Which companies may hold interests in other companies (LGS art. 30)

Section 30 of the General Companies Law regulates which company forms may participate in other companies. Under its current wording, corporations and partnerships limited by shares may participate in share companies and limited-liability companies; associations and non-profit entities may participate in corporations; all may be parties to any associative contract.

What article 30

Section 30 establishes the capacity to participate of certain legal entities in other companies and in associative contracts.

Source: Law 19,550, art. 30 - InfoLEG (updated official text)

Commentary

The provision - amended in 2023 - broadened participation possibilities. Previously, share companies could participate only in other share companies; today they may also be members of an SRL, which facilitates more flexible group structures.

Allowing non-profit entities to participate in corporations and to enter into associative contracts creates avenues for economic participation without altering their non-profit purpose. Because this section has recently been amended, its current wording should be checked when structuring a transaction.

Distinctions often confused

Practical impact

When designing a corporate group or investment structure, confirm that the investing entity's company form is permitted under the current wording of article 30.

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