Occupying the east about. Tierra del Fuego and the Estados Islands, Argentina are nestled between Paraguay and Bolivia, which are bordered in the north. The eastern border with Uruguay and Brazil, and the southern and western border with Chile complete the circle of Argentina’s neighbors.
Extending its power to several islands (the facts of ownership today remain very controversial), Argentina, in particular, has views of some areas in Antarctica.
Argentina itself is a country with many faces in terms of nature and relief.
From the end of the 19th century, Argentina began to be filled with European immigrants, mostly Spaniards, and Italians. Catholicism became the official religion of the state, but at the same time, there are many Protestant and Buddhist temples in the country.
Today Argentina is famous for its museums and galleries, which display exhibits that demonstrate the many stages of development of local lands and humanity in general. Buenos Aires attracts by its colonial architecture.
Today the population of Argentina is numerically about 38 million. Spanish is recognized as the official language.
Business registration in Argentina
The process of registering a company in Argentina is not complicated in itself. It is often possible to register a company in Argentina in two to three working days.
However, drafting the Articles of Association and putting the company on the national register will take several weeks.
- For shareholders-individuals, there is a requirement to provide passport data, address, and information about the occupation. A certified copy of your passport is required;
- Shareholders who are legal entities must provide apostilled documents translated into Spanish, the decision to open a company, and the appointment of persons authorized to carry out the registration procedures;
- Documents must be translated by an Argentinean translator;
- The amount of investment in the capital of the company limits the personal liability of shareholders;
Forms and spheres of doing business in Argentina
As you know, every entrepreneur can have ideas on how to run their business in Argentina. But at the same time, you can name the main areas for business in Argentina:
- restaurant business (owners often develop their national cuisine);
- production for the manufacture of food products;
- services of beauty salons, hairdressing salons, spa salons, etc .;
- services related to Internet technologies (opening of Internet cafes, service centers, etc.). The demand for these services is great, as the information sphere in Argentina is at a stage of development;
- small retail trade in consumer goods.
Now let’s see what companies in Argentina entrepreneurs prefer to register.
Limited Liability Company, S.R.L. may issue different types of shares, but their transfer to third parties is not allowed.
As a rule, the creation and management of this organizational and legal form is a relatively easy process, however, the effectiveness of management depends on the relationship between its members, since in most cases unanimous consent is required for all changes.
In Argentina, there is such a form of the company as the Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL).
It is possible to carry out “urgent” company registration by receiving its tax ID and corporate books within 24 hours. Requirements:
- There is no minimum share capital requirement, but it must be consistent with corporate goals, and the State Commercial Register may require companies to set an amount over the amount determined by partners. If the amount is greater than zero, then at least 25% of the capital must be paid at the time of formation, and the remaining 75% must be deposited within 2 years. Capital in-kind (non-cash) is paid immediately
- There must be from 2 to 50 participants (shareholders), there are no requirements for the presidency
- It is required to hold at least once a year a meeting of participants to approve the financial statements of the enterprise
- A minimum of 2 directors is required (there must be at least one permanent and one deputy) who can be appointed indefinitely. Most of the board of directors should be made up of residents of Argentina, but there are no other requirements for directors
- One director can be the legal representative of the company. All directors or the chairman of the board of directors have full powers
- No secretary and local representative required
- Local office required
- The auditor is mandatory only if the share capital exceeds USD 10 million
- Charter required
- Annual tax returns are required; full annual financial reporting is required only from companies with a registered capital of 50 million pesos (~ $ 1,117,000)
- The name of the company must contain an indication of the organizational and legal form (in our case, SRL)
Features of companies in Argentina
Registering an offshore company in Argentina means obeying the rules of the tax policy of this state.
- For all types of companies, accounting and annual reports are provided;
- An audit is mandatory;
- Cash transactions from / to Argentina are taxed at 0.6%;
- The annual fee in Argentina is $ 400. Its size can be increased in case of late submission of reports;
- Regardless of the place of business, a company in Argentina pays an income tax – of 35%. But in the case of payments made by the company earlier abroad, the amount of tax may be reduced;
- The provision of services in Argentina and the import of services are subject to 21% VAT;
- Tax-free exports and services rendered outside Argentina;
- There is also a property tax. It must be paid by an offshore company in Argentina, whose shareholders are not able to operate in the country. In this case, the tax will be 1.5% of the market value of the shares;
- Interest on deposits is taxed at the rate of 8%.
- Nonresidents who temporarily carry out their activities without creating branches will pay taxes only on income received in Argentina.
- Dividends and profits other than shares distributed by companies or subsidiaries are taxed at a rate of 10%, which is payable once.