Economic Opportunities with a Simplified Share Company in Argentina
Just recently, Argentina enacted the Venture Capital Act, known as Law No. 27.349. This aims to promote further entrepreneurial activity in the nation and its international expansion. It also governs the country’s systematized collection of commercial capital. As a result, such law created the Simplified Share Company in Argentina, also known as Sociedades por Acciones Simplificadas (SAS).
The Argentine government executes a strategic turn of the nation towards globalization with SAS. In a nutshell, it revamps the Argentinian business structure by inviting more foreign, SME’s, investors and entrepreneurs to invest or do business in the nation.
According to analysts, having a simplified share company in Argentina has various advantages and benefits. It may possibly result in various political and economic reforms as well, making this progressive nation more financially viable.
Simplified Share Company in Argentina: An Overview
A simplified share company takes away all the backlog which are innately present in a traditional corporate structure. Take the incorporation process for instance. With SAS, a legal entity will undergo the procedure in a shorter time, usually in 24 to 48 hours. The completion can proceed with either a notarial deed, a private document or with digital measures. This enables companies to open a bank account and obtain a Tax ID in a more time-efficient manner.
Typically, a simplified share company in Argentina has a minimum corporate capital equivalent to two days’ worth of minimum wages. Shareholders may also keep contributions for future issuance of shares for a term of 24 months upon receipt.
Conforming to its simplification process, SAS supports electronic recording of corporate and accounting books. Therefore, financial records may be kept in a webpage for safekeeping. Similarly, the system allows granting of powers of attorney through electronic means.
To enjoy tax benefits, a legal entity must register with the Entrepreneurial Capital Entities Registry. Meanwhile, the creation of Development of Entrepreneurial Capital Fiduciary Fund encourages private companies to invest with the government in any business.
There are also plans of adding crowdfunding digital platforms which distribute more funds to entrepreneurs. The Securities and Exchange Commission of Argentina (Comisión Nacional de Valores) shall regulate these platforms, but it’s still something businesses can look forward to.
Other Company Types vs Simplified Share Company in Argentina
Before the implementation of Simplified Share Company in Argentina, there were only two company categories. These are Public Limited Company (PLC) for bigger businesses, and the Limited Liability Company (LLC) for smaller ones. There were attempts to add a third category, the Unipersonal Corporation (Sociedad Anonima Unipersonal). Unfortunately, it did not benefit entrepreneurs or SMEs that much.
SAS works really well as it revamps the fundamentals of corporate design itself. Both PUC and LLC require virtually a month of incorporation, but a Simplified Share Company in Argentina undergoes only a 24-hour period. In addition, the resulting act of approval will already cover a bank account and a CUIT (Unique Tax Identification Code). These basic requirements enable you to set off any business in the country immediately.
As stated earlier, SAS requires a minimum capital of no less than two days of minimum wages. Presently, the value is 16,020 Argentine pesos (8,060 x 2) or about USD $1000. Further, this capital will comprise of shares and transmission facilities. With SAS, you may even create diverse types of shares or values. This grants anyone the opportunity of partnering with one or more businesses. That benefit alone circumvents the punitive requirements of the Unipersonal Corporation (SAU).
Administrative Advantages of SAS
A Simplified Share Company in Argentina has administrative advantages as well. For one, it facilitates organization more effectively than PUCs and LLCs. The SAS system clearly dictates that partners are free to determine the structure of the company and other rules governing internal business operations. Other company categories rely on having strict management or directory obligations which can sometimes be inflexible.
The SAS takes away the conventional rule of changing the management body every three fiscal years. Also, financial statements no longer need to be registered yearly with the Legal Inspection Department. However, only natural persons should be part of the administrative body ruling out in this sense other legal or corporate entities.
Launch a Simplified Share Company in Argentina Successfully
The application of SAS as a corporate structure brings a breath of fresh air to the Argentine economy. Of course, there are still difficulties you need to face in practice, but those are easier to tackle now thanks to SAS’ simplification process.
A kick in the right direction will lead you towards the promotion and facilitation of your business and investment in Argentina. If you are from abroad and want to open a company in Argentina, the SAS would definitely be the most appropriate for you.
If you are still pondering on how to start from scratch, you could reach out to a local service company or consultant to help you out. Regardless of what your business endeavors are, there are plenty of reasons and opportunities for starting anew in Argentina. Capitalize on this country’s progressive FDI (foreign direct investment) growth now. It is recommended that you get a local administrative services company to help you get started.