Find out how to continue doing business in Argentina with 6 helpful tips from our senior executives in supporting companies in the country. The government of Argentina has issued multiple decrees to fight the negative consequences produced by COVID-19. These legislations seek to help small and medium-sized businesses (SMBs) that are currently doing business in Argentina.
In this article, we offer 6 practical tips to continue doing business in Argentina during the challenging present conditions.
1. Hire staff through a PEO to do business in Argentina
Although working visas can only be issued before the Consular Representation of Argentina based on different countries, the closing of borders would prevent foreign investors to establish in the South American country.
Therefore, companies doing businesses in Argentina might try to recruit and hire local personnel. Nevertheless, this can be difficult for those facing a language barrier, or with little knowledge of the workforce and salary expectations of local employees.
Hiring solutions for companies in Argentina
As the “Inspección General de Justicia” (IGJ) – the regulatory body that controls and allows the incorporation of companies in Argentina – is out of service, new businesses cannot be established in Argentina.
One solution to continue doing business in Argentina is to hire local talent through a Professional Employer Organization (PEO) in Argentina.
A PEO in Argentina can help companies hire locally, ease language barriers, and bureaucratic burdens the employer may face. By partnering with a PEO through a ‘co-employment model’, it becomes the ‘Registry Employer’ in the eyes of Argentina’s government.
The PEO can hire staff on behalf of the company doing business in Argentina and make sure it fully complies with local employment regulations. A PEO will be able to handle the relevant paperwork and manage the payroll and social contributions for the employees.
2. Open your bank account online and choose your bank wisely
Even during quarantine, companies doing business in Argentina can open a bank account. Fortunately, banks are working to implement virtual procedures, accepting digital copies of the documents required to open a corporate bank account.
However, be aware that some banks may still require physical copies of documents. To avoid this, companies doing business in Argentina should find a bank that runs a fully online application process. The best thing to do is to confirm with your local legal representative which banks offer this service.
3. Negotiate costs and be persistent with pending payments
Given the circumstances surrounding COVID-19, companies doing business in Argentina should manage business risk by minimizing costs and receiving pending payments in cash.
Negotiate rental contracts, utilities, printing and cleaning services, and any other regular expenses that your company may not be able to afford at this time. Companies doing business in Argentina should negotiate between a 10-30% discount on these expenses.
Be persistent in following up on pending payments. Your legal representative can send a legal notice to the company’s debtors.
4. If necessary, apply for a tax residency exemption
Argentina’s decision to close its borders prevents people doing business in Argentina with temporary visas from leaving the country, even when their visas are expired.
People whose temporary visas are expired or close to expire, can apply for the extension of their visa through an extension of residence that can be processed online. Exemptions can be obtained by entering the RaDEX system, on the government’s official web page argentina.gob.ar.
Find out if you or your staff are eligible for this exemption and apply as early as possible.
5. Take note of changes in administrative processes when doing business in Argentina
Government institutions are implementing online processes for doing business in Argentina. The country is currently investing in technology and innovation to achieve this.
Many of the mandatory procedures established by the “Inspección General de Justicia” (IGJ) and Migration bodies can be carried out online.
Public notaries, who play an important role in the incorporation, liquidation, and other procedures may still require the physical presence of the company’s owner or legal representative.
A company’s legal representative, with the proper credentials, should be able to meet most of the company’s administrative needs online.
Companies doing business in Argentina should be patient with local institutions. Expect some delay during this time and, when necessary, operate with a local legal representative to avoid further delays.
6. Work with trusted experts to continue doing business in Argentina
We are here to support your business expansion and process of doing business in Argentina, even in difficult times.
At Biz Latin Hub, our team of experts performs entity healths checks for companies in Argentina and throughout Latin America. Our team of local and expatriate professionals offers support and advice to improve your company’s corporate compliance, increase its value, and manage the risk of default.
Through our set of multilingual market entry and back-office services, we can enable business continuity in Argentina. This includes legal, accounting, tax, and PEO services in Argentina.
For more information and personalized assistance, please contact our team today.
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