Should a foreign company open a branch or a subsidiary in Argentina?

Last verified: 27 Oct 2026 · Status: Changing

Short answer. Most foreign companies are better off with a subsidiary (SAS, SRL or SAU): the parent's liability stays limited and dividends have a clear FX route. A branch suits defined projects. It needs no minimum capital, but the parent answers with all its assets and the FX route for remitting branch profits is unsettled. Tax is almost identical.

As of 26 Oct 2026. Rules in force at that date.

Key rules

Branch. A foreign company that acts habitually in Argentina through a branch must prove it exists under its home law, fix and publish a local domicile, and file the head office decision naming the person in charge. Capital is assigned only "when special laws require it" (LGS art. 118). The branch keeps separate local accounts (art. 120), and its representative has a director's liability (art. 121). It is not a separate legal person (this follows from art. 118; no article says it in words).
Subsidiary. A foreign parent first registers under LGS art. 123 and then forms a local company. Shareholders limit liability to their shares or quotas (SA art. 163, SRL art. 146, SAS Law 27.349 art. 34). Minimum capital: SA ARS 30,000,000 (art. 186), SRL none, SAS two minimum wages (art. 40).
IGJ (City of Buenos Aires). One article lists the documents for both routes, with extra items for a branch (IGJ Rules art. 164, as replaced by IGJ RG 4/2026). A branch registration also covers art. 123 (art. 166). Branch statements are due within 120 calendar days of year end (art. 175).
Tax. A branch is a permanent establishment (Income Tax Law art. 22). It pays the same 25% to 35% scale as an SA, SRL or SAS and an additional 7% "when remitting profits to its head office" (art. 73(b)). A subsidiary withholds 7% on dividends paid abroad (art. 97). A company pays 0.50% a year on the equity value of shares and quotas held from abroad (Law 23.966, article after art. 25). A branch has no shares, so on the wording it does not pay this (unconfirmed).
FX. A registered branch is a resident (BCRA "Exterior y Cambios" point 6.5.2). Point 3.4 allows profit transfers to "non resident shareholders" as decided by the "shareholders' meeting". It never mentions branches (unconfirmed).

What changes the answer

Liability exposure. Litigation, labour or environmental risk points to a subsidiary, since branch debts are the parent's debts.
Profit repatriation. A subsidiary uses BCRA point 3.4, which needs audited statements (3.4.1). For a branch, get the bank's written position first.
RIGI. Law 27.742 art. 169(a) and (b) admit SAs, SAUs, SRLs and art. 118 branches as project vehicles. SASs are not listed.
Province. These figures are for the IGJ. Other registries apply their own rules and fees (IGJ vs provinces).

Worked examples

The same CABA operation runs as (A) a branch or (B) a wholly owned SAS. Net taxable income in fiscal 2026: ARS 100,000,000. All after tax profit goes to the parent. Pesos are converted at dólar MEP ARS 1,563.90 per US$ on 23 Oct 2026 (dólar MEP selling rate (dolarapi.com)) (unconfirmed) (see /data/mep/). One IGJ módulo is ARS 1,500 (MJ Res. 33/2024 art. 2).

Step or item	Time	Cost ARS	Cost USD
A. Art. 118 registration fee, 96 módulos	No official term (unconfirmed)	144,000	92
A. Assigned capital		0	0
B. Art. 123 registration of the parent, 96 módulos	No official term (unconfirmed)	144,000	92
B. SAS registration fee	24 hours in law, suspended in CABA	(unconfirmed)	(unconfirmed)
B. SAS capital, 2 × ARS 391,200	at signing	782,400	500
B. Paid at signing, 25%	day 1	195,600	125
A and B. Gazette notice, notary, apostille, sworn translator		(unconfirmed)	(unconfirmed)
A and B. Corporate income tax, 25% bracket	yearly	25,000,000	15,986
A. 7% on remittance of 75,000,000	on remittance	5,250,000	3,357
B. 7% dividend withholding on 75,000,000	on payment	5,250,000	3,357
B. 0.50% on equity of 75,782,400	yearly	378,912	242

Step by step:

Fees. 96 × 1,500 = ARS 144,000 (US$92) for each IGJ registration, per the IGJ procedure pages for art. 118 and art. 123. Both pages still cite the repealed RG 7/2015 and list items that RG 15/2024 removed (recital 48), so the fee is indicative (unconfirmed).
SAS capital. The minimum wage is ARS 391,200 from 1 Oct 2026 (CNEPSMVM Res. 4/2026 art. 1(b)), so 2 × 391,200 = 782,400 (US$500). From 1 Nov 2026 it is 2 × 398,800 = 797,600 (US$510). At least 25% is paid at signing (Law 27.349 art. 41): 195,600 (US$125).
Income tax. 100,000,000 is below ARS 133,514,185.74, so 25% applies (ARCA scale 2026): 25,000,000 (US$15,986). After tax: 75,000,000 (US$47,957).
Branch. 7% × 75,000,000 = 5,250,000. Total tax 30,250,000 (US$19,343). The law does not say whether the 7% is on the gross profit or on the amount sent (unconfirmed).
SAS. Withholding 7% × 75,000,000 = 5,250,000. Year end equity of 782,400 + 75,000,000 = 75,782,400 gives a 0.50% charge of 378,912. Total 30,628,912 (US$19,585). The LGS art. 70 legal reserve is ignored; whether it binds an SAS is unsettled (unconfirmed).

Cost to do it: branch, ARS 144,000 (US$92) in IGJ fees and no capital; SAS, ARS 288,000 (US$184) in known fees plus ARS 195,600 (US$125) of capital at signing. Add gazette, notary and translation costs (unconfirmed). Plan on months, not days, for either route (editorial estimate (unconfirmed)). Over a year the tax gap is 378,912 (US$242).

Practical traps

Thinking assigned capital caps liability. It does not.
Assuming an SAS is instant in CABA. The 24 hour rule (Law 27.349 art. 38) exists, but automatic registration with model bylaws is suspended (IGJ RG 12/2024 art. 3), and the art. 123 filing comes first.
A seat or main purpose in Argentina. A foreign company whose seat or main purpose is here is treated as local (LGS art. 124). A foreign shell holding only an Argentine branch is the classic risk.

FAQ

Does a branch file financial statements with the IGJ? Yes, within 120 calendar days of year end, with a beneficial owner statement (IGJ Rules arts. 175 and 421).

Does an SAS file statements with the IGJ? The IGJ announced in April 2024 that SASs no longer file them, and RG 11/2024 arts. 7 and 9 repealed the prior audit and filing rules. Confirm that no later rule reinstated a duty (unconfirmed).

Can the branch representative live abroad? Neither LGS art. 118 nor IGJ art. 164 requires residence. An SAS needs at least one administrator with a real domicile in Argentina if the board is plural (art. 51). Whether that binds a sole administrator is unclear (unconfirmed).

Is the corporate tax rate different? No. Both pay the art. 73 scale, 25% to 35%.

Published 27 Oct 2026 from our research draft. Points marked (unconfirmed) have not yet been checked against the official text; rely on the primary sources linked below.