Before we get into anything, let us start with what a SAS is. It is important to mention that it is a French acronym, standing for Société Par Actions Simplifiée, which in English would be referred to as a Simplified Joint-Stock company. It is a business structure comprising of two shareholders minimum providing flexibility in the drawing up of the rules underlying the business, typically, this structure is favoured by small and medium sized businesses. Now we have established a definition, we can put it into the context of Latin America. Geographically speaking, the region is located advantageously, presenting proximity with North America, which when compared with the socioeconomic situation with growing middle classes in most countries, cross-border flows of industry, currency and people puts the region on the map for continents further afield, creating a global network of rapidly developing industry.
In this article, we will focus on Argentina, and the role the third largest Latin American economy has in relation to SAS corporations. A good place to start is the Venture Capital Act (Law No.27.349), established in 2017, which resulted in the ability to integrate and register SAS corporations within Argentina, increasing business flexibility as well as increasing opportunities within the nation.
Step-by-step incorporation guide
A SAS can be set up either with a notarial deed, private document, or online. Having three options widens the scope for you and leaves no barriers between your business aspirations and reality. Below is a list of documents and information you will need when making the application to create an SAS, all of which will be compiled into an ‘instrument’ and sent off:
1. The name, age, marital status, nationality, profession, address, ID number, Unique Tax Identification Code (CUIT) or Labour Identification Code (CUIL) or Identification Code (ID).
2. It must be added to the company name the expression «Simplified Joint Stock Company», or its abbreviation “SAS”. The omission of this mention shall deem the administrators or representatives of the company illimitably liable, for the acts they celebrate under those conditions.
3. The address of the company and its headquarters.
4. The description of its object.
5. The duration period, which must be determined.
6. The share capital and the contribution of each partner, which must be expressed in national currency.
7. The organization of the administration, meetings of partners.
8. The way of distributing profits and withstanding losses.
9. The necessary clauses to establish the rights and obligations of the partners between themselves and regarding third parties.
10. The clauses related to its operation, dissolution and liquidation.
11. The closing date of the fiscal year.
It does appear that there are rather a lot of elements required when constructing the application, however, this is not to say that the individual components are hard to find and include. In fact, the process should not take very long on your part, with SAS incorporation for a legal entity taking around 24 to 48 hours, demonstrating a rapid turnaround time and allowing you to move forward quicker than the alternatives.
What are the benefits of incorporating a SAS in Argentina?
Although we have demonstrated how to incorporate a SAS, you may be wondering why you would want to do it in the first place, let us clear that up for you.
Firstly, as a partner in a SAS corporation, limited liability and no minimum amount to initially invest mean there is no significant risk to your personal financial assets as, apart from the investment you make into the company at the beginning, no more money will be at risk unless you make further investments. It is important to mention that despite there being no minimum capital, the payment of it must not exceed 24 months.
Further than this is the appealing management structure. A SAS means there is no restriction for partners on imposing rules on how the business is run, as well as the internal structure of the company itself, making the flexibility that comes with integrating a SAS one of the main advantages.
Lastly, one of the more noteworthy advantages you can find when integrating a SAS in Argentina is that when you provide the purpose it does not need to be incredibly specific, leaving room for flexibility in an operational sense as the activities undertaken, as long as they fit under the wide description given initially, can come from different sectors and not inhibit the diversification of your business in the future.
So, if you are interested in incorporating a SAS in Argentina, as a firm based out of Buenos Aires, we would love to have the pleasure of assisting you. At Creimerman, our localised expertise and our team of global citizens go hand in hand, creating an environment to facilitate our clients’ cross-border activities while bringing a personalised service tailored to your specific requirements.