Doing business from Argentina may be suitable in certain cases. The country has a number of sectors for future growth, like agricultural, oil, gas, automotive, and others. It encourages investments in different forms. If you are among interested potential investors, it is possible to become present in this country by using one of these options.
Major Forms of Legal and Business Presence
If you wish to incorporate a company in Argentina or establish your business presence otherwise, the following registration options are available depending on your purposes:
- Closed company (SRL) with the limited liability of the participants (from 2 to 50) within their contributions only. Shares may be transferred to third parties subject to certain conditions provided by the entity’s bylaws. There are no legal requirements for the amount of chartered capital but it should correspond to the types of activities an entity is going to conduct.
- Corporation (SA) – a common form that is convenient to foreign investors and for involving outer capital. Shares can be freely transferred to third parties. Two founders are enough to create a company. The standard authorized capital of corporations is ARS 100,000.
- Branches – an option suitable for a foreign enterprise that allows conducting in Argentina the same business activities as abroad.
Registration Requirements and Steps
Company incorporation in Argentina requires passing these registration steps:
- Defining your business goals and the most suitable business structure for those.
- Choosing a business name for an enterprise.
- Collecting details about shareholders (passport data, information on addresses, and occupation).
- Arranging a legal address, where annual meetings on financial statements review will be held.
- Depositing at least 25% of the entity’s chartered capital.
- Hiring at least two directors (legal entities are not allowed).
- Preparing chartered and registration documents.
- Submitting the set of required documents for the registration.
- Registration for tax and social security purposes. Opening a corporate bank account.
- Applying for and getting licenses and specific permits (necessary for regulated types of business activities).
Legal and Regulatory Framework
During the last decade, Argentina is eager to fully liberalize the legislation in the field of foreign investment. The authorities engage entrepreneurs in a restaurant business, services, high technology, trade, and other fields offering many preferences.
Data on companies are entered in the open registry, and business in the country is taxed with many taxes, so you cannot say that Argentina is low-tax zone in the traditional sense with all associated tax benefits. Companies that are opened by non-residents, like local ones, must maintain accounting, reporting, and pass a mandatory audit.
Tax System of Argentina
An option of company formation in Argentina should be considered in conjunction with these tax highlights attributed to the jurisdiction:
- Corporate income tax (CIT) rate – 30%
- Personal income tax rate – 35%
- Value-added tax rate – 21%
- Withholding tax rates – (i) dividends – 7% (ii) interests – 0/15.05/35% (iii) royalties – 21/28%
- Capital gains tax rate – (i) corporate – subject to the standard CIT rate (ii) personal – 15%
Advantages of the Jurisdiction
Company registration in Argentina is convenient because:
- there are no requirements for the shareholders’ residency, they may be individuals or legal entities;
- the process of a company registration takes on the average 2-3 days if all legal formalities are followed well;
- data on business beneficiaries are not disclosed and are not entered into the open register;
- export activities and services rendered outside the country are not subject to profit tax;
- companies do not need a secretary (but they will need a local registered agent) and so on.
How Prifinance Specialists May Help You
The company registration in Argentina is a multi-stage procedure, but with the support of Prifinance lawyers, it will become easier and take less time. Experienced experts will undertake the troubles and will promptly perform all legal procedures. We offer prompt company registration and bank account opening services in Argentina and worldwide. New registration and ready-made options. Provide extensive details for more precise consultations and suggestions that can be effective for your future project.