February 9, 2024

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Register Company in Argentina: Your Ultimate Guide 2024

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Register Company in Argentina: Your Ultimate Guide 2024

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In the vibrant business landscape of Argentina, registering a company opens doors to a world of opportunities in South America's second-largest economy. With a strategic location, rich natural resources, and a diverse market, Argentina offers a favorable environment for entrepreneurs seeking to establish a presence. Navigating the registration process involves adherence to local legal requirements, tax regulations, and administrative procedures. 

5 Facts about Doing Business in Argentina

Starting a business in Argentina can be a lucrative endeavor for a variety of reasons. Argentina has been working to improve its business environment and attract foreign investment. The following are some advantages to starting a business in Argentina:

Steady Economic Growth

Argentina is a developing country with a well-educated population, an export-driven agricultural sector, and a diverse industrial base. Following an economic slowdown at the end of 2022, with a gross domestic product falling by 1.6% in 2023 before recovering by 1.1% in 2024, the government has implemented various economic reforms to foster resilience and sustainable growth. Despite challenges, the nation remains committed to enhancing its economic stability and attracting investment.

High Employment Rate

The employment rate in Argentina has historically experienced fluctuations. In 2023, employment rates were relatively high compared to some other countries in the region. The employment rate in Argentina is forecast to reach 61.44% in 2024. This forecast reflects the ongoing efforts by the government to address economic challenges and implement policies aimed at fostering job growth and stability in the coming year.

Currency Stability

Despite historical challenges, efforts to achieve currency stability in Argentina have been underway, with the government implementing measures and economic reforms to mitigate volatility and promote a more resilient financial environment. On January 12, 2024, the peso was trading at ARS 816.0 per USD, down 55.1% from the previous month. Argentina's new President has promised economic shock treatment, including spending cuts, the abolition of the peso, and the closure of the central bank. 

Predicted Tax System 

In Argentina, the tax environment for businesses has undergone significant changes due to recent tax reforms. The Corporate Income Tax (CIT) rate has been revised with a tiered structure based on taxable income and ranges from 25% to 35%. Resident legal entities, encompassing both Argentine and foreign-source income, can claim foreign taxes as credits. A withholding tax (WHT) of 7% applies to dividend distributions and branch profit remittances. Additionally, the value-added tax (VAT) in Argentina is 21%, with specific rates for certain goods and services. 

Argentina offers a range of incentives to encourage economic development and attract investment across various sectors. For instance, foreign tax credit provisions enable national taxpayers to offset taxes paid abroad against their Argentine tax liability, up to the amount of the increase attributed to foreign income. 

Modern Banking System

The banking system in Argentina has demonstrated resilience, with ongoing initiatives focused on enhancing financial stability, fostering innovation, and improving accessibility for the benefit of both consumers and the overall economy. Argentina has a well-established banking system with various local and international banks operating in the country like BBVA, National Bank, Santander, etc. There are also local banks with foreign capital, mortgage banks, development banks, savings banks, finance companies, savings and loan associations for home construction or other real estate property, credit associations, and representative offices.

Financial transactions are typically conducted in Argentine pesos (legal tender), United States dollars, and government securities.

Types of Companies in Argentina

Depending on the nature of the business, the appropriate company or legal structure must be chosen. Each has advantages and disadvantages, so it is critical to consider the company's current needs, objectives, and long-term goals. The following are the most common types of companies in Argentina:

Types of Companies in Argentina
Type of Company Description
Corporation (Sociedad Anónima - S.A.) Requires a minimum initial investment of AR$100,000 (approximately USD 200). The Board of Directors has to reside in Argentina. The capital is divided into shares, which are freely transferable. Shareholders are not personally liable for debts and obligations, limited to their contributions. Possible to register diverse business activities. Suitable for large businesses.
Limited Liability Company (Sociedad de Responsabilidad Limitada - S.R.L.) Minimum 2 and maximum 50 shareholders. Minimum suggested capital of USD 2,000. Only 25% of capital is required at the time of establishment. Remaining capital should be substantiated over the following two years. Shareholders' liability is limited to their contributions. The capital is divided into quotas or participations.
Simplified Joint Stock Company (Sociedad de Acciones Simplificada - S.A.S.) Requires only 1 shareholder. Low minimum capital. Straightforward setup. Liability limited to the initial contribution. Suited for small-sized companies and entrepreneurs.
Sole Proprietorship Single owner who is personally liable for debts. No legal distinction between the individual and the business. Simplicity in setup and operation.
Uniones Transitorias (Joint Venture) Temporary associations formed by two or more parties for a specific project or venture. Each party retains its independence, contributing resources or expertise, and the joint venture operates under a predefined agreement. No separate legal entity created.
Branch of a Foreign Company An extension of a foreign corporation that operates locally but remains legally tied to its parent company abroad. It allows the foreign company to conduct business activities in Argentina without forming a separate legal entity.
Sociedad Colectiva (Limited Partnerships) A business structure where two or more partners jointly operate a business with both general and limited partners. General partners actively manage the business and bear unlimited personal liability for its debts, while limited partners contribute capital but have restricted liability, limiting their losses to the amount invested.

