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Set up a Subsidiary in Argentina

Set up a Subsidiary in Argentina

Foreign corporations often choose to do business here by setting up a subsidiary in Argentina, which is a separately incorporated legal entity. The advantage of such a business establishment is that it only places at risk its locally assigned capital rather than the entire capital of the parent company, as it is the case of a branch. 

Our company formation advisors in Argentina can provide you with detailed assistance if you want to open a company. So, if you are planning to open a subsidiary in Argentina, you can rely on our company incorporation consultants. Their detailed assistance can help you avoid any unnecessary issues which you may encounter while incorporating a company in this country. 

Forms of subsidiaries in Argentina

Foreign companies who intend to establish a subsidiary in Argentina in 2022 usually choose to set up either a corporation (sociedad anonima with only one or more shareholders) or a limited liability company (sociedad de responsabilidad limitata with two or more partners).

The main benefits of a subsidiary in Argentina in 2022 are:

  • The partners’ liability is limited to the capital they contributed;
  • A corporation can offer its shares publicly in order to attract financing.

Even though there are certain differences between a corporation and a limited liability company in Argentina, they do have certain traits in common, such as:

  • There are no nationality or residence requirements for the partners. Except for certain regulated activities, foreign entrepreneurs and non-residents can entirely own any company opened in the country;
  • Most of the administrators of the companies have to reside in Argentina;
  • Both legal entities should have a capital allocation.

If you want to open a subsidiary in Argentina on your own, you will need a thorough understanding of the country’s subsidiary legislation. If you fail to comply, you might risk steep penalties or perhaps the closure of your business. During the setup phase, you can also expect to spend a substantial amount of time going back and forth to Argentina. Almost every stage of this procedure is costly, and you will also have to cover travel charges. To avoid all these inconveniences, you are recommended to get in touch with our company incorporation consultants. They can provide you with company formation guidance to help you comply well with the required regulations. 

Registration of a subsidiary in Argentina

To open a subsidiary in Argentina, you must first register the company under Article 123 of the Commercial Companies Law. This way, regardless of whether the company is a public limited company or a limited liability company, the essential conditions that assure the legal involvement of all shareholders will be established. Foreign owners who are participating in the Argentine subsidiary’s registry must also register with the Public Mercantile Registry (RPC). To register a subsidiary in Argentina, you also need to submit various documents. Our company incorporation specialists can provide you with detailed guidance regarding the list of required documents.

Instead of setting up a subsidiary in Argentina, there is another possibility. Rather than registering a subsidiary, a frequent strategy to join the market is to purchase an existing company.

This is convenient since you will not have to go through the legal procedure of setting up a subsidiary in Argentina from the ground. So, instead of establishing, if you are willing to buy a subsidiary in Argentina, you can get in touch with our specialists.

Steps to set up a subsidiary in Argentina

Because of its huge human capital and possible business relationships with surrounding nations, Argentina is an attractive site for international investors. Argentina’s laws are similarly friendly to international investors, foreign investors are treated equally to indigenous enterprises. The majority of subsidiaries are run as limited liability partnerships with either people or businesses as partners. The procedure of forming a limited liability partnership (LLP) in Argentina might take months. There are several steps involved, which are provided below:

  1. Checking the name of the corporation with the Office of Corporations;
  2. Obtaining the notary public’s certification of all founding partners’ signatures;
  3. Initial capital is deposited to the National Bank, and a new partnership notification is published in the official newspaper;
  4. The incorporation cost must be paid.

Besides these steps, Argentina subsidiary registration also includes obtaining business books, a fiscal code, and a tax identification number, as well as registering with the Public Register of Commerce. Each stage adds extra time and money under different circumstances. So, it is advisable to seek professional help in this regard. Because any inconsistency will add extra time to the incorporation of the company. Our company formation agents can provide you with comprehensive assistance to help you open a subsidiary in Argentina.

If you have any further questions regarding setting up a subsidiary in Argentina, our agents are at your disposal. You can clear all the ambiguities you have regarding the incorporation procedure after interacting with our experts.

The income taxation for subsidiaries in Argentina in 2022

The basic taxation for subsidiaries in Argentina is set at 35%, according to the Income Tax Law for 2022. The remittance of profits to the parent company and the dividends paid to foreign shareholders are not subject to taxation.

The taxable income of a subsidiary here is established by deducting all allowable expenses from the legal entity’s gross income. Our Argentina company formation agents can provide further details on this matter.

The expenses registered abroad can also be deducted, if the taxpayer can prove that they were incurred for the goal of generating taxable income in the country.

In case you have more questions about opening a subsidiary in Argentina, you are welcome to contact our company formation consultants. They can perform a detailed analysis and help you to set up a subsidiary in Argentina as per your requirements.

In addition to this, if you want to open a branch office in Argentina, you can interact with our incorporation specialists. A branch office is a unit of a parent corporation that operates in a different location or territory. The legal problems are handled entirely by the main office. The branch offices, on the other hand, are responsible for their capital, legal representatives, and stockholders. The branch office in Argentina that will operate must be registered with the Ministry of Registry. You are welcome to avail rest of the information on this company type from our incorporation experts.