How to set up a company or branch in Argentina Legal minimum and practical tips

Mgr. Vojtěch Sucharda
Mgr. Vojtěch Sucharda
22.4.2026 | ARROWS law firm

Argentina represents an attractive opportunity for Czech companies looking to enter the Latin American market. However, the decision between establishing your own company or a branch of a foreign company has fundamental implications for legal liability, tax obligations, and operational flexibility. In this article, we explain what you currently need to know to ensure your entry into Argentina proceeds without unnecessary complications and risks.

The photograph shows a lawyer discussing the topic of entering the Argentine market.

Quick summary

  • Choosing the structure is decisive : A branch (sucursal) exposes your parent company to unlimited risk, while a subsidiary (filial) protects your assets and is the standard choice for foreign investors.
  • Registration is formal and administratively demanding : The entire process typically takes 3 to 6 weeks (depending on the jurisdiction) and requires notarisation of documents, registration with  and entry in  or provincial registers.
  • The tax system is complex : Argentina has an extensive system of taxes at the federal, provincial and local levels; the basic corporate income tax rate ranges from 25 to 35 percent depending on the level of profit.
  • The investment climate is changing : Government reforms (including ) and the RIGI regime offer investors in key sectors tax benefits, customs relief and a 30-year stability guarantee.

Argentina as a target market: Opportunities and challenges

Argentina is one of the largest economies in Latin America. A market of more than 46 million people offers potential for Czech companies particularly in technology, energy, mining (lithium, copper), agri-tech and higher value-added services. The current government administration is pursuing economic liberalisation, efforts to deregulate the market and stabilise macroeconomic indicators.

However, it is essential to respect local specifics. Although foreign-exchange and capital controls are being gradually relaxed, foreign companies must still carefully manage financial flows and understand local regulations (compliance). Argentina is a federal republic, which means that in addition to national regulations you must also take into account the legislation of individual provinces, especially in the tax area. For cross-border structuring and coordination of multi-jurisdiction rules, our International Law team can help align Czech and Argentine legal requirements.

The attorneys at ARROWS, a Prague-based law firm, handle matters with an international element on a daily basis thanks to the long-established ARROWS International network and have experience with the Latin American market. If you are considering entering the Argentine market, it is crucial to have high-quality legal support from the outset. When choosing between a branch and a subsidiary, the setup of group management and liability is also typically addressed, which is linked to our advice in the area of corporate law, holdings and structures.

Two basic models: Branch or subsidiary?

A foreign company in Argentina generally has a choice between two models: establishing a branch (sucursal) or setting up a separate legal entity – a subsidiary. This decision is fundamental because legal liability, operational flexibility and tax implications differ significantly.

Branch of a foreign company: Administratively easier, but risky

A branch (sucursal) is not a separate legal entity in Argentina, but merely an organisational unit of your parent company. This means that the branch does not have its own legal personality separate from the founder, and the parent company is fully and unlimitedly liable for all its obligations, debts and legal disputes.

The main advantage is that no formal minimum registered capital is required (although capital must be allocated for operations). Registration is carried out by filing the parent company’s resolution and articles of association in the public commercial register (Registro Público) and appointing a legal representative.

However, the disadvantages are fundamental. Any legal problem of the Argentine branch becomes a problem of the parent company. If the branch becomes involved in litigation or insolvency, the consequences may affect the parent’s assets anywhere in the world.

In the case of employment disputes, which are common and costly in Argentina, liability is transferred directly to the Czech parent company. For a practical comparison of contract settings and typical risk areas when hiring abroad, see Argentine vs. Czech Employment Contracts: What Argentine Companies Should Watch Out for When Hiring in the Czech Republic. We also summarise a practical view of how Czech companies set up employment contracts abroad and where the most common risks arise in the article How Czech companies handle Icelandic employment contracts: Risks and specifics of employment law. This represents a significant and often unnecessary risk for foreign entities. A broader compliance checklist for foreign employers (including payroll, contractors and documentation) is summarised in Hiring and Employment in the Czech Republic: A Practical HR Overview for Foreign Companies (Employees, Contractors, Payroll & Compliance).

Subsidiary: Asset protection and the standard for investors

A subsidiary (subsidiaria/filial) in Argentina is a separate legal entity established under Argentine law (Act No. 19.550, Ley General de Sociedades). It is most commonly incorporated as a Sociedad Anónima (S.A. – joint-stock company) or a Sociedad de Responsabilidad Limitada (S.R.L. – limited liability company).

