Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Argentina. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
This information was collected from World Bank: Doing Business
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | The name of the company is verified by the Office of Corporations (Inspección General de Justicia) (IGJ) | 1 day | ARS 75 |
| 2 | Certify signatures of partners by a notary public | 1 day | Aproximately ARS 750 (cost of 5 notarized signatures . VAT excluded) |
| 3 | Deposit initial capital in National Bank (Banco de la Nación Argentina) and obtain proof of payment | 1 day | ARS 30 (VAT excluded ) |
| 4 | Publish the new company’s notice in the official paper (BoletÃn Oficial) | 1-3 days | approximately ARS 2,035 (expedited publication fee)+ ARS 100 (legalization of signature) |
| 5 | Payment of the incorporation fee | 1 day | ARS 30 |
| 6 | Registration with the Public Registro of Commerce of the City of Buenos Aires | 5 days | ARS 1000 for expedited procedure |
| 7 | Buy special books | 1 day | fees included in procedure 8 |
| 8 | Get a form from the Public Notaries College and have a notary public submit the company books for rubrication by IGJ | 5 days | ARS 1,270 |
| 9 | Corporate manager needs to obtain a Fiscal Code (Clave Fiscal) | 1 day | no charge |
| 10 | Obtain a tax identification number (CUIT) from the National Tax Office (Administración Federal de Ingresos Públicos, AFIP) and register for social security | 4 days | no charge |
| 11 | Register turnover tax at local level at the Dirección General de Rentas (DGR) in the City of Buenos Aires | 1 day | ARS 50 |
| 12 | Register with the Sistema Unico de Seguridad Social (SUSS) | 1 day | no charge |
| 13 | Contract an insurance for employees with a risk labor company (ART, Aseguradora de Riesgos del Trabajo) | 1 day | no charge |
| 14 | Rubricate books of wages in the Ministerio de Trabajo (Ministry of Labor) | 1 day | ARS 75 |