Despite the ongoing debt crisis and high inflation rate, Argentina recently reached an agreement with the IMF to restructure its debt repayments and has taken other measures to stabilize its economy. There are also positive indicators, such as a 10.2% GDP growth in 2021 and a projected 4% growth by the end of this year. Foreign Direct Investment (FDI) in Argentina increased by $3.6 billion USD in March 2022, and this trend is expected to continue. It is a requirement for foreign investors or companies entering the country to eventually open a corporate bank account in Argentina.
If you plan to do business in the country, you will need to open a corporate bank account in Argentina. However, like many institutions in the country, Argentine banks face nonsensical rules, limits, and excessive bureaucracy. For this reason, we recommend that foreign investors and companies open a corporate bank account with one of the foreign entities operating in Argentina, such as American Express Bank Ltd, Barclays Bank Plc, BBVA, Citibank, Deutsche Bank, HSBC, Santander, Standard Chartered Bank, or Banque Nationale de Paris.
To open a corporate bank account in Argentina, you will need several documents, including a correctly filled out bank account application form, a copy of the company’s Memorandum of Association, the national ID or passport copy of the company representative, proof of a physical address, and proof that the company has a unique tax identification code (CUIT).
Here is a step-by-step guide on how to open a corporate bank account in Argentina:
1. Complete the corporate bank account application form.
2. Draft a letter providing the name and general details of the company, the reason for doing business in Argentina, and the names and personal details of the individuals who will handle the account.
3. Each account signatory must provide their Argentine national ID card (DNI), unique tax identification code, and notarized powers of signatories (if applicable).
4. Submit all the required ‘Know Your Customer’ (KYC) documents requested by the bank.
5. Submit all forms and supporting documentation for review and processing.
6. Attend a face-to-face interview with a bank representative, or send a local company representative or trusted partner to do so on behalf of the company.
7. Some banks in Argentina may require a minimum deposit of $100,000 Argentine pesos (approximately $673 USD) to activate the account.
It is important to note that the number of required documents and level of scrutiny may vary among banks.
Argentina’s banking sector has several limitations and restrictions that may deter investors and companies from entering the market. For example, only citizens and permanent residents can open personal Argentine Peso (ARS) bank accounts. The process of opening a corporate bank account with a foreign bank can take 7 to 15 business days to complete. Additionally, not all banks in Argentina offer online/digital banking services, and there may be restrictions on peso ATM withdrawals.
Overall, opening a corporate bank account in Argentina requires careful consideration and understanding of the country’s banking sector. If you need assistance with market entry or back-office services in Latin America and the Caribbean, including opening a corporate bank account in Argentina, Biz Latin Hub can provide comprehensive support.
