For foreigners. Para extranjeros: Argentina as a business destination
Argenitna does not only offer a great potential to Mexicans, but also to every foreigner that can see the potential in the country and that knows in which areas she/he has to commence business activities.
In this page we offer you general relevant information about the country, so you can get an idea of what Argentina can offer you and your business partners.
Facts and figures
Argentina is the second-largest country in South America. It is boarded with Bolivia and Paraguay on the north and with Brazil and Uruguay to the north-east. Chile is situated to the west. The eastern side faces the South Atlantic Ocean.
The country occupies a strategic position relative to sea lanes between the South Atlantic and the South Pacific Oceans (Strait of Magellan, Beagle Channel, Drake Passage).
Argentina is made up of a continental area (2,791,810 sq km = 1,074 miles), part of the Antartic (969,464 sq km) and many islands located in the Atlantic Ocean (4,150 sq km). The whole surface occupies 3,761,274 sq km.
From north to south, the country is 3800 km (2,360 miles) long. From east to west, it is 1,423 km (884 miles) long.
According to the Census of 1998, there are 32,6 million habitants in the country. Almost half of the country population live in the province of Buenos Aires.
Argentina's population is 55 per cent Caucasian and fifty per cent Indian or mestizo (mixed Indian-Spanish). A great wave of Southern European immigrants got to the country between 1860 and 1940, most of them of Italian and Spanish origin. Of the original Indian population, the largest group are the Guaran’es, who are found mostly in Corrientes and Misiones.
Density: 12,9 habitants/Km2
Annual Growth: 1,5%
Urban Population: 88,1%
Life Expectancy: Men: 67 years old. Women: 74 years old.
Spanish. English is widely used in companies and for business purposes.
The official religion of the country is the Catholic Church, (95% of the population). However, Judaism, Protestantism, and a number of other Christian and non-Christian religions are practiced since religious freedom is enshrined in the constitution. By law, the president and vice president of Argentina must be Roman Catholic.
Continental Argentina stretches from the Tropic of Capricorn in the north to 55% latitude in the south. Therefore, it includes a wide range of climatic zones: while the northern provinces are tropical, Misiones, Chaco and Formosa are subtropical, provinces in the middle of the country are temperate and Tierra del Fuego is subarctic. The Cordillera de los Andes, natural boundary between Chile and Argentina, both prevents winds from the Pacific from getting into the country and takes part of their humidity and rain. The temperatures range from the 49¼C in the North to the -35¼C in Tierra del Fuego and the Antartic. In Buenos Aires the average temperature range is 17¡ to 29¡ C (63¡ to 85¡ F) in January and 6¡ to 14¡ C (42¡ to 57¡ F) in July There are wide regional variations as regards precipitation in the country. More than 1520 mm (60 in) fall annually in the northern provinces, but lands become semiarid towards the west and south.
1- Agriculture Exceptional lands to be cultivated on. Argentina is Latin America's largest exporter of food and other agricultural products. The Pampas, largely made up of a fine sand and clay are ideal for the cultivation of cereal. Wheat, the principal cash crop, corn, oats, rye, rice and sunflowers are mainly reaped in Buenos Aires, Cordoba, Santa Fe, Entre R’os and La Pampa. The natural grasslands of this region are primarily used as pasture for sheep. Potatoes, tomatoes, beans and garlic are also cultivated in the central provinces. Grapevines are grown in the Cuyo region and Tucum‡n is the main cane sugar producer. Yerba mate is cultivated in Misiones while cotton in the Chaco province. Tobacco is reaped in Corrientes, Misiones and Salta. Rice comes from Entre R’os and Corrientes. The Andean foothill region is unsuitable for farming, but several valleys favor the growth of oranges towards the north. In the south, there are apples, pears and plums in the R’o Negro province. All kind of citric is cultivated in the Paran‡ Delta.
2- Cattle Second major industry of the country. Cattle was first brought into the country when the Spaniards first attempted to found Buenos Aires in 1536. Cows, sheep, horses and pigs proliferated in the pampas. Sheep also grew into large herds in the Patagonia region. All of these encouraged the production and export of veal and wool -among others- to the rest of the world.
3- Manufacture Refined petroleum products, motor vehicles, Portland cement, textiles, chemicals and petrochemicals, metallurgy, crude steel, wine, beer, steel tubes, cigarettes, wood, paper and electrical appliances among others.
Monetary Unit: Peso, with an official rate of $1 to US$ 1 since April 1991.
The 96% of the argentinians are literate. Education is free and compulsory for children between sixteen and fourteen years old. Argentina has 25 national universities and other private universities. The Universidad de Buenos Aires (UBA) was founded in 1821 and is the largest institution of highest education of the country. Other major national universities are the Catholic University of Argentina (1958), the National Technological University (1959) and the National University of C—rdoba (1613). The major library of Argentina is the National Library (1810) in Buenos Aires, with about 2 million volumes.
