6 Tested Steps Every Startup Should Know for a Successful Company Formation in Argentina
Considered as an emerging market in Latin America, Argentina is a growing country which has opened its doors to entrepreneurial opportunities in various industries. Infrastructures are rising, and businesses are booming – making company formation in Argentina quite complex. The whole process comprises a series of actions, which can make new entrepreneurs unfamiliar to the market get lost in it.
To avoid unnecessary problems and confusion, we have prepared 6 tested steps for you to utilize in achieving a successful, and hassle-free company formation in Argentina.
Secure a Company Registration
As a starting point, your company must be registered before Argentina’s Public Registry of Commerce. Applications must be done personally, because the system fully requires physical appearance under the respective jurisdiction of the Public Registry.
However, in 2017, Argentina has allowed a new type of company to penetrate its market. Called SAS, or Simplified Share Company, this kind allows registrations through an online system. A company administrator must be, beforehand, registered as an AFIP Relationship Administrator, which grants access to required appearances through the system. This can now be done without personal processing in the Registry. The two forerunners of business types, however, are not included in this online system. Those processing for a new company formation in Argentina which are classified as PLC, or Public Limited Company, and LLC, or Limited Liability Company, still require the former process of personal applications.
Reserve a Company Corporate Name
Even before the actual registration and the incorporation of the company, it is best to search and know whether the desired business name is already in the market. The Public Registry makes this available online, and it is easily accessible via their website.
You will be required to submit three names, to ensure that the Public Registry will be able to process your reservation. The overall procedure has a charge of AR$360, with online and personal options for transactions. The reservation lasts for 30 consecutive days.
Define the Company Legal Structure
For a successful company formation in Argentina, it is a must that the business system and structures be defined. The shareholders for a corporation may be an Argentinian national, or a foreigner – as long as they are registered in the country. Because of SAS, policies in the country have recently changed as well, with the required minimum shareholders down to 1, compared to the previous requisite of two.
In terms of the mandatory capital needed for business operation, you will be compelled to deposit a minimum of 25% of the shared capital to a national Argentinian bank, and to submit the proof of payment. The remaining percentage must be deposited and completed within the next two years.
Have Legal Company Representation
Company formation in Argentina will not be complete without the presence of a legal representative. Depending on the company type, a legal representative must be a physical person with local or foreign origin. The representative may be the manager, the owner, or an assigned person altogether.
Construct an Internal System
The organization chart of the company must also be well-defined and specified upon incorporation. This is for operations to be easily trackable and understandable to the Registry, and to the corporation itself.
Get a Corporate Lawyer
Hiring a corporate lawyer is one of the safest and reassured way for a successful company formation in Argentina. Having a professional guide you and the company in all the corporate know-hows gives confidence and complacency in the settlement of the business. All policies and legalities can be simplified and clarified. Should there be appearances required in the incorporation, the corporate lawyer may also stand in your place. The lawyer can be entrusted to handle all involved processes in the company’s formation.
Starting a Company in Argentina
Interested in starting a business and forming a company in Argentina? This guide gives you the general background that you can begin with in the most convenient way possible.