Argentina Company Registration
- Argentina Company Registration offers many opportunities within South America’s second-largest economy. Strategically located with ample natural resources and a wide variety of products, Argentina is an enticing atmosphere for entrepreneurs who wish to set up shop. The GDP recovered fast and returned to pre-pandemic growth in 2021 despite the deep recession of the lockdown period from COVID-19. GNI tripled from the year 2000 and reached US$10,630 in 2021.
- Given the World Bank’s classification of nations as either low or middle-income or high-income, the country is classified as an upper-middle-income state. Moreover, foreign direct investment finally reached a record level of US$15.41 billion in 2022, which is the highest since 1999. Such a trend could be a sign of business expansion in Argentina.
- With these positive conditions set in place, it is now the ideal time for a firm to get registered and take advantage of the fluid and promising Argentine market. Over the years, Tetra Consultants has honed their experience to guide you step by step through Argentina company registration procedures in full compliance with local regulations, relieving each process should not be administrative. Thus, our expertise is put forward to effectually and effectively establish a presence in Argentina, where your company will come out on top of this vibrant economy. Our services will include:
- Argentina Company Registration
- Corporate bank account opening
- Nominee director and shareholder services
- Legal representative services
- International trademark registration
- Business license and trade permits acquisitions
- Registered local address
- Accounting and tax obligations
Advantages of Argentina Company Registration
Favorable economic environment
- Argentina’s government has made many moves to create a business-friendly environment. Among them is the Agencia Argentina de Inversiones y Comercio Internacional, which facilitates foreign investors in getting all support for conducting any kind of investment activities. This encourages both domestic as well as international entrepreneurs to invest without prior government approval.
Trade agreements accessibility
- Argentina, being part of the Mercosur Free Trade Agreement and the India-Mercosur Preferential Trade Agreement (MERCOSUR), opens the doors to over 250 million people across South America. Argentina’s participation in the G20 platform also brings the country an edge in international economic forums, thus opening even more avenues for international trade.
Multi-industrial areas
- Argentina has a diversified range of industries. It is mainly an agricultural nation, with manufacturing and renewable energy as the emerging trends. These have black lands that foster large production volumes of soybeans, wheat, and livestock, whereas oil and gas, automotive, and pharmaceutical sectors offer a variety of investment options. Companies could thus chase different markets with wide usage of the natural resource of Argentina.
Young and educated labor force
- Argentina is inhabited by a young and educated body of citizens. Most Argentines speak English and other languages fluently. This makes the country’s labor force highly skilled, which leads to higher chances of successful company execution. It facilitates effective interactions and collaborations between companies and local talent. Language proficiency places Argentina at the top of Latin America.
Governmental support
- The Argentine government actively lowers bureaucratic barriers for new firms by incentives in regulation. This involves streamlined registration processes for the company and the establishment of duty-free zones that attract investments from other countries. The programs that encourage venture capital creation are also underway to promote further entrepreneurial activities.
Good investment opportunities
- The sectors are strong regarding tourism, agriculture, renewable energy, and the technological sector. Argentina has a wonderful capacity in these sectors, providing an excellent climate that will help nascent as well as established companies.
Tax-friendly environment
- Though specific tax rates may vary, Sociedad de Acciones Simplificada registration provides tax benefits that make any new company more profitable. If a company registers with entrepreneurial capital entities it lowers the tax liability.
Time required for Argentina Company Registration
- Tetra Consultants will complete the company registration process in Argentina within 8 weeks. After receiving the necessary due diligence documents from the directors and shareholders, our team will verify the availability of the company name with the relevant Argentine authorities. We will ensure the incorporation of your company in Argentina with no travel requirement.
- Within 4 weeks of forming your company in Argentina, Tetra Consultants will assist you in corporate bank account opening with a reputable local or international bank. Our team will provide you with all necessary account opening forms, and there is no need for you to travel for this process. If the bank requires any additional KYC verifications, Tetra Consultants will facilitate an online video conference call to accommodate all parties involved.
- As a result, you can expect to commence operations and issue invoices with your Argentine company within 12 weeks of engaging Tetra Consultants.
Are foreigners allowed to proceed for Argentina Company registration?