Football is Argentina's greatest passion. There are 17 stadiums in the city, most of them big enough to allow 40,000 spectators. The pato is the most genuine sport of the country and Argentinian players are considered to be among the best of the world. Other sports: tennis, hockey, rugby, ski, volleyball and basketball.
The most important components of traditional Argentine music are the gaucho folk song and folk dance. The tango developed in Buenos Aires and became a favorite ballroom dance throughout much of the world. Astor Piazzolla is a prolific 20th-century tango composer, bandleader, and performer.
Argentina has been recently discovered by the European tourists; but it is already very popular among Spanish and Italian visitors. Its wide scope of possibilities -which go from skiing in the harsh Patagonian winter to the tropical attractions in Jujuy and Salta-- satisfy tourists from all over the world. Accommodation Buenos Aires is a huge city and has a wide range of hotels which are rated according to the number of stars they display (from 5 to 1 in decreasing order). There are also residenciales (A,B or C), hoster’as, caba–as, motels and camping areas.
Bus lines go everywhere in the country. The Buenos Aires bus terminal is next to Retiro station, 400 meters away from the underground Subte "C" Railways Argentina's rail system -which developed at the beginning of this century- is usually cheaper but slower than bus travel. Air services The international airport Ministro Pistarini -also known as Aeropuerto de Ezeiza- is located 35 km away from Buenos Aires City. The local air services are covered by Aerol’nes Argentinas, Austral, Dinar, LADE, LAPA and SW. There are bus and taxi services to and from the airport. Car rental International rental companies do also operate in Argentina. If you have a credit card, charges can be paid in your home country. Taxis There are 32,000 taxis in Buenos Aires. Taxi drivers charge a fixed fee and add an extra cost according to the distance that has been traveled.
Argentina in the world economic context
With a Gross Domestic Product (GDP) of more than US$510 billion, Argentina is one of the largest economies in Latin America. In recent years, President Cristina Fernandez’ administration has focused on promoting economic development with social inclusion.
On the international front, Argentina enjoys good relations with most of the countries in the region, particularly Brazil and Venezuela. The country also has a leading role in advocating the region's policy stance, as it represents Latin America at the G-20, jointly with Mexico and Brazil.
Argentina's economy is characterized by its valuable natural resources, leading the country to be one of the main producers of food, thanks to agriculture and cattle breeding. Argentina is one of the largest exporters of beef in the world and the top world producer of sunflower crops, yerba mate, lemons, and soybean oil. The opening of the Chinese market represents a boost in the consolidation of an export profile.
In recent years, moreover, the country experienced record growth within the domestic industry, particularly in the automotive, textile, and appliances industries.
The country has grown steadily during the past decade and has invested heavily in health and education, areas which account for 8% and 6% of GDP respectively. Between 2000 and 2011, the middle class increased from 34% to 53% of the population.
It has prioritized social spending through various programs, including the creation of the Universal Child Allowance, which reaches approximately 3.7 million children and adolescents up to 18 years old, 9.3% of the population.
The economy's external sector faces significant challenges. Estimates for the first 6 months of 2014 were 0.1% GDP growth compared with 2013 and the forecasts for the whole of 2014 range from -1% to -1.5%. For 2015, around 0.5% is expected.
During the first 6 months, fiscal accounts had a primary surplus of 0.1% of GDP and an overall deficit of 0.9% of GDP. In the first six months of 2014, public sector revenues increased 43% (YOY) and spending by48% (YOY).
Last Updated: Jan, 2015
Partnership with an Argentinian company
Generally speaking, partnerships are entities in which the participants' liability is unlimited. Partnerships in Argentina generally take the form of a Sociedad Colectiva. All the partners are jointly and severally liable for the obligations of the partnership, once its assets have been exhausted. No minimum capital is required and liquidation of partnerships requires unanimous consent.
Joint Ventures (UTE)
The joint venture vehicle most commonly used in Argentina is the Unión Transitoria de Empresas ("UTE").
The UTE is a specific type of joint venture governed by the Argentine Companies Law. A non-resident corporation may be a member of an Argentine UTE subject to it complying with the same kind of registration proceedings with the RPC as those applicable to a branch of a foreign company.
All UTEs and their representatives must be registered with the PRC of the jurisdiction of incorporation (i.e. the City of Buenos Aires or one of the provinces).
UTEs are not treated as independent legal entities, although they are treated as such for certain purposes including labour law, social security contributions and for value added and turnover tax. With respect to other taxes, such as income tax and the tax on assets, UTEs are considered as transparent entities, and such taxes are therefore payable in the hands of the members.
Joint ventures other than UTEs are also permitted under the general principles of law.