Company incorporation in Argentina is a popular choice among foreign investors seeking to enter the region, with the country boasting a large and diversified economy, and a highly educated population, including a well-established middle class and professional services sector.
For those who are seeking to develop a shorter-term or limited-scale operation in the country, hiring staff via an employer of record in Argentina can also be a good option, as it allows you to hire local personnel without going through the processes of company formation and liquidation.
While Argentina has experienced some economic difficulties in recent years, the country has undergone significant growth since a famous debt crisis in the early 2000s, with gross domestic product (GDP) increasing more than four-fold between 2002 and 2019, even despite declining in the final two years of that period. With $445.4 billion of GDP registered in 2019, Argentina is the third-largest economy in Latin America (all figures in USD).
The country has seen a concomitant fluctuation but overall growth in prosperity, with gross national income (GNI) more than tripling during that period. In 2019, Argentina registered a GNI of $11,130 — a figure that places it as an upper middle-income country by standards established by the World Bank.
Argentina has a diverse economy, with a highly-developed professional services sector, a strong industrial base, a large agricultural sector, and considerable natural and mineral resources. Among the country’s main agricultural export products are soy, cereals, and meats, while a large automobile production industry sees cars and other vehicles represent another important trade commodity.
The Southern Cone country is party to a number of free trade agreements, mainly by virtue of its membership in the Southern Common Market (Mercosur) — an economic integration initiative that also includes Brazil, Paraguay, and Uruguay, and which recently celebrated its 30th anniversary. It is also one of the biggest destinations for foreign direct investment (FDI) in Latin America, registering inflows of $6.66 billion in 2019, with the country’s high English proficiency levels being particularly attractive to investors entering the region for the first time.
If you are looking at entering the Argentinian market, read on to understand more about company incorporation in Argentina, including choosing the correct entity type, as well as the key steps in the process. Or go ahead and contact us now to discuss your business options.
Company incorporation in Argentina: which type to choose?
When undertaking company incorporation in Argentina, there are four main types of entities that foreign investors tend to choose from, including a private limited liability company (LLC or PLLC), a public liability company (PLC), a partnership, and a sole proprietorship. Each one carries its own advantages and drawbacks, and the best choice will depend on the nature and intended structure of your business.
An LLC is particularly popular among investors because it can be entirely foreign-owned and established with no minimum capital, by at least two and no more than 50 shareholders, with each shareholder’s liability restricted to what they initially contributed to the company’s shareholding.
A PLC, on the other hand, is an entity in which the shares are publicly traded on a stock exchange, and at least two directors must be appointed in order to establish such an entity. These directors can be any individual with the right to reside in Argentina, as long as there are no legal restrictions that prevent them from occupying said position.
A sole proprietorship, meanwhile, requires one investor and is straightforward to set up, however liability remains unlimited, and the investor will be responsible for all of the entity’s debts and obligations. A partnership is similar, with the difference being that it is set up by multiple partners, with that unlimited liability shared among them.
How to incorporate a company in Argentina in 9 steps
Once you have chosen your entity type, you will have to follow these nine steps in order to complete company incorporation in Argentina:
Step 1: Appoint a legal representative
You will need to appoint a legal representative via a power of attorney (POA), which will give them the ability to act on your behalf, including signing legal documents, in order to oversee the company formation process.
Step 2: Choose your company name
You will need to choose and register your company name with Argentina’s General Inspection of Justice (Inspección General de Justicia or IGJ), a process that can be completed online once you have ascertained that there are no other companies trading under that name.
Step 3: Draft your company bylaws
Also known as a social contract, your company’s bylaws are the fundamentals of your firm, highlighting your company’s commercial intentions and structure. Each shareholder of the company must sign the contract and the signatures must be legalized by a notary public.
Step 4: Deposit initial share capital in the National Bank
In Argentina, you must make a deposit of 25% of the initial capital to the Bank of the Argentine Nation in order to complete the process of starting a business. Once the company’s bylaws have been successfully registered, you will be able to withdraw that money again.
Step 5: Make a public announcement of your company incorporation in Argentina
You will have to announce the creation of your company through a national publication in the Official Gazette including specific information, such as the date on which the instrument of constitution was signed, the registered office, and the Social Capital, among others. This publication must be undertaken by a registered lawyer in Argentina.
Step 6: Pay the incorporation fee
With these steps complete, you will have to pay a fee for submitting all of the necessary documents to carry out the process of incorporation through the website of the Ministry of Justice and Human Rights.
Step 7: Register the company books
You must also register the accounting books of the company (balance, journal, and inventory), along with other books which contain the minutes of the meeting, board minutes, deposit of shares, and record of actions.
Step 8: Obtain a Unique Tax Identification Code (CUIT)
You may obtain this code by presenting yourself before the Federal Public Revenue Administration (AFIP) with the proof of registration of the company before the Public Registry of Commerce and other required documentation.
Step 9: Complete company incorporation in Argentina by opening a company bank account
The final step in the process for company incorporation in Argentina is to open a company bank account — a step that you do not have to be personally present in the country to complete. Depending on the nature and location of your business, your legal representative may advise you to choose a particular account provider.
Biz Latin Hub can help you with company incorporation in Argentina
At Biz Latin Hub, our team of multilingual company formation specialists has all of the tools necessary to help you get established in Argentina. With our full suite of back office solutions, including legal, accounting, and recruitment services, we can be your single point of contact to help you enter and operate in Argentina, or any of the other 17 countries around Latin America and the Caribbean where we operate.
Reach out to us now for personalized assistance or a free quote.
Learn more about our team of expert authors.