Published on and written by Cyril Jarnias
Argentina, with its dynamic economy and rich culture, attracts many expatriate entrepreneurs looking to start businesses there. This comprehensive guide will walk you through the essential steps to bring your entrepreneurial project to life in this South American country.
Understanding the Argentine Market
Before launching your business in Argentina, it’s crucial to thoroughly understand the country’s economic and cultural context.
The Argentine economy is the third largest in Latin America, with a domestic market of over 45 million people. The country has abundant natural resources and a skilled workforce. However, the economy experiences cycles of instability, with periods of high inflation and currency fluctuations.
Promising sectors include agriculture, energy (particularly renewable energy), information technology, tourism, and services. Argentina is also known for its dynamic creative industry, especially in design and digital fields.
Business culture in Argentina is based on personal relationships. Argentines place great importance on trust and interpersonal connections in professional relationships. Therefore, it’s essential to take the time to build strong relationships with your potential partners and clients.
Good to know:
Mastering Spanish is a major asset for business success in Argentina. Although English is spoken in international business circles, the ability to communicate in Spanish will open many doors for you.
Choosing the Right Legal Structure
Argentina offers several legal structure options for foreign entrepreneurs. Here are the main business forms:
Sociedad Anónima (SA)
The SA is equivalent to the French société anonyme. It’s suitable for large-scale projects and offers great flexibility.
- Minimum of two shareholders required
- Minimum capital of 100,000 Argentine pesos
- Liability limited to contribution amounts
- Management by a board of directors
Sociedad de Responsabilidad Limitada (SRL)
The SRL is similar to the French SARL and is often preferred by small and medium-sized businesses.
- Between 2 and 50 partners
- No legal minimum capital, but it must be consistent with the activity
- Liability limited to contributions
- More flexible management than SA
Sociedad por Acciones Simplificada (SAS)
Introduced in 2017, the SAS is a more flexible legal form, particularly suitable for startups and small businesses.
- Can be created by a single person
- Minimum capital equivalent to two minimum wages
- Simplified and quick creation process (24 hours in theory)
- Great flexibility in internal organization
Good to know:
The SAS offers the possibility to create the company entirely online, which can greatly facilitate procedures for expatriate entrepreneurs.
Steps to Create Your Business in Argentina
1. Obtain the Appropriate Visa
Before starting the business creation process, make sure you have the appropriate visa. Argentina offers a specific visa for foreign entrepreneurs, the “visa para emprendedores.” This visa allows you to reside in the country for one year, renewable, to develop your entrepreneurial project.
2. Choose and Reserve the Company Name
Check the availability of your company name with the General Inspection of Justice (IGJ) and reserve it.
3. Prepare the Incorporation Documents
Draft your company’s bylaws in compliance with Argentine legal requirements. It’s highly recommended to hire a local lawyer for this step.
4. Obtain a Tax Identification Number
Register with the Federal Administration of Public Revenue (AFIP) to obtain your CUIT (Código Único de Identificación Tributaria), equivalent to the French SIRET number.
5. Open a Bank Account
Open a bank account in your company’s name. Some banks offer specific services for foreign entrepreneurs.
6. Register the Company
Submit all necessary documents to the IGJ to finalize your company registration.
7. Obtain Necessary Licenses and Permits
Depending on your activity, you may need to obtain specific licenses or permits from local or national authorities.
Good to know:
Business creation timelines in Argentina can vary significantly depending on the chosen structure and your project’s complexity. Plan for 2 to 3 months to complete all procedures.
Tax and Financial Considerations
Corporate Taxation in Argentina
The Argentine tax system is complex and constantly evolving. Here are the main taxes your business will be subject to:
Corporate tax: The standard rate is 30% on profits.
VAT: The general rate is 21%, with reduced rates for certain sectors.
Provincial taxes: Each Argentine province imposes its own taxes, particularly on turnover.
Social contributions: Employers must pay social contributions for their employees, representing approximately 23% of gross salary.
Financing Your Business
Access to financing can be challenging for foreign entrepreneurs in Argentina. Here are some options to consider:
Equity: Personal capital contributions often remain the primary source of initial financing.
Private investors: Argentina has a growing network of business angels and venture capital funds, particularly active in the technology sector.
Incubators and accelerators: Several incubation and acceleration programs exist in Argentina, offering financial and operational support to startups.
Government assistance: The Argentine government offers various support programs for entrepreneurs, particularly through the Ministry of Production and Labor.
Good to know:
Currency exchange restrictions in Argentina can complicate international transactions. Make sure you understand current regulations and plan alternative solutions to manage your financial flows.
Overcoming Cultural and Language Challenges
The success of your business in Argentina will largely depend on your ability to adapt to the local culture and establish strong relationships.
Master Spanish: Although English is spoken in international business circles, mastering Spanish is crucial for success in Argentina.
Adopt the local pace: Argentines tend to prioritize personal relationships over business. Take time to build strong connections with your partners and clients.
Be patient: Administrative processes can be slow and complex. Patience and perseverance are essential qualities for success in Argentina.
Stay flexible: The Argentine economic environment can be unstable. Be prepared to adapt your strategy according to changing contexts.
Resources and Support for Expatriate Entrepreneurs
Numerous resources are available to support your entrepreneurial project in Argentina:
France-Argentina Chamber of Commerce: Offers valuable support to French entrepreneurs establishing themselves in Argentina.
Business France: Provides support services for French companies looking to establish themselves abroad.
Expatriate networks: Communities like InterNations or Expat.com can connect you with other expatriate entrepreneurs in Argentina.
Local incubators: Structures like NXTP Labs or Wayra Argentina provide support to international startups.
Good to know:
Don’t hesitate to seek help from local professionals (lawyers, accountants, consultants) to guide you through the legal and administrative aspects of creating your business.
Starting a business in Argentina as an expatriate is an exciting adventure that requires careful preparation and a good understanding of the local context. By following the steps outlined in this guide and surrounding yourself with the right resources, you’ll maximize your chances of success for your entrepreneurial project in this dynamic country full of opportunities.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