- Yes, for foreigners, Argentina is a very secure place to proceed with company registration. The country has established a favorable legal framework that enables international investors to fully own their businesses without having any residency requirements. This supportive environment promotes ease of entry and operational stability for foreign investors.
- Whether you wish to register online or through a notary public, our staff will complete all of the legal formalities in the most efficient and timely manner possible.
Type of business entities allowed for Argentina Company Registration
Sociedad Anonima S.A. (Corporation)
- The corporation is the most common business structure applied in Argentina and is regulated by Law 19,550. To form an S.A., there are various requirements which are as follows:
- A minimum of 2 shareholders who can be either an individual or a legal person;
- No restrictions exist on foreign ownership, and foreigners may own 100% of the shares.
- A minimum capital of ARS100,000 (US$400) is required for incorporation, and at least 25% of the subscribed capital must be paid at the time of incorporation,
- An S.A. is also required to have a board of directors with a minimum of 2 members; however, a majority must be residents of Argentina. We provide nominee director and shareholder services to comply with the residency requirements of directors.
- Appoint a legal representative who is a resident of Argentina. Our HR team can assist you with the appointment of a legal representative appropriate for your company.
- A physical registered address in Argentina.
Sociedad de Responsabilidad Limitada S.R.L (Limited Liability Company)
- The Sociedad de Responsabilidad Limitada, or S.R.L. (Limited Liability Company), is a widely used formation of company in Argentina; this organization offers quite a lot of benefits for entrepreneurs and investors. According to the General Companies Law, an S.R.L. has the following requirements among others:
- A company must have at least two partners but no more than fifty. These partners may be individuals or legal entities. There is no restrictions on nationality or residence related to partnering.
- There is no statutory minimum amount of capital. On the other hand, the amount of capital must fit in with the nature of the business being conducted.
- The S.R.L. must have at least one manager. The managers are not required to be partners, but they do have to reside in Argentina. Those who have managerial duties and responsibilities must carry out all commercial activities and carry out all official activities and processes of the company. Our HR team will assist you with the hiring of local managers to comply with the requirements.
- A physical registered address in Argentina.
- This structure provides flexibility and limited liability, and it is very attractive for investors who want to establish a company in Argentina.
Sociedad de Acciones Simplificada S.A.S (Simplified Shares Company)
- Introduced recently in Argentina by Law No. 27,349 in the year 2017 to promote entrepreneurial activity, the Sociedad de Acciones Simplificada (S.A.S.) or Simplified Shares Company is a form of company organization with a regulatory framework quite different from that of the General Companies Law. The regulatory requirements include:
- The minimum capital is that of two days’ minimum wages, which is currently equivalent to around ARS16,020 (US$100).
- A minimum of one shareholder without residency requirements.
- There must be at least 1 director with residency requirements. We can provide you with nominee director services to comply with this requirement.
- Foreign individuals can be appointed as directors, but they must obtain a Tax Identification Code (CUIT) and establish a legal address in Argentina for notifications and official correspondence.
- A registered physical address.
Sole proprietorship
- A sole proprietorship (persona física) is the simplest and most common business form for an individual who wishes to conduct business in an independent manner. A sole proprietorship is owned and operated by one person who exercises control over every aspect of the business.
- In a sole proprietorship, the legal personality is not distinct from the owner, as he or she may have the obligation to personally guarantee the debts and obligations undertaken by him or her, and therefore his or her property cannot be differentiated between personal and business. For the establishment of a sole proprietorship, an individual needs to register with the Federal Administration of Public Revenues (AFIP) and obtain a Unique Tax Identification Code (CUIT).
Uniones Transitorias (Joint Venture)
- Uniones Transitorias (Joint Venture) in Argentina offers a business partnership of strategic nature, where two or more parties collaborate for specific business objectives while maintaining their distinct legal identities. This kind of structure allows companies to pool resources, share risks, and leverage each other’s strengths in order to capitalize on market opportunities.
Branch of a foreign company
- A foreign company may also carry out business in Argentina through the opening of a branch (Sucursal). To incorporate a branch, the foreign company must submit several significant documents to the Public Registry of Commerce, including certified copies of its Articles of Incorporation, a certificate of good standing issued in the home country, and a board resolution authorizing the branch and appointing a legal representative for the Argentine branch.
