Setting Up a Sole Proprietorship in Argentina

Argentina is among the largest economies in Latin America, with a Gross Domestic Product (GDP) of around US$ 490 billion. The country possesses extensive natural resources in both agriculture and energy. With a vast territory of 2.8 million square kilometers, Argentina consists of fertile lands, lithium and gas reserves, and great potential for renewable energy.

The country is a major food producer, boasting large-scale agricultural and livestock industries. Furthermore, Argentina presents significant prospects in select manufacturing subsectors and high-tech industries offering innovative services. Thus, businesses can benefit from Argentina’s diverse economy by tapping into its agricultural, manufacturing, and high-tech sectors, which present opportunities for growth, innovation, and market expansion.

Despite receiving minimal foreign direct investment or exposure to international financial markets, Argentina has witnessed significant economic expansion in recent years. Foreign companies must thoroughly understand the market and seek local assistance to take advantage of the country’s robust economic fundamentals.

In this article, you’ll learn how to register a sole proprietorship in Argentina and learn about sole proprietorships in Argentina cost. Moreover, it will also give you an overview of sole proprietorship in Argentina’s tax and laws. 

Who Can Be a Sole Proprietor in Argentina? 

It is essential to note that setting up a sole proprietorship in Argentina is only possible for a legal resident. You must have an Argentine DNI (national identity document) to set up as a sole trader in Argentina. Below is a general guide on the paperwork required to obtain an Argentine DNI. To obtain a DNI, you need to submit the following:

• Your original birth certificate, legalized by the Argentine consulate in your home country or with an apostille if your home country is a signatory to the Hague Convention for the Suppression of Legalization on Foreign Public Documents.
• A certified legal translator must translate the birth certificate into Spanish.
• A residency permit from the DNM (National Directorate for Migration), either permanent or temporary
• Proof of residence through a utility bill in your name or a domicile certificate issued by the corresponding Police Office.
• You must bring two recent photographs.
• For foreigners, the cost of issuing the DNI is AR$ 15.00.

Benefits of Sole Proprietorship in Argentina

Argentina has become an increasingly attractive marketplace for global investors as it offers a variety of benefits. Here are some benefits you’ll get if you register as self-employed in Argentina. 

• Firstly, the country’s government has approved vital initiatives to encourage business activities for both international and local entrepreneurs, making it an ideal economic environment for global investors. 

1. 1. The Agencia Argentina de Inversiones y Comercial Internacional provides free assistance to foreigners interested in doing business there. The Argentine Simplified Shares Company is a new legal entity that helps foreigners with businesses in Argentina. They can provide advice on market opportunities, regulatory requirements, and investment incentives, among other things like sole proprietorship taxes in Argentina and how to register as self-employed in Argentina. This can help foreign businesses navigate the complexities of the Argentine market and make informed investment decisions.
   2. The country’s legislation places no prohibitions or restrictions on foreign investments, allowing companies to invest without prior government approval. Additionally, Argentina offers a high quality of life in education, the natural environment, and health. Buenos Aires, Argentina’s capital city, has ranked second in South America for quality of living.

• Argentina is known for its diverse industries, especially agriculture, its primary contributing sector. The country’s extensive base of natural resources, multiple climate zones, and fertile lands make it stand out for its production of soybeans, wheat, maize, sorghum, and livestock, including poultry and beef. This abundance of resources can benefit businesses involved in producing, processing, and distributing agricultural products.

1. 1. Furthermore, Argentina provides opportunities for international experts with unique and specific knowledge in various sectors. These sectors include manufacturing, telecommunications, metalworking, oil and gas, automotive, petrochemicals, agrichemicals, pharmaceuticals, construction stone, mining deposits, renewable energy, and sugar.

• Argentina’s active membership in MERCOSUR (Southern Common Market) presents a valuable opportunity for businesses seeking to expand into international trade. As a member, Argentina has access to trade agreements with other Latin American regions, including Brazil, Paraguay, and Uruguay, which can offer reduced taxes and minimal legal requirements.

