Employing in Argentina

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Expanding into
Argentina

Argentina is one of the most beautiful countries in South America. It is rich in culture with awe-inspiring natural beauty from glaciers to rainforests. It has vibrant cities such as Buenos Aires or Bariloche in north Patagonia offering summer hiking and winter skiing, an attractive destination for people looking to live and work. For companies expanding into South America, an appealing destination is always a bonus when recruiting employees from the home country or elsewhere. Argentina is also a founder of MERCOSUR, a common market including Brazil, Paraguay, and Uruguay, similar to the European Union, where members enjoy the freedom of movement for people, goods and services but where different rules can apply to work documentation.

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Global Expansion is a step to make for any business, regardless of your goal. But the opportunities that can come with an expansion can be stimulating as well as intimidating and confusing, especially when you consider all of the registration procedures that need to be done and the documentation required.

Going at it without the proper support can increase the costs, time and risks involved.

The legwork and potential red tape can be worked through more efficiently and cost-effectively with the support of a Professional Employer Organisation (PEO) such as Bradford Jacobs, primarily through our Employer of Record (EOR) framework.

It can be best utilised when businesses are just beginning their expansion process and require more information before incorporating an entity and fully establishing themselves in that market.

Country EOR Guide - Bradford Jacobs

Download our Guide to Argentina

Learn all about expanding into Argentina and see what we can do to make your expansion easier.

Download our Guide to Argentina

Learn all about expanding into Argentina and see what we can do to make your expansion easier.

Country EOR Guide - Bradford Jacobs

Hiring Staff
in Argentina

Hiring Staff
in Argentina

The Main Sectors of the Argentinian Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Bestowed with rich fertile lands, Argentina has vast agricultural and energy resources used in the country’s industrial sector. The improvements witnessed in the wheat, corn, and barley agricultural produce, made the cereal export boost the food industry. One of Argentina’s oldest and most significant industries has always been the processing and packaging of foods. Starting with the processing and packaging of meat meant to be exported, the food processing and beverage sector has ventured into diverse foods and drinks that have global markets. The food processing and beverages companies are primarily located in Buenos Aires.
The availability of needed resources in Argentina has dramatically boosted the performance of the biggest industries in the country. The innovative sector in the appliances and electronics industry continues to evolve and modernize to meet the growing global and local market demands. Argentina’s appliances and electronics industry are among the few nations with high home appliance production numbers. Favourable government policies have enabled this industry to record a positive market forecast which has been aided by the use of internet retailing to reach a global client base with ease. The antenna network growth in the next five years is expected to generate investment opportunities for USD 5 billion.
Showing a significant growth of 75% in 2002, the textile industry has been recorded to be among the biggest industries in Argentina. Conducive political and economic conditions increased the purchasing power of the people and tourists. Estimated to be worth $12 billion, the Argentina textile industry has boosted the clothing sector, making global fashion designer icons source for their high-quality clothing materials from Argentina. Boasting more than 11,500 manufacturing textile companies that local families own, the Argentina Apparel Industrial chamber records a production value of $2.7 billion annually.
The oil industry in Argentina has always received government support. Exporting petroleum fuels started at an all-time low of 800,000 barrels in the 90s but steadily grew with the discovery of oil reserves located at Rio Negro Norte. Argentina’s richness comprises a massive territorial extension for sustainable mining activity (75% still unexplored) and the capacity to multiply lithium, gold, silver, and copper production.
With unique landscapes, various climates and ecosystems, and cultural and gastronomic appeal, Argentina is a world-class destination with tremendous growth potential, reflected by the increasing number of international tourists. Argentina offers exceptional conditions for projects in this field in tune with the new trends and requirements, which are becoming more demanding in the context of the pandemic. With its unique commitment to preserving natural areas, Argentina invites investors to develop ecotourism projects in which visitor services, sustainable infrastructure and contact with nature can be combined.
The global services industry is mature in Argentina, with over a decade of constant growth, favoured by its human capital talent, time zone benefits, business environment and the quality of its local technological infrastructure. It is a Latin American benchmark in technological services applied to agroindustry (AgTech) and is gaining momentum in the videogame and FinTech fields. Argentina is a frontrunner in software development and exports, with over 4,200 companies in the area.

The Main Sectors of the Argentinian Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Bestowed with rich fertile lands, Argentina has vast agricultural and energy resources used in the country’s industrial sector. The improvements witnessed in the wheat, corn, and barley agricultural produce, made the cereal export boost the food industry. One of Argentina’s oldest and most significant industries has always been the processing and packaging of foods. Starting with the processing and packaging of meat meant to be exported, the food processing and beverage sector has ventured into diverse foods and drinks that have global markets. The food processing and beverages companies are primarily located in Buenos Aires.
The availability of needed resources in Argentina has dramatically boosted the performance of the biggest industries in the country. The innovative sector in the appliances and electronics industry continues to evolve and modernize to meet the growing global and local market demands. Argentina’s appliances and electronics industry are among the few nations with high home appliance production numbers. Favourable government policies have enabled this industry to record a positive market forecast which has been aided by the use of internet retailing to reach a global client base with ease. The antenna network growth in the next five years is expected to generate investment opportunities for USD 5 billion.
Showing a significant growth of 75% in 2002, the textile industry has been recorded to be among the biggest industries in Argentina. Conducive political and economic conditions increased the purchasing power of the people and tourists. Estimated to be worth $12 billion, the Argentina textile industry has boosted the clothing sector, making global fashion designer icons source for their high-quality clothing materials from Argentina. Boasting more than 11,500 manufacturing textile companies that local families own, the Argentina Apparel Industrial chamber records a production value of $2.7 billion annually.
The oil industry in Argentina has always received government support. Exporting petroleum fuels started at an all-time low of 800,000 barrels in the 90s but steadily grew with the discovery of oil reserves located at Rio Negro Norte. Argentina’s richness comprises a massive territorial extension for sustainable mining activity (75% still unexplored) and the capacity to multiply lithium, gold, silver, and copper production.
With unique landscapes, various climates and ecosystems, and cultural and gastronomic appeal, Argentina is a world-class destination with tremendous growth potential, reflected by the increasing number of international tourists. Argentina offers exceptional conditions for projects in this field in tune with the new trends and requirements, which are becoming more demanding in the context of the pandemic. With its unique commitment to preserving natural areas, Argentina invites investors to develop ecotourism projects in which visitor services, sustainable infrastructure and contact with nature can be combined.
The global services industry is mature in Argentina, with over a decade of constant growth, favoured by its human capital talent, time zone benefits, business environment and the quality of its local technological infrastructure. It is a Latin American benchmark in technological services applied to agroindustry (AgTech) and is gaining momentum in the videogame and FinTech fields. Argentina is a frontrunner in software development and exports, with over 4,200 companies in the area.

