Business entities in Argentina
Healy Consultants assists our Client determine the most optimum business structure to start a business in Argentina. There are several business entities available to foreign entrepreneurs: those willing to setup a small business in Argentina commonly choose a Limited Liability Company (LLC). Argentina business setup may also be completed with a share corporation or a foreign company’s branch office.
The Argentina limited liability company (sociedad limitada)
- Argentina company setup takes two months and the minimum paid up capital is US$300;
- A minimum of two directors is required to setup an LLC in Argentina. Directors can either be natural persons or companies; the majority must be Argentina residents.
The Argentina stock corporation (sociedad anonima)
- Healy Consultants recommends this entity if our Clients wish to incorporate a publicly listed company. The minimum paid-up capital is US$7,500 for this setup;
- Argentina joint stock company requirements also include a minimum of one director and two shareholders. While shareholders can be of any nationality, a majority of directors should be resident in Argentina.
The Argentina branch office (sucursal)
- An Argentina foreign company branch can invoice Argentina customers, sign local sales contracts, and receive income from customers;
- This entity does not require a minimum capital for business setup in Argentina. A Branch office operates only within scope defined by the parent company;
- This entity in Argentina must i) appoint a legal representative ii) grant him/her with a power of attorney iii) must maintain a local bank account.
Table of comparison between Argentina entities
Frequently asked questions
Will there be restrictions in ownership if foreigners start a business in Argentina?No. 100% foreign ownership is allowed if you wish to setup your business in Argentina.
Will I be required to get appoint a resident director if I setup an Argentina company?Yes. Foreigners setting up a business in Argentina will either be required to obtain a residency permit if they want to be their company’s managing director or to appoint a resident individual for that role. If requested, Healy Consultants may provide our Clients with nominee resident director services.
What are the tax implications of Argentina LLC formation?Starting an LLC in Argentina will subject the company to corporate tax and other taxes paid by Brazilian businesses. Its owner will also be subject to taxation on dividends and other income received from such company.