{"id":269,"date":"2011-08-02T04:39:14","date_gmt":"2011-08-02T04:39:14","guid":{"rendered":"https:\/\/kierjoffe.com\/news\/?p=269"},"modified":"2018-07-19T15:39:03","modified_gmt":"2018-07-19T18:39:03","slug":"setting-up-a-business-in-argentina-how-to-do-business-in-argentina","status":"publish","type":"post","link":"https:\/\/www.kierjoffe.com\/news\/lawyer-argentina-attorney-buenos-aires-law-firm\/setting-up-a-business-in-argentina-how-to-do-business-in-argentina\/","title":{"rendered":"Setting up a business in Argentina – How to do business in Argentina"},"content":{"rendered":"

Establishing a company<\/strong>
\nInvestors have three options for setting up a business in Argentina: establish a foreign branch office; acquire ownership interests in an existing company; or create a new company.
\nThe main characteristics, requirements and implications of the different legal structures available to companies\u00a0in Argentina are presented in the following section of this guide.<\/p>\n

Branch offices<\/strong>
\nA branch or representative office, which is created when a foreign company establishes a branch in Argentina,\u00a0does not imply the creation of a new legal entity. Even though a branch must be registered with the Registry\u00a0of Companies, the laws governing its existence and validity are primarily the laws of the company\u2019s home\u00a0country.<\/div>\n
A branch may undertake all activities pursued by a company\u2019s head office (HO) on behalf of the HO through\u00a0the person appointed as the company\u2019s representative. The assets of the entire foreign business, that is,\u00a0the total value of the HO\u2019s capital, not only the capital the HO assigns to its Argentine branch, is subject to\u00a0liability. The branch\u2019s accounts must be kept separately from the HO\u2019s operations and its financial statements\u00a0filed periodically with the Registry of Companies.
\nThe branch must be managed by a legal representative vested with broad administrative and judicial\u00a0authority\u2014which may be limited in certain circumstances\u2014to ensure that all of the branch\u2019s affairs and\u00a0business transactions are conducted efficiently.
\nBranch offices are subject to Registry of Companies\u2019 supervision and must comply with the same requirements\u00a0as corporations.BRANCH OFFICE REGISTRATION REQUIREMENTS<\/strong>
\nIn order to establish a branch office in Argentina, the following documentation is required:
\n1\u2014 A prequalification report issued by a local notary public or lawyer, as applicable. Their signatures must be\u00a0certified by the Argentine notaries public or bar association, as the case may be. This report must include\u00a0the following information:
\n(a)Quorum and majorities: the opinion of the notary public or lawyer regarding the observance of the quorum and\u00a0majority rules applicable to the meeting and to the company\u2019s management body that called said meeting.
\n(b) Principal place of business: location of the branch\u2019s principal place of business, along with an express\u00a0indication of whether the company\u2019s management and governance take place at that location.
\n(c) Good standing: a statement from the notary public or lawyer as to whether the company has been\u00a0dissolved by operation of law or after the expiry of the term, or if the company\u2019s books contain any\u00a0dissolution agreement or statement of the occurrence of any of the grounds for dissolution, or if the\u00a0company\u2019s books contain notices of meetings, the agenda of which includes the company\u2019s dissolution.
\n(d) Chain of entries: the professional must review the \u201cchain of entries\u201d of every act subject to registration,
\nwhen applicable, as provided in sections 39, 53, 111 and 126(5) of Annex \u201cA\u201d to IGJ General Resolution
\n7\/05. A chain of entries means that each entry authenticates all previous ones.
\nFurthermore, an accountant\u2019s prequalification report is required if capital contributions are made in some\u00a0form other than cash.<\/p>\n

