Argentina is the second-largest country in Latin America, with a solid economy and strong ties with countries worldwide in matters of trading and financial operations among many others. Rich in natural resources, with a diversified industrial base, the export-oriented agricultural field, and with a relatively high GDP per capita, Argentina is the third-largest economy in South America and the 7th wealthiest state in the world.
| Quick Facts | |
|---|---|
| Types of companies |
Corporation Single-shareholder corporation Simplified corporation Limited liability company |
|
Minimum share capital for LTD Company |
No minimum capital requirement |
|
Minimum number of shareholders for Limited Company |
1 |
| Time frame for the incorporation (approx.) | 5 business days on urgent basis |
| Corporate tax rate | 25% – 35% for different brackets of earnings |
| Dividend tax rate | 7% |
| VAT rate | 21% standard rate, with reduced/ increased rates for certain goods and services |
| Number of double taxation treaties (approx.) | 20 |
| Do you supply a registered address? | Yes |
| Local director required | Yes |
| Annual meeting required | Yes |
| Redomiciliation permitted | No |
| Electronic signature | Yes |
| Is accounting/annual return required? | Yes |
| Foreign-ownership allowed | Yes, but under some restrictions |
| Any tax exemptions available? | No |
| Tax incentives | Applicable for real estate investors |
The high-tech sector, tourism, engineering, manufacturing, and the financial sector are attractive areas for international investors who want to develop their operations and make money in the country. While discovering the opportunities on the Argentinian market, one can direct the attention to the main business forms available for registration. With comprehensive help from our specialists in company formation in Argentina, our clients can set up businesses in this country in the form of limited liability companies, stock corporations, or branches. If you are interested in starting a business in Argentina as a foreigner, we can guide you throughout all the steps of company incorporation.
How to set up a company in Argentina
It is the ideal time for starting a business in Argentina because its economic growth was anticipated to reach 3.1% by 2019. On a global level, Argentina is producing high agricultural commodities. This is the best country for the sake of setting up a company because it holds the second-largest economy in the region of South America. Argentina is the second-largest country in Latin America, with a solid economy and strong ties with countries worldwide in matters of trading and financial operations. Rich in natural resources, with a diversified industrial base, a relatively high GDP per capita, its high-tech sector, tourism, engineering, manufacturing, and the financial sector are attractive areas for international investors who want to start a business in Argentina. These opportunities in Argentina can drive businessmen to invest and settle down in this country for good.
Besides all these natural resources and business opportunities, this country has one of the well-educated nations in the world. Its people are business-minded and they can help you to expand your business on international levels. While discovering the opportunities on the Argentinian market, one can direct his/her attention to the main business forms available for registration. With comprehensive help from our specialists in company formation in Argentina, our clients can set up businesses in this country.
What types of business entities can be incorporated in Argentina?
A person can set up different kinds of business entities in Argentina, Like:
- limited liability company;
- joint-stock company;
- partnership.
A person can choose the type of company or office, he/she wants to open in Argentina. Requirements for each type of entity are given below. But it is also recommended to get the help of professionals. Argentina’s economy is among the biggest in Latin America, with a GDP that exceeds USD 460 billion per year. With a population of about 40 million, this country is also regarded as having a high-income economy, which means it has access to a young and talented labor force. It also has a wealth of resources and has a lot to offer to international investors and businessmen who wish to set up a company in Argentina. For incorporation, the services of our agents are at your disposal.
Opening an LLC in Argentina (sociedad limitada)
For a limited liability company in Argentina, an investor should have a minimum share capital of $10,000 Argentinian Dollars (A$). He/she should appoint at least two directors and if there are more, the majority needs to be from Argentina. A limited liability company (LLC) in Argentina is subject to the annual tax return and cannot be traded on the stock exchange.
Opening a stock corporation in Argentina (sociedad anonima)
Another form of business accepted in Argentina and preferred by entrepreneurs from abroad is the stock corporation, or “sociedad anonima”. This kind of entity can be set up with a minimum share capital of $ 7,500, two stockholders, and Argentinian directors. A stock corporation in Argentina has limited liability, can be wholly foreign-owned and it is subject to a corporate tax payable on worldwide income. We remind that our consultants in company incorporation in Argentina are able to provide you with the necessary support when drafting the documents for your stock corporation and can be representatives of your business if you don’t want to travel to Argentina for company registration.
Opening a branch in Argentina (sucursal)
Companies from abroad can choose Argentina to establish a branch, to legally operate their businesses. For such an entity, there is no need for minimum share capital, but a legal representative must be appointed. He/she will perform the activities having power of attorney and maintain a local bank account. A branch can be established in Argentina if all the requirements are fulfilled. Then, the entity can generate invoices for clients and can sign local sales contracts. One should know that a branch in Argentina is not exempt from taxes in the available free zones. We can offer detailed information for those interested in starting a business in Argentina as foreigners.
