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 $632.77 billion in 2022 (all figures in USD). It is also a major recipient of foreign direct investment (FDI) in the region, recording FDI inflows of 2.4% of that figure. This is an additional few reasons to incorporate an SAS in Argentina.
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The South American nation enjoys significant prosperity, with its 2022 gross national income (GNI) rate of $11,900 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 in Argentina?
An SAS, or Sociedad por Acciones Simplificada, is a simplified corporate structure in Argentina. It was introduced in 2017 to encourage entrepreneurship and streamline the process of starting and operating a business. This legal entity combines elements of both a corporation and a limited liability company (LLC) and is designed to provide flexibility and ease of operation for small and medium-sized enterprises.
To incorporate an SAS in Argentina, entrepreneurs need to follow a simplified registration process, reducing bureaucratic hurdles and saving time. This business form allows shareholders to limit their liability to their capital contributions while enjoying the benefits of a corporate structure, such as perpetual existence and the ability to attract investment.
Incorporating an SAS in Argentina offers advantages like limited liability protection, fewer administrative requirements, and a more straightforward dissolution process. This makes it an attractive option for startups and small businesses looking for a convenient and cost-effective way to establish a legal presence in Argentina. In recent years, many entrepreneurs have chosen to incorporate an SAS in Argentina, recognizing its potential to foster economic growth and innovation in the country. As a result, the SAS has become an essential tool in the hands of Argentine entrepreneurs, enabling them to pursue their business ventures with greater ease and efficiency.
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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