Company Incorporation in Argentina

Company incorporation in Argentina is gaining popularity among foreign investors targeting the country’s large and diverse economy. With a highly educated population and a well-established middle class, Argentina offers opportunities for growth and success. Additionally, being a member of MERCOSUR provides commercial advantages for companies.

For those looking for shorter-term or limited-scale operations, hiring staff through an employer of record in Argentina is a viable option. This eliminates the need for the complex processes of company formation and liquidation, allowing businesses to focus on their core operations.

Although Argentina has faced economic challenges in recent years, the country has experienced significant growth since the debt crisis in the early 2000s. The gross domestic product (GDP) has increased more than four-fold between 2002 and 2021. Despite the impact of the COVID-19 pandemic, Argentina’s economy has shown a strong recovery, surpassing pre-pandemic GDP levels and indicating a promising future.

Foreign Direct Investment (FDI) in Argentina remains consistently high, which further demonstrates the country’s attractiveness for company incorporation. In 2021 alone, Argentina received over $6 billion in FDI. Additionally, Argentina boasts a high level of English proficiency, making it easier for first-time investors to navigate the business landscape.

The professional services sector, including finance and consulting, contributes significantly to Argentina’s economy. The agricultural sector, with crops such as soy and cereals, also plays a vital role in the country’s exports. Argentina is a major producer and distributor of beef and other meats. Furthermore, being part of free trade agreements, such as Mercosur, enhances Argentina’s international trade opportunities.

Steps for Company Incorporation in Argentina

When incorporating a company in Argentina, foreign investors typically have four main entity types to choose from:

1. Private Limited Liability Company (LLC or PLLC)
2. Public Liability Company (PLC)
3. Partnership
4. Sole Proprietorship

Each entity type has its own advantages and drawbacks, and the appropriate choice depends on the nature and structure of the business. Consulting with a company formation agent in Argentina is recommended to ensure the best decision is made.

After selecting the entity type, the following nine steps outline the process of company incorporation in Argentina:

1. Appoint a legal representative through a power of attorney.
2. Choose and register the company name with Argentina’s General Inspection of Justice (IGJ).
3. Draft the company’s bylaws, outlining its commercial intentions and structure.
4. Make a deposit of 25% of the initial capital to the Bank of the Argentine Nation.
5. Announce the company’s creation through a national publication in the Official Gazette.
6. Pay the incorporation fee and submit required documents to the Ministry of Justice and Human Rights site.
7. Register the company’s accounting books.
8. Obtain a Unique Tax Identification Code (CUIT) from the Federal Public Revenue Administration (AFIP).
9. Open a company bank account to complete the incorporation process.

Frequently Asked Questions

Here are some common questions about forming a company in Argentina:

1. Why is Argentina a good place for doing business?
2. How long does it take to form a company in Argentina?
3. Can foreigners own a business in Argentina?
4. What is the most common corporate structure in Argentina?

For more information about company incorporation in Argentina or to discuss your business formation options, please contact us.

Source Link