Argentina is an attractive location for foreign investors but the process to incorporate a business in the country is not without its challenges.
Government and regulatory complexities can cause issues for companies looking to enter the market. Understanding the steps that are required can help your business successfully enter the market in Argentina.
Businesses with foreign shareholders have an additional step to take prior to starting the incorporation process in Argentina. The foreign company must be registered with the Supervisory Board of Companies and must also obtain a tax ID for foreigners called the CDI. A Tax ID is also required for foreign natural persons. For companies, this can take up to three months and can delay the rest of the process before it even starts.
Steps for incorporation
Incorporating a business in Argentina starts with a few important choices. First, a decision must be made defining the type of entity they would like to set up in the country:
Corporation Limited Liability Company Foreign branch. Companies will have to also define what type of activity they will be performing in the country, along with their business model and the jurisdiction (city and legal address) where they will be performing the work. This information will be needed when filing the registration. The location and address selected must match with the type of business that will be conducted and also will dictate the location of the Supervisory Board of Companies where the company will go to register.
The next step in the process is for the company to collect all the applicable documents needed to bring to the Supervisory Board of Companies. This includes:
Bylaws of the new company, which must mention the number of directors on the board the majority of the board members must be Argentinian residents Name (authorities will have to confirm availability) and evidence of the functional address Amount of capital Directors and shareholders personal data (and UBO information) Deposit of 25% of capital of the company. Once these documents submitted to the Supervisory Board of Companies are approved, the company must obtain a tax ID, called a CUIT. This number is necessary so the new company...