In its continued effort to promote the revival of the Argentine economy, the government recently submitted a bill to Congress to create a new type of simplified corporation, the Sociedad Anónima Simplificada (SAS). At present, in order to undertake a business venture in Argentina – no matter how small – an entrepreneur must set up a traditional company, which will be subject to the same rules and taxes applicable to well-established big businesses.
In order to eliminate this implicit disadvantage, the SAS has been conceived as the natural vehicle for small and medium-sized enterprises (SMEs).
An SAS could be set up electronically within 24 hours, which would be a major advantage for SMEs (existing set-up times for a new company can be up to four weeks). The regulations will also include a simplified procedure to obtain the company's tax identification number and open bank accounts.
The bill also includes the general conditions under which an SAS might access financing and enjoy certain tax benefits (on a case-by-case basis). The bill's main innovation is the concept of public crowdfunding, which will be allowed under the supervision of the Comisión Nacional de Valores (the Argentine equivalent of the Securities Exchange Commission).
While many details will be worked out by Congress, the creation of the SAS will undoubtedly provide a major business incentive in Argentina.
As part of the same process, the federal government is looking to attract investment and has organised the largest investment forum in decades. The event will be held in Buenos Aires between September 14 and 16 2016, with a day dedicated to innovation and entrepreneurship on September 15 2016. Further, a new entrepreneurship law is forthcoming and additional investment-related announcements are expected.
For further information on this topic please contact Diego Krischcautzky or Bárbara Ramperti at Marval, O'Farrell & Mairal by telephone (+54 11 4310 0100) or email ([email protected] or [email protected]). The Marval, O'Farrell & Mairal website can be accessed at www.marval.com.ar.