Expand into Argentina: A land of skill, natural abundance, and business potential.
Argentina is known for its abundant natural resources, skilled workforce, and strategic position in South America. With vast shale gas and oil reserves, a booming agricultural sector, and growing investments in renewable energy and healthcare, Argentina is an attractive destination for global enterprises.
These solid reasons encourage business owners to set up an office in Argentina when expanding internationally. However, navigating the registration process in a new country can be daunting. An alternative, like partnering with an Employer of Record (EOR), can simplify market entry into Argentina, without the need to establish a local entity.
Continue reading to understand how to register a company in Argentina, and learn how an EOR like Multiplier can simplify and accelerate your expansion efforts.
The business benefits of registering your company in Argentina
Argentina offers compelling reasons for international businesses to establish operations.
Here’s why:
- Access to the Mercosur market: As a member of Mercosur, Argentina offers access to a regional market of over 250 million consumers, facilitating trade across South America.
- Rich natural resources: Argentina ranks second globally in shale gas and fourth in shale oil reserves, alongside thriving renewable energy sectors.
- Skilled talent pool: With high English proficiency and a well-educated workforce, businesses can easily find qualified professionals.
- Booming agriculture: As a global agricultural powerhouse, Argentina’s strong agro-industry offers opportunities for food production, export, and related innovations.
- Strategic trade partnerships: The country maintains robust trade relations with the European Union, the United States, and China, enhancing international business prospects.
What is the difference between standard company registration and expanding through an EOR?
Businesses expanding into Argentina have two main options: traditional company registration or partnering with an EOR. Here’s a quick comparison:
|
Aspect |
Company registration |
Employer of Record (EOR) |
|
Purpose |
Establish a legal entity for long-term operations |
Test new markets or manage remote teams |
|
Control |
Full control over operations |
Limited control (EOR handles many HR tasks) |
|
Cost |
High initial investment (registration, legal fees) |
Predictable, bundled service fee |
|
Compliance |
Full responsibility for legal and tax compliance |
EOR ensures compliance with Argentine laws |
|
Setup time |
Several months |
A few weeks |
|
Scalability |
Complex and time-consuming |
Quick and flexible workforce adjustments |
While direct registration offers complete control, using an EOR simplifies the process and benefits businesses seeking a cost-effective and low-risk market entry.
How EOR simplifies Argentina company registration
Partnering with an EOR like Multiplier can make entering the Argentine market seamless. Here’s how:
- Rapid market entry: Skip the lengthy registration process and start operations within weeks.
- Compliance management: EORs handle labor laws, payroll taxes in Argentina, and contract regulations.
- Cost efficiency: Avoid expenses like share capital deposits, legal documentation, and office setup.
- Streamlined payroll: Manage salaries, benefits, and global tax filings via a single platform.
- Focus on core business: While the EOR handles administrative tasks, you can concentrate on strategic growth.
A step-by-step guide to registering a company in Argentina
The process of company registration in Argentina involves multiple steps. Here’s a simplified roadmap:
Step 1: Define the legal structure
Choose a suitable business structure based on your goals. Options include:
- Sole proprietorship (Persona física): A single owner with full liability.
- Limited liability company (SRL): Requires at least one shareholder with limited liability.
- General partnership (SCS): General partners have unlimited liability; limited partners contribute capital.
- Company limited by shares (SCA): Similar to SCS but with shares for limited partners.
Step 2: Appoint a power of attorney
Non-resident founders must appoint a local legal representative to handle documentation and communication with Argentine authorities.
Step 3: Choose and reserve a company name
Submit a name request to the General Inspection of Justice (IGJ). Ensure uniqueness and compliance with naming rules.
Step 4: Draft and certify company by-laws
Prepare the articles of incorporation detailing the company’s objectives, governance structure, and shareholder rights. All partners must sign the document before a public notary.
Step 5: Deposit initial capital
Deposit at least 25% of the minimum share capital in Banco de la Nación Argentina. You must deposit the remainder within two years.
