Tips From Our Lawyer – Company Formation Argentina

Forming a company to operate in Argentina can be a complex process for those who are not familiar with it. To reduce inconveniences or delays, our team of lawyers provide the following advice to keep in mind.

What is the Best Way to Form a Company in Argentina?

Company Formation Argentina

What is the Best Way to Form a Company in Argentina?

All company registrations must be made before the Public Registry of Commerce of the corresponding jurisdiction. For the registration, the department hasn’t yet implemented an online system to make the applications for most of the company types, so currently they still need to be done in person, requesting an appointment in advance.

However, in 2017, a new type of company was implemented (the Simplified Share Company – or SAS) which contemplates the realization of all its registrations through the online system. For doing so, it is necessary that the company administrator be previously registered as “AFIP Relationship Administrator”, at the time of its constitution, which will allow him to access and make all the necessary presentations through the system, without the need of appearing in person.

Note that the SAS is currently the only type of company that allows its application to be done online.

Reserve the Corporate Name in Argentina

Prior to the beginning of the company incorporation, it is advisable to check if the company name is already in use. To do this, the Public Registry offers the opportunity to search for it online, by accessing the site.

In case the chosen name in not already registered, it is possible to reserve it for 30 consecutive days. Such procedure has a cost of AR$360 and can be done online or in person. During this time, it is recommended that three different names are requested, in case the chosen company name is already registered or the Registry presents an obstacle for its use.

Define the Company Legal Structure and Capital to Form a Company in Argentina

Company Legal Structure Argentina

Define the Company Legal Structure and Capital to Form a Company in Argentina

The shareholder/s may either be national or foreign, legal or physical, but must be duly registered in Argentina.

Until not long ago, to form a company in Argentina, it was necessary to have a minimum of two shareholders. This changed with the implementation of the “Unipersonal Corporation” (Sociedad Anonima Unipersonal) and the SAS, which allows the possibility of a single shareholder.

In addition, it will be necessary to determine the share capital, which will  be the capital that the company will be authorized to operate. At the time of forming, the company has to deposit  a minimum of 25% of the subscribed share capital at a national bank, and obtain proof of payment. The rest of if must be added within the following two years.

If you don’t have the necessary capital or made an calculation error on how much will be needed while already operating, it is possible to increase the capital amount once registered, but keep in mind that this process will demand time and money.

Legal Representation in Argentina

Every company needs to designate a legal representative, which will act on behalf of the company, and can be its administrator, director or manager, depending on the chosen company type,.

A legal representative in Argentina must be a physical person that can be a national or foreign individual, but their qualities will vary depending on which legal structure is chosen for the company. Thus, for example, while in an SA the majority of its directors must reside in the country, in a SAS only one of its administrators is obliged to reside in Argentina.

Internal Organization

It is important to define the internal organization meant for the company, as well as the type of contracting that will be carried out with employees and suppliers. For this, it is advisable to consider the different options available, as well as the effects and consequences that each one will have.

Corporate Lawyer in Argentina

This advice is very important because your corporate lawyer in Argentina already has experience in the processes of incorporating companies, without a doubt a corporate lawyer in Argentina will help you find the most appropriate corporate purpose, and will help streamline the process of incorporation. In addition, a corporate lawyer in Argentina will advise on subsequent issues such as the hiring of employees and compliance with obligations to the various control entities. Corporate lawyers are very helpful in setting up new companies in Argentina because they provide the necessary services to establish them in the country, such as being the legal representatives (both manager and president) of the company, being proxy of the shareholders, provide fiscal domicile for your company and supply any other need that may arise until you can establish your own team in Argentina. It is also common for corporate lawyers in Argetnina to handle the visa and residency processes for your team if necessary.

Do You Want to Form a Company in Argentina?

If you have any questions or enquiries about how to form a company in Argentina, our Argentinian business experts have created a company formation presentation. We hope it helps! If you have any more questions about how to incorporate your company in Argentina, please do not hesitate to contact us here. Our Biz Latin Hub team in Argentina includes local and expat professionals who have the knowledge and expertise to support you throughout the process.

View our slideshow on “How to Form a Company in Argentina”

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