Starting a Business in Argentina: SAS, SRL, and Freelancing

Argentina offers several legal structures for starting a business, each suited to different situations. The two most common for small to medium businesses are the SAS (Sociedad por Acciones Simplificada) and the SRL (Sociedad de Responsabilidad Limitada). For freelancers and solo entrepreneurs, Monotributo offers a simplified tax regime that avoids the complexity of forming a company. Additionally, the SA (Sociedad Anónima) exists for larger corporations, and Unipersonal SAU for single-member companies. Each structure differs in formation cost, complexity, tax treatment, liability protection, and ongoing compliance requirements. Choosing the right structure depends on your business size, number of partners, expected revenue, need for liability protection, and whether you plan to bring in investors. Changing structures later is possible but expensive and time-consuming, so getting the initial choice right matters.

The SAS (Sociedad por Acciones Simplificada) was introduced in 2017 specifically to make company formation faster and easier. It has become the preferred structure for startups, small businesses, and foreign entrepreneurs. Key features: can be formed by one or more persons (no partner requirement), formation can be completed in as little as 24 hours through the online system (though practical timelines are 1-4 weeks), minimum capital requirement is very low (2 minimum salaries, approximately $500 USD equivalent), shareholders have limited liability, governance is flexible with fewer mandatory requirements than SRL or SA, digital record-keeping is accepted, and annual accounting requirements are simplified for smaller SAS entities. Formation costs for a SAS: approximately $300-800 USD including legal fees, registration fees, and initial accounting setup. An attorney or accountant typically handles the formation. The SAS can issue shares, which makes it suitable for raising investment. It files annual financial statements and tax returns.

The SRL (Sociedad de Responsabilidad Limitada) is the traditional limited liability company in Argentina, equivalent to an LLC in the United States. It has been used for decades and is well-understood by banks, vendors, and authorities. Key features: requires 2-50 partners (quotaholders), offers limited liability protection, partners hold quotas (cuotas) rather than shares, transfer of quotas requires partner consent, more rigid governance structure than SAS, and well-established legal precedents. Formation costs are higher than SAS — typically $800-2,000 USD including notary fees (the SRL formation requires a public deed, escritura pública), registration with IGJ (Inspección General de Justicia) in Buenos Aires or equivalent provincial registry, and initial accounting. Processing time is 2-6 weeks. The SRL is often preferred for established businesses, professional services firms, and situations where the SAS structure is not available or not appropriate. It is less suitable for single-person businesses (requires at least 2 partners) and less flexible for attracting investment.

Monotributo is Argentina's simplified tax regime for small taxpayers and freelancers. It combines income tax, VAT, social security, and health insurance into a single monthly payment based on your revenue category. It is by far the simplest way to operate legally as a self-employed person in Argentina. Categories range from A (lowest, up to approximately $500 USD monthly revenue) to K (highest, approximately $5,000 USD monthly revenue), with monthly payments ranging from $20-200 USD. Registration is done online through the AFIP website with your CUIL/CUIT number. Monotributo provides: legal invoicing capability (factura C), health insurance (obra social) through selected providers, retirement contributions, and simplified tax compliance. Limitations: once your revenue exceeds the maximum category, you must transition to the Responsable Inscripto regime (standard tax registration) which is significantly more complex and expensive. Monotributo does not provide liability protection — you are personally liable for business debts.

AFIP (Administración Federal de Ingresos Públicos) is Argentina's tax authority — the equivalent of the IRS or HMRC. Every business must register with AFIP and obtain a CUIT (Clave Única de Identificación Tributaria). For companies (SAS, SRL, SA), AFIP registration includes: obtaining the company CUIT, registering for IVA (VAT at 21%), registering for Ganancias (income tax), registering for Ingresos Brutos (provincial gross revenue tax), registering employees if applicable (payroll taxes, social security, ART workplace insurance). Ongoing obligations: monthly VAT filings, quarterly or annual income tax filings, payroll tax filings if you have employees, annual financial statement filing with IGJ, and keeping accounting books up to date. The Argentine tax calendar is complex and deadlines are strict — late filings trigger automatic fines. You will need a certified public accountant (contador público) — this is not optional. Monthly accounting fees range from $100-500 USD depending on company size and transaction volume.

Opening a business bank account in Argentina requires: company formation documents (estatuto, inscripción IGJ), CUIT certificate, DNI of authorized signers, proof of business address, and initial deposit. Business accounts are available at all major banks (Santander, Galicia, BBVA, Macro). Processing takes 2-4 weeks. Digital banks (Brubank for business, Naranja X) offer faster setup but more limited services. Business banking in Argentina includes: pesos checking account (cuenta corriente), the ability to issue checks (cheques), Mercado Pago business account (essential for receiving payments), and invoicing through AFIP's electronic invoice system (factura electrónica). Foreign currency operations are heavily regulated — receiving international payments requires proper documentation and compliance with Central Bank regulations. Many businesses that receive foreign income use legal workarounds: invoicing through the AFIP export services regime, using licensed fintech platforms, or structuring through a foreign parent company. Consult an accountant who specializes in international operations.