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Company Formation in Argentina

Updated on Monday 26th September 2022

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Argentina is ranked as the third largest economy in South America due to its natural resources and also to its agricultural export. Being a country with such a competitive and developed economy, many foreign investors choose to form a company in Argentina.

Our company formation agents can assist you with this process and provide you with further information. 

Important information to know about company formation in Argentina  

The procedure to open a company in Argentina is similar with the one investors can find in countries across the world. The company types available here are also similar with the ones that can be incorporated elsewhere. 
Differences can appear for matters related to the capital, number of investors, taxation. 
Argentina applies the same taxes one can find in other countries, including the corporate tax, so in terms of taxation, there wouldn’t be any differences, as it can be the case of investors who choose offshore company formation, in which case many basic taxes do not apply. 
Below, our consultants in company formation in Argentina have prepared an outline of basic information one should know about companies in this country: 
  • the process of opening a company in Argentina can be completed in approximately 12 weeks, regardless of the company type selected for incorporation;
  • the set up of a corporate bank account can take 8 weeks (having a corporate bank account is a mandatory requirement for all businesses, which is also necessary in offshore jurisdictions, where investors have to set up an offshore bank account);
  • the minimum capital is of $300 for private limited liability companies and $7,500 for stock corporations;
  • for a limited liability company, investors have to appoint 2 directors, while for a branch office, only 1 director is required;
  • companies are liable to the payment of the corporate tax, which is charged at rates varying from 25% to 35%, as per the latest modifications of the tax laws, applied starting with 1st of January 2021. 
Another tax investors can expect to pay in Argentina is the value added tax (VAT). The following rates are available: 
  1. the standard VAT is of 21%, and it is charged for most of goods and services traded in this country;
  2. a higher VAT, of 27%, is applied to companies involved in telecommunication, gas supply, etc.;
  3. a reduced rate of 10.5% is applied to public transportation, taxi transportation, medical services, agricultural products, etc.;
  4. a super reduced rate of 2.5% is available for digital magazines and newspapers;
  5. exports from Argentina are charged with a VAT of 0%. 

Company types in Argentina

Some of the business entities that foreign entrepreneurs usually choose to establish in Argentina are: the limited liability company (sociedad limitada), the foreign branch office (sucursal) and the stock corporation (sociedad anonima).

Here are the few requirements to be met when talking about setting up a limited liability company in Argentina:
  1. appoint minimum 2 directors (they may be companies or individuals);
  2. deposit the minimum share capital of $300;
  3. name one or more managers for the new company.

Procedures for registering a company in Argentina

Below, you can find the main steps for company formation in Argentina:  
  1. you begin by choosing a name for the company which then has to be checked by the Office of Corporations (Inspección General de Justicia);
  2. the second stage is to notarize the partners' signatures at a notary office;
  3. after that comes the procedure of depositing the initial capital (at least 25%) at the National Bank and get the proving receipt;
  4. publication of the new company's formation notice in the Official Gazette - this is another step our specialists can easily complete for you;
  5. the company registration procedure in Argentina also implies to pay an incorporation tax at the National Bank of Argentina;
  6. next step consists of registering with the Public Registry of Commerce in Buenos Aires - there are several documents that need to be submitted by companies and our experts in company registration can help you with this;
  7. then a Fiscal Code must be acquired by the corporate manager at the National Tax Office - you will also need a tax identification number from the same office and then enroll for social security.

Another thing you have to do is register the turnover tax at a level with other local taxes in Buenos Aires, with the Administración General de Ingresos Públicos (AGIP). After that you can also register with the Unified System for Labor Registration.

At the end of your process of opening a company in Argentina, you need to make sure that your employees have an insurance contract with a risk labor society.

How can foreigners open a branch office in Argentina?

The legislation in Argentina allows the registration of branch offices, which are structures that are fully dependent on their parent company. 

This structure allows foreign companies to expand on a new market by implementing the same business model, while maintaining the full responsibility on the company working abroad. 

The management decisions of the branch are also part of the responsibilities of the parent company. One of the advantages of this structure is given by the fact that it can be set up without a share capital. 

The legislation in Argentina allows for a branch office to be fully owned by the foreign company, unlike some countries which impose foreign companies to associate with local residents. 

Other than not being an independent structure, the branch office does not differ from other company types in terms of taxation, employment and other responsibilities it can have as a consequence of developing commercial activities in Argentina

This means that once the procedure for company formation in Argentina is completed, the branch will have to complete the same reporting procedures applicable to other business forms. 

A basic obligation of the branch office is to file tax returns in accordance with the tax law applied here. 

However, it is necessary to know that the single difference when it comes to taxation will be that the branch will be taxed only for the income generated from activities in Argentina, while for other companies, their global income will be calculated.  

For help with the formation of an Argentinean company or other information, please contact our company incorporation team.