Commercial Laws in
Argentina

The company’s employment relationship with its employees will be governed by the Employment Contracts Law, which, despite its name, covers far more than simply contracts and spells out compliance regulations with virtually every aspect of Argentina’s employment legislation

  • The Federal Administration of Public Revenues (AFIP) – the body in charge of executing the tax, customs, and collection policy of the Nation’s social security resources. The AFIP is made of the General Directorate of Customs (DGA), the General Tax Directorate (DGI), and the General Directorate of Social Security Resources (DGRSS).
  • The General Tax Directorate (DGI) is in charge of the application, collection, and control of national taxes. Among its primary functions are tax collection, the establishment of fines, sanctions, ex officio determinations, settlement of debts in administrative or judicial management, and application of sanctions or other concepts. The Directorate also promotes the culture of voluntary compliance by taxpayers. The main strategies of the General Tax Directorate are linked to the facilitation and simplification of the procedures to be carried out by the Citizens for the satisfactory fulfilment of their obligations.
  • The Ministry of Labour, Employment and Social Security (Ministério de Trabajo, Empleo y Seguridad Social) – an Argentine government ministry tasked with overseeing the country’s public policies on labour conditions, employment, and social security. It proposes, designs, elaborates, administers, and supervises theproceduress in all that is inherent to the relations and individual and collective conditions of work, to the legal regime of collective bargaining and of the professional associations of workers and employers, to employment, job training and social security. In addition, it is informally tasked with overseeing the government’s relationship with Argentina’s trade unions and providing education, assistance, advice and guidance to employers, employees, out workers, outworking entities and organizations.

General considerations include:

  • There is no legal requirement for a written contract for full-time, permanent employees as legislation cover every aspect of the employment relationship
  • Unless expressly agreed otherwise, contracts are deemed to be permanent, open-ended, and full-time
  • However, there must be written contracts for fixed-term employees, and employers must have justifiable reasons for wanting to enter into such a contract.
  • Fixed-term contracts cannot exceed five years.
  • Temporary contracts are permitted when necessitated by exceptional production demands.
  • The maximum permitted trial period is three months, after which the employee becomes permanent. The trial period can be terminated without either party having to pay compensation or giving a reason, but 15 days’ notice applies.
  • Employers must give two months’ notice of dismissal to employees who have worked more than five years, one month for being employed for less than five years

Commercial Laws in
Argentina

The company’s employment relationship with its employees will be governed by the Employment Contracts Law, which, despite its name, covers far more than simply contracts and spells out compliance regulations with virtually every aspect of Argentina’s employment legislation.

  • The Federal Administration of Public Revenues (AFIP) – the body in charge of executing the tax, customs, and collection policy of the Nation’s social security resources. The AFIP is made of the General Directorate of Customs (DGA), the General Tax Directorate (DGI), and the General Directorate of Social Security Resources (DGRSS).
  • The General Tax Directorate (DGI) is in charge of the application, collection, and control of national taxes. Among its primary functions are tax collection, the establishment of fines, sanctions, ex officio determinations, settlement of debts in administrative or judicial management, and application of sanctions or other concepts. The Directorate also promotes the culture of voluntary compliance by taxpayers. The main strategies of the General Tax Directorate are linked to the facilitation and simplification of the procedures to be carried out by the Citizens for the satisfactory fulfilment of their obligations.
  • The Ministry of Labour, Employment and Social Security (Ministério de Trabajo, Empleo y Seguridad Social) – an Argentine government ministry tasked with overseeing the country’s public policies on labour conditions, employment, and social security. It proposes, designs, elaborates, administers, and supervises theproceduress in all that is inherent to the relations and individual and collective conditions of work, to the legal regime of collective bargaining and of the professional associations of workers and employers, to employment, job training and social security. In addition, it is informally tasked with overseeing the government’s relationship with Argentina’s trade unions and providing education, assistance, advice and guidance to employers, employees, out workers, outworking entities and organizations.

General considerations include:

  • There is no legal requirement for a written contract for full-time, permanent employees as legislation cover every aspect of the employment relationship
  • Unless expressly agreed otherwise, contracts are deemed to be permanent, open-ended, and full-time
  • However, there must be written contracts for fixed-term employees, and employers must have justifiable reasons for wanting to enter into such a contract.
  • Fixed-term contracts cannot exceed five years.
  • Temporary contracts are permitted when necessitated by exceptional production demands.
  • The maximum permitted trial period is three months, after which the employee becomes permanent. The trial period can be terminated without either party having to pay compensation or giving a reason, but 15 days’ notice applies.
  • Employers must give two months’ notice of dismissal to employees who have worked more than five years, one month for being employed for less than five years

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