2\u2014 HO\u2019s documentation, including:
\n(a)The articles of formation or incorporation, the bylaws and their amendments.
\n(b) A certificate of good standing, registration and authorization to do business (issued in its home country)\u00a0that proves the company is not undergoing liquidation or any other process that may prevent it from\u00a0doing business or disposing of its assets. If these certificates are not available, a report signed by an\u00a0attorney or notary public from the HO\u2019s home country can be filed.
\n(c) The resolution of the company\u2019s governing body that resolved to create the branch in Argentina, including:
\n\u2014 The fiscal year end.
\n\u2014 The exact location of the company\u2019s principal place of business in Argentina (the representative may\u00a0be vested with sufficient authority to establish it).
\n\u2014 The capital assigned to the branch, if any.
\n\u2014 The appointment of a legal representative, i.e., an individual (the appointment may include the authority\u00a0vested in the representative).
\n3\u2014 Additional documentation to prove that:
\n(a) The company is not prevented from carrying out any of its businesses in its home country.
\n(b) The company has already established or holds outside of Argentina:
\n\u2014 One or more operational agencies, branches or representations; and\/or
\n\u2014 Non-current fixed assets or exploitation rights over third-party assets of this nature; and\/or
\n\u2014 Ownership interests in other companies that do not offer their shares to the public; and\/or
\n\u2014 Regular investment operations in stock markets, as included in the company\u2019s purpose.
\n(c) A list of the partners, members and\/or shareholders at the time of the decision to apply for registration, including at\u00a0least their names and surnames or company name, address or company\u2019s principal place of business, ID or passport\u00a0number or information regarding the company\u2019s registration, authorization and formation or incorporation data,
\nas the case may be, and the number of shares, units and votes held and their percentage in the capital stock
\n4\u2014 An original or certified copy of the publication of the notice in the Official Gazette, in the case of a\u00a0corporation, a limited liability company or another business association structure which is not provided\u00a0for under Argentina law, including:
\n(a) In regard to the branch: the principal place of business; the capital assigned to it if any; the date of\u00a0closing of the fiscal year.
\n(b) In regard to the appointed representative: personal information; registered address; term of representation
\n(if any); any limitation or restrictions in terms of his\/her authority and, if more than one representative,\u00a0the capacity in which each one of them will act.
\n(c) In regard to the HO: the information required in section 10 of Law 19550 about the company\u2019s certificates\u00a0of formation or incorporation, as the case may be, and any amendments.
\n5\u2014 A document signed by the representative, certified by a notary public or personally ratified prior to\u00a0registration, or certified by the corresponding association, as applicable, if the representative is a lawyer\u00a0or accountant, in which the representative must:
\n(a) Accept his\/her appointment and provide his\/her personal information;
\n(b) Establish the principal place of business in Argentina, if so authorized.
\n(c) Establish his\/her registered address within the relevant jurisdiction.
\n6\u2014 Proof of payment of the registration fee.<\/p>\n

Creation of a new company or acquisition of ownership interests in an existing one<\/strong>
\nThe Business Associations Law (No. 19550) establishes a wide range of business association forms. The forms\u00a0most widely used by foreign investors are corporations (sociedades an\u00f3nimas or SAs as regulated under Argentine\u00a0law) and limited liability companies (sociedades de responsabilidad limitada or SRLs as regulated under Argentine\u00a0law). In these cases, unlike branch offices, liability is limited to the amount invested in the business.
\nUnlike local companies, before foreign companies can set up a company or acquire ownership interests in an\u00a0existing one, they must submit proof of their formation or incorporation in their countries of origin to the\u00a0Registry of Companies. They must also file their articles of formation or incorporation, bylaws, their amendments\u00a0and any other document relating to their legal representatives that may be required to do business.<\/p>\n