Company Formation Requirements in Argentina

Launching a business in Argentina involves navigating certain legal requirements. Below, we outline the key points you will need to take into account:

  1. Tax Identification Number. To kick things off, individuals and businesses need to register with the tax authority known as the Federal Administration of Public Revenues. This step ensures compliance with the country's tax regulations. During this registration process, acquiring a Unique Tax Identification Code (CUIT) is essential. This code serves as a unique identifier, streamlining transactions and interactions with the tax system. 
  2. Company Name. Selecting a name for your company is an exciting step, but it also comes with some guidelines to ensure uniqueness and clarity. Consider three potential names for your legal entity, making sure they are not misleading or too similar to existing company names. It is necessary to check the availability of your chosen name and see if it is not already reserved by another entity. Additionally, run a check to comply with trademark regulations to avoid legal complications down the road. Lastly, strive for a name that not only stands out but also maintains a level of decency in its composition, reflecting positively on your brand identity. 
  3. Shareholders. Getting your business off the ground involves a bit of paperwork, and one crucial step is preparing identification documents for all the shareholders. Remember to check the minimum and maximum permissible number of shareholders, ensuring you're within the legal boundaries.
  4. Business Activity, Corporate Purpose, and Primary Operations. Defining your business activity is like painting a vivid picture of what your company is all about. Take the time to clearly outline your corporate purpose and primary operations. Be specific and thorough, leaving no room for ambiguity. 
  5. Initial Contribution. To kickstart your business journey, it is recommended to make an initial contribution to the share capital, and we suggest a minimum of USD 2,000. This contribution plays an important role in getting your venture up and running, covering initial expenses and ensuring a solid foundation. So, consider this as your financial starting point. 
  6. Registered Address. You should make sure you have a registered address in Argentina that will serve as your company's legal home. This is where all the official mail and important documents will be kept. You have to scout out a place that suits your business vibes and ensures compliance with local regulations.
  7. Bank Account and Financial Reporting. These are two must-have essentials. Opening a local corporate bank account in Argentina is like giving your business a dedicated money hub. It optimizes financial operations and makes transactions a breeze. Once that is sorted, it is crucial to establish financial reporting and accounting practices. 
  8. Licensing and Intellectual Property Protection. Obtain any necessary permits and licenses for your specific industry or business activities. This may include local, regional, or national-level authorizations. If your business involves intellectual property, such as trademarks, patents, or copyrights, consider registering them in Argentina to protect your assets.

How to register a company in Argentina?

The registration process is straightforward and consists of the following steps: 

Step 1. Define Legal Structure

To begin with, you should determine your company's legal structure based on your business plan and activities. Choose from various legal entity options provided by Argentine law, and feel free to consult with legal experts for personalized guidance.

Step 2. Appoint Power of Attorney

Then, you are advised to designate a Power of Attorney by drafting a document that authorizes a legal expert, particularly if you or your partners are non-residents. This representative will handle the company formation process, ensuring a stress-free experience for you.

Step 3. Choose and Reserve Company Name

At this stage, you will select and reserve your company name through the Inspección General de Justicia (IGJ). Submit a request and payment on the official website for verification and approval. After receiving confirmation of your approved company name reservation, proceed to initiate the necessary legal steps for your business establishment with confidence.

Step 4. Create and Certify Bylaws

You need to prepare and certify bylaws outlining commercial objectives. All shareholders must sign, and signatures need certification by a Public Notary. Register the bylaws with the Public Registry of Commerce. In addition, make sure that a copy of the certified and registered bylaws is kept on file for future reference and compliance documentation.

Step 5. Invest in National Bank's Share Capital

You will be required to deposit a minimum of 25% of subscribed capital to the Central Bank of Argentina. Obtain proof of payment or present an estimated cash amount to a Notary for certification. The proof of payment or estimated cash amount has to be submitted within the specified timeframe to complete the necessary regulatory procedures.

Step 6. Publicize Founding of Business

You will announce your business formation by publishing a notice in the Official Gazette, handled by a registered lawyer. You should review the publication guidelines with your lawyer to ensure a smooth and compliant announcement process.

Step 7. Pay Incorporation Fee

You may pay incorporation fees online through the Ministry of Justice website. Ensure timely payment to facilitate the smooth processing of the necessary documents for company registration. You need to consider double-checking the payment confirmation and transaction details after submitting online and promptly contacting the Ministry of Justice if you encounter any issues or discrepancies.

