Business Administration in Argentina

Overview by Globlatrade.net:

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
The Empresa Unipersonales is an individual businessman alone.
 
 
No minimum capital
1 person
 
 
The businessman is liable for the company's debts on his personal property.
N/C
The Sociedad Anonima (SA) is a public limited company .
 
 
12 000 ARP minimum.
At least 25% of the capital must be paid up at the creation of the company, the balance within 2 years.
Minimum 2 shareholders
 
 
Their liability is limited to the amount of capital contributed.
1,000 to 2,000 ARP before fiscal stamp (1% of subscribed capital) and other professional expenses.
The Sociedad de Responsabilidad Limitada (SRL) is a limited liability company .
 
 
No minimum capital.
At least 25% of the capital must be paid up at the creation of the company, the balance within 2 years
Minimum 2 partners. Maximum 50 partners.
 
 
Their liability is limited to the amount of capital contributed.
1,000 to 2,000 ARP before fiscal stamp (1% of subscribed capital) and other professional expenses.
The Sociedad en commandita por acciones (SCA) is a limited joint-stock partnership .
 
 
No minimum capital.
There are two types of partners, active partners and silent partners.
 
 
The liability of the active partners is unlimited.
The liability of the silent partners is limited to the amount of capital contributed.
Costs less than those of a SA
The Sociedad en commandita simple (SCS) is a limited partnership.
 
 
No minimum capital.
There are two types of partners, active partners and silent partners
 
 
The liability of the active partners is unlimited.
The liability of the silent partners is limited to the amount of capital contributed.
Costs less than those of a SA.
 
Business Setup Procedures
The Articles of Association must be written in Spanish, in the form of a notarial deed. The incorporation of the company must be published in the Official Gazette and registered at the Inspeccion General de Justicia (in Spanish) (Register of Commerce) where the headquarters of the company is situated. Branch offices and offices of foreign companies must also be registered. Finally, a specific registration must be carried out with the Tax Services (including for branch offices).
The Competent Organization
Inspeccion General de Justicia (General Inspection of Justice) (in Spanish)

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Working Conditions

Legal Weekly Duration
48 hours a week
Retirement Age
60 for women, 65 for men
Working Contracts
Legal measures ( laws n° 20744, 24013, 24465 and 24467) govern work contracts; collective agreements and individual negotiation complete them.
The formality of work contracts is very rigid. Hiring and firing procedures are constraining.

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Cost of Labor

Minimum Wage
980 pesos per month
Average Wage
Average monthly gross earnings in Argentina is ARS 2,342 (USD 616).
Social contributions
Social Security Contributions Paid By Employers: 33%.
Social Security Contributions Paid By Employees: 17%

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Social Partners

Social Dialogue and Involvement of Social Partners
Most unions are affiliated to the general labor confederation (CGT). In 1997 the government recognized the smallest federation in Argentina: the Argentine Workers Group (CTA).
Negotiations in Argentina take place at the national level, by sector of activity. The unions are very powerful, especially the truck-drivers' union. The CGT, led by Mr Moyano, is an essential ally for every government.
Unions
List of all Argentine unions
Unionization Rate
Approximately 40% of workers in the formal economy are unionized.
Labor Regulation Bodies
Ministry of Labor and Employment

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