Principal Types of Business Entities

Details about the different types of business structure available when starting a business in Argentina...

Foreign companies may conduct business in Argentina on a permanent basis. The alternatives are the appointment of a local commercial representative, the setting up of a branch, the incorporation of a local corporate entity (subsidiary) or the acquisition of shares of an existing Argentine company.

The main types of investment vehicle utilized by non-resident individuals and foreign companies are the branch, the corporation (Sociedad Anónima) and the limited liability company (Sociedad de Responsabilidad Limitada).

The basic characteristics of the branch, the corporation and the limited liability company, according to Argentine law and the regulations of the Inspección General de Justicia of the City of Buenos Aires (IGJ) are provided in this section.

Branch of a foreign entity

Any company duly organized and existing in accordance with the laws of its country of origin can set up a branch in Argentina. However, the registration of foreign off-shore companies in the City of Buenos Aires, has now been restricted by the IGJ. In principle, it is not necessary to allocate capital to the Argentine branch.

The branch must keep separate accounting records in Argentina and file annual financial statements with the IGJ. The branch must also comply with a number of obligations related to the external supervision of the IGJ.

Information supplied by Marval, O'Farrell & Mairal Av. Leandro N. Alem 928 piso 7, (C1001AAR) Buenos Aires, Argentina Tel: (011) 4310-0100, Fax: (011) 4310 0200 www.marval.com.ar