Overview of Argentina's investment environment
Argentina is Latin America's second-largest economy, boasting abundant natural resources, a highly skilled workforce, and well-developed infrastructure. As a member of the Southern Common Market (MERCOSUR), Argentina provides a key platform for foreign investors to enter the South American market. Despite facing economic challenges, Argentina still possesses significant potential in agriculture, energy, mining, and other sectors.
Key Benefits
- Rich in resources: A major exporter of agricultural products in the world, with abundant shale oil and gas resources
- Talent advantage: One of the countries with the highest education level in Latin America, with abundant technical talents
- Market potential: 45 million people, with a high proportion of middle class
- Regional Center: Member of Mercosur, radiating South American market
- Industrial foundation: The industrial system is relatively complete and the manufacturing foundation is good.
China-Argentina economic and trade relations
China is Argentina's second-largest trading partner and a significant source of investment. The two countries enjoy close cooperation in infrastructure, energy, agriculture, and other sectors. With the advancement of the Belt and Road Initiative, an increasing number of Chinese companies are choosing to invest in Argentina, particularly in strategic projects such as lithium mining, hydroelectric power plants, and railways.
Comparison of Company Types
Argentina offers a variety of corporate forms for foreign investors. The most common are the SA (stock corporation), the SRL (limited liability company), and branches of foreign companies:
| Compare Projects | Joint Stock Company (SA) | Limited Liability Company (SRL) | Branch | |
|---|---|---|---|---|
| Minimum number of shareholders | 2 people | 2-50 people | Not applicable (Headquarters) | |
| Minimum registered capital | 100,000 Argentine pesos | No minimum requirement | Assigned by the head office | |
| Management structure | Board of Directors (majority must be resident) | Manager Management | Legal representative | |
| Share transfer | Free transfer | Requires consent from other shareholders | not applicable | |
| Regulatory requirements | Stricter | Relatively simple | Same as SA | |
| Applicable situations | Large and medium-sized enterprises, eligible for listing | Small and medium-sized enterprises | Temporary Project |
Recommendations
For most Chinese investors, we recommend the SRL (Limited Liability Company) structure due to its relatively simple incorporation procedures and flexible management. For larger investment projects or businesses planning long-term development in Argentina, the SA (Stock Corporation) structure is a more suitable option, as it allows for raising capital through the issuance of shares.
Registration requirements
Basic Requirements
- Legal representative: must be at least 18 years old, have a CUIT number, and reside in Argentina
- Registered address: must have a physical office address in Argentina
- Shareholder requirements: natural persons or legal persons are both accepted, and there are no special restrictions for foreigners.
- Board requirements: The majority of the directors of the SA company must have permanent residence in Argentina
- Capital requirements: determined based on business scope and must match the business scale
Special Documents for Foreign Investors
Foreign shareholders need to prepare the following documents to establish an Argentine company:
- Shareholder identification (passport or company registration certificate)
- Power of attorney (strongly recommended)
- Draft Articles of Association
- Shareholder resolution (if the shareholder is a company)
- Proof of source of funds
- Investment plan description
Note: All foreign documents must be legalized and apostilled. A legal entity cannot serve as the legal representative of an Argentinian company; a natural person must be appointed.
Registration Process
Preliminary preparation (2-3 days)
Determine the company name, business scope, equity structure, and prepare required documents
Preparation of Articles of Association (3-5 days)
Lawyers drafting company charters in accordance with Argentinian law
Notarized signing (1-2 days)
Signing of company incorporation documents at a notary public
Registration with the Companies Registry (5-7 days)
Submit all documents and fees to the Companies Registry
Tax registration (3-5 days)
Obtain a CUIT tax number and register with the AFIP tax bureau
Obtain company books (2-3 days)
Purchase and register statutory company books
Time and cost
Registration Time
- SRL Limited Liability Company: 15-25 working days
- SA joint stock company: 20-30 working days
- Branches: 25-35 working days
Cost Structure
The registration fees for an Argentine company mainly include:
- Government fees: approximately US$1,000-2,000
- Notarization fee: approximately $800-1,500
- Company books: approximately $200-400
- Certified translation: approximately US$500-1,000 per copy
- Legal fees: Determined by scope of services and company type
Foreign Exchange Control Information
Argentina implements foreign exchange controls, requiring compliance with relevant regulations for capital inflows and outflows. We recommend thoroughly understanding foreign exchange policies and carefully planning your capital allocation before investing. Lawshi Lawyers can assist you with relevant foreign exchange procedures to ensure compliance.
Post-registration matters
After the company is successfully registered, the following important matters need to be completed:
1. Open a bank account
- Choosing the right Argentine commercial bank
- Provide company registration documents, CUIT tax number
- The legal representative must be present in person to handle the matter
- Understand the regulations related to foreign exchange accounts
2. Social security and labor registration
- Register with the Social Security System (ANSES)
- Register as an employer
- Pay social security and pensions for employees
- Comply with Argentine labor laws
3. Industry license application
- Apply for special license according to business scope
- Municipal business license
- Environmental Impact Assessment (Specific Industries)
- Import and export registration (trading enterprises)
4. Accounting compliance requirements
- Establish an accounting system that complies with Argentine accounting standards
- Monthly tax returns
- Annual financial statement audit (SA company)
- Regularly update company registration information
Taxation Points
Main taxes
- Corporate income tax: 30% (gradually reduced to 25% from 2021)
- Value Added Tax (IVA): 21%
- Business tax: 3-5% (varies by province)
- Financial transaction tax:0.6% (debit), 0.6% (credit)
- Wealth tax: targeting high net worth individuals and corporations
Tax incentives
Argentina offers tax incentives to specific industries and regions:
- Knowledge Economy Law: software, biotechnology and other industries enjoy preferential tax rates
- Tierra del Fuego Special Economic Zone: manufacturing enterprises enjoy tax breaks
- Renewable energy: accelerated depreciation and tax credits for investments
- Export tax rebate: some products can apply for VAT rebate when exported
Tax planning advice
Argentina has a heavy tax burden, making proper tax planning crucial. We recommend leveraging bilateral tax treaties and industry-specific preferential policies. Our tax team at Lawshi Lawyers can provide you with professional tax planning solutions to optimize your tax costs.