Doing Business In Argentina 2016

Author:Baker & McKenzie
Profession:Baker & McKenzie
 
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  1. FOREIGN INVESTMENT LAW

    Foreign investors enjoy the same rights and have the same duties as domestic investors when investing in financial or productive activities.

    Generally, Argentine Law does not set any restrictions or prohibitions on foreign investments. Where there are no restrictions, no prior government approval is required beyond that applicable to any domestic or foreign investor in each activity. Certain industries (e.g., banking, media) do require reciprocity as a condition for foreigners to invest. In certain other industries (publishing, internet and related) foreign companies cannot own more than 30% of the stock of a company. Rural land can be owned by foreigners although some restrictions and limitations apply for certain areas. Foreigners can own land in bordering zones subject to prior approval.

    Investments may be made in the form of: (i) foreign currency; (ii) capital assets; (iii) profits from other investments; (iv) repatriable capital resulting from other investments made in the country; (v) capitalization of foreign credits; (vi) intangible assets; and (vii) other forms acceptable to the competent authorities.

  2. TRANSFER OF TECHNOLOGY

    1. Scope of the Transfer of Technology Law

      The Transfer of Technology Law governs agreements that provide for the transfer, assignment or licensing of technology or trademarks by foreign-domiciled persons to Argentine-domiciled persons. Executive Order No. 580/81 defines "Technology" as patents, utility models and designs, and any technical knowledge applicable to the manufacture of a product or rendering of a service. The following could not be construed as technology:

      Acquisition of products Technical or consulting services, know-how licenses, including those pertaining to information, knowledge or application methods in financial, commercial, legal, marketing, or sales areas and, in general, any other delivery or rendering of service that does not evidence clearly and specifically the effective incorporation of technical knowledge directly applied to the productive activity of the local contractor License to use software or software updates Services involving repairs, supervision of repairs, maintenance, and setup of plants or machineries, excluding the local contractor's personnel training In general, all activities that directly represent the hiring of tasks related to the current operation of the local contractor. 2. Agreements Between Related Parties

      License agreements executed by a domestic licensee and a related foreign licensor need not be approved by,...

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