Mergers and Acquisitions

Foreign investment and foreign companies in Argentina

You are a foreign company that wants to invest, open operations, or take part in a company in Argentina, and need to know which vehicle to use and what registrations the law requires.

In one line

This page covers the activity of companies incorporated abroad under the General Companies Law. It does not cover the investor's home-country taxation or double-taxation treaties, which are analyzed separately.

First steps

Determine whether the activity will be an isolated act, a branch, or participation in a local company
Prove the company's existence under the law of its home country
Appoint a representative and establish a domicile in the country
Register with the Public Registry under article 118, 123, or whichever applies
Analyze the treatment under article 124 if the seat or purpose is carried out in Argentina
Anticipate the requirements of the relevant registration authority (IGJ or other registry)

Isolated acts, branches and habitual activity

A company incorporated abroad may carry out isolated acts in Argentina and appear in court without prior registration (article 118, LGS). However, to carry on its business habitually, or to establish a branch, seat, or any other permanent representation, it must prove its existence under the law of its home country, establish a domicile, and register with the Public Registry, among other requirements.

When a foreign corporate type is unknown to Argentine law, it becomes subject to the stricter regime provided for local companies (article 119, LGS). Single-shareholder companies or special-purpose vehicles require case-by-case analysis of their treatment.

Taking part in a local company

To form or take part in an Argentine company, a foreign company must first register, proving its existence and appointing a representative, under article 123 of the LGS. This registration is different from a branch registration and enables the company to be a shareholder or partner of the local company.

Article 124 of the LGS provides that a company incorporated abroad whose seat or principal purpose is carried out in Argentina is treated as a local company for purposes of complying with formalities and its operation. Choosing the right vehicle from the outset avoids later reclassification.

Common mistakes

Carrying on habitual activity while invoking the isolated-acts regime
Taking part in a local company without the prior registration required by article 123
Ignoring reclassification as a local company under article 124
Choosing the vehicle without assessing the applicable registration requirements
Neglecting the appointment and powers of the representative in the country

Frequently asked questions

Can a foreign company operate without registering?

It may carry out isolated acts and appear in court without registering (article 118, LGS). To carry on its business habitually or to establish a permanent representation, it must first register with the Public Registry, proving its existence.

What is the difference between registering a branch and taking part in a local company?

A branch (article 118) is a permanent representation of the foreign company for operating directly. Registration under article 123 enables it to be a shareholder or partner of an Argentine company. These are different procedures and legal structures.

What is the reclassification under article 124?

If a company incorporated abroad has its seat or carries out its principal purpose in Argentina, the law treats it as a local company for purposes of formalities and operation. That is why the structure should be carefully defined from the outset.

Can the registration be coordinated from abroad?

Yes. We work from Buenos Aires advising companies worldwide and coordinate the registrations and requirements before the relevant authority. This information is general and does not replace advice on a specific case.

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

Are you planning to invest or operate in Argentina from abroad?

We define the appropriate vehicle and coordinate the registrations required by law. Contact us and we will review your project.

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