Argentina is ranked as the third largest economy in South America due to its natural resources and also to its agricultural export. Being a country with such a competitive and developed economy, many foreign investors choose to form a company in Argentina.

Our company formation agents can assist you with this process and provide you with further information. 
 

Important information to know about company formation in Argentina  
 

• the process of opening a company in Argentina can be completed in approximately 12 weeks, regardless of the company type selected for incorporation;
• the set up of a corporate bank account can take 8 weeks (having a corporate bank account is a mandatory requirement for all businesses, which is also necessary in offshore jurisdictions, where investors have to set up an offshore bank account);
• the minimum capital is of $300 for private limited liability companies and $7,500 for stock corporations;
• for a limited liability company, investors have to appoint 2 directors, while for a branch office, only 1 director is required;
• companies are liable to the payment of the corporate tax, which is charged at rates varying from 25% to 35%, as per the latest modifications of the tax laws, applied starting with 1st of January 2021. 

1. the standard VAT is of 21%, and it is charged for most of goods and services traded in this country;
2. a higher VAT, of 27%, is applied to companies involved in telecommunication, gas supply, etc.;
3. a reduced rate of 10.5% is applied to public transportation, taxi transportation, medical services, agricultural products, etc.;
4. a super reduced rate of 2.5% is available for digital magazines and newspapers;
5. exports from Argentina are charged with a VAT of 0%. 

Some of the business entities that foreign entrepreneurs usually choose to establish in Argentina are: the limited liability company (sociedad limitada), the foreign branch office (sucursal) and the stock corporation (sociedad anonima).

Here are the few requirements to be met when talking about setting up a limited liability company in Argentina:

Another thing you have to do is register the turnover tax at a level with other local taxes in Buenos Aires, with the Administración General de Ingresos Públicos (AGIP). After that you can also register with the Unified System for Labor Registration.

At the end of your process of opening a company in Argentina, you need to make sure that your employees have an insurance contract with a risk labor society.
 

The legislation in Argentina allows the registration of branch offices, which are structures that are fully dependent on their parent company. 

This structure allows foreign companies to expand on a new market by implementing the same business model, while maintaining the full responsibility on the company working abroad. 

The management decisions of the branch are also part of the responsibilities of the parent company. One of the advantages of this structure is given by the fact that it can be set up without a share capital. 

The legislation in Argentina allows for a branch office to be fully owned by the foreign company, unlike some countries which impose foreign companies to associate with local residents. 

Other than not being an independent structure, the branch office does not differ from other company types in terms of taxation, employment and other responsibilities it can have as a consequence of developing commercial activities in Argentina. 

This means that once the procedure for company formation in Argentina is completed, the branch will have to complete the same reporting procedures applicable to other business forms. 

A basic obligation of the branch office is to file tax returns in accordance with the tax law applied here. 

However, it is necessary to know that the single difference when it comes to taxation will be that the branch will be taxed only for the income generated from activities in Argentina, while for other companies, their global income will be calculated.