How to start a business in Argentina
Argentina has over 45 million consumers and a strong tech focus. It’s a great place for business. This South American gem welcomes those who dream of expanding into new markets.
The government in Argentina gives many support options. This includes tax breaks and subsidies, making the country even more attractive. Its central position makes entering other markets easy. For anyone wanting to start or grow a business, Argentina is full of chances.
Key Takeaways
- Argentina’s large consumer base of over 45 million people and focus on technology and innovation create a favorable environment for business growth.
- The Argentine government actively encourages investment through incentives like tax breaks and subsidies, making the country an attractive destination for foreign companies.
- Argentina’s strategic location provides easy access to regional markets, further enhancing the country’s appeal for entrepreneurs and business owners.
- This guide will cover the essential steps to start a business in Argentina, including legal structures, registration processes, capital requirements, and other key considerations.
- Establishing a business in Argentina can provide opportunities for entrepreneurs and business owners looking to expand into the South American market.
Understanding the Business Landscape in Argentina
Argentina’s economy and business chances charm both entrepreneurs and investors. They aim to grow in the South American market. The country’s trade.gov page offers a thorough look at Argentina’s economy. It points out the growth potential and the government’s push for investment. This includes incentives such as tax breaks and subsidies.
Economic Conditions and Opportunities
Argentina fights economic hurdles but remains resilient, showing room for growth. It boasts a growing middle class and highly educated citizens. This makes it a top investment choice in the area. Argentina is strong in tech, culture, and tourism. Such strengths are open fields for businesses and new ventures.
Key Industries and Sectors
Argentina has a wide variety of industries and sectors. This diversity offers numerous chances for entrepreneurs and investors. They can find opportunities in technology, culture, tourism, and traditional fields. So, businesses have many roads to growth to explore.
Advantages of Doing Business in Argentina
Doing business in Argentina comes with multiple benefits. The U.S. trade.gov page points out its large consumer market and tech focus. The government’s investment push is also key. Argentina’s South American hub offers easy market access. Its stable legal system and updated legal code create a positive scene for startups and firms.
Looking at Argentina overall, its dynamic economy, variety of industries, and business-friendly environment are appealing. This makes it a go-to place for those wanting to leverage its growth and opportunities.
Legal Structures for Business in Argentina
Argentina gives entrepreneurs and investors several choices for setting up businesses. They can choose from the
corporation (Sociedad Anónima)
, the
limited liability company (Sociedad de Responsabilidad Limitada)
, and the new
simplified stock corporation (Sociedad por Acciones Simplificada)
Corporation (Sociedad Anónima)
The corporation (Sociedad Anónima or S.A.) is a common choice in Argentina. It has features like capital in shares, which are non-endorsable; shares can be common or preferred; there can be one or many shareholders; and shareholder responsibility is only to their investment.
A board of directors oversees corporations in Argentina. They need to be mostly from Argentina. The bylaws outline the board’s roles and how it runs.
Limited Liability Company (Sociedad de Responsabilidad Limitada)
The limited liability company (Sociedad de Responsabilidad Limitada or SRL) is another option. In an SRL, members aren’t personally liable beyond what they invest. It needs at least two but not more than 50 members, who operate the company as managers.
The company can be managed by one or more people. The management structure is detailed in a contract or established collectively by the managers.
Simplified Stock Corporation (Sociedad por Acciones Simplificada)
The Simplified Stock Corporation (Sociedad por Acciones Simplificada or SAS) is a newer business type in Argentina. It’s good for one or more shareholders and needs only a low capital of around US$600.
This type makes starting a business in Argentina easier. It allows full foreign ownership and has a simpler setup process. Startups and small businesses like it for its flexible rules and low starting costs.
Establishing a Foreign Entity in Argentina
Foreign entities wanting to do business in Argentina have two main options. They can either set up a branch or register a subsidiary. The best choice will vary based on what the company aims to achieve.
