Check Out These Useful Tips in Setting Up a Branch Company in Argentina
Argentina’s economy is continuously growing and thus it is integrating into the global market. Argentina has wide natural resources of energy which gives excellent business opportunities in the manufacturing and innovative services. Thus, foreigners are looking to invest in Argentina to set up their companies.
One need not necessarily set up a parent company in Argentina, they can establish branch of a foreign company to make business based out of Argentina.
A branch office is an affiliated part of the parent company located in a new area or region to run a business. The head office takes all the responsibilities of the legal matters. Although, the branch offices have their own responsibility in maintaining its own capital, legal representatives and their shareholders.The branch office that will open in Argentina will have to be registered in the Ministry of Registry and the total cost of setting up a branch office is estimated around USD 500.
Documentation of setting up a branch office
Registering a branch office in Argentina requires some documentation work which are as follows:
Qualification Report of the Company
A qualification report is the documentation where the location of the company is mentioned, legal laws regarding the company’s management system and a qualifying certificate or statement from the legal representatives who are a member of BAR associations along with the company’s book. This qualification report is issued by a lawyer who is certified by the BAR association or Argentine Notaries Public.
Proof of Documentation
The company must have the following of documentation:
- The article of formation or incorporation according to the laws
- A certificate issued from the home country about the goodness and the authorization to make business in a new country
- Documentation for the location of the parent company, the capital invested in the branch and the legal representative that has been appointed in the branch office.
Official journal notice
This documentation must include all the personal information of the legal representative, the term of service and his residential address. The notice in the Official Gazette journal should also include the location of the head office, the capital invested in the branch office.
Documents signed by representative
Usually the documents of the company are certified by an authorized association and the representatives of the branch company are either an accountant or a lawyer who takes the responsibility of finding a suitable place to do the business in Argentina and to establish the company’s address within the jurisdiction.
Proof of paid registration fees
The proof of registration fees must be disclosed so that the branch company can be set up in Argentina.
Any other documents
Some additional documents may be required by the company such as the company is not prevented from doing business in Argentina and the parent company is established out of Argentina.
Obtaining a Tax Number in Argentina
Clave Unica de Identificacion Tributaria (C.U.I.T) which means Unique Tributary Identification Code is the tax number which can be obtained through Administracion Federal de Ingresos Publicos (i.e. Federal Administration of Public Income) which the legal authority to give companies a unique tax code in Argentina. A local agent based out of Argentina will guide you the best to achieve a tax number. According to the taxation law of Argentina, every company must pay 45% of the income tax to the government and 25% VAT. The company’s account book must be presented to show the accountancy number. The branch company which is set up in Argentina pays an equal tax like any other company of Argentina.
Argentina is growing rapidly to become a competitive and a country with good education facilities so that it can foster it’s economy growth so that it can integrate itself in the global market. Argentina, a country of Latin America is going to grow at a faster rate in the coming years and thus setting up a branch company in Argentina can be fruitful.