The key advantage of a subsidiary lies in legal separation (corporate veil). As a rule, the parent company is liable only up to the amount of its contribution, except in cases of fraud or abuse of rights. When deciding between a branch and a subsidiary and setting internal governance, it can be useful to consult our Corporate & Holding Services in the Czech Republic practice for group structure and liability planning. If the Argentine subsidiary were to generate debts, your Czech parent company would not be directly affected.

A subsidiary is also the preferred model for banks and business partners, who perceive it as an independent entity. Disadvantages include higher administrative requirements for governance, such as maintaining corporate books, holding regular general meetings or statutory audits for larger S.A.s. If disputes arise in connection with corporate governance between shareholders, corporate bodies or business partners, we typically handle them within our commercial and litigation disputes practice.

Recommendation: Which structure to choose?

For the vast majority of Czech entrepreneurs and corporations, establishing a subsidiary (S.A. or S.R.L.) is the safer and more appropriate decision. Protecting the parent company from the direct impact of Argentine risks is key. A branch is more suitable only in specific cases, for example for projects with a limited duration (e.g., a construction project) or within specific tenders. Our news item How to do business in Argentina: Practical obstacles in taxes, contracts and HR from the perspective of Czech companies also returns in more detail to broader practical barriers when expanding into Latin America (taxes, contracts and HR).

Legal essentials: What types of companies exist in Argentina?

The Argentine legal system (Ley General de Sociedades) offers several forms of business corporations. For foreign investors, the following are particularly relevant:

Sociedad Anónima (S.A.) – Joint-stock company

An S.A. is comparable to a Czech joint-stock company. Its capital is divided into shares.

Key characteristics of an S.A.:

  • Minimum number of shareholders : Two (individuals or legal entities).
  • Share capital : Must meet the minimum threshold set by the authority  or the relevant provincial registry. This amount is regularly adjusted to reflect inflation.
  • Corporate governance : Requires a board of directors (Directorio) and, in certain cases, a supervisory body (Sindicatura).
  • Suitability : Ideal for larger investments, multinational corporations, and companies planning to list on a stock exchange or with a more complex ownership structure.
Sociedad de Responsabilidad Limitada (S.R.L.) – Limited liability company

An S.R.L. is the equivalent of a Czech s.r.o. and is very popular for small and medium-sized enterprises, as well as for subsidiaries of foreign groups that do not require a complex management structure.

Key characteristics of an S.R.L.:

  • Number of partners : Minimum two, maximum fifty.
  • Share capital : The law does not set a fixed minimum amount, but the capital must be adequate for the business activity. It is divided into ownership interests (cuotas).
  • Management : The statutory body consists of one or more managing directors (Gerentes).
  • Flexibility : Simpler administration and lower governance costs than an S.A. (e.g., it does not always need a supervisory body).
Sociedad por Acciones Simplificada (S.A.S.)

It is also worth mentioning the simplified joint-stock company (S.A.S.), which was introduced to support entrepreneurship. It allows faster, digital incorporation; however, its regulation and popularity change depending on the current policy of the IGJ authority. For foreign holding structures, the traditional S.A. or S.R.L. is often recommended instead due to greater legal certainty.

Registration process: Step by step

Registering a company in Argentina requires care and cooperation with local professionals. The process typically takes several weeks to months depending on how quickly documents are delivered from the Czech Republic.

Step 1: Preparing documentation in the Czech Republic

Foreign partners (a Czech company) must prove their existence and the decision to establish an Argentine company. The documents include:

  • Extract from the Commercial Register of the parent company.
  • Articles of association of the parent company.
  • Resolution of the competent body (general meeting/managing director) on establishing a company in Argentina and appointing representatives.
  • Power of attorney for local legal counsel.

Important : All documents must be officially translated into Spanish and provided with an **apostille ** (under the Hague Convention) for validity in Argentina.

Step 2: Obtaining a CDI for foreign partners

Foreign partners (both individuals and legal entities) must obtain a CDI identification number (Clave de Identificación) from the Argentine tax authority ARCA (formerly AFIP) in order to become owners of interests in an Argentine company.

Step 3: Notarial deed and capital contribution

The deed of incorporation and articles of association of the new company are signed in the form of a public deed before an Argentine notary (Escribano Público). At the same time, it is necessary to deposit 25% of the share capital in escrow with the national bank (Banco de la Nación Argentina) or evidence an in-kind contribution. The remaining capital must be paid up within two years.