Setting up a Branch
A branch (Succursal) in Argentina allows foreign companies to operate there. To do this, they need to register their main office’s documents with the local Public Registry. This lets the branch work in Argentina without creating a brand-new legal entity.
Setting up a branch means the foreign company must follow certain steps. They have to file important corporate papers and show that their parent company does considerable business outside Argentina. This is to meet local laws.
Many foreign businesses choose to establish a branch in Argentina. This method makes it easier to start operating in the Argentine market. It’s simpler than creating a subsidiary.
Registering a Subsidiary
Another option is to register a subsidiary in Argentina. If a foreign company owns part of an Argentine company, it must register with the local Public Registry. This process includes submitting certain corporate documents and proving the business has significant activities outside Argentina.
Registering a subsidiary involves creating a new legal entity in Argentina. This can be a corporation (Sociedad Anónima) or a limited liability company (Sociedad de Responsabilidad Limitada). This allows the foreign parent company to start its operations.
By registering a subsidiary in Argentina, foreign companies get a local business presence. The subsidiary has to follow all the country’s laws and get the right permits and tax IDs.
Capital Requirements for Starting a Business
Starting a business in Argentina means understanding how much money you need. This changes based on the type of company you create. The Argentine Companies Law sets out rules for the least amount of money to start each business type.
- Corporations (Sociedad Anónima) need a minimum of AR$ 100,000 to start up.
- Limited liability companies (Sociedad de Responsabilidad Limitada) don’t have a set minimum. But, you must make sure the money is enough for what the company plans to do.
- For branches of foreign companies, putting money into the Argentine branch isn’t required.
Starting a business in Argentina means you can adjust the amount of money you need. This flexibility helps people and companies figure out how much they need, making it easier to start a business.
The laws in Argentina are designed to help all kinds of business ideas. They offer different company types with their own money rules. This way, startups and small companies can meet the money requirements that fit their plans best, making the business scene lively.
| Legal Entity | Minimum Capital Requirement |
|---|---|
| Corporation (Sociedad Anónima) | AR$ 100,000 |
| Limited Liability Company (Sociedad de Responsabilidad Limitada) | No specific minimum, but should be enough for the company’s goals |
| Branch of Foreign Company | No need to put money into the Argentine branch |
Step-by-Step Guide to Starting a Business in Argentina
Planning to start a business in Argentina? First, think about the type of company you want. You can choose from different legal forms like corporations, limited liability companies, and simplified stock corporations.
Deciding on the right legal structure is vital. You should consider what kind of activities your business will do, how it will be managed, and how much money it needs. This choice is crucial for your business’s success.
Define the Legal Structure
Choosing the right legal entity for your business in Argentina is key. It affects things like who is responsible for the company’s debts and how it’s managed. You need to carefully review the options under Argentine Companies Law.
Appoint a Power of Attorney
Then, you’ll need a Power of Attorney in Argentina. This gives a legal expert the right to set up your company on your behalf. It’s a must if you live outside Argentina. With this, a local person can legally guide your company setup.
Choose and Reserve the Company Name
Selecting and reserving a company name is wise. This ensures the name you want is available. You’ll need to go through the General Inspection of Justice (IGJ) and request the name registration.
Write and Certify the Bylaws
Next, draft your company’s bylaws, which are like its rulebook. Everyone involved must sign, and these signatures need to be notarized. Then, it has to be officially filed.
Creating your company’s bylaws is important. It’s basically your company’s plan on paper. Everyone invests must sign, and then it’s notarized.
Initial Deposit of Share Capital
You must start by putting money into your company’s account. At least 25% of the needed capital must go into the Bank of the Argentine Nation. Save the deposit receipt, as this money can be used later for the business.
Publish the Creation of Your Company
Announce your company’s creation in the Official Gazette. This must be done by a legal professional and it will cost for advertising space.
Payment of Incorporation Fee
There’s a fee to pay for processing the start-up documents. This is done online through the Ministry of Justice and Human Rights website. Download the invoice, pay at the Banco de la Nación in Argentina, and keep the proof.
