>> 10 Tips for Investing in Argentina

5. You will need to establish a representation in Argentina and have Argentine residents in the management structure.

Foreign entities willing to conduct business in Argentina on a regular basis are required to establish a branch or other representation (only “isolated acts” can be carried out without such requisite, but said concept is construed restrictively). The election between a branch or a subsidiary will depend on the relevance given to the limitation of liability (the parent company is directly liable for all of the branch’s operations) vis-à-vis the simplicity of registration and administration. However, as a practical matter, there are no significant differences between the two alternatives, as pros and cons may be strengthen or minimized, as needed.

Also, a majority of the Board of local corporations (SAs) must reside in Argentina. The legal representative of a branch, on the other hand, may reside abroad, but day-to-day matters will require at least a resident attorney-in-fact with broad powers (limited liability companies (SRLs) have some extra flexibility, but at least 1 Manager/Director shall reside in Argentina and have the ability to individually bind the company.

volver atrás