Step 4: Publication and registration in the Commercial Register

The incorporation of the company must be announced in the Official Gazette (Boletín Oficial). Subsequently, the notary files the application for registration with the Public Commercial Registry (Registro Público), which in Buenos Aires is administered by the IGJ (Inspección General de Justicia). In other provinces, the competent registry courts or authorities perform this role.

Step 5: Tax registration and corporate books

After registration, the company applies for a CUIT tax identification number (Código Único de Identificación Tributaria) with the ARCA agency. It is then necessary to have the mandatory corporate and accounting books notarised and “rubricated”.

Tax system: Overview of key obligations

The Argentine tax system is complex and subject to frequent changes. The administration of national taxes is carried out by ** ARCA** (Agencia de Recaudación y Control Aduanero), the successor organisation to the former AFIP.

National taxes
  • Corporate income tax (Impuesto a las Ganancias): The rate is progressive and ranges from 25% to 35% depending on the amount of net taxable profit.
  • Dividend tax : If the company distributes dividends, withholding tax is applied (typically 7%) so that the overall taxation (corporate tax + dividend) corresponds to an effective rate of approx. 39.55%.
  • Value added tax (IVA): The standard rate is 21%. Reduced rates (10.5%) apply to certain capital goods and increased rates (27%) apply to some services (telecommunications, energy for businesses).
  • Tax on bank transactions (Impuesto al Cheque): A rate of 0.6% on each credit and debit on a bank account. In some cases, part of this tax can be credited against income tax.
Provincial and local taxes
  • Gross receipts tax (Ingresos Brutos): This is a turnover tax levied by individual provinces (e.g., the City of Buenos Aires, Buenos Aires Province, Córdoba, etc.). Rates vary by jurisdiction and type of activity, typically between 3% and 5%. It is a cumulative tax that can significantly increase supply-chain costs.
  • Local fees : Municipalities levy fees for services, security, and hygiene, often calculated based on turnover.

Employment law and hiring

Employment law in Argentina is undergoing a modernisation process aimed at increasing labour-market flexibility and reducing litigation. Changes introduced as part of reforms (e.g., the “Ley Bases” law) regulate probationary periods and severance pay conditions.

  • Minimum wage and contributions : The minimum wage is regularly adjusted by the Wage Council (Consejo del Salario) in response to inflation. The employer pays social security contributions, health insurance and other funds on top of the gross salary (employer costs are approximately 24–27% above the gross salary, plus ART occupational risk insurance).
  • Probationary period : Reforms have extended the standard probationary period (previously 3 months) to 6 months, and for smaller businesses up to 8 or 12 months, giving companies greater certainty when hiring.
  • Severance fund (Fondo de Cese): New legislation allows collective agreements to replace traditional severance pay with an individual fund system to which the employer contributes monthly (the so-called UOCRA model), increasing cost predictability upon termination of employment.

Our EU-based attorneys at ARROWS can help you structure employment contracts so that they comply with current legislation and minimise the risk of disputes.

Investment incentives: the RIGI regime

For major investment projects, Argentina has introduced the so-called RIGI (Régimen de Incentivo para Grandes Inversiones). This regime targets strategic sectors such as energy, mining, infrastructure and technology.

Main benefits of RIGI:
  • Tax relief : Reduced corporate income tax rate (25%), accelerated depreciation and the possibility to use VAT tax credits.
  • Customs benefits : Exemption from import duties for the import of capital goods (machinery, technology) necessary for the project.
  • Stability : A guarantee of stability of the tax, customs and foreign-exchange regime for 30 years . This means that any future tax increases or new restrictive measures will not apply to the project.
  • Minimum investment : The regime is intended for large projects with a minimum investment typically starting at USD 200 million (the amount may vary depending on the specific rules for the sector concerned).

Currency and foreign-exchange regulations

Argentina has long applied strict foreign-exchange controls. Current government policy is aimed at their gradual removal and the normalisation of the currency market. Although the situation for importers and foreign investors is improving (e.g., easier access to foreign currency for paying for imports and dividends), it is still necessary to expect a certain level of bureaucracy in international payments.

Companies must comply with Central Bank (BCRA) regulations regarding deadlines for repatriation of export proceeds and rules for purchasing foreign currency. The system is dynamic and the legal framework may change, so consulting the current status before carrying out transactions is essential.

