Branches in Argentina are controlled by the parent company and can be established fast and without complexities with the Registry of Commerce at the place of its address. The laws which rule the existence of a branch in Argentina and its validity are mainly the ones of the foreign enterprise.
To learn more about the regulations on how to open a branch in Argentina, you are welcome to get help from our company formation agents in Argentina.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) |
Local country’s legislation |
|
Best used for |
Expanding businesses in other countries. |
|
Minimum share capital (yes/no) |
No |
| Time frame for the incorporation (approx.) |
5 business days on urgent basis for incorporating a branch in Argentina |
| Documents to be filed by the parent company |
– prove its existence in the country of origin in accordance with its laws, – registered address in Argentina, – publication in the Legal Publications Journal with the information required, – justify the decision of creating the branch in Argentina, – designate a natural person in charge of it, – determine the allocated capital (only for branch offices in Argentina) |
| Management (local/foreign) |
Both |
| Legal representative required (yes/no) |
Yes |
| Local bank required (yes/no) |
Yes, a branch in Argentina must have a local bank account. |
| Independence from the parent company |
No |
| Liability of the parent company | Limited liability |
| Corporate tax rate | 25% – 35% for different brackets of earnings |
| Annual accounts filing requirements |
Yes |
| Possibility of hiring local staff (yes/no) |
Yes |
| Travel requirements for incorporating branch/subsidiary (yes/no) |
Yes |
| Double tax treaty access (yes/no ) | Yes |
Table of Contents
Steps to open a branch in Argentina
If you want to set up a branch in Argentina, it is important to follow the incorporation steps. Any problem in these steps can delay your company’s incorporation into this country. We can help you incorporate a company in this country without much hassle. Please find below general guidance on the steps to open a branch in Argentina:
- register the branch with the Trade Register in Argentina. Our company incorporation agents can help you with the registration;
- publication and registration procedures should be followed;
- appoint management or a representative of the company. Our lawyers can represent your business in Argentina;
- submit the share capital if necessary;
- the branch’s accounting must be kept apart from the headquarters;
- register the Headquarters’ Social Agreement in the Public Registry of Commerce.
If you need further information regarding steps to set up a branch in Argentina, you can consult our agents. Our company incorporation consultants in Argentina can provide you with detailed information on this matter. In case you need company incorporation services in another jurisdiction, or for example in Brazil, our partners can help you – CompanyFormationBrazil.com.
On the other hand, you can discover the following infographic we have prepared:
Registration procedure for a branch in Argentina
In order to register a branch in Argentina in 2023, a prequalification report obtained from a local notary or lawyer. The notary or lawyer’s signature has to be certified by the Argentinian public notaries association or bar association.
The parent company documentation, such as:
- the articles of formation or incorporation, the bylaws and their amendments;
- a certificate of good standing, registration and business authorization issued in the home country of the parent company, proving that the corporation is not undergoing liquidation or any other procedure which could prevent it from doing business or disposing of its assets;
- documentation detailing the parent company’s location, the amount of money invested in the branch, and the name of the local attorney.
- the legal representative’s complete personal information, the duration of his appointment, and his address must all be included in this paperwork. The location of the head office and the amount of money invested in the branch office should also be mentioned in the notice published in the Official Gazette newspaper;
- documentation related to registration fees;
- other documents.
Supplementary documents which should prove that:
- the company is not forbidden to do business in its country of origin;
- the company has already set up or holds outside of Argentina:
- one or several operational agencies, branches and representations; and/or
- not-current fixed assets or exploitation rights in third-party assets; and/or
- ownership interests in other businesses which are not listed on the stock exchange; and/or
- regular investment activities in stock markets, as comprised in the parent company’s purpose;
- other documents: our company registration agents in Argentina can offer more details on what these other documents may consist of.
The company could also need some extra paperwork to prove that it can conduct business in Argentina and that its parent company is based outside of the country. Our experts in Argentina can assist you in this regard.
For other documents, our company formation agents in Argentina can offer more details on what these other documents may consist of. So, if you have any further questions regarding how to set up a branch in Argentina, our experts are at your discretion. They can provide you with comprehensive information about company formation in Argentina.
Below is a video presentation about branches in Argentina:
Status of a branch in Argentina
The foreign branch is seen as an extension of the foreign parent firm rather than a distinct legal entity in Argentina. Companies that want to test the market before committing to a larger investment are properly served by opening a branch. The parent business is solely liable for the foreign branch. Profits are subject to the Argentine corporation tax if the foreign branch has a permanent establishment there.
Tax obligations for branches in Argentina in 2023
A foreign corporation that conducts business in Argentina is subject to income tax under the Income Tax Act. In Argentina, non-resident companies without a permanent establishment in the country are taxed only on the income from Argentinian sources. Our company formation representatives in Argentina can provide further information related to the tax obligations for branches in this country. VAT applies to most goods and services in Argentina. The standard rate is 21% in 2023. If your branch is engaged in commercial activities in Argentina, it will be required to register for VAT in certain conditions. Non-resident companies are subject to withholding tax on certain types of income earned in Argentina. This includes dividends, interest, and royalties.
How to get a tax ID in Argentina?
You must apply for a tax number at the Argentine tax office AFIP (Administración Federal de IngresosPublicos) in order to receive a tax number, also known as a C.U.I.T (Clave Unica de IdentificacionTributaria). Hiring a local accountant who can help you manage the company’s entire accounting is recommended. Our company incorporation consultants in Argentina can help you get a tax ID. In addition to this, if you have further questions regarding tax identification numbers in Argentina, our experts can also answer your concerns.
Please keep in mind every Argentine firm is required to submit an accounting balance each year and to pay the same taxes as any Argentine company. This consists of a 25 percent VAT and a 45 percent income tax. Our company formation experts can help you understand taxation in this country. When it comes to entrepreneurs and brand-new business owners looking to open a company in Argentina, taxation is a very important issue. It is crucial to remember that Argentina has a progressive tax system, even though the amount of taxes that a business owner is obliged to pay in Argentina may vary based on the size of their company, the industry, and other criteria. In other words, as a business owner’s income increases, he/she must pay a higher tax rate. Our agents can guide you in detail if you need more information in this regard.
Gross domestic product (GDP) of Argentina
The two most common industries in which foreign corporations made significant investments in 2018–2019 were telecommunications and fintech. There is a unique initiative whose major objective is to encourage investments in high-tech businesses. Those who are eligible may receive tax incentives and social benefits. You are welcome to get in touch with our experts. They can guide you about these initiatives in Argentina where you can invest and take benefits out of it.
Furthermore, there is a surge in the gross domestic product of Argentina. It is the value of final domestic goods and services generated inside a country’s boundaries known as the gross domestic product. Please find below the GDP of Argentina for the years 2020 and 2021:
- In 2022, the official estimates for Argentina’s gross domestic product was $1.024 trillion;
- Argentina’s GDP increased by 26.16 percent from 2020 to $491.49 billion in 2021;
- The GDP of Argentina in 2020 was $389.59 billion, down 13.96 percent from 2019.
Please contact our company formation consultants if you need guidance to open a branch in Argentina. They can provide you with comprehensive practical assistance to set up a branch in Argentina.