Business Guide

Official language of the Republic of Argentina: Spanish

Currency: Argentine pesos ($)

Form of government: representative, republican and federal levels (since 1853)

Representative means that people do not deliberate nor govern except through their representatives and authorities established by the Constitution and expressed it in thearticle Nro 22

Republican means the Organization of the State authorities are elected by citizens for a specified period

Federal is a form of government in which several states or provinces united under a common government retained their autonomous local governments. And so is the article121 of the Constitution, “The provinces retain all power not delegated by this Constitution to the federal government, and which are expressly reserved by special pacts at the time of its incorporation”

Argentina has a system that recognizes three branches: executive, legislative and judicial

Executive power is exercised by the President of the Republic who it is elected by the citizens and lasts 4 years in implementing its mandate and may be reelected for one consecutive period.

The Legislature is bicameral. Chamber of Deputies and Senate

The Judiciary level has courts of first instante,  Court of Appeal and  the Supreme Court.

The provinces and the City of Buenos Aires are autonomous and elect their own authorities recognizing three branches: executive, legislative and judicial


Argentina is a country rich in natural resources with major competitive advantages for investment in relation to the exploitation of these resources.

The most important industries are those related to agro-chemicals, petrochemicals, food, beverages.

It is important to note that Argentina is one of the largest producers in Latin Americanof natural gas and oil reserves have more potential for a great consideration with respect to sedimentary basins that have not been exploited.

On the other hand, is a country with great potential in mining.

It is also important to mention the great development in other areas such as biofuels, biotechnology and informatics.

Foreign investment. External Trade

Argentina appears to be attractive to foreign investors, not only by the group of companies that have invested in the local economy but by the amount of investment growing in recent years to the point of becoming leading agents.

Much of the leading companies worldwide are now in Argentina. Include companies like: Coca Cola, Ford, Fiat, Univlever, Phillip, Renault, Firestone, Siemens, etc.

Argentina is a member of MERCOSUR (Southern Common Market), along with Brazil, Paraguay and Uruguay. This is a trade bloc whose purposes are to promote the free exchange and movement of goods, persons and capital between the countries in it, and move to greater cultural and political integration among its member countries and partners.

The majority of exports from Argentina are the countries of Mercosur, followed by the European Union, USA and Asia. Argentina’s main imports are industrial inputs, capital goods, parts and maintenance.

To export and / or import is important to bear in mind that it is compulsory registration of exporters and importers of the Republica Argentina, which takes place in the Directorate General of Customs.

The registration number is obtained enabling them to operate through any office in the country, being able to place individuals or legal entities. The registration application must be filed in the office that corresponds to your home.

Foreign investors may invest in the country without prior approval and under the same conditions that investors domiciled in the country.

Law No. 21382 and Decree No. 1853 of 1993 defines the legal framework for Foreign Investment

It is important to note that foreign investors may: Transfer their money and repatriate their investments at any time.

May use any of the legal forms of organization under national legislation of their own choosing.

Local Business of foreign capital may make use of domestic credit with the same rights and under the same conditions as local companies of national capital.

Organization of firms. Legal Structure

Regarding the establishment, functioning and liquidation of commercial companies are regulated by the Companies Law No. 19550 and by the rules set by the corporate entity.

All information must be filed with the Public Registry of Commerce.

Companies must register their operations in specific legal books, taking all necessary documentation in order and keeping the same for a term of 10 years at least.

In the case of companies operating in the country should appoint individuals legally responsible and maintain separate accounting records for its operations in the country.

Corporate types: corporation, limited liability company, joint stock, partnership, limited liability company and industry, holding, temporary union of companies, groups of collaboration, joint ventures, business cooperation contracts (UTE) franchise contracts, branches of foreign companies.

The corporate types more used are corporations, limited liability companies, joint ventures and branches of foreign companies.

To carry out a commercial company will be necessary make the corresponding registration of it in the General Inspectorate of Justice (IGJ). The documentation to be submitted varies with the type of company involved.

