{"id":223232,"date":"2023-05-01T11:57:52","date_gmt":"2023-05-01T14:57:52","guid":{"rendered":"https:\/\/cspabogados.com.ar\/?p=223232"},"modified":"2023-05-01T11:57:53","modified_gmt":"2023-05-01T14:57:53","slug":"establish-a-company-to-hire-workers-in-argentina","status":"publish","type":"post","link":"https:\/\/cspabogados.com.ar\/en\/establish-a-company-to-hire-workers-in-argentina\/","title":{"rendered":"Is it necessary to establish a company to hire workers in Argentina?"},"content":{"rendered":"

[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.21.0″ _module_preset=”default” background_image=”https:\/\/cspabogados.com.ar\/wp-content\/uploads\/2023\/05\/iStock-1396721825.-vista-por-encima-del-hombro-hombre-irreconocible-usando-pc-de-escritorio-para-reunirse.1080×720.jpg” locked=”off” global_colors_info=”{}”][et_pb_fullwidth_post_title date_format=”j M Y” comments=”off” featured_image=”off” admin_label=”CSP. HEADER POSTS INGLES EMPRESAS” _builder_version=”4.19.0″ _module_preset=”default” title_font=”Source Serif Pro||||||||” title_text_color=”#FFFFFF” title_font_size=”36px” meta_font=”Source Sans Pro||||||||” meta_text_color=”#FFFFFF” background_enable_color=”off” use_background_color_gradient=”on” background_color_gradient_stops=”rgba(18,17,93,0.5) 0%|rgba(18,17,93,0.5) 100%” background_color_gradient_overlays_image=”on” background_enable_image=”off” background_position=”top_center” custom_margin=”|||0px|false|false” custom_padding=”300px||50px||false|false” animation_style=”fade” global_module=”221777″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_fullwidth_post_title][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” use_background_color_gradient=”on” background_color_gradient_stops=”#f0f3fb 0%|rgba(255,255,255,0) 50%” background_color_gradient_overlays_image=”on” background_enable_image=”off” background_size=”contain” background_position=”top_center” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_color=”#FFFFFF” width=”95%” max_width=”950px” custom_padding=”5%|5%|5%|5%|true|true” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”CSP LEGAL BLOG. BODY” _builder_version=”4.21.0″ _module_preset=”default” text_font=”Source Sans Pro||||||||” text_text_color=”#292929″ text_font_size=”20px” text_line_height=”30px” header_font=”Source Serif Pro||||||||” header_text_color=”#292929″ header_2_font=”Source Serif Pro||||||||” header_2_text_color=”#292929″ header_3_font=”Source Serif Pro||||||||” header_3_text_color=”#292929″ width=”795″ global_module=”219558″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n

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Yes. Establishing a company to hire workers in Argentina is a necessity to avoid legal liabilities. Even if the employers are foreign companies that hire human resources residing in Argentina to provide services remotely.<\/span><\/o:p><\/p>\n

<\/span><\/p>\n<\/div>\n

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Hiring individuals in Argentina to work for non-resident companies<\/span><\/span><\/strong><\/o:p><\/span><\/h2>\n<\/div>\n
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In Argentina, labor law is governed by the principle of territoriality: Argentine law will apply to the validity, rights, and obligations of the parties, whether the employment contract has been entered into in the country or abroad, insofar as it is performed in its territory (Labor Contract Law No. 20,744, Section 3).<\/span><\/o:p><\/span><\/p>\n<\/div>\n

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Therefore, foreign laws do not apply to labor relationships performed in Argentina (regardless of whether they were entered into abroad), and a foreign company may not hire an employee in Argentina unless it does so through a branch or a subsidiary set up in the country, and complies with applicable labor and social security obligations.<\/span><\/o:p><\/span><\/p>\n<\/div>\n

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Although the hiring of an independent contractor is admissible, if the hired contractor turns out to actually be an employee, the relationship will be deemed a\u00a0<\/span>de facto<\/em>\u00a0labor contract, with significant legal liabilities arising out of such a qualification and the labor and social security liabilities derived from the termination of employment.<\/o:p><\/span><\/p>\n<\/div>\n