Sociedad Colectiva (Limited Partnerships)
- A Sociedad Colectiva in Argentina is a form of business structure which combines the characteristics of general and limited partnerships: it allows general partners, who run the business and whose liability is unlimited, and limited partners who contribute capital and whose liability is limited. This kind of partnership calls for at least two partners, although there is no maximum limit on the number of partners. .
- The Sociedad Colectiva shall be registered with the Public Registry of Commerce. This type of business is governed by the terms of a partnership agreement or contract.
Steps to proceed for Argentina Company Registration
Step 1: Choose a company structure
- Initially, for Argentina Company Registration it involves selecting the appropriate business structure. With various options available, our experts will guide you in choosing the right company structure that aligns with your company activities and objectives, ensuring compliance with local regulations and maximizing operational efficiency.
Step 2: Reserve a company name
- Further, Tetra Consultants will provide you with a name unique to the company and confirm the name’s availability using the Public Registry of Commerce (Inspección General de Justicia – IGJ) for you. We will move further to ensure the process to reserve the name is completed efficiently.
- Additionally, we also provide international trademark registration services to our clients to protect the brand name globally.
Step 3: Appoint a legal representative
- Furthermore, our HR team will assist in identifying and appointing a suitable legal representative who is a resident of Argentina. This individual will oversee your company’s operations, ensuring compliance with local regulations and requirements.
Step 4: Draft and notarize company bylaws
- Further ahead, we will help in drafting of necessary documents which include the bylaws of the company in Spanish, indicating its purpose, organizational structure, and capital distribution. It will liaise with an Argentinean notary public with a view to having them notarized, entirely compliant with legal requirements.
Step 5: Deposit initial capital
- Further, we can assist you in ensuring that at least 25% of the initial share capital is deposited in a bank account in Argentina, typically in the Bank of the Argentine Nation, for compliance with the regulations.
Step 6: Register with the Public Registry of Commerce (IGJ)
- Tetra Consultants will take care of the preparation and submission of notarized bylaws, proof of name reservation, and initial capital deposit receipt, among other possibly required documents for approval at the IGJ.
Step 7: Obtain a Tax Identification Number (CUIT)
- Once we are registered in IGJ, we will apply for the Unique Tax Identification Code (Clave Única de Identificación Tributaria CUIT) on your behalf, before the Federal Administration of Public Revenue, AFIP.
Step 8: Register for social security and labor obligations
- Additionally, we will apply to register the company with the Argentine social security system and labor authorities on AFIP, processing all paperwork.
Step 9: Corporate bank account opening
- Tetra Consultants will then assist with corporate bank account opening in Argentina on your company’s behalf by using the registration certificate of the company, CUIT, and the identification documents of the legal representative.
Step 10: Obtain necessary licenses and permits
- We will guide you in acquiring those other business licenses or trade permits particular to the nature of your business and necessary to maintain compliance in Argentina.
- Additionally, apart from assisting in obtaining various business licenses and trade permits, we can also assist you with offshore financial license services if required by your company.
Documents required for Argentina Company Registration
- Valid ID’s and passport copies of director, shareholders, and UBOs
- Completed company registration application form
- Proposed company name reservation certificate
- Company bylaws or articles of incorporation, signed by all shareholders and notarized
- Proof of payment of at least 25% of the subscribed capital
- Publication of company formation notice in the Official Gazette
- Proof of address of directors, shareholders, and UBOs.
- Tax identification number (CUIT) for Argentine resident shareholders (if any)
- Shareholder register showing ownership percentage
Corporate shareholder documents
- Copy of the corporate shareholder’s certificate of incorporation and bylaws
- Proof of address for the corporate shareholder’s registered office
- Tax identification number (CUIT) if the corporate shareholder is registered in Argentina
- Shareholders register of the corporate shareholder showing ownership structure
- Passport copies of directors and UBOs of the corporate shareholder
Accounting and tax obligations
Accounting obligations
Annual financial statements
- Companies are obligated to prepare and submit annual financial statements, which include:
- Balance Sheet.
- Income Statement.
- Statement of Changes in Equity.
- Statement of cash flows.
- These financial statements shall have the signature of the directors, approved by a shareholders’ meeting, and deposited in the Public Registry of Commerce.
