You might need to consider many aspects when growing your business in a new country. How will you set up an Argentina subsidiary? What are Argentina’s subsidiary laws? Before you jump into setting up a subsidiary on your own, here are few things you need to know.
How to set up an Argentina subsidiary
Argentina could be an excellent place for international investors because of the large number of skilled employees and potential commercial partnerships with neighboring countries. Argentina’s laws are generally welcoming to global investors, as there are less restrictions than in other countries, and international investors get similar treatment as domestic companies.
Before you start to set up your Argentina subsidiary, you should ask the following:
- What industry or type of company do you want to open?
- What is the location of the headquarters and the nationality of individuals involved?
- Do you have any existing relationships or trade agreements?
- Where will your subsidiary be located? Different cities and regions can operate under separate laws and costs.
- What language will you use for day-to-day operations and written documents?
Probably the most popular choice of entity is to operate under a limited liability company with either individuals or companies as members. The process to open a subsidiary in Argentina that is a limited liability company could take months. A variety of steps are involved, including:
- Verifying the company name with the Office of Corporations.
- Obtaining the signatures of all founding members certified by a notary public.
- Depositing initial capital at the National Bank.
- Publishing a notice in the official paper.
- Paying the incorporation fee.
Those steps are only the beginning. Argentina subsidiary setup also involves registering with the Public Register of Commerce, as well as getting company books, a fiscal code, and a tax identification number. Each step includes more time and, in some cases, money.
Argentina subsidiary laws
Overall, Argentina has strict labor laws and strong employee protections, but it is also a desirable business location because of its commercial partnerships with neighboring countries. The country itself has no legislation on global investments, but it’s critical to check local laws wherever your Argentina subsidiary is set up. The requirements, as well as costs and availability, can change depending on what region you are in.
If you open a limited liability company, Argentina subsidiary law states you must have 2 members. They can reside in Argentina or another country. Each member’s liability is limited to the capital they invest. Argentina has no minimum capital requirements, and the limited liability company can be 100% owned by international members. An Argentina limited liability company also requires a manager or board of managers. As the majority of the board of managers must be composed of Argentine residents, you might need a local person to act as a manager.
Benefits of setting up an Argentina subsidiary
One significant benefit of an Argentina subsidiary is the limited liability between the subsidiary and the parent company. You can use a subsidiary as a liability shield to prevent any losses to your parent company arising from the Argentina subsidiary and its operations. You may also set up your Argentina subsidiary to operate separately from the parent company with different management to accommodate a different company culture or incentive structure.
The Argentina subsidiary setup process might be lengthy and expensive. It could take months before you are ready to hire employees. Let G-P take the lead instead. We help companies hire anyone, anywhere, in minutes instead of months – in full compliance with local labor laws.
Other important considerations
If you’re getting ready to open a subsidiary in Argentina on your own, you might need a vast knowledge of the country’s subsidiary laws. If you end up being noncompliant, you could face hefty fines or even a complete shutdown of your Argentina company.
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