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Argentina Subsidiary

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You’ll need to consider many questions when expanding into a new country. How will you set up an Argentina subsidiary? What are Argentina’s subsidiary laws? Is outsourcing worth it? Before you jump into setting up a subsidiary on your own, here is everything you need to know.

How to Set up an Argentina Subsidiary

Argentina is an excellent place for foreign investors because of the large amount of human capital and potential commercial partnerships with neighboring countries. Argentina laws are also welcoming to foreign investors, as there are little to no restrictions, and foreign investors get the same treatment as domestic companies.

Before you start to set up your Argentina subsidiary, you should consider the following:

  • What industry or type of business do you want to open?
  • What is the nationality of the headquarters and 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?

Most subsidiaries operate under a limited liability partnership with either individuals or companies as partners. The process to open a subsidiary in Argentina that is a limited liability partnership 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 partners certified by a notary public
  • Depositing initial capital at the National Bank
  • Publishing a new partnership notice in the official paper
  • Paying the incorporation fee

Those steps are only the beginning. Argentina subsidiary set up 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 worker protections, but it is also a sought out business location because of its commercial partnerships with neighboring countries. The nation itself has no legislation on foreign 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 partnership, Argentina subsidiary law states you must have two partners. They can reside in Argentina or another country. Each partner’s liability is limited to the capital they invest. Argentina has no minimum capital requirements, and the partnership can be 100% owned by foreign partners.

Benefits of an Argentina Subsidiary

The most significant benefit of an Argentina subsidiary is the limited liability between you and the parent company. You can use a subsidiary as a liability shield to prevent any losses to your parent company. You may also set up your Argentina subsidiary to operate separately from the parent company with different management to accommodate a different culture or incentive structure.

There are even greater benefits when you work with a global PEO. The Argentina subsidiary setup process is lengthy and expensive. It could take months before you are ready to hire employees. Let Globalization Partners take the lead instead. We hire employees on your behalf and act as the Employer of Record. All the risk is on our shoulders instead of yours. You can start your operations right away instead of waiting until your subsidiary is entirely set up.

What Do You Need?

If you’re getting ready to open a subsidiary in Argentina on your own, you need a vast knowledge of the country’s subsidiary laws. If you end up non-compliant, you could face hefty fines or even a complete shutdown of your company. You should also prepare to spend a significant amount of time traveling back and forth to Argentina during the setup process. Almost every step of this process costs money, and you’ll have to pay for travel expenses as well.

Get Help From Globalization Partners

You don’t have to open a subsidiary alone. Instead of setting one up on your own, Argentina subsidiary outsourcing from Globalization Partners will help you get your company running sooner without any risk. Contact us today to learn more.

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