Company Formation

In Argentina, foreign investors typically choose from three main business structures:

1. Limited Liability Company (Sociedad de Responsabilidad Limitada - S.R.L.): Ideal for small to medium-sized businesses, offering limited liability to shareholders, but requiring shareholder approval for share transfers.

2. Corporation (Sociedad Anónima - S.A.): Suited for larger enterprises, offering ease of raising capital through shares, with more stringent regulations.

3. Simplified Joint Stock Company (Sociedad por Acciones Simplificada - S.A.S.): A flexible, quick-to-form structure, perfect for startups, with fewer regulatory demands.

It's recommended to consult a local corporate law expert for guidance.

1. Limited Liability Company (Sociedad de Responsabilidad Limitada - S.R.L.):
   This structure is widely chosen by investors due to its simplicity and low capital requirements. A minimum of two and a maximum of fifty shareholders are allowed, with liability limited to their contributions. The minimum capital requirement is around USD $500, with 25% payable at formation and the remainder within two years. Ownership is represented by quotas, and each shareholder's liability corresponds to the quotas acquired.

2. Corporation (Sociedad Anónima - S.A.):
   An S.A. is established through bylaws registered with the Inspectorate General of Justice (IGJ). This structure is typically used for larger businesses due to its flexibility. The company's capital is divided into shares, with 25% of the value payable upon subscription. Shares are transferable, allowing easy entry or exit of shareholders. Additionally, S.A.s can be listed on the stock market to raise funds through share sales. Shareholders' liability is limited to their contributions.

3. Simplified Joint Stock Company (Sociedad por Acciones Simplificada - S.A.S.):
   This legal entity was introduced by the Entrepreneurship Law to encourage small and medium-sized businesses. The S.A.S. can be formed by a single investor, offering simplicity and lower costs compared to an S.A. or S.R.L. Shareholder liability is limited to their contribution. While ideal for smaller ventures, it may lack the complexity required for large-scale enterprises. Shareholders can be individuals or legal entities, and its streamlined process allows for quicker formation than traditional structures.

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