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Regulation of Simplified Corporations in Argentina has just been put into force at the federal level, to have them fully operative as of 1 September 2017. This possibility of an organization is currently the most innovative, easy-to-incorporate, and customizable legal vehicle available to do business in Argentina.
Following with our series of articles on Corporate Governance in Argentina Corporations , we will now deal with the board´s duties, guarantees, insurance, and fees, as well as with different acts and activities the directors must refrain from engaging in.
Different laws govern the Federal Public Procuring Regime in Argentina. On the one hand, the traditional public procuring methods are regulated by Law Number 13,064 (Public Works), Law Number 17,520 (Concession of Public Works), and Decree Number 1,023/2001 (Public Procurement of the National Administration), and its regulation by Decree Number 1,030/2016. On the other hand, the new Public – Private Participation Contracts (the PPP Contracts) established by Law Number 27,328, and is regulatory Decree Number 118/2017 (both legal dispositions, the PPP Regime)
There are different legal vehicles to do business in Argentina. The ones most commonly used by multinational companies are: 1. Branches; and 2. Subsidiaries, with one or more partners.
This brief deals with corporate governance in Argentina with a focus on the management of corporations, governed in general by the General Companies Law Number 19,550 (Ley General de Sociedades or LGS by its Spanish acronym).
When partnering to do business, it should always be considered the rights the Argentine General Companies Law Number 19,550 (Ley General de Sociedades Nº 19,550 or LGS for its Spanish acronym) grant to minority shareholders or partners – many of them with no minimum shareholding requirement -
The recently enacted Law Number 27,349 on Support for Entrepreneurial Activities (Ley de Apoyo al Capital Emprendedor or LACE) is aimed to provide a legal framework to foster and fund entrepreneurship in Argentina. The LACE has established special tax benefits for investors, a crowd funding system and the Simplified Corporation as a new company type . All in all, the LACE will enhance the venture capital industry in Argentina, providing the myriad of high-skill entrepreneurs the country has with their most scarce resource up to know: funding. Following, we will summarize the tax benefits created to benefit those investing in entrepreneurs in Argentina
On April 22, 2017, it was published in the National Official Gazette Law Number 27,349 on Support for Entrepreneurial Activities (Ley de Apoyo al Capital Emprendedor or LACE). Outstanding among its different provisions is the introduction of a new company type: the Simplified Corporation, also known as Simplified Joint Stock Company or Simplified Shares Company (Sociedad por Acciones Simplificada or SAS by its Spanish acronym).
Security interests in Argentina may be structured through different agreements according to the nature of the assets included as collaterals. The Civil and Commercial Code of the Nation (Código Civil y Comercial de la Nación or CCCN) makes a distinction between personal or movable property and real property or real estate (Articles Number 225 and following).
Until the new Civil and Commercial Code of the Nation (Código Civil y Comercial de la Nación or CCCN) became in force on August 1, 2015, distribution agreements had not had statutory regulation in Argentina. The CCCN has set forth that the concession contract´s provisions will also govern the distribution agreement as far as those provisions are relevant to the distribution contract (CCCN, Article Number 1,511, Sub-article b)
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