Argentina- Tag Archives - Business News and Updates


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When Do You Need a Legal Representative in Argentina?

When Do You Need a Legal Representative in Argentina?

In order to incorporate a company and conduct commercial operations in Argentina, every legal entity must appoint a Legal Representative. Argentina is one of Latin America’s largest economies. The country applies complex bureaucratic systems to its commercial environment. However, Argentina’s size, talented workforce, and regional interconnectedness offer great potential returns on investment, countering the initially challenging setup requirements. We explore company formation requirements in Argentina, and why legal representation is essential to this process. Company incorporation: appoint a Legal Representative in Argentina Argentina’s size, talented workforce, and regional interconnectedness offer great potential returns on investment, countering the initially challenging setup requirements. The appointment of a Legal Representative is necessary for two core process of company incorporation: Acting as administrator for the constitution of a company Registering a foreign company that intends to be a shareholder of a local (subsidiary) company in Argentina. In the latter case, the Legal Representative will act as the person who represents the interests and carries out the will of a foreign company in the country, solely in its role as shareholder. Article 123 of the General Companies Law (known in Spanish as the Ley General de Sociedades) outlines that any foreign company that intends to be a shareholder or shareholder of an Argentine company must register in the respective Public Registry of Commerce. To do so, they must designate a Legal Representative in the country...

Australian Mining Companies Investing Locally and in Latin America

Australian Mining Companies Investing Locally and in Latin America

Australia is world famous for its mining prowess, and strong peripheral equipment, technology and services industries (known locally as METS). Australian mining investments are showing promising signs of growth, both locally and abroad, in spite of competitive global conditions. As Australia achieves greater connectivity with key Latin American partners, opportunities present themselves for the country’s miners to expand abroad and invest in mining projects in the naturally wealthy region. Much like Australia, Latin America’s vast biodiversity holds significant deposits in highly sought-after minerals and metals. We explore investment activity from some of Australia’s top mining actors, both in their home country and in Latin America. Overview: Australia mining sector Much like Australia, Latin America’s vast biodiversity holds significant deposits in highly sought-after minerals and metals. Australia demonstrates world-class capability for mining productivity and innovation. It’s diverse landscapes house significant reserves in coal, copper, gold, and iron, among others. Mining represents 10% of the country’s overall GDP, making one of the highest-contributing sectors to the nation’s economic outputs. Australia plays a key role in technology and innovation in mining, with services industries that steadily growing, and have potential to become world leaders. Leading industry body Austmine supports and promotes some 600 companies in the METS sector that offer crucial value to Australia’s humming mining operations. While Latin America’s mining sector shows promise but lacks...

What are the Free Trade Agreements in Argentina?

What are the Free Trade Agreements in Argentina?

Historically, free trade agreements have not been part of the psyche of Argentina’s governments. Argentina has traditionally been a nation with an inward-looking business environment, following a set of protectionist laws and regulations. Since 2015, however, president Mauricio Macri has sought to open Argentina’s doors to international business. In order to achieve this, Macri has been active in promoting greater integration through free trade agreements. Since his inauguration, his political narrative has been ‘opening Argentina to global trade’. Macri has been successful with this mandate, opening up a number of trade avenues, allowing greater exports of Argentinian produce and improving bilateral relations as a consequence. Though Argentina has been part of regional trade groups and global trade blocks for a long time, its role has been more passive than active. Macri has been trying to reverse this attitude set by the Peronist government’s legacy. Free trade in Argentina: World Trade Organization One of these trade blocs is the World Trade Organization (WTO). Argentina has been a part of the WTO since January 1995. Whilst being a long-term and well-integrated member, Argentina has generally taken a back seat in its activity. However, in 2017, Macri successfully organized for the WTO’s ministerial conference to come to Argentina for the first time. By opening its arms to the world’s largest trade group, Macri achieved a monumental political triumph; sending a signal to the world that Argentina is open for business and welcoming foreign investors gladly. More...

Argentina 2019 Elections: What’s in Store for Business?

Argentina 2019 Elections: What’s in Store for Business?

On 11 August, all Argentinians between the ages of 18-72 underwent the compulsory vote of the presidential primaries (PASO). Results surprised most with Alberto Fernandez taking an extensive lead over the incumbent president, Mauricio Macri. Fernandez achieved nearly 48% of the popular vote whilst Macri only managed 32%, a vastly different picture than that painted by polls in the lead-up. With such a dominant candidate in the primaries, earning close to half of the popular vote, it will be the election on 27 October which will decide the country's new President. Macri’s chance lies with convincing voters of outlying candidates to switch to him in the election in order to close the gap and hope that some voters desert Fernandez to reduce him to less than 45%. In this circumstance, a two-horse race runoff would be the decider with the highest voted candidate assuming office. Argentine Elections - Economic Overview Argentina has historically struggled with developing a stable economy. Inflation runs at more than 50%, unemployment is up above 10% and the purchasing power of salaries is fickle. Many reports therefore believe this is the most important election in Argentina’s history for resolving the country's economic struggles. At the center of all political campaigns is an economic vision and a business plan for the country’s future, and it is this area of policy that must be scrutinized for its potential to lift the economy up. Argentina is in need of a national consensus around building a sustainable, long-term growth plan. Both Macri and Fernandez present different...