Step 8. Register Business Books

You need to register various accounting books with the Public Registry of Commerce. Certified copies may be provided directly to the company. Please keep in mind that maintaining accurate and up-to-date accounting records is pivotal for regulatory compliance and effective business management.

Step 9. Obtain CUIT and Register with Social Security

You have to obtain a Unique Tax Identification Code (CUIT) by presenting proof of company registration at the Federal Public Revenue Administration unit. You have to register for taxes and social security on their website.  You should follow timely and accurate tax compliance by regularly updating your company's information to reflect any changes in your business operations.

Step 10. Create Business Bank Account

You are obliged to open a corporate bank account in Argentina for commercial transactions, providing the necessary documentation, varying by bank. Choose a bank that aligns with your business needs, and remember to inquire about any specific requirements or additional documentation needed for a seamless corporate account opening process.

FAQ about Registering a Company in Argentina

Can a Foreigner Register a Company in Argentina?

Yes, foreigners can register a company in Argentina by appointing a legal representative, preparing necessary documentation such as articles of incorporation and bylaws, obtaining a Tax Identification Number (CUIT), and opening a local bank account. 

Can a Foreigner Own or Invest in a Business in Argentina?

Yes, foreigners are allowed to own and invest in businesses in Argentina. The country welcomes foreign investment, and there are no restrictions on foreign ownership in most sectors. Foreigners have the same rights under the Argentine Constitution as Argentine nationals to work, conduct business, buy, own, and sell property or businesses. Furthermore, the country provides the opportunity to get an Investor Visa and eventually obtain Argentine citizenship in 2 years. 

How Long Does it Take to Incorporate a Company in Argentina?

The timeline for incorporating a company in Argentina can vary based on several factors, including the complexity of the business structure, the completeness of the documentation, and the efficiency of the registration process. On average, the process usually takes a few weeks to two months.

Can You Set Up a Business in Argentina Online?

Yes, you can set up a business in Argentina online via the Power of Attorney, allowing for a streamlined and efficient process that enables remote management of certain aspects of the business registration.

Do You Need to Have a Local Bank Account to Register a Company in Argentina?

Yes, you need to have a local bank account to register a company in Argentina, as it is one of the main requirements. During the incorporation process, you will likely need to provide proof of the initial capital deposit into a local bank account. This requirement ensures that the company has the necessary financial resources to operate in Argentina.

Golden Harbors team can help you setup your business in Argentina

Our multilingual team of corporate support specialists at Golden Harbors possesses the knowledge and expertise to assist you in conducting business in Argentina. Whether you're looking to establish a new venture, expand an existing one, or explore investment and immigration opportunities, our team is committed to facilitating your success.

From market research to legal compliance, we offer comprehensive services tailored to your specific needs. Our extensive portfolio of services, covering company setup, accounting, tax advisory, and immigration matters, allows us to offer personalized packages of integrated back-office solutions and serve as your single point of contact for doing business in Argentina. Collaborate with us, and let's unlock the full potential of your business in Argentina together.

Argentina

Residence Benefits

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Fast application processing

1-3 months

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Global mobility and freedom

international business expansion and entry into the South American market

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Full rights of a resident

a residence permit is issued with the rights to work, do business and study in Argentina

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Global mobility and freedom

No residence restrictions. Living in Argentina offers a unique and enriching experience, combining vibrant culture, diverse landscapes, and a welcoming atmosphere

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A clear path to citizenship

residents are eligible to apply for Argentine citizenship after two years of living in Argentina

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Global mobility and freedom

there is no need to renounce your previous citizenship when obtaining an Argentine passport

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Residence for the whole family

family members (spouse, financially dependent parents, and children) can apply for a residence permit together with the main applicant

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Global mobility and freedom

Argentina has a favorable tax regime, with low taxes and generous incentives for foreign investors

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Residence Permit

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Sign a service agreement with Golden Harbors, pay the initial service and due diligence fees, and fill out application forms

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We help you prepare the necessary documentation for your chosen residency option

14

You travel to Argentina, and we assist you in applying for a residence card. Together, we submit all the documents to the Argentine Immigration Department (Dirección Nacional de Migraciones)

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Government due diligence check, application review, and approval

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At this step you pay the required government fees, complete your biometrics appointment, and obtain a residence permit in Argentina

There are Always Options to EXPAND YOUR BOUNDARIES! Let's Discuss Yours

Every client is unique

Every case requires an individual approach and solution. Our years of experience in the industry allow us to provide both.

We will answer all your questions and provide detailed information about the available second passport and residency programs to help you make the right choice.

Victoria

Lead Attorney at Golden Harbors

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Victoria

Lead Attorney at Golden Harbors