Document requirements for starting a business in Argentina
Before preparing the documents for registering your company in Argentina, an entrepreneur must reserve the name of his/her future business as soon as a verification has been made with the Office of Corporations. Besides the articles of association containing the names of the owners or shareholders, the signature of the founding partners must be provided in a notarized form. Details about the subscribed minimum share capital provided by the bank must be drafted with the documents mentioned above. The fiscal code of the company is issued by the Administracion Federal de Ingresos Publicos, the authority in Argentina that also releases the tax identification number for tax purposes in the country. Once your business in Argentina has been registered, special licenses and permits might be requested for certain activities or services of your business, a matter where our advisors can help. The following services for your business in Argentina can be offered on request by our consultants:
- accounting;
- bookkeeping;
- tax advice;
- wealth management;
- business planning;
- drafting commercial contracts.
For complete information about how we can help you set up a company in Argentina and start your activities right away, we invite you to contact our team of agents in company incorporation in Argentina.
How to register a company in Argentina?
Before preparing the documents for registering your company in Argentina, an entrepreneur must reserve the name of his/her future business as soon as verification has been made with the Office of Corporations. Besides the articles of association containing the names of the owners or shareholders, the signature of the founding partners must be provided in a notarized form. Details about the subscribed minimum share capital provided by the bank must be drafted with the documents mentioned above. The fiscal code of the company is issued by the Administration Federal de Ingresos Publicos, the authority in Argentina that also releases the tax identification number for tax purposes in the country. Once your business in Argentina has been registered, special licenses and permits might be requested for certain activities or services of your business, a matter where our company formation specialists in Argentina can help. A person needs to know the cost for this whole registration process varies at every step, so our company’s consultancy is all available at every step to guide you for starting a business in Argentina as a foreigner.
The corporate tax rate in Argentina
Undoubtedly, corporate taxes play an important role in the economy of a country, so every country vigilantly collects the corporate tax from the local and foreign companies, regulating in that specific country, based on the net income a company obtains while exercising its business activities there. The same thing is also exercised by the Argentinian authorities. After 2017 tax reforms, in the fiscal years beginning on or after 1 January 2018, the percentage of collectible tax on businesses will be 30% (previously 35%). While in 2021, these tax rates will further reduce by 5% to 25%. Taxes have always been complicated and this matter definitely requires the assistance of an Argentinian accountant. As Argentina is taking steps to reduce corporate taxation, it seems like it is high time for foreign investors to invest in this country. Our efficient agents can assist you in setting up a company in Argentina.
Why a person should set up a company in Argentina
Here is a list of reasons why a person should set up a company in Argentina:
- Opening a company in a country simply means that you are also going to hire local workforce. For better performances, the workforce needs to be well-educated and skilled. Setting up a company in Argentina is great when it comes to hiring educated employees with proficiency in different languages.
- Language hindrance is not a problem at all in Argentina because you can find people who speak over forty languages. Spanish is the official and most spoken language while other important languages include English, Italian, Portuguese, and French.
- The multi-lingual staff in a company creates opportunities for that company to operate across the borders. So, if you have a goal to establish your company at the international level, a start from Argentina would be a great choice. The team of our consultants in company formation in Argentina can help you in the initiation of this goal;
- Argentina is a land of natural resources with high growth potential that leads to a higher value of economic growth. This country has underexplored natural resources like: gold, silver, copper, and lithium, shale oil and shale gas, etc.
These are the reasons that can compel an investor to setup a company in Argentina. But the process of opening a company in this country could be complicated and time consuming for a layperson. In this case the services of our experienced agents specialized in company formation in Argentina are available and they would guide you through every step.
Foreign Direct Investment in Argentina
As far as the matter of foreign direct investments in Argentina concerns, there are no restrictions of additional policies for foreign investors, instead, this country encourages foreign businessmen to invest. They enjoy the same legal treatment and liabilities as of the local ones. The establishment of Agencia Argentina de Inversiones y Comercio Internacional shows the concern of this state for foreign investors. Argentina proposes many benefits in regards to international trade because it is a member of MERCOSUR (Mercado Comun del Sur: Southern Common Market). This country offers an ideal location for setting up a company because it has free excess to some Latin American regions.
Expected GDP of Argentina from 2021 to2026
Argentina shows a better economic approach and its GDP has a steady growth each year. The estimated GDP of Argentina in the next five years shows these figures:
- In 2021, the GDP of Argentina is expected to be at $418.15 billion;
- In 2022, the GDP is expected to raise to $434.81 billion;
- In 2023, the expected GDP seems to be at $453.97 billion;
- In 2024, the expected GDP seems to be at $472.95 billion;
- In 2025, the GDP of Argentina is expected to rise to $491.11 billion;
- In 2026, the GDP of Argentina is expected to be at $509.76 billion.
For complete information about how we can help you set up a company in Argentina, we invite you to contact our team of company formation specialists.