CORPORATION<\/strong>
\nA corporation (sociedad an\u00f3nima or SA in Spanish) has a legal existence separate and distinct from its\u00a0owners. Its shareholders are limited in liability in terms of the amount they have invested in the corporation.
\nAt least two shareholders are required to form a corporation. Ownership interests are represented by shares\u00a0of stock, which may or may not be offered to the public.
\nThe operation of these companies is regulated by the corporate bylaws. The general business affairs of\u00a0the corporation are managed by a board of directors, which is made up of one or more members, who\u00a0may be shareholders or not. The majority of the board members must be Argentine residents. There are\u00a0no restrictions regarding shareholders\u2019 residency or nationality; however, if the shareholder is a foreign\u00a0commercial company, it should register first with the Registry of Companies.
\nThe board members are jointly and severally liable, without limitations, to the company, its shareholders\u00a0and third parties for poor performance; breaking the law and\/or bylaws; and any other damage arising from\u00a0fraud, acting ultra vires (beyond the scope of their authorities) and gross negligence.
\nCorporations must be incorporated through a notarially recorded instrument. In the City of Buenos Aires\u00a0they must be registered with the Superintendence of Corporations (IGJ for its acronym in Spanish). Since\u00a0October 2012, the minimum amount of capital required to establish a corporation is AR$ 100,000 (Decree\u00a0No. 1331\/2012, amending section 186 of Law No. 19550).
\nIn Argentina, corporations are subject to internal and external audits. External audits are undertaken by the\u00a0company\u2019s authority for the relevant jurisdiction. There are also regulatory organizations to review specific activities.
\nFor example, listed corporations are controlled by the National Securities Commission (CNV for its acronym in\u00a0Spanish), financial institutions are controlled by the Central Bank of Argentina (BCRA for its acronym in Spanish);\u00a0and insurance companies are controlled by the Insurance Superintendence (SSN for its acronym in Spanish).
\nInternal audits are usually carried out by one or more company auditors who are appointed by the shareholders\u00a0at the annual meeting. Those companies not under the control of a governmental entity are not obliged to\u00a0appoint company auditors. The bylaws may also establish the creation of a surveillance committee, consisting\u00a0of 3-15 shareholders, to monitor corporate management.<\/p>\n

LIMITED LIABILITY COMPANY<\/strong>
\nWhile a limited liability company (sociedad de responsabilidad limitada or SRL as regulated by Argentine law)\u00a0shares many characteristics with an SA, there are important differences to highlight:
\n\u2014 An SRL must have at least two members and no more than 50;
\n\u2014 An SA cannot be a member;
\n\u2014 SRLs are not eligible to list on the stock exchange;
\n\u2014 A change in one of the members requires an amendment to the articles of formation;
\n3.1.2. \u2014<\/p>\n

CHAPTER 3\u2014 SETTING UP A BUSINESS IN ARGENTINA<\/strong>
\n\u2014 The steps to establish an SRL are simpler than an SA; and
\n\u2014 The bylaws are more flexible than an SA.
\nOwnership interests are represented by membership units (cuotas under Argentine law). As with a corporation,\u00a0the members\u2019 liability is limited to the number of units to which they subscribe. A member may acquire\u00a0one or more units. There are no statutory restrictions on the transfer of units, but the bylaws may contain\u00a0imposed by law, although they may be imposed by the bylaws.
\nAn SRL is administered and represented by one or more managers, who may or may not be members.
\nThe managers\u2019 liability may be several, but not joint, or joint and several, depending on the management\u2019s\u00a0organization and the provisions of the bylaws or articles of formation.
\nAn SRL may be created through either a public deed (i.e., certified by a notary) or private (i.e., contract)\u00a0instrument which must be filed with the Registry of Companies corresponding to its domicile.
\nNo minimum capital is required, but the capital should be in line with the company\u2019s purpose.<\/p>\n

