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flag Argentina Argentina: Operating a business

In this page: Legal Forms of Companies | The Active Population in Figures | Working Conditions | The Cost of Labour | Management of Human Resources

 

Legal Forms of Companies

La Sociedad Anonima Unipersonal (SAU): Individual Businessperson
Number of partners: Only one shareholder.
Capital (max/min): Minimum capital: ARS 100,000, entirely subscribed and paid-up.
Shareholders and liability: Liability is limited to the amount of capital contributed/subscribed shares.
The Sociedad Anonima (SA): Public Limited Company
Number of partners: Minimum 2 partners/shareholders; no maximum.
Capital (max/min): Minimum capital: ARS 100,000.
Shareholders and liability: Liability is limited to the amount of capital contributed/subscribed shares.
The Sociedad de Responsabilidad Limitada (SRL): Limited Liability Company
Number of partners: Minimum 2 partners; maximum 50 partners.
Capital (max/min): No minimum capital, the capital must be appropriate with the corporate purpose of the company.
Shareholders and liability: Liability is limited to the amount of capital contributed.
The Sociedad en Commandita por Acciones (SCA): Limited Joint-Stock Partnership
Number of partners: Minimum 2 partners; maximum 50 partners.

There are two types of partners, active partners and silent partners.
Capital (max/min): No minimum capital.
Shareholders and liability: The liability of the active partners is unlimited.

The liability of the silent partners is limited to the amount of capital contributed.

Sociedad por Acciones Simplificada (SAS)
Number of partners: Minimum one shareholder, no maximum.
Capital (max/min): Two minimal wages (25% paid-up).
Shareholders and liability: Liability is limited to the amount of capital contributed.
The Sociedad en Commandita Simple (SCS): Limited Partnership
Number of partners: An association of companies or individuals to carry out particular economic activities in Argentina or in other countries having Argentina as its operation's base. This structure does not have enterprise status.
Capital (max/min): No minimum capital.
Shareholders and liability: The liability of the active partners is unlimited.

The liability of the silent partners is limited to the amount of capital contributed.

 

Business Directories

Financial Information Directories
Dun & Bradstreet - Worldwide directory with financial information on businesses
Registro Nacional de Sociedades - National register of companies

To go further, check out our service Business directories.


 

Professional Associations

General Professional Associations
Cámara Pymes Argentina - Argentine Chamber of SMEs

To go further, check out our service Professional Associations.


 

Business Setup Procedures

Setting Up a Company Argentina Latin America & Caribbean
Procedures (number) 12.00 8.00
Time (days) 11.50 25.22

Source: Doing Business - Latest available data.

 
The Competent Organisation
Inspeccion General de Justicia
For Further Information
Doing Business: Argentina, to learn about procedures to start a business in Argentina
The Official Gazette
 

Recovery Procedures

Principle
It is possible to present a reorganization proceeding to the council appointed by the commercial tribunal, made up of 3 professionals who check the feasibility of the plan of action.
Minimum Debt-to-Capital Ratio Triggering Liquidation
As soon as one can no longer pay one's creditors. For more details, consult the Mondaq report "Insolvency And Bankruptcy Rules In Argentina"
Bankruptcy Laws
Consult the Insolvency Proceedings in Argentina.
Reorganization and Rehabilitation Laws
Law 20758

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The Active Population in Figures

201820192020
Labour Force 20,551,68320,877,04119,191,447

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 68.23%69.21%69.37%
Men activity rate 79.63%79.70%79.48%
Women activity rate 57.17%59.02%59.53%

Source: International Labour Organization, ILOSTAT database

 
Employed Persons, by Occupation (% of Total Labour Force) 2014
Wholesale and retail trade; repair of motor vehicles and motorcycles 17.0%
Manufacturing 12.7%
Construction 10.2%
Public administration and defence; compulsory social security 9.0%
Education 8.1%
Transportation and storage 6.0%
Human health and social work activities 5.3%
Accommodation and food service activities 3.7%
Professional, scientific and technical activities 3.5%
Administrative and support service activities 3.1%
Agriculture, forestry and fishing 2.0%
Information and communication 1.7%
Arts, entertainment and recreation 1.5%
Financial and insurance activities 1.4%
Water supply; sewerage, waste management and remediation activities 0.6%
Mining and quarrying 0.5%
Electricity, gas, steam and air conditioning supply 0.4%
Real estate activities 0.2%
 

