05 July 2009

Costs to Form a Limited Liability Company (SRL)

For readers not accustomed to Argentine bureaucracy, this post will show the multitude of steps required to form a Limited Liability Company (SRL) and begin to operate a small business in the City of Buenos Aires. This does not include any steps necessary to actually obtain a place of business (i.e. office space, industrial space, or a retail store). These are the steps just to create the entity itself. After completing all these steps, the company will theoretically be ready to do business.

  1. Choose a company name using IGJ form #3 (reserva de nombre) and pay the required fee. This reserves the company's name for 30 days.
  2. Certify the signatures of the company's owners by a notary public (escribano).
  3. Deposit the initial capital of the company in Banco Nación as a guarantee (the money is returned once the company is formed). At least 25% of the subscribed capital must be deposited. The shareholders must contribute the remaining capital within two years.
  4. Announce the company's formation by publishing in the Official Bulletin. The cost varies depending on the length of the publication and the fee is charged per word and per line.
  5. Pay the incorporation fee.
  6. Register with the IGJ and pay the registration fee. Regular and urgent filings are available, with urgent filings having a higher fee.
  7. Buy the company's books. These books will be used to record the company's resolutions, serve as the general journal, record wages, etc.
  8. Fill out a form from the College of Notaries and submit books to a notary for certification before the IGJ.
  9. The Manging Partner of the SRL must request a tax password (clave fiscal) from AFIP. All company taxes will be submitted using this password.
  10. Request a tax identification number (CUIT) from AFIP and enroll the company in income and VAT taxes. AFIP will require evidence of the company's address (i.e. rental contract).
  11. Register for sales taxes with the City of Buenos Aires en Rentas, again proving the company's address.
  12. Register with the Social Security Administration (ANSES).
  13. Select a Labor Insurance Company (ART - Aseguradora de Riesgos del Trabajo).
  14. Submit the company's wages book for certification by the Labor Ministry.
Costs (in pesos)

The costs listed here are all the miscellanius fees that you msut pay to the various government agencies in order to form a company. The fees listed here do not include any profesional fees that you will pay your attorney, accountant, and any other professionals who are assisting with the incorporation process. Those fees vary depending on the professional.
  • $18 - Register company name.
  • $200+ - Certify signatures (an escribano will charge $100 per signature)
  • $36.50 - Banco Nación deposit fee
  • $500-600 - Publishing in the Official Bulletin.
  • $30 - Incorporation Fee
  • $282 - IGJ Urgent Filing Fee
  • $200 - Buy special books
  • $415 - Certify books with the IGJ
  • $50 - Register with Rentas
  • $75 - Certify wages book with the Labor Ministry
  • Total Cost: $1630 and up in government and other miscellaneous fees
Lawyers fees could range anywhere from $1200-1500 pesos, depending on the professional selected. At current exchange rates (3.8:1), that's about $800 USD (total, including both legal fees and government fees) to form an SRL. Of course if you're using an international law firm, a big accounting studio, etc., you could end up paying much more.

1 comment:

  1. Very informative blog entry! I am just beginning to investigate forming an SRL in Argentina and this information was most helpful.

    Are you aware of current total costs as of today, or able to offer an informed estimate of changes to the cost structure?

    Any information would be most appreciated :)