Doing business

Argentina

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
The Empresa Unipersonales is an individual businessman alone. No minimum capital	1 person The businessman is liable for the company's debts on his personal property.
The Sociedad Anonima (SA) is a public limited company . 12,000 ARP minimum. At least 25% of the capital must be paid up at the creation of the company, the balance within 2 years.	Minimum 2 shareholders Their liability is limited to the amount of capital contributed.
The Sociedad de Responsabilidad Limitada (SRL) is a limited liability company . No minimum capital. At least 25% of the capital must be paid up at the creation of the company, the balance within 2 years	Minimum 2 partners. Maximum 50 partners. Their liability is limited to the amount of capital contributed.
The Sociedad en commandita por acciones (SCA) is a limited joint-stock partnership . No minimum capital.	There are two types of partners, active partners and silent partners. The liability of the active partners is unlimited. The liability of the silent partners is limited to the amount of capital contributed.
The Sociedad en commandita simple (SCS) is a limited partnership. No minimum capital.	There are two types of partners, active partners and silent partners The liability of the active partners is unlimited. The liability of the silent partners is limited to the amount of capital contributed.

Business setup procedures

Setting up a company	Argentina	Latin America & Caribbean
Procedures (number)	14.0	9.3
Time (days)	26.0	56.7

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Argentina.
The Official Gazette
The Register of Commerce
The competent organization: Inspeccion General de Justicia (General Inspection of Justice) (in Spanish)

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	9,726	4,017	6,337
FDI stock (millions USD)	77,066.0	79,871.3	86,684.9
Performance Index*, ranking on 141 economies	87	91	-
Potential Index**, ranking on 141 economies	60	-	-
Number of Greenfield investments***	120	111	-
FDI inwards (in % of GFCF****)	12.7	1.2	-
FDI stock (in % of GDP)	23.3	26.2	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Argentina

Strong points: A wealth of raw materials, good level of education, a human development indicator noticeably above the Latin American average, and strong growth for several years now.
Weak points: The banking sector is fragile and under-capitalized; investments in energy are insufficient and inflation is high.
Government measures to motivate or restrict FDI: The government has established various measures to encourage foreign investment in the form of incentives to invest in capital goods and infrastructures, financing programs, capacity promotion (employment and quality amongst others), encouraging innovation and technological development, geographic incentives and sectorial investments.
For further information, consult the ProsperAr website.
Bilateral investment conventions signed by Argentina: Argentina has signed bilateral agreements on investments with 60 countries.
To see the list of countries, click here.
To see the conventions, click here.

Procedures relative to foreign investment

Freedom of establishment: Yes
Acquisition of holdings: All sectors of the economy are open to foreign investors, on an equal footing with national investors.
The investment regime is a liberal regime. Foreign investment is not subject to any authorization or declaration, whatever the amount or the activity envisaged, and even if this means taking a majority share in the capital of a local company.
Obligation to declare: In principle, no declaration.
Competent organization for the declaration
Requests for specific authorizations: There is no declaration, in principle, except for large projects which require the agreement of the competent ministry. For example: the TGV (high speed train) with the Ministry of Infrastructure.

Finding assistance for further information

Investment aid agency: Prosperar Foundation
Fundacion Invertir Argentina
Other useful resources: Centro de Economia Internacional