How and Why Set Up a Business in Argentina Today
Argentina is a country with a lot of potential and business opportunities because of the availability of the vast natural resources, educated workforce along with strong information technology infrastructure. Argentina has recently gained a lot of popularity worldwide because of its excellent marketing opportunities in legislative matters. Argentina has drafted a new legal law called “The Argentine Simplified Shares Company (S.A.S.) which has brought new investments from the foreign land. Check out this article to know how to set up a business in Argentina.
Many of the businessmen particularly the Australians are choosing Argentina to invest to make profitable business. The registration process of setting up a business in Argentina is easier. Let us know what makes Argentina a successful business spot:
1. Well educated local workers
The foremost point while setting up a business in an entirely new country is how is the workforce. Since, Argentina is a hub for businesses, the workforce is well educated with almost everyone fluent in English.
2. Trading Systems of Argentina
Since many foreigners invest in the land of Argentina, there must be a fair-trade practice of Argentina. Argentina is a member of MERCOSUR which makes it accessible to a few countries of Latin America, hence it has become a business hub in the Latin America. Along with trade practice benefits, Argentina has two important tax exempting zones which makes business more profitable here.
3. Foreign Investment Policies
Argentina has got fanatic foreign investment policies and they have the same legal agreements which they have for the domestic business companies. The government of Argentina has many incentives which aim at promoting the direct foreign investment in their country. One such important implementation policy is “Agencia Argentina de Inversiones y Comercia Internacional”.
4. Growth of Argentina’s economy
Since Argentina has a vast natural resources spread throughout its region, the potential of their economy is stronger than any other region as Argentina is the top leading producer of agricultural products, large deposits of shale gas and oil, reservoirs of lithium, gold, silver and copper.
Registering a Business in Argentina
Before setting up a business in Argentina, it is important that one must consult with a local expert who can rightly guide about the type of business which will reap maximum benefits. Since, every business have their own requirement and needs, one needs to be sure about them before classifying the type of their business.
The initial steps of registering a business in Argentina are:
- Make a registry before the Public Registrar.
- Submission of all the legal documents related to the business that will be set up in Argentina
- Depositing 25% of capital in the National Bank of Argentina
- Send a notice to the Legal Office Gazette regarding the business set up in Argentina
- Pay the complete Public Registration fee
After the company has been successfully registered, one must immediately collect the company book and should obtain a CUIT number which is Tax Identification Number.
Argentina’s Simplified Shares Company is the most important legal entity in Argentina and before setting up a S.A.S company in Argentina, following points must be considered:
1. Make public registration
\A S.A.S can be set up by one shareholder and he must register his business in Public Register Office.
2. Name of the business
It is important that the business must include S.A.S or ‘Sociedad por Acciones Simplificadas’.
3. Nature of the business
The nature of the business must be clearly defined as to what will the business to, the purpose behind doing this business and the business activities that it will undertake. However, according to Argentina’s government policy, a S.A.S company cannot practice the following:
- Listing on stock market
- Operate public utilities
- Operating loans
- Saving the capital invested
4. Capital of the company
The minimum requirement of having an initial capital of a S.A.S company is that it must bear two monthly salaries which is equivalent to AR$16,120 on a bare minimum basis.
5. Governing the corporate
Legally, Argentina have entitled S.A.S partners to govern the corporate body of a company.
6. Documents and book keeping
The important documents of a S.A.S company and the accounting books can be maintained electronically.
With all these details available, it is however challenging to set up a new business in an entirely new country. Although, Argentina is full of business opportunities due to the availability of the vast resources found in the region, local expert’s advice can be beneficial before setting up the business here. Local experts can help you in deciding the right kind of business with the right purpose to make the right profits from this land which is full of potential!