COMMON ASPECTS ABOUT REGISTERING A COMPANY IN ARGENTINA<\/strong>
\nIn Argentina, commercial companies register with the Registry of Companies corresponding to their domicile\u00a0or jurisdiction. The government body that regulates the business associations and branch offices in the City\u00a0of Buenos Aires is the IGJ.
\nThe process for registering a company with the IGJ includes the option for a \u201cfast track\u201d formation process,\u00a0allowing registration on the same day that the documentation is filed, along with the payment of an\u00a0administrative fee of AR$ 1,000. If the applicant elects to follow the ordinary process, registration takes\u00a0around 30 days. In either case, the following requirements must be met:
\n1\u2014 Application for reservation of a name
\nA name is reserved by completing Form \u201cB,\u201d which can be downloaded from the IGJ website. The applicant\u00a0will be given three options when he\/she clicks on \u201cFormularios de presentaci\u00f3n de tr\u00e1mites.\u201d The applicant\u00a0must complete all the information required, print out the form and pay the relevant fee. The form must\u00a0be submitted to the IGJ\u2019s Dispatch and Distribution Desk. The name will be reserved for 30 days, which\u00a0means that, during that period, nobody else can make use of it.
\n2\u2014 Submission of the organization, incorporation and changes form (Form \u201cH\u201d)
\nThe applicant must submit \u201cForm H,\u201d along with the following documentation:
\n(a) A professional prequalification report issued by a notary public or lawyer, as appropriate. The signatures of\u00a0said professionals must bear the certification of the corresponding professional association, as applicable.
\nThis report must include the professional\u2019s opinion on quorum and majorities, as well as on the company\u2019s\u00a0head office and good standing. Furthermore, prequalification report from a certified accountant is required\u00a0if capital contributions are made in any form other than cash.
\n(b) A non-certified and a notarized copy of the articles of organization, formation or incorporation, as the case\u00a0may be. All signatures on such documents must be certified by a notary public, or ratified before the IGJ.
\n(c) An instrument certifying the location of the company\u2019s head office if the head office location is not stated\u00a0in the articles of formation or incorporation.
\n(d) A non-certified copy and a notarized copy of a document certifying the acceptance by the members\u00a0of the company\u2019s managing and surveillance bodies if their signatures do not appear in the articles of\u00a0formation or incorporation.
\n(e) Evidence of the posting of a bond by the regular directors or managers, as the case may be. A copy of\u00a0the policy signed by the attorney or notary public if the company has taken out surety insurance.<\/p>\n

DOING BUSINESS IN ARGENTINA \u2014 AN INVESTOR\u2019S GUIDE<\/strong>
\n3\u2014 Payment of the incorporation or formation fee and proof of payment. These fees must be paid at the\u00a0National Bank of Argentina (BNA for its acronym in Spanish).
\n4\u2014 Publication of a notice and submission of the proof of publication (original or certified copy).
\nSection 10(a) of the Business Associations Law establishes that limited liability companies and corporations\u00a0must make a one-day publication in the official gazette.
\nThe notice must contain the following information:
\n\u2014 Name, age, marital status, nationality, occupation, address and ID number for the SRL members or\u00a0shareholders;
\n\u2014 Date of the articles of formation or incorporation;
\n\u2014 Company name;
\n\u2014 Purpose;
\n\u2014 Term;
\n\u2014 Capital;
\n\u2014 Members of the managing and surveillance bodies, including their names and respective term of office,\u00a0where relevant;
\n\u2014 Legal representatives;
\n\u2014 Date of closing of the fiscal year.
\n5\u2014 Make an initial deposit of 25% of the capital with the BNA. The deposit may be done at the time of
\nregistration.
\nProof of the contributions must be presented by submitting the original deposit slip, in the case of cash
\ncontributions, of any other relevant documentation, in the case of non-cash contributions<\/p>\n<\/div>\n