Then the company must register with the Federal Administration of Public Revenue (AFIP).

In case be necessary need high capital and sources of funding the model should be Corporation.

Other option it is limited liability companies


Partners: They can have two or more shareholders

The capital is divided into shares

Liability of partners: limited to the integration of the shares subscribed (core capital)

Name: may take a fancy name or can include the name of one or more persons. Must include the term “Company”, its abbreviation or acronym SA.

The contribution is made at the time of the constituction of contract

Must be incorporated for not less than 25% of the contributions pledged to the statute, by deposit in a bank official and completed within 2 years.

Can make contributions in goods and must be fully integrated at the time of the constitution, backed by a inventory  signed by an Accounter or

Lawyer who practices the Sindicatura and the signing of the founding partners.

Partners should integrate all the contributions within the 2 years of committed, produced its arrears are automatically suspended from the exercise of all rights inherent in their social actions. The statute may also provide penalties for the delay.

The transfer of shares is free. The statute may limit the transferability of shares but does not prohibit it.

The statute may provide for its capital increase to five times, where the increases will be decided by the Assembly of Shareholders. For amounts above the statute should be amended, subject to the Board.

In the case of companies making public offering of its shares, the assembly can increase its capital without limit, without amending the statute.

The Directory is exercised by the Board and is composed of one or more directors appointed by the shareholders meeting. The representation is the Chairman of the Board.

Controller of the body, or Sindico Control is optional, except for those companies that are covered by Section 299 of the Law of Commercial Companies, which are required to have a private monitoring body.

The liquidators of the company are unlimited and severally liable for breach of their obligations under the law, rules and regulations.

They are also the directors liable for the acts or omissions of these, when the damage had not occurred if he had acted in accordance with the duties of their office.

-Limited Liability Company

Partners: At least 2 and no more than 50

The capital it is divided in share fees

Liability of partners: limited to the integration of contributions to subscribe or acquire

Name: You must include the name of one or more partners and must contain the phrase “limited liability company”, its abbreviation or symbol SRL.

The contribution is totally at the conclusion of the contract value.

Must be incorporated for not less than 25% of the contributions pledged to the statute, by deposit in a bank official and completed within 2 years.

Can make contributions in kind and must be fully integrated at the time of incorporation, stating the contract for the record to justify the valuation.

The partners jointly and unlimited guarantees to third in the cases of lack of integration or valuation of the contributions. Third parties can enforce the security in the event of insolvency or bankruptcy of the Company.

The shares are freely transferable, except as otherwise provided in the contract, which may limit but not ban it

The increases will be determined by Act, which must by deed protocol to register the increase in the body controller (General Inspectorate of Justice)

The direction is exercised by the Management – Comprising one or more managers, partners or not.

You need to have a body controller, liquidator or audit committee: This is optional, except for those companies whose capital reaches the amount of $ 2,100,000 .-

The liquidators of the company are unlimited and severally liable for breach of their obligations under the law, rules and regulations.

They are also liable to the managers for the acts or omissions of these, when the damage had not occurred if he had acted in accordance with the duties of their office.

-Joint Ventures

It is a kind of strategic alliance and is a commercial agreement for joint investments in the long term between two or more people (usually individuals or merchants)

Its benefits are: first to increase competitive advantage, embrace new markets, expanding number of clients, sharing costs and risks of projects, advertising, marketing, generate new business, introduce new products and services, manage information from many other .

It is customary for access to foreign markets that require large investments and a specific know-how of the country in which you try to enter.

There are no requirements on how to act. Companies can sign a partnership contract, constitute a Transitional Union Companies (UTE), or even a company owned by both.

It is necessary, however, a long-term bond, and is also characteristic of the joint venture companies which remain independent of each other because there is neither absorption nor fusion

In a joint venture partners often continue to operate their business or businesses independently. The joint venture represents a business, this time with a partner whose profits or losses reported in the income of each depending on the legal form that has structured the joint venture.

Within the joint venture contract should specify terms of business administration.

It is extremely important within the contract stipulated that on the use of technology or on development of the same rights and intellectual property.

