Know and Understand the Various Legal Entity Structure of Argentina
Expanding a business in Argentina requires understanding of the different legal entity structures based on the business type. The following is a list of different legal entity structure of Argentina which will help you in selecting the right choice based on the business type and the purpose of business. Once the business has been successfully set up in Argentina, one can begin their business operation of Argentina.
Corporation – Sociedad Anonima (S.A)
This type of legal entity structure requires minimum two shareholders, irrespective of their residence, foreign or local. Corporation requires a minimum capital investment of AR$100. The board members of Corporation consists of directors, majority of whom stays in Argentina and are shareholders of the company so that they can assess the financial situation of their own company.
Limited Liability Company – Sociedad de Responsabilidad Limitada (SRL)
A SRL type of legal entity structure is formed from minimum two partners or maximum of 50 members. This type of company must be head by an administrative manager who shall be a resident of Argentina. The capital investment to carry our business operations must be divided into stocks. The annual reports of the business must be presented via the annual board meeting.
Simplified Shares Company – Sociedad por Accinoes Simplificadas (SAS)
This type of legal entity structure was formed in the year 2017 in order to ease the process of establishment of a legal entity in Argentina. The benefits of selecting this type of structure are as follows:
- Have 1 shareholder or legal person
- Requires very low capital investment
- This legal entity structure can be formed within 24 hours.
This legal entity structure has brought the interest of many foreign investors to Argentina over the last year. The investor friendly reforms of Argentina has allowed the foreigners to participate in Argentina business environment which is thus helping the economy of Argentina to grow.
Branch Office in Argentina
The foreign companies can set up their branch office in Argentina. To set up a branch office here, one must provide the proof of their business in overseas to the local authorities and other than this, the following are the conditions which must be met:
- The representative of the company must be appointed who shall be the resident of Argentina
- The business in the branch office must be carried out in partnership
- Have accounts in order and the annual accounting reports must be submitted to the respective authority
The foreign investment in Argentina has drastically helped the economy of the country to grow at a rapid rate. To set up a business in Argentina, the company must be legalized and the right legal entity structure must be selected which is a challenging task. Such challenges can be overcome by the help of a local partner based out in Argentina.