Foreign investment

We are a foreign company and want to operate or invest in Argentina

If a company incorporated abroad wants to operate or invest in Argentina, the Companies Act 19,550 sets the path: it may perform isolated acts without registering, but to carry on its business habitually or to take part in a local company it must register with the IGJ (or the provincial registry), proving its existence.

In one line

Section 118 governs operating directly (branch, permanent representation); section 123 governs taking part as a shareholder in an Argentine company; and section 124 re-characterises as local a foreign company whose seat or main object is in the country.

First steps

Determine whether the activity is an isolated act or habitual business
Choose between operating directly (sec. 118) or taking part in a local company (sec. 123)
Prove the company's existence in its home country
Set a domicile and appoint a representative in Argentina
Register with the IGJ / provincial registry and the National Registry
Provide for separate accounting and supervision (sec. 120)

Isolated act vs. habitual business

A foreign company may perform isolated acts and appear in court without registering. To carry on its object habitually, or to set up a branch or permanent representation, it must meet the requirements of section 118 (prove existence, set a domicile, appoint a representative).

Taking part in an Argentine company (sec. 123)

To incorporate or join a local company, the foreign company must prove its existence and register its charter and representatives (sec. 123). The IGJ requires evidence of genuine activity abroad to prevent the use of purely formal companies.

The section 124 risk

If the foreign company has its seat or main object in Argentina, section 124 treats it as local: it must comply with the formalities and supervision of an Argentine company. Investment planning must take this re-characterisation risk into account.

Common mistakes

Carrying on business habitually without registering
Using an off-shore company with no real activity (section 124 risk)
Failing to appoint a representative or set a domicile in the country
Confusing section 118 (operating) with section 123 (taking part)

Applicable rules

Sec. 118 CA — foreign company activity.
Sec. 123 CA — taking part in a local company.
Sec. 124 CA — company treated as local.

Frequently asked questions

Can a foreign company operate without registering?

It may perform isolated acts and appear in court; to carry on its business habitually or set up a branch it must register with the IGJ or provincial registry (sec. 118).

How does a foreign company take part in an Argentine company?

Through section 123: proving its existence and registering its charter and representatives before taking part.

Is an off-shore company useful to operate in Argentina?

If the seat or real activity is in the country, section 124 allows re-characterising it as local; mere incorporation abroad does not avoid Argentine law.

This page is informational and does not replace professional advice on your specific case. It does not imply any promise of results.

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