It should be noted that most terms of technology licensing documents will be established in the agreements as collateral distribution, etc.

-Partnership contracts

The aim is to provide mutual assistance in business development to increase and better results in the same

-Transitory Union of Companies (UTE)

It is limited in duration and form to fulfill a certain objective.

Disclaimer: the members are unlimitedly liable for the obligations of the company and operate by themselves

The agreements must be registered with the Public Registry of Commerce including goals, duration, and all legal aspects.

-Branches of foreign companies

As a first requirement is the existence of the main branch or Headquarter in enrolling foreign statute, contract and the articles in the General Inspectorate of Justice.

It must have the certificate attesting to the validity of the company (at home) and it is not subject to liquidation proceedings or any restrictions on importing their goods and / or activities.

This information is credited to the contract or act of incorporation or subsequent amendments, if any.

If the legal system of the country where the society is registered, does not require the issuance of the official certificate, is to supply a report of a Lawyer or Notary of that country from the extremes that are mentioned.

The documentation must be submitted from abroad with the formalities established by law in their country of origin, authenticated it and Apostille or legalized by the Ministry of Foreign Affairs, International Trade and Worship of Argentina, as appropriate and, if with its national language by translator registered, whose signature must be certified by their college or professional body empowered to this effect.

Justifying the decision to establish such representation and appoint the person in charge: in proceedings of assemblies or the body corporate concerned, approved the establishment of “branch”, “developing purpose, constitute society”, etc.. And designated person in charge (responsible), which should be given details of the LSC Art 11 (name, document, age or date of birth, profession, nationality, address, marital status) in addition to the ID, or CUIL CDI.

Set the record at the Act of Assembly.

Branches should maintain separate accounts of the Headquarter and subject to the control of the body corporate comptroller completing all relevant requirements.

It should register the original contract of society, enabling reforms and other documentation, as well as on their legal representatives in the Public Registry of Commerce Argentino (in the case of a joint stock company must also perform with the Registrar of Society for shares).

Regulating Migration

It is important to note that those wishing to invest in Argentina to observe the implementation of existing legislation regarding regulation of migration, which is established by law 25,871 and its regulatory decree, being the body that is competent to understand what concerning the admission, granting residence permits revenue, extensions, etc., the Directorate of Immigration

Tax structure

In a brief summary can be said that the tax structure in Argentina is composed of:

National income taxes, value added, excise and taxes on personal property

State Tax: gross income tax, stamp tax and property tax

-Local tax rates are applied to cover costs of specific services and some of little value.

Income Tax

Tax the income earned and the tax base differs according to the residence of the taxpayer.

For the purpose of establishing whether income is a must to give Argentina the following situations:

That the property located or used in Argentina to economic purposes, and

the conduct of business in Argentina is able to generate income.

Features of this tax on companies based in Argentina

The tax base is determined by the actual gross profit by deducting the necessary expenses to obtain and maintain the sources of productivity conditions.

A net income subject to tax is applied to an aliquot of 35%

Deductions that can make companies or companies

-All taxes on income-producing property are deductible from income tax except the income tax itself.

-The forecasts for bad debts and tax payments, not having other forecasts could deduct

-costs for the establishment of a business can be deducted in the year they were made or amortized over a period not exceeding five years.

-Donations may be deducted when you do directly to governments or agencies, religious institutions or charities or private entities that are exempt certain objectives. The amount deductible is limited to 5% of net earnings for the year.

-You can deduct other expenses needed to obtain, maintain or conserve the taxable gain. This can be deducted, salaries, wages, commissions, fees of directors (with the limitations imposed by law), for technical services, contributions to pension funds and mobilization costs.

Value Added Tax (VAT)

It is an indirect tax that applies to almost all goods and services produced or marketed in the development of the activity of a company or a professional.

We say that the VAT is an indirect tax because the company is not taxed to pay all of it, but gross profit on each transaction. Who should pay the entire tax is the final consumer, it is said that the VAT is a consumption tax