Risk table: Key threats when setting up a company in Argentina

Risk

How ARROWS helps (office@arws.cz)

Inappropriate legal form:

Risk analysis and a recommendation of the optimal structure (S.A. vs. S.R.L. vs. branch) to protect the Czech parent company.

Errors in documentation:

Ensuring correct translations, apostilles and notarial deeds so that the registration is not rejected by the IGJ authority.

Tax arrears and penalties:

Setting up a tax calendar, CUIT registration and advice on both federal and provincial taxes (ARCA, Ingresos Brutos).

Employment disputes:

Preparation of employment contracts in line with current reforms (Ley Bases) and minimising risks associated with termination of employment.

Breach of foreign-exchange regulations:

Compliance review of international payments and profit repatriation under current Central Bank (BCRA) rules.

Practical steps: From idea to an established business

Phase 1: Preparation in the Czech Republic (approx. 2–4 weeks)

Collecting documents, translations into Spanish, notarisation and obtaining apostilles. Choosing the company name and checking its availability.

Phase 2: Incorporation in Argentina (approx. 1–2 weeks)

Signing the deed of incorporation before an Argentine notary, paying in part of the registered capital, publication in the official gazette.

Phase 3: Registration and activation (approx. 2–5 weeks)

Registration in the commercial register (IGJ), obtaining the CUIT tax number, registration for taxes and social security, opening a fully functional bank account.

Common mistakes: What must not happen

  • Underestimating provincial taxes : Companies often address only federal taxes and forget about the gross income tax in individual provinces, which leads to high fines.
  • Lack of local management : The company must have at least one managing director/board member with permanent residence in Argentina. If you do not have one, you need to use the services of a professional nominee director.
  • Unfamiliarity with inflation accounting : In Argentina, it is necessary to apply specific procedures to adjust financial statements for inflation so that they reflect the real situation.

Conclusion

Setting up a company in Argentina is a strategic step that opens the door to a large market, but it requires professional preparation. The combination of bureaucracy, a complex tax system and a specific legal environment means that improvisation does not pay off.

Our EU-based attorneys at ARROWS have experience supporting Czech companies abroad. We will help you through the entire process, from choosing the legal form to addressing day-to-day operational matters. Thanks to our professional liability insurance of up to CZK 400 million and our network of international partners, your investment is in safe hands.

If you are planning to expand into Argentina, contact us for an initial consultation at office@arws.cz.

FAQ – Most common legal questions on setting up a company in Argentina

1. How much will it cost me to set up a company in Argentina?
The costs consist of notarial fees, registry administrative fees, translation costs and legal fees. Due to high inflation in Argentina, amounts in pesos (ARS) change quickly. In general, you should expect costs in the range of thousands of USD (or the equivalent) for complete incorporation and initial compliance set-up. For an accurate quote, contact us at office@arws.cz.

2. Is it mandatory to have a legal representative or director in Argentina?
Yes. Most managing directors/board members may be foreigners residing abroad, but at least one member of the statutory body must have permanent residence in Argentina (a resident). This person is key for communication with the authorities.

3. How long does it take before I can start invoicing?
From the delivery of complete documents to Argentina, the process of obtaining a CUIT (tax identification number) typically takes 4 to 8 weeks. Only after the CUIT is activated can the company legally issue invoices.

4. Can I do business without registering a company?
Doing business without a formal legal structure (e.g., solely on the basis of a contract for work from abroad) is possible only to a very limited extent as cross-border provision of services. For ongoing commercial activity, importing goods, or employing people, establishing a local entity or branch is essential.

5. What are the benefits for investors (RIGI)?
If your project meets the conditions for inclusion in the RIGI regime (large investments in strategic sectors), you will obtain a guarantee of the immutability of tax and customs conditions for 30 years, a reduced income tax rate (25%), and relief on import duties.

Notice: The information contained in this article is of a general informational nature only and is intended to provide basic guidance on the topic under the legal framework as of 2026. Although we take utmost care to ensure maximum accuracy, legal regulations and their interpretation evolve over time. We are ARROWS advokátní kancelář, an entity registered with the Czech Bar Association (our supervisory authority), and for maximum client protection we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS advokátní kancelář directly (office@arws.cz). We accept no liability for any damages arising from the independent use of the information in this article without prior individual legal consultation.

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