The main business entities are a corporation (SA), a limited liability company (SRL) and a branch of a foreign company. Enterprises can also be created as a single-owner corporation, sole proprietorship, partnership, general partnership, simplified joint-stock corporation, joint venture, collaborating group, consortium partnership agreement or cooperative. Argentina, as a rule, does not recognize representation. SA is the facility most commonly used by enterprises.

The procedure for creating a new company is simple. The company name is first checked by the Corporate Governance Office to ensure that no other company has the same name. This includes sending a simple form with the name of the company and the type of organization. Registration occurs when a new company submits its notarized contract along with the rest of the documentation required by the Office of Corporations.

Foreign companies interested in registering local companies or having interests in local companies must be registered with the appropriate Corporate Office. A foreign company doing business in Argentina must present its balance sheet to the government and show the assets that it has in each country in which the company operates. In addition, foreign companies must submit a sworn statement to the corporate superintendent regarding the existence (or absence of existence) of the beneficial owner (that is, a person who owns at least 20% of the company's capital or voting rights, or otherwise exercises final control, directly or indirectly, over company or other legal entity).

At least two shareholders who may be legal entities or individuals. The minimum capital is 100,000 ARS, approximately $ 6,600. Share capital must be paid in the amount of 25% at the time of registration, and the balance must be paid within two years. Contributions in the form of real estate, equipment or other non-monetary assets must be made in full at the time of registration.

Except in special cases provided for by law, there are no requirements for citizenship or residence permit. Foreign individuals, whether resident in Argentina or not, and foreign companies can own up to 100% of the capital.

Shares must have the same nominal value and have equal rights in one class. However, different classes of shares can be created. The transfer of shares, as a rule, is not limited, but restrictions may be included in by-laws, provided that they do not impede the transfer of shares.

Management - A board of directors elected at a meeting of shareholders controls SA.

The director, even the president of the company, may be foreigners. But most board members must be residents of Argentina.

Meetings of shareholders - a meeting of shareholders should be held at least once a year to review the annual financial statements, distribute the results of the financial year and appoint directors and official observers.

Shareholder decisions must be recorded in the appropriate minutes book.

SA must keep a register of shares, as well as books on attending meetings of shareholders and minutes of meetings of the board of directors and shareholders.

SAUs may consist of one shareholder - a resident or non-resident or legal entity. An SAU cannot be established by another SAU.

For a foreign legal entity to be the sole shareholder of SAU, it must be pre-registered in the State Register.

The minimum share capital of SAU is 100,000 ARS.

The SAS form was created to give more incentives to the Argentine economy and its investors. Among its advantages is the obligation to register SAS within 24 hours after filing the application. In addition, the final act of approval will contain a bank account and CUIT (unique tax identification code). These are two basic and fundamental requirements for organizing any business in the country, and they will be much faster to get compared to other forms.

The minimum capital cannot be less than the amount equivalent to double minimum wage. Currently, the cost is 16,020 Argentine pesos (8,060 x 2) - about $ 1,000.

At SRL, partners are the central figure of this type of company, and their number is limited. Art. 146 sets a minimum of 2 partners, and the maximum will not exceed 50.

In Argentina, the law does not establish a minimum capital for an LLC. Capital should be adequate to the activities that the company will carry out. 25% is paid at registration and the rest for 2 years.

Capital consists of contributions from all partners, divided into indivisible and funded parts.

Also, the object of a contribution to the capital can only be assets or property rights, which can be estimated economically, but in no case work or services. The shares are not equivalent to SA shares, as there are legal obstacles to their transfer. In addition, they will not have the nature of securities.

In Argentina, there is a limited exchange control regime in which funds must be transferred to and from the country in accordance with the rules of the central bank.

Prior authorization from the central bank is not required for goods, services, dividends and / or royalties paid to non-cooperating entities or jurisdictions (as defined in the income tax regulations), but specific documentation relating to payment may be submitted to the local financial institution transferring for taxation and anti-money laundering purposes.

Dividends received by an Argentine company from another Argentine company are exempt from income tax. Dividends received from a foreign company are subject to income tax, and the loan provided for the main corporate tax is paid on the profit from which the dividends are paid, as well as the loan on any income tax incurred on dividends.

Capital gains are usually included in taxable income and are subject to corporate income tax at the usual rate. The income from the sale of shares by an Argentinean enterprise is subject to income tax.

Profits earned by a non-resident from the sale of publicly traded shares or certificates of deposit for such securities (i.e. ADRs) are not payable. A 15% tax is applied to net profit arising from the indirect transfer of certain Argentine assets (shares of Argentine enterprises or Argentine PEs and other assets, such as real estate in Argentina), which are realized through the sale of shares or other participation to a non-resident person.

Tax incentives are available for certain activities, such as mining, forestry, software production, renewable energy, biotechnology, and biofuel production. In Tierra del Fuego, there is a duty-free zone with special incentives for certain activities carried out within the zone, such as exemption from corporate tax, property tax and excise tax. There are several free trade zones where goods, as a rule, are not subject to ordinary customs control and, as a rule, duties or taxes are not levied on goods imported into and exported from (exported from) a country.

The corporate income tax rate from January 1, 2020 is 25%.

Taxable operations - VAT is levied on all deliveries of goods or services within Argentina, unless otherwise agreed, as well as on the import of personal property and services rendered abroad, but economically used in Argentina. Starting February 1, 2018, the provision of digital content (i.e. music, video, etc.) by non-residents is subject to Argentinean VAT at the standard rate.

A taxable person is required to issue a VAT invoice for all taxable deliveries made; A VAT invoice is required if the taxpayer wishes to demand a deduction of input tax. Electronic billing is mandatory and there are no conditions for grouping VAT.

Foreign companies can invest in Argentina on a par with local firms without prior government approval. Foreign investors have the same rights and obligations as local investors, and can enter any area of economic activity without the participation of a local partner. Approval or special procedures are usually not required. However, if a foreign company’s investment consists of a block of shares in an Argentine company, the foreign company must be registered with the Office of Corporations in the jurisdiction in which the Argentine company is located. The government has also taken a tougher stance on some new foreign companies, for example, requiring such firms to provide the government with information about their shareholders.

Investments can be made in the form of fixed assets, intangible assets, foreign currency, profits from other investments and any other form accepted by the Argentine authorities.