Argentina: Operating a Business

Legal Forms of Companies

Types of Companies and Capital (Max/Min)	Number of Partners/Shareholders and Liability
The Empresa Unipersonales is an individual businessman alone. No minimum capital	1 person The businessman is liable for the company's debts on his personal property.
The Sociedad Anonima (SA) is a public limited company . 12,000 ARP minimum. At least 25% of the capital must be paid up at the creation of the company, the balance within 2 years.	Minimum 2 shareholders Their liability is limited to the amount of capital contributed.
The Sociedad de Responsabilidad Limitada (SRL) is a limited liability company . No minimum capital. At least 25% of the capital must be paid up at the creation of the company, the balance within 2 years	Minimum 2 partners. Maximum 50 partners. Their liability is limited to the amount of capital contributed.
The Sociedad en commandita por acciones (SCA) is a limited joint-stock partnership . No minimum capital.	There are two types of partners, active partners and silent partners. The liability of the active partners is unlimited. The liability of the silent partners is limited to the amount of capital contributed.
The Sociedad en commandita simple (SCS) is a limited partnership. No minimum capital.	There are two types of partners, active partners and silent partners The liability of the active partners is unlimited. The liability of the silent partners is limited to the amount of capital contributed.

Enterprises Federation: Argentine Chamber of SMEs
Confederation of medium enterprises in Argentina

Source: Doing Business.

For Further Information: Consult Doing Business Website, to know about procedures to start a Business in Argentina.
The Official Gazette
The Register of Commerce
The Competent Organization: Inspeccion General de Justicia (General Inspection of Justice) (in Spanish)

Principle: It is possible to present a reorganisation proceeding to the council appointed by the commercial tribunal, made up of 3 professionals who check the feasibility of the plan of action.
Minimum Debt-to-Capital Ratio Triggering Liquidation: As soon as one can no longer pay one's creditors. For more details, consult the Mondaq report "Insolvency And Bankruptcy Rules In Argentina"
Bankruptcy Laws: Consult the Insolvency Proceedings in Argentina.
Reorganization and Rehabilitation Laws: Law 20758

	2010
Labor Force	16,620,000

Source: CIA - The world factbook

Source: UN - United Nations

Employed Persons, by Occupation (% of Total Labor Force)
Manufacturing industry	11.4%
Shopkeepers	17.5%
Agriculture	8.2%
Construction	5.8%
Public Administration	8.9%
Teaching	8.5%
Social services and health	5.4%

Source: INDEC

For Further Information About the Labor Market: ILO, International Labor Organization

Opening Hours
Legal Weekly Duration: 48 hours a week
Maximum Duration: 8 hours a day and 48 hours a week, but there are very many exceptions.
Night Hours: 7 hours from 9 pm to 6 am.

Working Rest Day: From 1 pm Saturday to midnight Sunday barring exceptions.
Paid Annual Vacation: According to seniority:
- 15 days if less than 5 years in the same company
- 35 days if more than 20 years
Retirement Age: 60 for women, 65 for men
Child Labor and Minimum Age For Employment: 14
Informal Labor Market: It is estimated that 30% of the active population moonlights. There is little communication on this subject.

Minimum Wage: 980 pesos per month
Average Wage: Average monthly gross earnings in Argentina is ARS 2,342 (USD 616).
Other Forms of Pay
Pay For Overtime: 50% for ordinary days
100% for Saturdays after 1 pm, Sundays and public holidays
Pay For Rest Days Worked: 100%
Pay For Night Hours: 7 hours of work paid 8
Pay For Overtime at Night: Same rule

The Areas Covered: Health insurance (medical care, maternity, disability, death), retirement pensions.
Contributions: Contributions Paid By the Employer: 33%.
Contributions Paid By the Employee: 17%
Competent Organization: Ministry of Labor

Method of Recruitment: By spontaneous applications, small ads, Internet, recruitment agencies, etc. Every hiring is preceded by an interview.
Recruitment Agencies: Agencies specialized in temporary work: Vediorbis, Adecco, Michael Page (in Spanish), Korn Ferry.
Recruitment Websites: CompuTrabajo Argentina
Bumeran.com
Opcionempleo

Type of Contract: Legal measures (laws n° 20744, 24013, 24465 and 24467) govern work contracts; collective agreements and individual negotiation complete them.
The formality of work contracts is very rigid. Hiring and firing procedures are constraining.

Breach of Contracts
Retirement: As soon as the employee fulfils the conditions set out in law 24.241, procedures can be started. The employee keeps his job until the procedures are carried out. Men must be 65 and women 60, and have paid in contributions for more than 30 years.
Dismissals: The employer initiates dismissals:
- redundancy is either individual or mass redundancy
- dismissal for professional misconduct
- dismissal for incompetence or ineptitude on the part of the employee.
Other Possible Methods: Resignation; this is initiated by the employee.
Labor Laws: The World Law Guide - Labor law in Argentina

Cases of Dispute: Physical violence, moral harassment, sexual harassment, working conditions.
Legal Framework: Private conciliation with the conciliators' organization of the IANCA.
Be careful: conciliation is compulsory.
Voluntary arbitration with a tribunal composed of 3 arbitrators.
Procedure: Defined in the Labor Code. Be careful, the laws are provincial, so there may be variations.

Social Dialogue and Involvement of Social Partners: Most unions are affiliated to the general labor confederation (CGT). In 1997 the government recognized the smallest federation in Argentina: the Argentine Workers Group (CTA).
Negotiations in Argentina take place at the national level, by sector of activity. The unions are very powerful, especially the truck-drivers' union. The CGT, led by Mr Moyano, is an essential ally for every government.
Unionization Rate: Approximately 40% of workers in the formal economy are unionized.
Unions: List of all Argentine unions
Regulation Bodies: Ministry of Labor and Employment

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