Step 6: Publish the incorporation notice
Announce the company’s formation in the Official Gazette, which requires a lawyer’s assistance.
Step 7: Pay incorporation fees
Pay the registration fees via the Ministry of Justice and Human Rights online platform.
Step 8: Register accounting books
Submit accounting and corporate records to the Public Registry of Commerce.
Step 9: Obtain tax identification (CUIT)
Administración Federal de Ingresos Públicos (AFIP) handles tax registration and administration in Argentina. Register with the Federal Administration of Public Revenues (AFIP) to receive your unique tax code.
Step 10: Register for Social Security
Enroll with the Social Security office to ensure employee benefits and compliance with labor laws.
You can learn more and register your company via the official website of the Argentina government: Inspección General de Justicia (IGJ), which is responsible for company registration and oversight.
Seems too complex? An EOR can help. Starting operations in a country like Argentina isn’t easy. Without local, multilingual expertise and a clear grasp of the laws, your company risks financial and legal damages. An EOR like Multiplier reduces these risks while helping you set up and scale your workforce here.
Moreover, it helps you save on many unexpected costs.
The real cost of registering a business in Argentina
Understanding the financial implications is key when setting up your company in Argentina. Here’s a breakdown of the costs involved:
- Registration fees: ARS 4,000–5,000 ($40–$50)
- Minimum share capital (SRL): ARS 10,000 (25% upfront)
- Legal and notary services: ARS 20,000–30,000 ($200–$300)
- Official gazette publication: ARS 169 per line
- Accounting and annual maintenance: ARS 30,000–50,000 annually ($300–$500)
- Social Security registration: Free but requires documentation preparation
Moreover, since Argentina experiences high inflation, the exchange rate of ARS to USD fluctuates frequently. This makes it difficult to plan budgets and get a long-term view of expenses.
In contrast, an EOR bundles your expenses into a single predictable fee, eliminating share capital requirements and simplifying budgeting.
Cost comparison: Standard registration vs. EOR
When expanding into Argentina, here is a breakdown of how much it costs to register a legal entity versus using an EOR:
|
Cost category |
Company registration (USD) |
EOR with Multiplier (USD) |
|
Setup fees |
$1,000–$3,000 |
$0 (covered by EOR) |
|
Legal documentation |
$500–$1,500 |
Included |
|
Payroll & compliance |
$300–$500/month |
Included |
|
Ongoing maintenance |
$1,000/year |
Included |
|
Time investment |
3–6 months |
2–4 weeks |
Company registration involves substantial expenses and administrative complexity. Moreover, costs vary based on factors like the type of business entity, specific legal requirements, and prevailing economic conditions in Argentina.
For the most accurate and up-to-date information, consult local advisors or talk to our team at Multiplier about our predictable, recurring fees for setting up your workforce in Argentina.
Take the stress out of your Argentina expansion with Multiplier
Multiplier makes it easy to expand into Argentina with a hassle-free, compliant, and cost-efficient solution.
- Local hiring expertise: Multiplier helps you generate employment contracts that are compliant with Argentine laws in minutes and onboard local talent with ease.
- Effortless payroll management: Our platform ensures accurate and timely salary payments to your team in Argentina.
- Comprehensive HR solutions: From time-off management to expense tracking, we’ll significantly reduce administrative burdens for your HR teams.
- Attractive Benefits Packages: Hire and retain Argentina’s best talent with attractive benefits packages that comply with local laws.
- Reliable Support: Our dedicated team and local experts are ready to provide timely assistance whenever needed.
Company registration in Argentina can be time-consuming, expensive, and risky. With Multiplier’s EOR solution, you can quickly hire talented professionals in Argentina without the time it takes to set up a new subsidiary there. You can test the waters, scale faster, save on expenses, and minimize risks.
Book a demo today and discover how Multiplier can accelerate your success in Argentina, minus the stress and additional logistics.