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To rule whether there is an employment relationship or an independent contract, labor judges customarily consider, among others, the following facts:<\/span><\/o:p><\/span><\/p>\n<\/div>\n

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1. If the individual is immersed in a third party’s business, or has a business organization of his\/her own;<\/span><\/o:p><\/span><\/p>\n<\/div>\n

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2. If the individual performs services on an exclusive basis for the contracting party or has different clients;<\/span><\/o:p><\/span><\/p>\n<\/div>\n

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3. If the individual is economically submitted to or mostly dependent on the considerations collected from the contracting party or has other sources of income;<\/span><\/o:p><\/span><\/p>\n<\/div>\n

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4. If the individual runs his \/ her own business organized as a company, has his\/her facilities, employees, and other business expenses, etcetera.<\/span><\/o:p><\/span><\/p>\n<\/div>\n

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Besides the aforementioned labor and social security risks, the rendering of services by independent contractors in Argentina also implies potential tax liabilities, as those services may establish the existence of a permanent business for tax purposes. The lack of registration of a permanent business may create contingencies regarding taxes, interests, and penalties.<\/span><\/o:p><\/span><\/p>\n<\/div>\n

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Conclusion: although with practical difficulties to have them accountable, foreign companies without an establishment in Argentina that hire resident individuals and make them issue invoices for their services as if they were independent contractors when they are employees may face significant liabilities.\u00a0<\/span><\/o:p><\/span><\/p>\n<\/div>\n

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As for general guidelines on Argentina\u00b4s labor laws, you may consult our Labor Guide to Doing Business in Argentina\u00a0<\/span>https:\/\/cspabogados.com.ar\/en\/labor-guide-to-doing-business-in-argentina-2\/<\/a>\u00a0<\/o:p><\/span><\/p>\n

<\/span><\/p>\n<\/div>\n

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How to establish a company to hire workers in Argentina<\/span><\/span><\/strong><\/o:p><\/span><\/h2>\n<\/div>\n
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If you want to know more about legal vehicles to establish your company in Argentina, please, review our article\u00a0<\/span>https:\/\/cspabogados.com.ar\/en\/legal-vehicles-to-do-business-in-argentina-2\/<\/a>\u00a0.<\/o:p><\/span><\/p>\n<\/div>\n

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\u00a0<\/o:p><\/span><\/p>\n<\/div>\n

Mario E. Castro Sammartino<\/p>\n

 <\/p>\n

For additional information on these or any other issues related to doing business in Argentina, please,\u00a0sign up<\/a>\u00a0for our Legal Blog or\u00a0contact us<\/a>\u00a0at any time.\u00a0Our publications exclusively express the\u00a0author\u00b4s opinion and do not purport to be legal counsel on any case. Should\u00a0you need it, you must consult with your trusted lawyer.\u200b<\/p>\n

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Establishing a company to hire workers in Argentina is a necessity to avoid legal liabilities. Even if the employers are foreign companies that hire human resources residing in Argentina to provide services remotely<\/p>\n","protected":false},"author":5,"featured_media":223233,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"2880","footnotes":""},"categories":[25,1274,1183],"tags":[],"class_list":["post-223232","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies","category-doing-business","category-labor-and-social-security"],"_links":{"self":[{"href":"https:\/\/cspabogados.com.ar\/en\/wp-json\/wp\/v2\/posts\/223232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cspabogados.com.ar\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cspabogados.com.ar\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cspabogados.com.ar\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cspabogados.com.ar\/en\/wp-json\/wp\/v2\/comments?post=223232"}],"version-history":[{"count":10,"href":"https:\/\/cspabogados.com.ar\/en\/wp-json\/wp\/v2\/posts\/223232\/revisions"}],"predecessor-version":[{"id":223249,"href":"https:\/\/cspabogados.com.ar\/en\/wp-json\/wp\/v2\/posts\/223232\/revisions\/223249"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cspabogados.com.ar\/en\/wp-json\/wp\/v2\/media\/223233"}],"wp:attachment":[{"href":"https:\/\/cspabogados.com.ar\/en\/wp-json\/wp\/v2\/media?parent=223232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cspabogados.com.ar\/en\/wp-json\/wp\/v2\/categories?post=223232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cspabogados.com.ar\/en\/wp-json\/wp\/v2\/tags?post=223232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}