1. 1. Additionally, Argentina’s participation in G20 (Group of Twenty) provides access to a forum for discussing financial and economic issues, with countries representing 85% of the Gross World Product (GWP) and 75% of international trade.

• Argentines have received recognition for their high level of education and competitiveness in the workforce. While Spanish is the official language, many Argentines speak English, Italian, French, and Portuguese. Argentina has been ranked as the number one country in Latin America for its population’s proficiency in English, making it easier for international businesses to communicate and work with local talent and qualified business professionals.

The measures mentioned above have simplified the process of conducting business in Argentina, making it more accessible for both foreign investors and local entities. As a result, it has become easier to register as self-employed in Argentina and is more straightforward than ever before.

Documents Required for Registering Your Business in Argentina 

For individuals who are curious about how to register a sole proprietorship in Argentina, the following information proves helpful. The process entails obtaining several necessary documents per sole proprietorship Argentina law. These documents include the following:

• Articles of Incorporation (certified and legalized copy)
• By-laws of the Corporation with all its bills (certified and legalized copy)
• Proof of Argentina residence
• The Board of Director’s resolution
• A specific power of attorney issuance to act on behalf of the Corporation

In addition to obtaining these necessary documents, sole proprietorships in Argentina must also obtain a suitable business license. The available licenses in Argentina include the following:

• Exclusive License
• Non-Exclusive License
• Patent License
• Trademark License

Other Criteria for Registering a Sole Proprietorship in Argentina

To register as a sole proprietorship in Argentina, there are no strict requirements one needs to meet. However, entrepreneurs should consider some additional factors before starting their business in the country.

• The capital stock needed for incorporation is approximately US$ 620.
• You only need to pay less than US$75 for the government fee.
• You can establish the company within 24 hours if you provide all the required documentation.
• Only income generated in Argentina is subject to taxation for non-residents and foreign beneficiaries. Both residents and non-residents are subject to tax with varying rates ranging from 5% to 35%.

How to Register a Sole Proprietorship Company in Argentina? 

To those wondering about the registration process for setting up a sole proprietorship in Argentina, there are a few necessary steps to follow per sole proprietorship in Argentina law. Although the process is simple, adhering to the requirements for registering a sole proprietorship in Argentina is essential.

• Step 1: Appoint a legal representative through a power of attorney (POA) who can act on your behalf throughout the company formation process.
• Step 2: Choose and register your company name with Argentina’s General Inspection of Justice (IGJ) online, ensuring that no other companies are operating under that name.
• Step 3: Draft your company bylaws, and a social contract, highlighting your company’s commercial intentions and structure. Business owners can complete this process online.
• Step 4: Deposit 25% of the initial capital in the National Bank of Argentina. The company can withdraw this deposit after it registers its bylaws successfully.
• Step 5: Announce the creation of your company through a national publication in the Official Gazette, which a registered lawyer in Argentina must carry out. This announcement should include the constitution signing date, the registered office, and the social capital.
• Step 6: Pay the incorporation fee and submit the necessary documents to the Ministry of Justice and Human Rights site.
• Step 7: This involves registering the company’s accounting books, such as balance sheets, journals, inventories, and other books containing meeting minutes, board records, share deposits, and action records.
• Step 8: To obtain a Unique Tax Identification Code (CUIT), the Federal Public Revenue Administration (AFIP) requires the necessary documentation, including proof of the company’s registration with the Public Registry of Commerce.
• Step 9: The final step is to open a sole proprietorship Argentina bank account, which is remotely done through a legal representative. The account provider recommended by the legal representative will depend on the type and location of the business.

Conclusion 

The country’s expanding economy has turned Argentina into a popular destination for foreign investors seeking to establish their businesses. Establishing a sole proprietorship in Argentina is relatively easy, making it an attractive option for domestic and international investors. Additionally, there are numerous advantages for companies operating in Argentina, creating new opportunities for entrepreneurs to start their ventures.

Multiplier offers dependable and secure EOR (Employer of Record) solutions, which can simplify recruitment and managing foreign employees. Additionally, for sole proprietorships in various countries, Multiplier streamlines the payroll management process for freelancers with their convenient one-click payment systems.