Our company formation agents can assist you to open a holding company in Argentina and also guide you about the regulations of this specific company structure. If you need comprehensive information regarding Argentina company formation, get in touch with our agents.
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Procedure to open a holding company in Argentina
Foreign businesses must register with the Public Registry of Commerce to hold ownership in Argentina. This registration process, which takes about a month, also requires the designation of a representative in Argentina. You are welcome to get in touch with our company incorporation consultants in Argentina for details about this procedure. Or you can transfer power of attorney to one of our agents, and he can look after all the procedures for you. Please find below what you are required to do to open a holding company in Argentina:
- get a local address for registration;
- file several documents from the foreign parent company;
- submit proof of its shareholders and ultimate financial beneficiaries;
- prepare evidence of business activities.
Additional restrictions can be in place. You can consult with our agents without any hesitation in this regard. They can provide you with comprehensive guidance in this matter. Once registered, the holding company is subject to an annual information regime that requires updating the information on the shareholders, the ultimate economic beneficiary, and the activities. So, to set up a holding company in Argentina, you can get in touch with our company formation specialists.
Requirements to set up a holding company in Argentina
The National Constitution and statutes accord both domestic and international investors equal rights. With several nations, Argentina has signed bilateral investment protection agreements that strengthen the protection of foreign capital. Foreign investment is typically not subject to previous government authorization; nonetheless, some regulations govern or restrict foreign ownership of particular assets. So, if you are a foreigner, who wants to open a holding company in Argentina, you can consult with our company incorporation specialists. Please find below the requirements that you are obliged to fulfill if you are planning to set up a holding company in Argentina;
- International companies must register with the Public Registry of Commerce;
- The Frontier Securities Zone regulation restricts the purchase of certain urban real estate assets and rural real estate assets located in frontier zones by foreign individuals or foreign companies. It also includes the local companies controlled by foreign companies or with a 25% equity participation by a foreign company;
- The Cultural Assets Act prohibits foreigners, foreign corporations, or domestic corporations, that are directly or indirectly controlled by foreigners, from owning more than 30% of the voting stock and corporate capital of broadcasting enterprises. The Argentine companies must own the remaining 70%.
But there are some countries whose nationals are excluded from this obligation, due to the presence of a bilateral investment treaty between Argentina and their country. You can ask our agents if your home country holds such a treaty with Argentina.
Benefits of setting up a holding company in Argentina
If you are planning to open a holding company in Argentina, you must know that holding companies are used for several purposes:
- Separating the functioning organizations from the assets they use creates a liability barrier. Each subsidiary is responsible for its debts;
- Loss protection is advantageous to holding corporations. The holding company may suffer a capital loss and a drop in net value if the subsidiary business fails. However, the holding company cannot be sued by the bankrupt company’s creditors for debts;
- As a result, a firm may begin operations as a holding company and establish subsidiaries for each of its business divisions as part of an asset protection strategy.
If you need to learn more purposes before you set up a holding company in Argentina, you are welcome to get in touch with our company incorporation consultants. They can offer you comprehensive guidance in this matter. If you are interested to start a company in Argentina, you can consider the following benefits. Argentina has the second-best workforce in Latin America, with a 98% literacy rate, 70% of the population speaking English fluently, and 65% of the population having a knowledge of computers functions. Companies registered in Argentina’s 10 Free Trade Zones are 100% exempt from customs duties and value-added tax. To execute your incorporation plan, get in touch with our specialists.
Taxes in Argentina
If you want to set up a holding company in Argentina, you should have a general idea about the tax rates there. Please find below the tax rates in Argentina:
- A 30% corporate income tax is generally levied on all forms of income for businesses;
- Whether or not the beneficiary is a local tax resident, dividends are taxed at a rate of 13%;
- Generally, the VAT rate is 21%. Electricity, gas, and water supplied for commercial use are taxed at a higher rate of 27%. For some particular residual activities, the VAT rate is 10%.
Contact our company formation specialists in Argentina if you are ready to incorporate a company. Our agents can assist you to set up a holding company in Argentina.
Furthermore, the services of our agents are at your disposal if you want to open a branch office in Argentina.