A favored option among entrepreneurs and investors seeking to engage in company incorporation in Argentina is the establishment of an SAS (Sociedad por Acciones Simplificada). The SAS in Argentina is gaining popularity due to its simplified incorporation process and the requirement of a single shareholder. The creation of a SAS in Argentina presents a quick and uncomplicated incorporation procedure, making it an attractive option for both entrepreneurs and investors looking to navigate the Argentine business landscape efficiently.
The economy is facing some challenges. Argentina’s GDP is expected to decline by 4% in 2024. Javier Milei’s government took office with the goal of having a less regulated and more market-friendly economy, with the private sector as the main engine of economic growth.
Argentina’s Foreign Direct Investment (FDI) increased by USD$6.1 billion in Sep 2023. The country is a member of Mercosur — an economic union that also includes Brazil, Paraguay, and Uruguay that recently celebrated its 30th anniversary.
Argentina’s prime export commodities include soybeans and related products, corn, motor vehicles, and beef. The nation’s main trade partners include Brazil, Chile, China and the United States.
If you are considering doing business in Argentina or have already established a legal entity in the country, read on to understand more about how to incorporate an SAS in Argentina.
What is an SAS in Argentina?
An SAS in Argentina is a simplified corporate structure. It came into being in 2017 to encourage entrepreneurship and streamline the process of starting and operating a business. This legal entity combines elements of both a corporation and a limited liability company (LLC). It provides flexibility and ease of operation for small and medium-sized enterprises.
An SAS in Argentina has a simplified registration process, reducing bureaucratic hurdles and saving time. This business form allows shareholders to limit their liability to their capital contributions. They still, however, enjoy the benefits of a corporate structure, such as perpetual existence and the ability to attract investment. It also offers fewer administrative requirements and a more straightforward dissolution process.
This makes it an attractive option for startups and small businesses looking for a convenient and cost-effective way to establish a legal presence in Argentina. In recent years, many entrepreneurs have chosen to incorporate an SAS in Argentina. By forming this type of company, it is possible to register various business activities and freely determine the structure of the organization.
It is possible to incorporate an SAS in Argentina in just 24 hours. This is faster than registering other types of companies, such as a limited liability company (SRL) or public limited company (SA). Note that it is necessary to request a Unique Tax Identification Code (CUIT) from the tax authorities and open a corporate bank account.
5 Advantages of the SAS company type
The main advantages of incorporating an SAS in Argentina include:
- Easy registration: The registration process for an SAS in Argentina only takes 24 hours and can be done online.
- Lower cost: This type of company only requires the equivalent of two minimum monthly salaries in Argentina as initial capital.
- One-person model: It is possible to register an SAS in Argentina with only one shareholder.
- Shares freedom: The shareholder of an SAS in Argentina can limit the sale of securities and retain the voting rights of potential investors.
- Virtual Meetings: Shareholders’ meetings can be virtual and quorum limits can apply to online participation.
What must an SAS instrument of incorporation contain?
To incorporate an SAS in Argentina, it is necessary to draft an instrument of incorporation. This must contain the personal details of all shareholders. This includes CUIT or labor identification code (CUIL) or identification code (CDI), as well as their total capital and contributions (expressed in local currency). It must also include the physical address the company will be registered at and the objective of the company.
In addition, the following information is necessary:
- In the event that another legal entity creates the SAS, the company name, address, information on the administrators, and the unique tax identification code (CUIT) or identification code (CDI) must be present.
- Personal information of the members of the administrative bodies.
- Duration of the mandate of the members of the administrative and supervisory bodies.
- Personal information of the legal representative.
- The rules for distributing profits and bearing losses.
- Rights and obligations of the partners.
- Rules for the operation, dissolution and liquidation of the company.
Our Recommendation: It’s advisable for SAS owners to consult with tax professionals to ensure compliance with tax regulations and optimize tax planning strategies.
FAQs about SAS incorporation in Argentina
Yes, 100% foreign ownership is permitted. However, each foreign shareholder must have an appointed legal representative to act on their behalf. This is additional to the requirement for the company to have a local director and sub-director.
2. What is the minimum capital requirement for an SAS in Argentina?
The minimum capital to incorporate a SAS will be twice the current national minimum salary at the time of its incorporation (as of March 1st 2024: ARS$202,800). Each shareholder must contribute an amount equivalent to at least one minimum wage as determined by the Argentine government. However, the minimum share-capital is subject to review by the authorities and must be consistent with the planned business activity of the company.
3. How long does the incorporation process take in Argentina?
It takes between 10 to 14 weeks to form a company in Argentina after all the required information and documentation has been provided.
4. Can I change my SAS to another entity type in the future?
Yes, it is possible to convert an SAS into other types of corporate entities in Argentina, such as Sociedad de Responsabilidad Limitada (SRL) or Sociedad Anónima (SA). However, the conversion process involves legal procedures and may require approval from relevant authorities.
Incorporate an SAS in Argentina with the help of Biz Latin Hub
At Biz Latin Hub, our multilingual team of local company formation agents has broad experience helping foreign investors and organizations. We can help you to incorporate an SAS in Argentina. We have a full suite of high-quality legal, accounting, recruitment, and commercial representation services. This means we are equipped to help you achieve your business objectives in Argentina. Not only that, but we also have offices in another 15 countries across Latin America and the Caribbean.
Reach out to us now for personalized assistance or a free quote.
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