Commercial Guide to Doing Business: branches in Argentina. Features and setting-up requirements

by 12 May 2020Companies, Corporate, Doing business in Argentina

Foreign companies usually do business in Argentina through branches or subsidiaries. In this opportunity of our future Commercial Guide to Doing Business, we will focus on branches in Argentina.

Branches are not legal entities separate from their parent companies and, therefore, no limitation of liability applies.

The key features of branches in Argentina are:

  • No capital allocation is requested (except for certain regulated industries, such as banking and insurance);
  • They just need the appointment of an individual as their legal representative;
  • Accounting records must be kept aside from those of their foreign parent companies[1]; and
  • They cannot raise capital.

The General Inspectorate of Justice (Inspección General de Justicia, or IGJ after its Spanish acronym) in the federal agency in charge of the Public Registry within the jurisdiction of the Autonomous City of Buenos Aires and has established the list of requirements to grant registration to branches of foreign companies.

Should you want to get an executive summary of such requirements for branches in Argentina, please, contact us.

Mario E. Castro Sammartino

[1] Within the jurisdiction of the Autonomous City of Buenos Aires, the Public Registry requires that, on an annual basis, branches file financial statements and comply with a special informative regime. It also requires branches to maintain a positive net equity.

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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