Business entities in Argentina in 2023
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
| Limited liability companies | Foreign branch | Stock corporation | |
|---|---|---|---|
| Also known as | sociedad limitada | sucursal | sociedad anonima |
| How long to set the company up? | 12 weeks | 12 weeks | 12 weeks |
| How long to open company bank account? | 8 weeks | 8 weeks | 8 weeks |
| Legal liability | Limited | Unlimited | Limited |
| Wholly foreign owned | Yes | Yes | Yes |
| Minimum paid up capital | US$300 | No | US$7,500 |
| Tenancy agreement required before incorporation | Yes | Yes | Yes |
| File annual tax return | Yes | Yes | Yes |
| Managing director need to travel? | No | No | No |
| Resident director required | Yes | Yes | Yes |
| Resident shareholder required | No | No | No |
| Minimum directors required | 2 | 1 | 1 |
| Minimum shareholders required | 2 | 1 | 2 |
| Minimum shareholders required | No | No | No |
| Corporate shareholders allowed | Yes | Yes | Yes |
| Corporate directors allowed | Yes | Yes | Yes |
| Corporate directors allowed | Yes | Yes | Yes |
| Allowed to trade on stock exchange | No | No | No |
| Bearer shares allowed | No | No | No |
| Corporate tax rate | 35% | 35% | 35% |
| Corporate tax payable on | Worldwide income | Argentina income | Worldwide income |
| Argentina income | Yes | Yes | Yes |
| Statutory audit required | Yes | Yes | Yes |
| Tax exempt free zones available | Yes | No | Yes |
| Withholding tax on dividends without DTA | 35% | No | 35% |
| Allowed to issue sale invoices | Yes | Yes | Yes |
| Allowed to sign contracts | Yes | Yes | Yes |
| Allowed to import and export goods | Yes | Yes | Yes |
| Must rent an office in Argentina | Yes | Yes | Yes |
| Can buy Argentina property? | Yes | Yes | Yes |
| Can own equity in other Argentina companies? | Yes | Yes | Yes |
| Estimate of engagement costs | US$ | US$ | US$ |
| Average total Argentina business setup | 12,550 | 13,590 | 13,550 |
| Average annual costs including accounting and tax fee | 34,240 | 22,830 | 20,790 |
| Sample engagement fee invoice | View invoice PDF | View invoice PDF | View invoice PDF |
