Everything you need to know to set up an operating company with a bank account.
• There are prison terms for disclosing customer bank details to third parties (and possibly fines).
• Banks are not at all subject to strict customer due diligence regulations (old FATF recommendation 5 / new FATF recommendation 10).
• Banks are partially obliged to maintain sufficient records of customer and transaction data for law enforcement (old FATF recommendation 10 / new FATF recommendation 11).
• Banks and / or other covered entities are required to report large transactions in currency or other monetary instruments to designated authorities.
• The national administration has sufficient powers to obtain and provide bank information on request without qualifications.
• There are no improper notifications and appeal rights against the exchange of banking information upon request without qualifications.
The installation of the Argentine company takes two months and the minimum paid-up capital is US $ 300.
A minimum of two directors is required to establish an LLC in Argentina. Directors can be individuals or companies; most must be residents of Argentina.
We recommend this entity if our Clients wish to incorporate a publicly traded company. The minimum paid-up capital is US $ 7500 for this configuration.
The branch of a foreign company in Argentina can invoice clients in Argentina, sign local sales contracts and receive income from clients.
This entity does not require a minimum capital to set up businesses in Argentina. A branch operates only within the scope defined by the parent company.
This entity in Argentina must i) appoint a legal representative ii) grant them a power of attorney iii) must maintain a local bank account.
Foster Swiss helps our Clients secure offices or we provide an office address. Most emerging markets require our Clients to have a 12-month office lease before company registration is approved.
We help our Clients overcome this challenge in the following ways:
DDepending on the country and city, the rates range from US $ 900 to US $ 2000 and the annual active virtual office services range from US $ 1500 to US $ 4000).
LThe one-time fee is US $ 850. Thereafter, our Client pays the monthly rent directly to the owner).
D Depending on the country and the city, the rates range from US $ 5.000 to US $ 8.000).
The Argentine tax return must be submitted annually before March 31. The corporate tax rate is set at 35% for resident and non-resident companies.
A non-resident company only pays taxes on its Argentina-based income, while a resident company pays taxes on its worldwide income.
Argentine companies can carry their net losses for five years.
Withholding tax on dividends is up to 35% without DTA and 0% with DTA. All companies resident in Argentina must submit monthly VAT returns, the standard rate is 21%.
Capital gains derived from Argentine shares are subject to income tax for residents and taxed at 15% for non-residents.
Dividends from one company resident in Argentina to another are completely exempt from tax. All Argentine assets, under a resident or non-resident firm, the property is taxed at 1%.
The stamp duty on all real estate sales is set between 2,5% and 4%.
The employer must pay social security of 27%.
Prior permission from the central bank is required for repatriation of capital and profits.
Every resident in Argentina pays personal taxes ranging from 9% to 35%.
Argentina has published a white list, full of countries that Argentina considers cooperative. These countries are not subject to Argentina's transfer pricing requirements and benefit from reduced customs duties and withholding taxes.
Argentine company law requires companies to submit audited financial statements.
LA company based in Argentina must have a majority of resident director.
The minimum paid-up capital for registering an LLC is US $ 300.
Companies must obtain prior authorization from the Central Bank for the repatriation of all amounts of profits.
Each company must file an annual statement confirming the relevant details of the company for public record, including the names and addresses of all directors, the address of the principal place of business, and details of the shareholders and their holdings.
A company secretary is not required when forming a business organization in Argentina, however, Foster Swiss recommends that one be appointed to ensure proper compliance in accordance with company law.
Argentina's Data Protection Law prohibits firms from publicly disclosing private information about an individual.
Argentina's gender laws prohibit discrimination against employees on the basis of gender, sexual orientation, race, or religion.
Argentina's antitrust laws prevent companies from entering into contracts that form cartels or monopolies; firms must obtain permission for M&A matters.
Argentina's Code of Commercial Practices prevents dominant players in a market from expelling competitors through predatory tactics such as excessive price cuts.
Argentina is subject to the requirements of the International Auditing Standards issued by the International Federation of Accountants (IFAC).
EThe directory of all registered Argentine companies must be composed mainly of Argentine residents.
Companies must maintain an emergency fund worth 5% of annual profits until it reaches 20% of its capital.
Argentina is a country with high taxes because i) the corporate tax is 35% ii) the VAT rate for energy, water and communications is 27% iii) an asset tax of 1% iv) up to 35 % of tax withholding v) companies pay social security of up to 27%. Likewise, the profits derived from the sale of shares of Argentine companies are subject to a 15% tax.
Argentine banks impose a monthly limit on online currency purchases. This limit is equal to 20% of one's earnings.