Record accounting
- All companies are mandated to keep accurate records, which include:
- Journals
- Ledgers
Inventory records
- These records must be formalized and registered with the Public Registry of Commerce.
Annual return
- An annual return with director and shareholder details, share structure, registered address, and primary business activities, must also be filed with the Public Registry of Commerce.
Accounting standards compliance
- Depending on whether they are a public company and the size of the company, it is required that it follow Argentine accounting standards or International Financial Reporting Standards (IFRSs). Public companies may use IFRS as part of financial reporting.
Auditing standards
- Public Companies will have a yearly audit of their financial statements whereas private companies can be audited based on their size or even specific regulatory requirements.
Tax obligations
Corporate Income Tax (CIT)
- Argentina has a unified progressive corporate income tax rate that is in force as from January 1, 2021. The available tax rates are 25% for income up to ARS34.7 million (around US$40,000), 30% for income above ARS 34.7 million but not exceeding ARS 347 million (around US$400,000), and 35% for income exceeding ARS347 million.
Value Added Tax (VAT)
- A standard VAT rate of 21% generally applies to most items; however, certain goods and services are eligible for a reduced rate or may be exempt from VAT altogether.
Withholding taxes
- Payments made to a non-resident are subject to withholding tax. Dividends are taxed at flat 7%, while interest and royalties have ranged from 15.05% to 35%
Annual tax returns
- All income generated during a fiscal year has to be filed electronically within five months after the close of the fiscal year after filling in all details of taxable income and expenses.
Capital Gains Tax
- Capital gains are taxed at the same rates as corporate income. They are treated as income, composed of the profits from sales of assets.
Other taxes
- Companies also rely on locations and business operations for local taxes, including municipal and provincial taxes, that can significantly vary depending on the jurisdiction in Argentina.
Why proceed with Argentina Company Registration?
Political
- Although the political environment of Argentina is stable, the economic front has been volatile and always changing government policies. On one hand, investments are encouraged through foreigners, but regulatory requirements are rather complicated. Without prior knowledge of local laws and compliance, company registration may not be smooth.
Economical
- Argentina’s economy is diversified. Good opportunities exist in agriculture, manufacturing, and in technology. Inflationary rates along with the fluctuation of currency sometimes hamper business activities. Company registration takes about 8 weeks. Various corporations have to navigate through a progressive corporate tax system based upon their income.
Social
- The labour force in Argentina is highly educated, and an emerging entrepreneurial culture exists. The consumers’ interest in sustainable and socially responsible business practices is growing. Therefore, companies looking to register in this country must understand the local cultural nuances and consumer preferences to interact well with the market.
Technological
- The Argentine electronic landscape is changing, with greater internet penetration and mobile usage. This opens opportunities for companies to use technology in operation as well as marketing. Companies must ensure that they are complying with local regulations concerning data protection and e-commerce in establishing their presence.
Environmental
- Argentina is becoming more environment conscious, with policies that enact laws regarding reductions in carbon emission levels as well as an increased use of renewable sources of energy. A company needs to provide a report on the environmental and other local regulation compliances during the registration process.
Legal
- The legal landscape in Argentina is complex, with significant differences in laws between federal and provincial levels. Companies must be aware of local regulations that affect their operations. Recent legislative changes have strengthened data protection and consumer rights, making compliance essential to maintain operational integrity and reduce the risk of legal disputes.
Looking for Argentina Company Registration
- The potential that lies in the Argentina company registration can be immense for both domestic and international entrepreneurs. The country comes with both a legal aspect in its support structure and diverse market opportunities, as well as an optimal workforce for productive and efficient business ventures.
- Let Tetra Consultants help you ease your way into the Argentina company registration process by guiding you and providing you with all-around support according to your needs. From incorporation to compliance and banking, we make sure that your business gets the kick-start it needs and thrives in the right direction.
- Contact us to know more about Argentina Company Registration and our team will revert back in 24 hours.
FAQs
What are the advantages in Argentina Company Registration?
How long does it take to register a company in Argentina?
Can foreigners register a company in Argentina?
How to form a Sociedad Anónima (S.A.)
How much must the capital of an S.A.S. be?
How to incorporate a single entrepreneur in Argentina?
Can foreigners be members of the Simplified Shares Company board?