{"id":224516,"date":"2024-06-11T19:54:03","date_gmt":"2024-06-11T22:54:03","guid":{"rendered":"https:\/\/cspabogados.com.ar\/?p=224516"},"modified":"2026-08-19T13:09:52","modified_gmt":"2026-08-19T16:09:52","slug":"information-and-communication-technology-companies-in-argentina","status":"publish","type":"post","link":"https:\/\/cspabogados.com.ar\/en\/information-and-communication-technology-companies-in-argentina\/","title":{"rendered":"Information and Communication Technology companies in Argentina: what to consider when starting up"},"content":{"rendered":"

Information and Communication Technology companies in Argentina: what to consider when starting up<\/h1>

by Mario Eduardo Castro Sammartino<\/a><\/span> | 11 Jun 2024<\/span><\/p><\/div><\/div><\/div>

1) The booming of Information and Communication Technology companies in Argentina<\/strong><\/h2>\n

Supported by rising levels of digitalization, a well-trained workforce, and tax and foreign exchange benefits, the Information and Communication Technology (hereinafter, also ICT) industry in Argentina is booming.<\/p>\n

Professionals in Information and Communication Technology companies in Argentina are open-minded, with solid technological skills, and good working capacities in English. Human resources departments compete fiercely, struggling to devise better scheme compensations to attract and retain the best talents (e.g. payment of salaries in foreign currencies, hiring and retention bonuses, productivity bonuses, etc.).<\/p>\n

The thriving of the industry has brought about several so-called unicorns, such as companies like Globant and MercadoLibre.<\/p>\n

2) What to consider when starting Information and Communication Technology companies in Argentina<\/strong><\/h2>\n

a)<\/em><\/strong> Legal vehicle<\/em><\/p>\n

(i) Choosing the legal vehicle<\/p>\n

There are different vehicles to do business in Argentina.<\/p>\n

As a ballpark figure, foreign companies usually do business in Argentina through two different legal vehicles: a branch or most commonly a subsidiary structure (meaning that one or more foreign companies register in Argentina for, in turn, incorporating a domestic company as shareholders. We would call this domestic company the \"NewCo\u201d).<\/p>\n

The company type most chosen by foreign business as NewCo is the so-called Sociedad An\u00f3nima<\/em> (hereinafter, the SA, a vehicle of the sort of the US Corporation). A SA may be formed by a single partner (Sociedad An\u00f3nima Unipersonal<\/em>).<\/p>\n

The branch is simpler, but it does not provide a limitation of liability and the parent company is fully responsible for the debts of the branch. On the contrary, the subsidiary structure is more complex, but the NewCo provides said limitation of liability, and the partners are not liable for the debt of the NewCo.<\/p>\n

Branches may be registered without capital allocation (except for certain regulated activities). On the opposite, the NewCo does require a certain minimum share capital.<\/p>\n

(ii) Filing for registration<\/p>\n

Either for setting up a branch or forming a subsidiary structure, the foreign companies involved must register with the Public Registry (submitting certain documents and information). However, setting up a subsidiary is a two-step process:<\/p>\n