Argentina

About the Country

Argentina is the 8th largest country in the world by land area and Latin America’s 3rd largest economy. It is characterized to have, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Your Global PRO can assist you in taking advantage of the exciting opportunity in the jurisdiction by incorporating a company and bank account opening for your business expansion plan in Argentina. The below content will explain you in detail about the requirements for the company formation in Argentina, know more about the process of trademark registration in Argentina and understand the Argentina Legal and Compliance requirements.

Argentina

Doing Business Introduction

As per World Bank Report Argentina Ranks as per survey DB2017 is having ranking 116. YourGlobalPro professionals are able to assist with any type of company formation in Argentina, trademark registration in Argentina and other recurring services for your business in Argentina.

The Argentine Government, through its International Trade Under-Secretariat, promotes and co-ordinates foreign investment opportunities in the Country. This Under-Secretariat identifies and assists potential foreign investors interested in developing new productive activities in Argentina or in expanding and improving existing activities, by introducing a series of regulations available to both domestic and foreign investors designed to promote investment.

Incorporation - Types of Business Entities

The types of company types available to be set up in Argentina are as under:

  • Sociedad Annima (SA): It is the equivalent of the British Private Company Limited by Shares
  • Sociedad de Responsabilidad Limitada (SRL): It is a Private Company Limited by Guarantee
  • Sociedad en Comandita Simple (SCS): It is a partnership limited by guarantee
  • Sociedad en Comandita por Acciones (SCA): It is a partnership limited by shares
  • Sociedad en Nombre Colectivo (SNC): In this type of entity all the members share risks and capitals on unlimited basis
  • Partnership in which one of the partners provides the capital and the other the services
  • Branch office of a foreign corporation

Time Frame for the Company formation in Poland varies from depending on the type of entity selected. Each business type has its own advantages and disadvantages.

Benefits of Registration of a Company

Tax Registration and Filing

Tax rates applicable to taxpayers residing in Argentina are as follows:

Corporate Income Tax Rate 35%
Tax on Minimum Notional Income The rate is 1% on the value of fixed and current assets.
Value Added Tax (VAT) 21% on products and services and on imports of goods and services.
Turnover Tax Each of the 24 jurisdictions into which Argentina is divided imposes a tax on gross revenues from the sale of goods and services.
Wealth Tax It is 0.5% on the value of the shares as of December 31, of each year, based on the Financial Statements of the respective fiscal year. Payable by Argentine companies on all shares issued by them and owned either by individuals, regardless of residence, or by companies residing abroad.
Excise Taxes A wide variety of items, such as automotive and diesel motors, tobacco, alcoholic beverages etc. are taxed at varying rates.
Tax on credits and debits on bank accounts This tax is levied at a rate of 0.6% on the amounts credited to or debited from the taxpayeru2019s bank accounts
Import & Export Duties The levels of import duties currently range between 0% and 35%, except in cases where specific minimum duty is applied
Social Security Taxes The total employee social tax rate is 17% which consists of contributions of 11% to the pension fund, 3% to social health and 3% to social services. The total employer contribution is 27% for companies whose main activity consists of rendering services or commerce, and 23% for all other companies.

Double Tax Treaty

Argentina has in effect 18 treaties with a number of countries to avoid double international taxation and thus promote reciprocal investment and trade. Below is the list of Countries in which an investor would be more interested: Germany, Canada, Finland, France, Italy, Sweden, Bolivia, Brazil, United Kingdom, Belgium, Australia, The Netherlands, Denmark, Norway, Uruguay, Spain, Russian Federation, Switzerland.

Trademark registration

YourGlobalPro can assist you in Trademark Registration in this country.

Secretarial Compliance

YourGlobalPro can assist you in Secretarial Services in this country.

Accounting Services

Auditing service

Banking

In Argentina bank accounts, can be opened in Argentina pesos (AR$) and in US Dollars (US$). The costs of these accounts usually vary. Another distinction is opening a savings account and current (US: checking) account.

There are no specific guidelines for bank account opening in Argentina. All the Bank follows have their own guidelines and KYC requirement that need to be complied for the account opening. YourGlobalPro can assist and co-ordinate on your behalf for the account opening.

YourGlobalPro professionals can facilitate all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Argentina.

Legal and Compliance

In Argentina, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Argentina legal and compliance requirement to be followed by incorporated entities:

  • All companies located in Argentina, regardless of their legal form and size, are required to keep an analytical accounting system for their operations and to issue annual financial statements.
  • All companies shall file annual financial statements, covering 12 months of activity. These consolidated financial statements disclose the cash and financial position of the group of companies, excluding transactions among each other.
  • Companies must take prior authorization from the Central Bank for repatriation of all amounts of profits;

YourGlobalPro professionals can assist you on Argentina Legal and compliance requirements.

HR and Employment Law and Immigration / VISA

The payroll employment system, governed by Law No. 20744, is mainly based on an employment contract for an indefinite period of time (from the date when the worker joins the company until he/she qualifies for retirement benefits).

  • The basic rules of employment are laid down by labor laws and those establishing the rights and duties of the parties.
  • Depending on their duties and roles, people joining the company may be covered by a labor union (unionized staff) or not.
  • There is a regular 8-hour workday and working time may not exceed 9 hours a day or 48 hours per week.
  • The maximum overtime worked may be 3 hours a day, 30 hours per month or 200 hours per year.
  • Overtime is paid with a 50% surcharge over the hourly rate, except overtime worked on Saturdays after 1 pm, Sundays or holidays, which has a 100% surcharge
  • Overtime worked within the 48-hours-per-week limit shall be paid at the regular hourly rate.

Any Foreign person wishing to reside and work in Argentina must obtain a residence permit from the Argentine Immigration Board. There are two categories of resident: Permanent Resident and Temporary resident. The prescribed process needs to be followed for obtaining the same.

Country Statistics

Capital and Largest City Buenos Aires
Area 2,780,400 Sq. Km.
Population 43.4 Million
Currency Peso ($) (ARS)
Government Federal Presidential Constitutional Republic
Official Language Spanish
Regional Languages Guaranu00ed in Corrientes, Qom, Mocovu00ed and Wichi in Chac
Religion 74% Catholicism, 15% Non-religious, 8% Protestant, 2% Other, 1% Islam
Business Offices Hours 9 am to 6 pm
Banks and Exchange Houses Hours Monday to Friday, from 10 am to 3 pm

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