A popular choice among business executives and investors interested in doing business in Argentina is to establish a simplified share company (SAS). Because only one shareholder is needed to incorporate an SAS in Argentina, while the company formation process is rapid and straightforward.
Argentina is the third-largest economy in Latin America, registering a gross domestic product (GDP) of $449.7 billion in 2019 (all figures in USD). It is also a major recipient of foreign direct investment (FDI) in the region, recording FDI inflows of $6.66 billion that same year.
The South American nation enjoys significant prosperity, with its 2019 gross national income (GNI) rate of $11,130 per capita reaffirming its status as an upper-middle-income country, according to the World Bank standards. The country has a well-established middle class and boasts the highest English language proficiency in Latin America.
Argentina’s prime export commodities include soybeans and related products, corn, vehicles, and beef. The nation’s main trade partners include Brazil, Chile, China, the United States, and Vietnam.
If you are considering doing business in Argentina or have already established a legal entity in the country, read on to understand more about how to incorporate an SAS in Argentina. Or go ahead and contact us now to discuss your business options.
What is an SAS?
An SAS in Argentina is a type of company that only requires one shareholder for its formation, be it a natural or legal person, whose liability is limited to their capital contributions. By forming this type of company, it is possible to register various business activities and freely determine the structure of the organization.
It is possible to incorporate an SAS in Argentina in just 24 hours, a process that is much faster than registering other types of companies, such as a limited liability company (SRL) or public limited company (SA). Note that to register an SAS in Argentina, it is necessary to request a Unique Tax Identification Code (CUIT) from the tax authorities and open a corporate bank account.
Incorporate an SAS in Argentina: main advantages
The main advantages of incorporating an SAS in Argentina include:
Easy registration: The registration process for an SAS in Argentina is completed in 24 hours and can be done online.
Lower cost: This type of company can be constituted with the equivalent of two minimum monthly salaries in Argentina (approximately $486 at the time of publication).
One-person model: Unlike other types of legal entities that require at least two shareholders, it is possible to register an SAS in Argentina with only one shareholder.
Shares freedom: The shareholder of an SAS in Argentina can limit the sale of securities and retain the voting rights of potential investors.
Virtual Meetings: Shareholders’ meetings can be held virtually and quorum limits can be set for online participation.
What must an SAS instrument of incorporation contain?
To incorporate an SAS in Argentina, it is necessary to draft an instrument of incorporation that contains the name, age, marital status, nationality, profession, address, identification number, CUIT or labor identification code (CUIL) or identification code (CDI) of all shareholders, as well as their total capital and contributions (expressed in local currency). It must also include the physical address the company will be registered at and the objective of the company.
In addition, the following information should be included:
- In the event that the SAS is incorporated by another legal entity, the company name, address, information on the administrators, and the unique tax identification code (CUIT) or identification code (CDI) must be included
- Personal information of the members of the administrative bodies
- Duration of the mandate of the members of the administrative and supervisory bodies
- Personal information of the legal representative
- The rules for distributing profits and bearing losses
- Rights and obligations of the partners
- Rules for the operation, dissolution and liquidation of the company
Incorporate an SAS in Argentina with the help of Biz Latin Hub
At Biz Latin Hub, our multilingual team of local company formation agents has broad experience helping foreign investors and organizations to incorporate an SAS in Argentina. With our full suite of high-quality legal, accounting, recruitment, and commercial representation services, we are equipped to help you achieve your business objectives in Argentina, as well as in any of the other 15 countries across Latin America and the Caribbean where we are present.
Reach out to us now for personalized assistance or a free quote.
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