1) Benefits for foreign companies in Argentina

Benefits for foreign companies in Argentina have been significantly expanded since the inauguration of the new presidential administration in December 2023, including simplifications for their establishment, tax, customs, and exchange benefits, and also a labor reform, all to favor foreign investment in Argentina.

2) Benefits for foreign companies in Argentina provided by the Public Registry

The Public Registry in charge of the General Inspectorate of Justice in the Autonomous City of Buenos Aires (Inspección General de Justicia, hereinafter, the IGJ), by means of its General Resolutions Nos. 15 and 16 of 2024 (published in the Official Gazette on 16 and 24 July 2024), has approved its new rules on registration procedures for companies, civil associations, foundations, associative contracts, trusts, and individual registrations (hereinafter, the Rules).

The Rules will enter into force on 1 November 2024, as of which date all general regulations of the IGJ governing the matters contained in the Rules (including General Resolution No. 7/2015, which was the old regulatory framework of the IGJ) will become ineffective. Notwithstanding the aforementioned entry into force, interested parties may request the immediate application of the Rules if they consider it more favorable in the ongoing proceedings.

In the Rules, the IGJ has provided many benefits for foreign companies in Argentina, significantly simplifying the registration process.

Regarding benefits for foreign companies in Argentina applying for registration to establish a branch:

(i) They do not have to prove that they are not prohibited or restricted from carrying out their activity in their countries of origin;

(ii) They do not need to show evidence that they have economically significant business activity abroad and that the center of management of the foreign companies is outside the Argentine Republic;

(iii) They do not have to identify their partners, although they do have to do so concerning their beneficial owners, if any;

(iv) They are not required to indicate the term of the legal representative’s mandate, the designation of alternates, or the constitution of a postal address and an electronic address of the parent company binding for the companies;

(v) Applications for registration of so-called “off-shore” foreign companies (that is to say, those lacking the capacity and legal standing to act in the territory of the place of their formation), and foreign companies incorporated or registered in territories, associated states, and special tax regimes considered non-cooperative in the fight against money laundering and terrorist financing will be assessed restrictively;

(vi) The change of legal representative is simplified;

(viii) The obligation to submit an annual information regime confirming that they maintain economically significant business activity abroad and that their center of management is located outside Argentina is repealed; and

(ix) In cases where the notary public of the jurisdiction of origin is not authorized to certify the capacities of those who sign the documents of the foreign company applying for registration, the statement by the officer of the foreign company that he/she has sufficient capacities to execute the act, with his/her signature on said document certified by a notary public, will suffice;

x) The registration of isolated acts executed in the country by foreign companies is eliminated; and

xi) Foreign companies may be registered as vehicles of other foreign companies for developing investments.

Regarding benefits for foreign companies in Argentina applying for registration to incorporate a domestic company or take an interest in an existing local company:

a) All the benefits for applying for registration to establish a branch will also apply;

b) The obligation to submit an investment plan is repealed;

c) The legal representative or attorney-in-fact of the foreign company is allowed to participate in the corporate acts (e.g. meetings) of local companies in which foreign companies are partners;

d) The registration of corporate acts in which unregistered foreign companies participate is permitted, provided that the votes cast by the foreign companies have not been decisive – on their own or in concurrence with those of other participants in the act – for the formation of the corporate will. The omission of registration does not affect the unanimous nature of the meeting; and

e) The legal representative does not have to provide a guarantee in favor of the local company.

If you wish to have an executive summary of the current requirements to apply for the registration of a foreign company in Argentina, in any of its modalities, please request it free of charge by contacting us.

3) Benefits for foreign companies in Argentina under the RIGI

Argentina has different incentive regimes for different industries, to which is now added the so-called “RIGI”: the Incentive Regime for Large Investments, with enormous benefits for certain foreign investments that want to be developed in Argentina.

For an introduction to the new investment promotion regime created by the Ley Bases, we invite you to read our article: New investments promotion in Argentina: the so-called “RIGI”.

If you wish to know who qualifies for the RIGI, you can read the following post of our Legal Blog: Who qualifies for the Large Investments Regime in Argentina?

Should you want to learn about the significant benefits for foreign investors that the RIGI brings, please, find the basics here: What are the benefits for investors in Argentina under the RIGI?

If you would like a complimentary full report in PDF format specially prepared by our firm about the RIGI, please, contact us.

4) Other benefits for foreign companies in Argentina: Labor Reform

The first labor reform carried out by the administration holding office since December 2023, brings important flexibilizations of the labor regulations.

If you are interested in an overview of the new labor reform in Argentina introduced by the so-called Ley Bases, you can read the following article in our Legal Blog: Significant labor reform in Argentina: what can’t companies ignore about the Ley Bases?

If you want to know about the opportunity and benefits provided by the Bases Law to regularize labor relations and the repeal of the astronomical fines that weighed on companies, visit the following post of our Legal Blog: Regularization of labor relations in Argentina by the “Ley Bases”. Repeal of labor fines.

For the new possibility of having “independent workers”, see our report: Self-employed workers in the Ley Bases of Argentina: who is included, who is not, and which presumptions apply.

About the possibility of outsourcing workers in Argentina, reading the following publication will give you the basics: Outsourcing of workers in Argentina: what happens when employees are hired and placed at the service of other companies under the Ley Bases?

To learn about the new rules on dismissals, please, review this post: The new rules on dismissal in Argentina under the Ley Bases: what does it say about dismissal with just cause and discriminatory dismissal?

Should you want a complimentary full report on the labor reform in Argentina by the Ley Bases in PDF format specially prepared by our firm, please, contact us.

Mario E. Castro Sammartino

For additional information on these or any other issues related to doing business in Argentina, please, sign up for our Legal Blog or contact us at any time. Our publications exclusively express the author´s opinion and do not purport to be legal counsel on any case. Should you need it, you must consult with your trusted lawyer.​

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