22 May How to Incorporate in Argentina and Business Formation’s Facts
How to Incorporate in Argentina and Business Formation’s Facts
Directors/Shareholders: Color copies of everyone’s passport (absolutely all pages must be scanned from the first to the very last), driver license and/or a document of national identity-card, both sides of cards will be required.
In general, each applicant should submit a minimum of two pieces of identification. Criminal background check in country of residence for a historical of 10 years in time; two letters of reference from banks where physical person is an active customer in order to prove good standing with banks; if any shareholder has a high educational degree it helps to have a copy for several reputational purposes (i.e: MBA, Juris Doctor, MD, etc.); if physical person has an Argentine tax ID it must be disclosed. Tax ID’s in Argentina are called in three ways: CDI, CUIT or CUIL; a business plan that describes the company’s purpose of incorporating in Argentina. This business plan helps in terms of immigration purposes and for bank account opening.
If the Argentine business will be owned by a “foreign mother corporation”, its legal representative must submit the following: All the above for its shareholders and directors; bylaws and articles of incorporation; two tax returns for last two consecutive fiscal years; two corporate-banking letters of reference; proof of any license or good standing with local departments of corporations; Most current Corporate Credit Report.
Once lawyers obtain all the necessary documents, they will draft and prepare a series of POA’s and disclosures. Afterward, they will submit them to the client via email and FedEx. Then, the client should sign and return them by private mail. For example, FedEx, DHL, or UPS. We strongly encourage all clients to never send any documentation or packages through the Public Postal Mail Service, as a high percentage of it never reaches our office.
Once the client’s documents are received in Argentina they are reviewed by a lawyer and a CPA and later submitted to Argentina’s Department of Corporations.
After all the agencies consider that the Corporation has fulfilled all compliance requirements it becomes legally approved and it can start operating as a business. The waiting period is around 45 to 70 days depending on the corporation object/purpose.
Additionally, the employment identification number for the corporation is also the same corporate tax ID for fiscal purposes.
In general, it is better to open a bank account at Citibank, Santander Bank, for example.
Trademarks and Argentine domain names are necessary with INPI & Nic.AR
In addition, we can establish connections with the consulate of the country where the HQ’s of the company lies.
Then, if the company requires a specific license, it is possible to process it once it has a tax identification number.
Types of Corporations in Argentina
The two most common types of corporations in Argentina are the Corporation or Sociedad Anonima and the LLC or SRL which stands for Sociedad de Responsabilidad Limitada. Other types of corporate structures in Argentina are the AC or Asociacion. A Civil Association can pretty much assimilate to a Non-Profit Organization.
The capital injection that the Argentine government requires at the time of incorporation is approximately USD10,000 which must be funded within the first 24 months. Initially, 25% is the required amount on day one upon funding the company’s corporate account.
The Argentine Department of Corporations will always require a certain number of directors to be local residents. For instance, for auditing purposes from AFIP, Argentina’s Tax Revenue Service.