Argentina is a South American country and is most famous for the game of football in general and Lionel Messi in particular. The country is a neighbor of Bolivia, Paraguay, Brazil, Chile, and Uruguay. The capital and largest city of Argentina is Buenos Aires.
Argentina is the world’s 8th largest country with a population of around 45 million people while the official language is Spanish. Argentina has natural wonders in the shape of grasslands, mountains, deserts, and waterfalls. The abundance of natural resources such as oil, gas, minerals, etc. propels Argentine’s economy. Cattle farming is also one of the key industries of the country (Argentina is one of the world’s largest producers of meat).
The culture and social fabric of Argentina are influenced by the European Colonization period, indigenous folklore, and African slave era.
Types of business structures in Argentina
Argentina has a booming economy where local and foreign investors alike are benefiting from stable policies and access to natural and human resources.
Here are the company structures permissible in the country.
| S# | Type of company | Local name | Min.required paid-up capital |
| 1. | Sole proprietorship | Empresa Unipersonal | No paid-up capital required |
| 2. | Partnership | Sociedad en Comandita Simple or SCS | No paid-up capital required |
| 3. | Limited Liability Company | Sociedad de Responsabilidad Limitada (SRL) | $100 |
| 4. | Public Limited Company | Sociedad Anónima or SA | $1,000 |
Sole Proprietary Company
A sole proprietary business is owned and managed by a single person. There are very few legal obligations in terms of structure and capital requirements.
Partnership
A partnership business is among two or more individuals sharing a common commercial interest. A partnership can be general, where all partners are equally obligated to compensate for losses and debts in a personal capacity. Or limited partnership, where a group of partners enjoys limited liability (to the extent of their share in the company).
Limited Liability Company
An LLC provides a legal cushion to the owners against debts, losses, and liabilities. The company is responsible to compensate for such events from the company’s assets. An LLC is a comparatively complex entity and is recognized as a legal person in the eyes of law.
Public Limited Company
In Argentina, a public limited company is called a Cooperative. Such a company enjoys the benefit of raising capital through the public by offering company shares. These shares are listed and traded in a stock market at a premium value, while the company benefits from the difference between the face value and the premium.
Cost of registering a company in Argentina
The cost of incorporating a company in Argentina varies depending on the location, size, and format of the business.
Here are some costs that may be budgeted beforehand:
Partnership (Legal and Accounting Fees
Hiring a lawyer and/or an accountant to guide you through the process of incorporating a company in Argentina is highly recommended. The cost of their services may vary depending on their experience and the complexity of the company’s structure. However, as a general estimate, expect to pay between $200 to $500 in legal and accounting fees.
Government Fees
To register a company in Argentina, you will need to pay government fees. The cost of these fees can vary depending on the type of company and the amount of share capital. As of 2023, the fees are:
SA or SAS
A fixed fee of approximately $106 plus 0.5% of the share capital.
SRL
A fixed fee of $53 plus 0.5% of the share capital.
Other Costs
There may be other costs associated with incorporating a company in Argentina, such as translation fees, notary fees, and other administrative expenses. These costs may vary depending on the specific circumstances of your company.
Overall, incorporating a company in Argentina can cost between $500 to $1,500, depending on the factors mentioned above.
Cost of doing business in Argentina
Once a business is registered, it is bound to incur expenses pertaining to operations, marketing, renewals, etc. While the numbers are influenced by the size and nature of a company, the nature of expenses remains the same.
Labor Costs
Argentina’s labor costs are generally lower compared to other countries in the region, such as Brazil or Chile. However, labor laws can be complex, and employers are required to pay additional benefits such as vacation pay, social security contributions, and mandatory annual bonuses. The minimum wage in Argentina as of 2023 is around ARS 30,000 per month (approximately USD 320).
Taxes
Argentina has a complex tax system, with multiple taxes and fees that vary depending on the type of business and industry. Some of the taxes include corporate income tax, value-added tax (VAT), and social security contributions. It’s recommended to consult with a tax professional to understand the tax obligations for your specific business.
Infrastructure costs
Argentina has a relatively developed infrastructure, with access to transportation, utilities, and communication systems. However, the cost of utilities such as electricity and gas can be high, and the quality of infrastructure can vary depending on the region.
Administrative Costs
There may be administrative costs associated with running a business in Argentina, such as legal and accounting fees, licensing fees, and compliance costs.
Overall, the cost of doing business in Argentina can be moderate compared to other countries in the region. However, it’s important to consider the specific factors and requirements for the targeted industry and opted business size.
Benefits of registering a company in Argentina
Argentina promises high-growth rates and returns for investors who enter the business scene to stay for a considerable time. Initially, it may take a while to navigate through the system, but once that period has passed, the company is most likely to flourish.
Some of the benefits of having a company in Argentina are listed here:
Credibility
Registering a company in Argentina can increase the credibility of your business. This is because registered companies are recognized as legitimate entities, which can help build trust with customers, suppliers, and investors.
Access to Financing
Registered companies in Argentina may have access to various financing options, such as bank loans or investment capital, which can help the business grow and expand.
Tax Benefits
Registered companies in Argentina may be eligible for certain tax benefits and incentives, depending on the industry and size of the company. This can help reduce the overall tax burden and increase profitability.
Limited Compliance
Registered companies in Argentina may have limited compliance requirements, which can help streamline operations and reduce administrative costs. For example, certain types of companies have simplified reporting requirements and are exempt from certain taxes.
