AFIP).
Open a corporate bank account in an Argentinean bank
This is the final step in the process for company incorporation in Argentina. It is recommended to review banks carefully before settling on one.
Also, applying for and getting licenses and specific permits will be necessary for regulated types of business activities conducted in Argentina.
As one of the largest countries in Latin America, Argentina has become one of the most desirable marketplaces for global investors and entrepreneurs. If you are looking at entering the Argentinian market, either through investments or company formation. Let’s go ahead and contact your Damalion expert now.
