Company incorporation

Branch of a foreign company

A company incorporated abroad wants to conduct business on a regular basis in Argentina, open a branch or hold an interest in a local company.

In one line

The activity of foreign companies is governed by Sections 118 to 124 of Law 19,550; a distinction must be made between isolated acts, regular activity carried out through a branch, and holding an interest in a local company.

First steps

Determine whether the activity is an isolated act or regular business
Prove the company's existence in its home country
Appoint a legal representative and set a domicile in the country
Legalize and translate the corporate documentation
Register the branch or the interest in accordance with Section 123

Legal framework for foreign companies' activity

Sections 118 to 124 of Law 19,550 govern how a company incorporated abroad may operate in Argentina. Section 118 distinguishes between carrying out isolated acts and conducting business on a regular basis, which requires compliance with registration requirements.

To carry out its activity on a regular basis or establish a branch, the foreign company must prove its existence under the laws of its home country, set a domicile, appoint a representative and register. We assist with the entire documentation process.

Branch, representative and interests in local companies

A branch does not constitute a separate legal entity, but rather an extension of the parent company operating in the country through an appointed legal representative. Section 123 further regulates a foreign company's participation in local companies.

We coordinate the legalization of the corporate documents of origin, their translation, and registration, as well as compliance with any applicable periodic reporting obligations.

Common mistakes

Operating on a regular basis without registering the branch
Confusing an isolated act with the regular activity referred to in Section 118
Filing foreign documentation without proper legalization
Failing to appoint a representative with sufficient powers

Frequently asked questions

What is the difference between an isolated act and regular business activity?

An isolated act does not require registration; regular business activity does, under Section 118 of Law 19,550.

Is the branch a separate entity from the parent company?

No; it is an extension of the parent company operating in the country through a registered representative.

Can a foreign company hold an interest in a local company?

Yes; Section 123 of Law 19,550 governs this case and requires the corresponding registration.

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

Establish your foreign company in Argentina

We handle the registration and compliance with the regime under Sections 118 to 124. Contact us.

Ask via WhatsApp