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Working Conditions

Opening Hours
 
  • Legal Weekly Duration
48 hours a week
  • Maximum Duration
8 hours a day and 48 hours a week, but there are very many exceptions.
  • Night Hours
7 hours from 9 pm to 6 am.
Working Rest Day
From 1 pm Saturday to midnight Sunday barring exceptions.
Paid Annual Vacation
According to seniority:
- 15 days if less than 5 years in the same company
- 35 days if more than 20 years
Retirement Age
60 for women, 65 for men
Child Labour and Minimum Age For Employment
14
Informal Labour Market
It is estimated that 30% of the active population moonlights. There is little trustworthy data on this subject.

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The Cost of Labour

Pay

Minimum Wage
ARS 38,940 as of April 2022, according to the Argentine Ministry of Labor.
Average Wage
According to the Argentine Ministry of Labour, the gross average monthly wage was ARS 158,000 per month in the first quarter of 2022.
Other Forms of Pay
  • Pay For Overtime
50% for ordinary days; 100% for Saturdays after 1 pm, Sundays and public holidays.
  • Pay For Rest Days Worked
100%
  • Pay For Night Hours
Seven hours of work paid as eight.
  • Pay For Overtime at Night
Same rule
 

Social Security Costs

The Areas Covered
Health insurance (medical care, maternity, disability, death), retirement pensions.
Contributions
Contributions Paid By the Employer: Employers contribute between 24% and 26.4% of payroll (for employers active in the services or commerce sectors, unless they are considered a SME) to social security, with the first ARS 7,003 per month per employee being exempted. Employers must also make contributions in respect of labor risk insurance and life insurance.
Contributions Paid By the Employee: Employees contribute 14% of wages to social security and 3% of wages to the national health care scheme.

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Management of Human Resources

 

Recruitment

Method of Recruitment
By spontaneous applications, small ads, Internet, recruitment agencies, etc. Every hiring is preceded by an interview.
Recruitment Agencies
Agencies specialised in temporary work: Adecco,  Michael Page (in Spanish) and Korn Ferry.
Recruitment Websites
CompuTrabajo Argentina
Bumeran.com
Opcionempleo
 

The Contract

Type of Contract
Legal measures govern work contracts, but they are completed through collective agreements and individual negotiations. Work contracts are very rigid. Procedures for hiring and firing are constraining.

Breach of Contracts

  • Retirement
As soon as the employee fulfils the conditions set out in law 24.241, procedures can be started. The employee keeps his job until the procedures are carried out. Men must be 65 and women 60, and have paid in contributions for more than 30 years.
  • Dismissals
The employer initiates dismissals:
- redundancy is either individual or mass redundancy
- dismissal for professional misconduct
- dismissal for incompetence or ineptitude on the part of the employee.
  • Other Possible Methods
Resignation, which is initiated by the employee.
Labour Laws
The World Law Guide - Labor law in Argentina
Doing Business: Argentina, to obtain a summary of lab or regulations that apply to local enterprises.
 

Dispute Settlement

 

Conciliation Process

Cases of Dispute
Physical violence, moral harassment, sexual harassment, working conditions.
  • Legal Framework
Private conciliation with the conciliators' organization of the IANCA.
Be careful: conciliation is compulsory.
Voluntary arbitration with a tribunal composed of 3 arbitrators.
  • Procedure
Defined in the Labor Code. Be careful, the laws are provincial, so there may be variations.
 

Judicial Structures

  • Legal Framework
Law 14.786
  • Competent Legal Body
Court of arbitration
 

Social Partners

Social Dialogue and Involvement of Social Partners
Most unions are affiliated to the general labour confederation (CGT). However, the CGT is often an ally of the Government regardless of who is in power. The Government recognised the smallest union in Argentina, the Argentine Workers Group (CTA), in 1997. Negotiations in Argentina take place at the national level, by sector of activity. Labour unions tend to be quite powerful, especially the truck drivers' union.
Unionisation Rate
Approximately 40% of workers in the formal economy are unionised.
Unions
List of Argentine Unions
 
 

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Latest Update: November 2022