Prohibition of acquiring foreign currency for savings purposes.
Argentina ranks 82nd out of 128 countries according to the International Index for the Protection of Property Rights.
Our Clients who run a business in Argentina will often have to face i) requests from employees for double-digit salary increases and ii) higher prices for products purchased from suppliers. In fact, Argentina suffers an inflation rate of 34% in 2019.
Dividends and capital gains received by foreign entrepreneurs from their businesses in Argentina will be reduced in the coming months. The Argentine peso has already lost 22% of its value against the US dollar since January and most analysts expect another peso devaluation before the end of the year.
Argentina has been poorly ranked at position 83 (out of 141 countries) in the 2019 Global Competitiveness Index, mainly due to its i) poor macroeconomic environment caused by high inflation rates, high taxes and unstable policies and ii) inefficient government bureaucracy due to largely to widespread corruption.
The national business registry includes the identity information of the legal owner. Information on legal owners is not always available online (up to 10 EUR / GBP / USD).
• All businesses require the registration of all legal owners.
• All names plus countries of residence plus addresses or NITs or dates of birth, passport or personal identifications, or incorporation numbers are always registered.
• Updating of the information on the identity of the legal owners is mandatory.
Companies available without registered information on beneficial owners.
Real property is not always available online (up to 10 EUR / GBP / USD)
• It is mandatory to keep accounting data.
• There is an obligation to present annual accounts for all types of companies.
• Business accounts are not always online (up to € 10 / US $).
No country-by-country public reporting at all.
• The secondary mechanism is subject to the restrictions imposed by the OECD model legislation; or no secondary mechanism (only the ultimate national parent entity has to present the CbCR). Unilateral cross-border tax rulings (eg advance tax rulings, advance tax rulings) are available in laws or regulations, or administrative practice.
• All unilateral cross-border tax rulings are published online for free, but without
the name of the taxpayer in question.
• The use of an annually updated Legal Entity Identifier (LEI), developed under the guidance of the Financial Stability Board, FSB, is not mandatory.
• The use of a Legal Entity Identifier (LEI) updated annually, developed under the guidance
of the Financial Stability Board, FSB, is not mandatory.
• The use of an LEI updated annually for the identification of the reporting financial institutions
(in accordance with the Common Reporting Standard (CRS) is not mandatory.
• Payment of dividends: Unilateral double tax relief through a tax credit system for all three payment scenarios (beneficiaries always receive a unilateral tax credit, regardless of whether it is an independent or related legal person, or a natural person).
• Interest payments: Unilateral relief for double taxation through a tax credit system for both payment scenarios (recipients always receive a unilateral tax credit, regardless of whether it is a legal person or a natural person).
None or restricted access to both criminal and civil tax procedures.
Public access to both criminal and civil tax judgments / verdicts.
• The jurisdiction does not issue or accept the circulation of large notes / cash notes of its own currency (with a value greater than 200 EUR / GBP / USD).
• Bearer shares are not available / not circulated.
• Series LLC / Shielded Cell Companies are not available.
• Trusts with escape clauses are not prohibited
Argentina is no longer on the FATF List of countries that have been identified with strategic AML deficiencies.
The FATF welcomes Argentina's significant progress in improving its AML / CFT regime and notes that Argentina has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that the FATF had identified in June 2011. Therefore, Argentina is no longer subject to the FATF monitoring process under its ongoing global AML / CFT compliance process. Argentina will work with the FATF and GAFISUD as it continues to address the full range of AML / CFT issues identified in its mutual evaluation report.
Overall Non-Compliance Score of FATF Standards in Percentage: 76,9%. (100% = all indicators rated as not met / low level of effectiveness; 0% = all indicators rated as completed or highly effective).
You signed the MCAA and committed to sharing information on or before 2019.
Number of significant activated AEOI relationships (under the MCAA) published by the OECD as of October 2019: 95.
Each filtering bag international and digital banks They're available.
Real bank operations: 90%.
Type of visa: ARS $, US $, €.
Joint accounts: SI.
Remote management account: To consult.
Wealth administration Depending on the qualification of the company.
Rates: Depends on the type of account.
Credit / debit cards in local currency
Foster Swiss is an international company registered in Switzerland aimed at providing financial and compliance advice on a variety of topics related to company formation
and commercial banking internationally. We are specialized in the implementation of businesses in different jurisdictions, which means that we offer value-added services helping our clients in their expansion abroad.
Some of these services include:
Advice and consultancy,
visas, offices, nominated director / shareholder / secretary,
accommodation if necessary… to name a few.
Check with your assigned consultant for more information.