<\/div>\n
FOREIGN COMPANIES WITH OWNERSHIP INTERESTS IN AN ARGENTINE COMPANY
\n<\/b>A foreign company that wishes to purchase ownership interests in a new or existing company must
\nalso meet the requirements mentioned above, but first register the company with the Registry of
\nCompanies. This procedure involves the following steps:
\n\u2014 Prove that it has been formed or incorporated in accordance with the laws in force in its home
\ncountry.
\n\u2014 File the company\u2019s original articles of formation or incorporation, their amendments and any
\nother qualifying documents, amendments and documents related to its legal representatives with
\nthe relevant Registry of Companies (if a corporation, these documents must also be filed with the
\nRegistry of Corporations).
\n\u2014 Submit the resolution whereby it was decided to register the foreign company in Argentina in order
\nto establish the local company or purchase ownership interest in a local company, which must include
\nthe closing date of the fiscal year, the principal place of business in Argentina and the designated
\nlegal representative.
\n\u2014 Notify the existence of any legal prohibition or restriction in the company\u2019s home country to carry
\nout any of its activities, demonstrated by the company\u2019s articles of formation or incorporation and
\ntheir amendments, if any.
\n\u2014 Provide evidence that the company meets at least one of the following requirements outside
\nArgentina on the date of application for registration:
\n\u2014 Existence of one or more branches or representative offices, proven by the relevant good standing
\ncertificates issued by the appropriate authorities in their respective locations.<\/p>\n
<\/div>\n
CHAPTER 3\u2014 SETTING UP A BUSINESS IN ARGENTINA
\n<\/b>\u2014 Ownership interests in other companies consisting of non-current assets, as defined by generally
\naccepted accounting principles.
\n\u2014 Ownership of fixed assets in its home country; the existence and value of which must be evidenced
\nas defined in generally accepted accounting principles.
\nThe last two requirements must be evidenced by the company\u2019s financial statements and\/or certificates
\nsigned by its officers, as taken from the records on the company\u2019s books.
\n\u2014 Individualize the partners, members or shareholders at the time of the application.<\/div>\n
DOCUMENTS ISSUED ABROAD
\n<\/b>Documents issued abroad must be filed according to the requirements established by the legislation in
\nforce in the country of issuance, certified by the respective Argentine Consulate with jurisdiction over
\nthe company\u2019s place of origin, or bear The Hague Convention Apostille, if applicable. The documents
\nmust be filed along with their Spanish translation done by a sworn translator licensed in Argentina
\nwhose signature must be certified by the professional translators association.
\nAll documents issued abroad may be registered by an Argentine notary public, along with the
\ncorresponding sworn translation into Spanish.
\nIf a foreign company wishes to participate indirectly in a local company through an investment vehicle,
\nit must meet all the requirements mentioned above, submitting all the information regarding the
\ncompany controlling that vehicle as well.<\/div>\n
<\/div>\n
\n

The proven Buenos Aires \u2013 Argentina lawyer professionals at the\u00a0Kier Joffe law firm<\/a>\u00a0have experience working with foreign clients involved in all kind of cases\u00a0in Argentina.\u00a0Buenos Aires Argentina attorney<\/a>\u00a0professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires \u00a0lawyer in Argentina.<\/p>\n

www.kierjoffe.com<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Establishing a company Investors have three options for setting up a business in Argentina: establish a foreign branch office; acquire ownership interests in an existing company; or create a new company. The main characteristics, requirements and implications of the different legal structures available to companies\u00a0in…<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[12,30,7,11,51,52,8,9,6,10],"class_list":["post-269","post","type-post","status-publish","format-standard","hentry","category-english","tag-argentina","tag-argentine","tag-attorney","tag-buenos-aires","tag-doing-business","tag-establishing-a-company","tag-law-firm","tag-law-office","tag-lawyer","tag-legal"],"yoast_head":"\nSetting up a business in Argentina - How to do business in Argentina - News and Articles<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.kierjoffe.com\/news\/lawyer-argentina-attorney-buenos-aires-law-firm\/setting-up-a-business-in-argentina-how-to-do-business-in-argentina\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Setting up a business in Argentina - How to do business in Argentina - News and Articles\" \/>\n<meta property=\"og:description\" content=\"Establishing a company Investors have three options for setting up a business in Argentina: establish a foreign branch office; acquire ownership interests in an existing company; or create a new company. 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