While the business climate in Argentina is still poor, more foreigners are investing in the country. In fact, the number of Greenfield Investments went from 51 in 2015 to 116 in 2016.
Not only this, the country ranks fifth in foreign direct investment stock in South America. But, while more are investing in the country, there are some things you need to know about doing business in Argentina.
Read this article to find out more about the benefits and cost of doing business in Argentina.
1. La Ley de Emprendedores
Last year, the government created a new law called the Ley de Emprendedores. This law allows entrepreneurs to register their entire business online.
Better yet, the process, which before took close to a month now takes less than 24 hours. This new registration process allows entrepreneurs to register:
- A simplified business entity (SAS)
- A bank account
- An identification number
Additionally, the registration allows you to register a temporary business address.
2. Cryptocurrencies Are Huge in Argentina
Argentina has the greatest potential when it comes to digital currencies. People adopted cryptocurrencies early on because of a lack of trust in the government and banks.
Today, the country is the leader in digital currencies in Latin America. In fact, there are now more businesses accepting Bitcoin and other cryptocurrencies in their stores.
3. Strong Investment in Renewable Energy
Argentina is making strides to become more sustainable. The country wants renewable energies to account for 20% of national electric energy consumption. In fact, Argentina aims for this to happen by 2025.
To reach its goal, Argentina started renewable energy auctions with the goal of attracting foreign investors. Not only this, it is offering various incentives such as:
- Early VAT recovery
- Quicker depreciation
- No minimum national income tax
- No import duties
- Relief from other relevant taxes
When starting a business in Argentina, you must still meet the majority of the country’s minimum requirements. To find out what these are, read more here.
4. More Involvement in the International Trading Market
Argentina’s involvement in the international trade market is growing. Today, the country is a member of MERCOSUR. This membership gives it access to associate countries with lower taxes and legal requirements.
By furthering its trading capacity, the country will become a go-to hub for foreign commerce.
5. Growing Young Local Talent
One of the biggest benefits of starting a business in Argentina is the amount of young and educated local talent.
In Argentina, a large proportion of individuals have secondary education. Not only this, many are bilingual, speaking perfect English and Spanish.
From an investors point of view, this young and educated population makes it easy to find local talent to run a business.
Before deciding whether to invest in Argentina, visit the country to get a feel for its people and culture. You could even tie in your business trip with a luxury holiday for the whole family to enjoy.
Learn More About the Cost of Doing Business Abroad at Swiss123
In the coming years, there is a chance that Argentina could become the business powerhouse it once was.
Now that you know the benefits and cost of doing business in Argentina, keep an eye on this space, especially if you’re a renewable energy expert.
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