Outlook for MERCOSUR-Asia Relations

Outlook for MERCOSUR-Asia Relations

Recently, MERCOSUR has been increasing efforts to form trade agreements with different countries and alliances around the world. A trade bloc comprised of Argentina, Brazil, Paraguay, and Uruguay, MERCOSUR has a lot to offer in terms of trade benefits and economic opportunity. Collectively, the bloc’s GDP amounts to over US$2 trillion, a powerful negotiating point when drawing up trade deals. With Brazil having the largest and Argentina having the fourth largest economies in South America, international trade blocs and alliances could easily get their foot in the door of the Latin American market through an agreement with MERCOSUR.  With MERCOSUR’s latest trade deal with the EU complete, the focus is now on Asia. The economic and political relationships between these two regions has been slow-moving, but the two are now on the same page. Overall, the future looks promising and profitable for foreign investors and businesses looking to invest and do business. Business - Why Asia and MERCOSUR? At first glance, Asia and MERCOSUR member countries couldn’t be more different. Physical distance between the two regions is enough to deter talks of trade. Moreover, one would think that cultural, language, economic, and political barriers add an additional, overwhelming aspect to the mix. However, these initial judgments are far from the truth. Recently, the two regions realized the similarities in their approaches to economic, environmental, and developmental plans. This created a natural, comfortable environment for trade talks to startup and flourish.  Relations with China China,...

EU-MERCOSUR Agreement: What Does This Mean for Business?

EU-MERCOSUR Agreement: What Does This Mean for Business?

Trade alliances and partnerships propel the success of world economies and global markets. The growing importance placed on regional trade blocs strengthens the economies of the entire region and makes international trade deals more feasible. The marriage of the strengths of different countries creates a cohesive, attractive trade package for any other partner or bloc looking to make a deal.  Of all economic and political trade blocs, the European Union is arguably the most powerful. With a combined GDP of nearly that of the United States, the EU has powerful bargaining tools and pulls a lot of weight in the global economy.  Looking to benefit from this economic powerhouse is the South American trade bloc, MERCOSUR. Recently, the two successfully agreed upon a trade agreement in which both parties will benefit greatly. Future implications for South American businesses are looking positive, and foreign investors have a lot to gain from this deal.  EU-MERCOSUR Agreement - History of the deal  After 20 years in the making, the EU-MERCOSUR Free Trade Agreement is final. Talk of a deal started in the late 1990s, but relatively little progress was made. Regional disputes, political instability, and industry protectionism deterred any diplomatic developments in regards to the agreement.  In 2011 and 2013, negotiations between the two blocs started up again, but nothing came of these discussions. It wasn’t until December of 2018 that the two blocs reunited again with aims to finalize an agreement. On June 28th, 2019, the president of MERCOSUR, Mauricio Macri, signed the final...

How To Manage Commercial Challenges in Argentina?

How To Manage Commercial Challenges in Argentina?

When it comes doing business, Argentina represents an attractive destination. It has one of the largest economies in the region, with a diverse range of national sectors (notably oil and gas, agriculture, tourism and IT) and a highly educated workforce. Additionally, it has an abundance of natural resources and an advantageous geographical position for imports and exports. Nonetheless, when operating in Argentina, several challenges may be faced.  Commercial Challenges in Argentina - Establishing a Local Company Although the new Simplified Shares Company (SAS) has been implemented, which simplifies the company incorporation process to a certain point, establishing a legal entity in Argentina is complex and takes time. Apart from the SAS, there are the Public Limited Companies (SA) and the Limited Liability Company (SRL). If you are looking to incorporate a local company, it is advisable to work with a local legal firm who can assist with the incorporation process, including the filing of documentation with the local authorities.  Taxes When you settle in Argentina, you should familiarize yourself with the local tax system. Taxes are managed by the Administración Federal de Ingresos Públicos (AFIP) at the national, provincial and municipal level. Sworn statements corresponding to the commercial activity of the business must be submitted regularly to AFIP, and therefore, hiring a local accountant is the best option to avoid potential fiscal problems.  Recruitment If you decided to enter the market through a company formation, you may at some stage decide to hire staff....

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