When you start a business, one of the first questions you need to solve is this: What type of business do you want to start?.
In many cases it can be a single company, but there are others that involve more than one person, so it is necessary to understand what legal form the company will take, ie the legal framework in which the company is located.
In order to define yourself among the different types of companies in Argentina, it is important that you ask yourself:
- What is the business field? There are activities that require a specific legal form.
- How many people are part of the company? The number of shareholders undoubtedly influences the choice of company form.
- What expectations does the company have? Company size can determine the legal form of the company, as some legal forms require a minimum capital.
- How risky is the business? It is necessary to understand what would happen to the capital brought in if debts or other commitments were incurred.
types of companies
Well, we will introduce the different types of existing businesses so that after this initial research you can get started with your business idea.
Most common for small businesses (which are just starting out and consist of only one member). register with the AFIP as a monotributista. The other option for those companies that exceed the maximum amounts that can be billed as a monotributor is to register as a registered responsible party.
We recommend you take a look at the Pros and Cons of being a Monotributista or a Registered Responsible before making a decision.
Partnerships between two or more people
Let’s look at some of the most common forms of partnership for small and medium-sized businesses:
Limited Liability Company (SRL)
- Her Constitution is easy and it doesn’t represent a large expense.
- Members are only liable up to the amount of their contributions.so there is no risk of losing all your assets.
- introduces some tax benefits about public companies.
- It cannot be listed on the stock exchange.
Limited Liability Company (SA)
- Accept more conformational requirementsthe start-up costs are higher and there are more controls by the regulators.
- You can go public.
- The shareholders divide the capital into shares and your liability is also limited.
- Balance sheets are required and keep a stock book.
Simplified Joint Stock Company (SAS)
This is one of the newer types of existing businesses in the country. It allows you to create your business in a simple, agile and digital way in one day!
- it is easy because it involves opening a bank account, a new CUIT and a share capital of two minimum wages, vital and mobile.
- it is agile because your company can be a single partner and your scope of business can be broad (which saves you the hassle of updating as your project grows in the future).
- And it is also Digital: Signatures, books and powers of attorney are processed online.
We encourage you to read the SAS benefits and requirements to better understand this new type of business.
Choosing a business form that suits your business needs and goals is crucial to starting a business on the right foot. Therefore, in addition to reading this article carefully, We advise you to consult a professional.
In addition, we share with you the 3 most important keys to understanding the corporate law in force in Argentina since its enactment in 2017, which can help you understand a little better the business opportunities in the country.