How to Set Up a Company in Argentina

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Argentina offers a large domestic market, abundant natural resources and a skilled workforce. Foreign investors have the same rights as local investors and do not need prior approval in most sectors, but there are some formalities specific to Argentina that should be planned from the start.

1. Choose the vehicle

• Sociedad Anónima (SA): the traditional corporation; a single-shareholder version (SAU) is also available.
• Sociedad de Responsabilidad Limitada (SRL): simpler to manage, with between two and 50 partners.
• Branch of a foreign company.

2. Main steps

1. Registration of the foreign shareholder: a foreign company that will hold shares in an Argentine company must first register with the Public Registry of Commerce (in Buenos Aires City, the IGJ), filing apostilled and translated corporate documents.
2. Bylaws and incorporation deed, signed before a notary or by private instrument with certified signatures.
3. Capital: deposit of the required portion of the capital in a local bank.
4. Registration of the company with the competent registry.
5. Tax ID (CUIT) with the federal tax authority (ARCA, formerly AFIP), plus provincial gross income tax registration.

3. Points to watch

• Resident directors: in an SA, the majority of directors must reside in Argentina, and all directors need a local address for notices.
• Foreign exchange rules: access to the official foreign exchange market for dividends, loans and imports has changed often in recent years. Check the current rules before investing and keep inflows properly documented.
• Translations: foreign documents must be translated by a certified Argentine public translator.
• Tax: corporate income tax is charged at progressive rates up to 35%, with VAT generally at 21%, provincial gross income tax and a withholding on dividends.

4. After incorporation

The company and its foreign shareholder must file annual information with the registry, keep corporate and accounting books, file tax returns, issue electronic invoices, file foreign investment and foreign debt reports with the Central Bank where required, and register employees for social security.

The views expressed are personal and do not necessarily represent the position of NET CRAMAN. This article is for general information only and does not constitute legal or tax advice. Rules change over time; seek specific advice before acting.