It is essential for companies planning to run Payroll Services in Argentina to have a clear plan and make the right moves from day one. Argentina, the third-largest market in Central and South America, is seen as a rapidly emerging attraction for International Expansion and one which is seeking to play an increasingly significant role in the global economy. Argentina is a member of the Organisation of American States, the Inter-American Development Bank, the Latin-American Integration Association and the Mercosur trading bloc with Brazil, Paraguay and Uruguay. Argentina’s memberships include the World Trade Organisation, the G20 group of Finance Ministers and Central Bank Governors, the International Labour Organisation, the United Nations and many other regional institutions.
A Gross Domestic Product of USD 455 billion in 2021 ranked Argentina 31st in the world, although the nation has the third-largest LATAM economy behind Brazil and Mexico. Its distinctive inverted triangle shape stretches 2,360 miles from sub-tropical year-long sunshine in the north to the sub-Antarctic southern tip. It includes the Patagonia Desert and the Andes mountain range. Companies moving into Argentina as a base for further expansion open up many opportunities in Latin America (LATAM). However, challenges come alongside the potential benefits, and payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll and income tax regulations are areas where you cannot afford mistakes.
Setting up a subsidiary in Argentina to run payroll is one option, but this involves a protracted registration process and poses many challenges. Our Professional Employer Organisation (PEO) and Employer of Record (EOR) services provide complete solutions to every issue your company will face before your planned move into the Argentinian Market. Our teams step in from the start, locating top-rated talent in Argentina, then guiding you through such procedures and navigating the administration of Payroll services in Argentina.
Remote payroll – This option allows businesses to operate under a single payroll system by adding employees in Argentina to the parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Argentina. However, this does require hiring dedicated HR staff who understand the Argentine employment and compliance laws.
Argentine payroll processing company – If you are considering outsourcing, then working with an Argentine payroll company will help in processing your payroll – but not when it comes to compliance.
Argentine payroll outsourcing – However, another option is available to solve both concerns by working with Bradford Jacobs. We can handle payroll services in Argentina as well as 100% compliance. We lift the administrative stress from your shoulders so you can focus on what you do best.
The Republic of Argentina’s rapidly-developing economy is becoming a magnet for foreign investment and international companies undertaking Global Expansion. The economy is seeing growth in pharmaceuticals, biotech, chemicals, renewable energy and manufacturing design alongside an already strong services sector and the traditional strengths of food production and agriculture. Natural resources include massive deposits of untapped mineral ores, including the world’s second-largest shale gas reserve and fourth-largest shale oil reserve. There are lithium deposits to capitalize on the growth of electric vehicle development.
The opportunities are there but come with challenges, and payroll services in Argentina are among the most demanding. Whether your company is planning to move staff abroad or hire employees in the new territory, you cannot risk mistakes operating in Argentina’s complex payroll and income tax regime, as it could cost you time and money. Foreign companies intending to run their employees’ payroll in Argentina must first set up a legal entity subsidiary. This is mandatory for dealing with the Federal Administration of Public Revenues, the Administración Federal de Ingresos Públicos (AFIP) and the National Administration of Social Security (Nacional de la Seguridad Social, ANSES), which operates under the Ministry of Health and Social Development.
A typical choice is the limited liability company in Argentina, a Sociedad de Responsabilidad Limitada, SRL, which needs two or more members or partners. The subsidiary will be regulated by the General Companies Act. However, this represents a significant move. Operating payroll in Argentina requires detailed practical knowledge of company, tax and employment legislation and staying up to date with regular changes to the rules.
However, there is an alternative and more straightforward route. Bradford Jacobs navigates these potential pitfalls effectively and efficiently. We recruit the staff in-country and then implement our comprehensive knowledge of tax and payroll regulations. As part of our service, we file returns and remit associated payments for tax and social security contributions directly from our payroll system to the relevant authorities. New staff members can be up-and-running in days rather than weeks or months to establish a legal entity in Argentina.
Outsourcing payroll in Argentina will streamline your operations by dealing with the following:
International companies planning to run payroll services in Argentina must establish a legal entity. They must decide on the best business structure for their expansion plans. A popular choice is to set up a limited liability company as a subsidiary, known locally as a Sociedad de Responsabilidad Limitada, SRL. This company type needs two or more members or partners, will be regulated by the General Companies Act and comes under the supervision of the Public Register of Commerce, head office in Buenos Aires.
The registration procedures and other requirements under the Act include the following:
For more information, download our free guide or get in touch with our consultants here