Entrepreneurs and Chief Executives looking at their expansion options should be evaluating the potential to do business in Argentina. The country holds a number of commercial opportunities for foreign business. With a GDP of approximately US$470 billion, it’s one of the largest economies in Latin America.
The country is experiencing somewhat tumultuous political and economic circumstances. However, the opportunities to do business (and those who move to take advantage of them) seem largely unaffected.
Argentina is classified as a high-income economy with an estimated population of over 42 million people. Endowed with natural resources and a vigilant workforce, the country is a place of interest for foreign investors and entrepreneurs.
In this article, we highlight reasons why it’s the right time to do business in Argentina.
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Regulative incentives to do business in Argentina
Argentina has taken steps to reduce bureaucratic procedures for foreigners to do business. You can set up your business in a highly competitive timeframe – as little as a week. The process requires limited government approval or registration (with the exception of the trade and foreign exchange sector). With the right legal support, you can register your company with a Public Registry of Commerce, who stores your information with the National Registry of Companies (Registro Nacional de Sociedades).
It’s important to take into account that Argentina has a progressive tax regime. This means that tax rates increase with a rise in income. The corporate tax rate has sat at 30% since 2018.
There are also many regional and provincial incentives like industrial parks and duty-free areas for foreign investors wishing to setup their company in Argentina. If you are looking to finance your project, Argentina has a streamlined credit process system and was ranked as the 67th easiest country in the world to obtain credit.
See Also: Professional Employer Organisation Argentina
Profitable sectors for doing business
Argentina is one of the leading agricultural producers in the world, exporting products such as beef, corn, soybeans, cereal, and wheat. According to Statista, agriculture accounts for around 6% of the country’s GDP. Other leading sectors include the automobile, electronic, services and mining industries.
Argentina’s well-diversified service sector also plays an important part, accounting for nearly 60% of total GDP. The sector is particularly strong in the areas of corporate, finance, tourism, real estate and telecommunication. As services are moving online with new technological innovation and an increased proportion of mobile users in the country, this area presents significant potential to do business in Argentina.
Labor and workforce in Argentina
Argentina has a highly educated and well-trained workforce, despite its high levels of unemployment and child labor. Argentinian employers must contribute to their employee’s pension and health care plans. These contributions are equal to approximately 33% of the worker’s salary. Upon retirement, all workers (assuming they were involved in legal, formal work for more than 30 years), are entitled to a basic universal benefit as a form of social security payment.
Trade unions have traditionally been strong in Argentina. Although this has declined over the years, they are still prevalent in modern Argentina and have some influence over labor activity and movements.
Start a business in Argentina with Biz Latin Hub
For investors interested in starting a business in Argentina, it is important to know the essential legal steps of the company formation process.
Seeking help from a local team can avoid problems or delays in the processes of starting a business in the country and ensure that all legal and regulatory requirements of Argentina are met.
Biz Latin Hub has an experienced team that for more than 5 years has provided support to foreign investors and companies that have decided to enter the Argentine market. We offer a set of personalized market entry and back-office services providing a comprehensive approach to its expansion in Argentina.
For more information on how to create a company in Argentina or for personalized assistance, contact us today.
Learn more about our team and expert authors, and check out our short presentation below on why you should consider doing business in Argentina.