Constitution of foreign companies in Argentina. New regulations.
On February 21 of this year, General Resolution N° 2/2020 issued by the Registry entered into force, modifying various aspects of the regime for foreign companies, repealing General Resolution N° 6/2018.
Among one of its main new regulations related to its registration at the Registry, the foreign company will have the obligation to prove its economic activity is carried outside the Argentine. In other words, the main seat of your business or the center of management must be placed outside the country.
On the other hand, is totally eliminated the possibility of being represented by a proxy, having to be represented by their registered legal representative (or the proxy selected by the legal representative) in order to be able to fulfill their tasks. At the same time, they must grant a guarantee, for the protection of their functions, that can be constituted by any of the admissible means such as guarantee insurance, titles, bonds, bank guarantees, etc. The amount of the guarantee for each representative must be equivalent to five times the minimum corporate capital required for local corporations. To request the registration of the legal representative, the guarantee must be accredited together with the request, and for the legal representatives that were already in force at the time of the new regulation, they must accredit it before the presentation of the annual information regime.
Regarding the controls and information of the foreign, the annual information regimes are required annually, within 120 calendar days from the date of the closing of their financial statements, in order to show a perspective of their assets. Furthermore, the Registry is empowered to carry out controls, request documents, and review them, in order to better transparency.
Lastly, but no less important, regarding offshore companies (companies that are registered abroad where their main activity is prohibited according to the laws of their place of incorporation) they are completely vanned, meaning that their registration is canceled, without prior adaptation to the Argentine legislation.