Advantages of registering a company in Argentina

Argentina, with its strategic Located in South America, it offers great opportunities for investors interested in entering Latin American markets. The country’s economy is focused on the development of manufacturing, the agricultural sector, the IT industry, tourism and other areas with high growth potential. For foreign companies, Argentina opens access to the local market and provides an opportunity to conduct business in a region with high demand for new goods and services. Importantly, foreign investors have the right to 100% ownership of companies in many industries, and the government encourages foreign capital through double taxation agreements that Argentina has signed with many countries. However, there are certain restrictions and regulations in certain industries aimed at protecting national interests and security. Agricultural lands:According to Law No. 26.737 of 2011, known as the “National Security Regime on Ownership, Taking Possession and Use of Agricultural Lands”, foreign persons are restricted in acquiring agricultural land. In particular, foreigners cannot own more than 15% of the country’s total agricultural land area, and there are also restrictions on the maximum area that one foreign owner can acquire.

Defense industry:The production and supply of weapons, ammunition and military equipment are of strategic importance to national security, so foreign investment in this sector is limited or prohibited. on foreign ownership and management of companies engaged in fishing in Argentine territorial waters, with aim of protecting national resources.

Step-by-step process of registering a company in Argentina

Choosing a legal form: First, determine the most appropriate structure for your business. Foreigners can register a company in various forms, including a limited liability company (Sociedad de Responsabilidad Limitada, SRL) or a joint stock company (Sociedad Anónima, SA). The choice of form depends on the scope of the planned activity and the capital structure. Registration of the company name: The name must be unique in Argentina. It must be previously checked and reserved in the Registry of Legal Entities (Inspección General de Justicia).

• Registration with the Inspectorate: the company submits an application and statutory documents to the Inspectorate of Legal Entities (Inspección General de Justicia, IGJ). Once successfully registered, the company officially receives legal entity status. Obtaining a tax identification number (CUIT): Once registered, the company must obtain its tax identification number (CUIT) by registering with the Federal Revenue Administration (AFIP). The CUIT is mandatory to carry out any activity related to tax obligations.
• Opening a bank account: The company must open an account in an Argentine bank, which allows financial transactions within the country. This may require company incorporation documents and proof of identity of the director or authorized representatives.

Available legal forms for non-residents

Argentina offers a variety of legal forms for doing business, each with its own capital, management, reporting, and regulatory requirements. The choice of form depends on the size and objectives of the company, as well as how quickly the investor plans to enter the market.

Limited Liability Company (SRL )

Sociedad de Responsabilidad Limitada (SRL) is one of the most popular forms for small and medium-sized companies. SRL registration is possible on an urgent basis with receipt of a tax ID and corporate books within 24 hours. An SRL does not have a mandatory minimum share capital, but it must be sufficient to achieve the corporate objectives. The capital may be increased at the request of the state registrar if it appears insufficient. The capital is distributed as follows: if the capital amount is greater than zero, 25% must be paid upon registration, and the remaining 75% within two years. In the case of an in-kind (non-monetary) contribution, it must be paid immediately. The number of shareholders of an SRL ranges from 2 to 50. Unlike corporations, an LLC does not require a mandatory president. The company must appoint at least one main and one additional director, most of whom must be residents of Argentina, although there are no other requirements for directors.

An SRL must have a local office. Although a secretary and a local representative are not mandatory for the company, each director has the authority to legally represent the company. An auditor is only required for an SRL with a capital of more than US$10 million. The formation stages include the drafting and approval of the articles of association, annual tax filing, and, for companies with capital over 50 million pesos (approximately US$1,117,000), full financial statements.

Joint Stock Company (Sociedad Anónima, SA)

Sociedad Anónima (SA) is the most popular form among foreign investors. Joint stock companies can issue shares and are freely transferable, which provides flexibility and attracts outside investors. The minimum capital of an SA is ARS 100,000, of which at least 25% must be contributed upon registration. The corporation must have a minimum of two shareholders, and the main aspects of its activities, such as its objectives, duration, and management structure, must be registered with the Inspectorate of Justice and published in the Official Gazette. SA requires more formalities and time to register than SRL, but also provides better opportunities to attract investment.

Partnership (Sociedad)

This form is suitable for businesses with a small number of partners who share management and risks. Partners can be both individuals and legal entities. Partnership companies are usually chosen by entrepreneurs who want equal liability and management. This form allows an individual to conduct a business while having full control over the company’s assets. only individuals with Argentine citizenship or permanent residence. business liabilities.

Branch of a Foreign Company

A branch is an extension of a foreign company in Argentina, so it is subject to the same rules as a local legal entity. Registration of a branch requires confirmation of the existence of the parent company abroad, provided the issuance of articles of incorporation and the appointment of representatives. A branch must have a local office and be subject to the same filing and reporting requirements as other Argentine companies.

Joint Venture (Uniones Transitorias, UTE)

Uniones Transitorias de Empresas (UTE) is a temporary combination of companies for the implementation of a joint project. This partnership does not create a new legal entity and is therefore a less formal option for foreign companies wishing to implement temporary projects in Argentina.

Argentina Tax System

Company Management:

• Directors:Argentine law requires that the majority of board members be residents of the country. This means that although foreign nationals can be directors, at least half of the board must be made up of individuals who are permanent residents of Argentina. This ensures effective management and interaction with local authorities.

• Record keeping:Companies are required to maintain accounting records in accordance with Argentine financial reporting standards, based on International Financial Reporting Standards (IFRS). This ensures transparency of financial activities and compliance with international standards.
• Financial reporting:Companies must prepare and submit financial statements to the tax authorities annually. For large companies and public companies, an external audit is mandatory.
• Tax reporting:Companies are required to file tax returns and pay taxes within the established deadlines. This includes income tax, VAT and other taxes depending on the type of activity.

Other requirements:

• Legal address:The company must have a registered legal address in Argentina. either its own premises or rented ones.
• Substance:

In Argentina, business relationships are based on strong personal connections and trust, and oftentimes, face-to-face meetings are required to close deals. Argentina also has a relatively high level of bureaucracy, and many processes, such as obtaining licenses or submitting documents, can take a significant amount of time. It is important to consider regional specifics, as business conditions can vary significantly from one part of the country to another. However, having experienced local partners or legal representation can greatly simplify the business process and reduce risks. For foreign nationals planning a long-term presence, a work or investor visa is available, allowing them to legally reside in the country and conduct business. A work visa is usually issued for up to one year with the possibility of extension, while an investor visa is granted to those who invest significant funds in the Argentine economy.

Advantages of cooperation with Finance Business Service

Our team provides full support for business registration in Argentina, from choosing the optimal form of company to fulfilling all requirements for fast and efficient registration. We help with obtaining a CUIT tax number, opening a bank account, consulting on tax regimes and offering optimal solutions for protecting your capital. With the support of our local partners, your business will meet all the requirements of Argentine legislation, allowing you to focus on achieving your strategic goals.