In Argentina there are many commercial companies that help people preserve their assets or income. In this case, it is SRL as an institution that is limited to the capital contributed by any affiliated business or individual. If you want to form one of these companies, here in this article we will tell you the requirements to form an LLC.
These types of companies, on the other hand, They are in great demand in the Latin country. Usually many people want to create a partition of their income with an established capital and keep it as a solid entity. With an SRL this can be possible without any difficulty. However, it requires effort and being aware of everything.
Although, the government authorities have kept many LLCs within their business offices. This helps them keep a more stable capital among the jobs with less demand, since the greater the income generated, the more affected the commercial association will be. However, with a good organization nothing happens.
Now, since we have detailed what an LLC exercises in itself, you will have to take into account that all the steps that we will detail below are mandatory and of great importance. Creating a mercantile company requires a lot of patience and attention to taking care of any inconvenience.
Requirements to Form an LLC
To create or originate a commercial company must have a valid identification as Argentine. Now, if you meet that basic requirement, you can continue without any inconvenience to process the commercial steps. These will be detailed below:
- Have a capital divided between the different parts of the organization
- Create a minimum capital of $ 3,000
- Have the consent of all parties to the LLC
- Comply with the minimum number of partners; 2.
- Have the permission of the state administration with signature and validation.
- Reconcile a supervisory council to take office.
- Pay 50% of the initiative to form the mercantile company.
On the other hand, you have to comply with the established regulations to create an SRL branch. These rules are dependent on the capital created and its amount. Through them, it will be possible to verify if it complies with the statutes of any commercial company, as well as it will have completed its legal procedures to form its organization.
It is extremely important that stay on top of reports that are issued by the state, since for years there have been changes in the function of said institution, thus changing the responsibility of the partners to the social patrimony and its limitation. Remember that this type of company cannot be used by large companies.
However, in the Latin country there is a law (19,550) that regulates the operation of any commercial company that wants to carry out its services before any company. If you want to know more about this, you can access the state web portal by clicking here. There you can read about this regulatory process.
Based on the above, it is also a requirement maintain an administration according to the wishes of the client and the state. This is mandatory due to the capital managed by the association, and without this it is impossible for the institution to work. Beyond any paperwork or documentation, it must have a good order of what is established.
It is important to highlight the requirements of the constitutive instrument
This section is to inform you that there is a constitutional regulation that obliges any person wishing to form an LLC association to comply with said procedure. These documents are essential for the creation of the mercantile company, the papers are:
- Data that identify the partners (DNI)
- Name or Social reason
- Their address in which they are linked,
- The determined objective and its established capital
With this complementary instrument to the previously established requirements, we conclude this section. In any case If you have any doubts With the procedures to be carried out, you can contact the contact center of the mercantile associations SRL. Likewise, you can consult any of your wishes without any inconvenience.
To successfully create and run any LLC association you will need to reconcile a series of documents necessary to be able to work. These papers are necessary to conclude with the registration of the corporation. These are basic and you will be able to get them without much searching. TO below the necessary documents:
1.Obtain a Certificate of Social Denomination. This can be requested at any commercial registry entity
2.Get and set the default capital of $ 3,000. Once deposited, you must print a confirmation that confirms it
3.Create a bank account and make an opening of social capital to infer in the founding regulations
Four.Get all the IDs of all partners and employees within the organization
On the other hand, if you have already complied with the documents and the said steps. You will already have a fixed amount for your capital, now if you exceed that tax amount or for any reason you lose part of the money, you will have to deliver a constitution of receivership and that this is validated by a prosecutor of the state where it is located.
Nevertheless, when carrying out the process of union documentation will have to be cautious since they are very delicate papers. We are talking about fixed capital income for a company, and these types of procedures have to be originated only by the state administration or by a notary who carries out SRL consultancies.
Once the constitutive documentation has been completed, the state registry must reconcile
Based on what has been said, if the necessary paperwork has already been sent to comply with the constitutive regulations of commercial associations, you will have to start requesting its registration within the control body. This process is quick and the requirements to complete the application are different depending on the company.
The documents mentioned in this section are mandatory, and without these you will not be able to carry out your commercial registry. Take this into account when formalizing your registration process. In addition, to comply with this documentation, you will first have to meet the requirements to form an LLC.
How to constitute an LLC?
Once the constituent has been presented to the administration, it will be registered in 24 hours. Now your next step will be to establish your association SRL and for that you will have to carry out some operations within the designated company. Anyway, we will detail how to do it below:
- Submit the corresponding form.
- Consign the documentation requested in the general administrative table
- Once your request is confirmed, you must pick up your answer at Avenida Paseo Colón 291.
- Then the legal representative of the legal association must sign the form submitted.
By completing the steps you will have formalized your registration successfully. Now you only have to worry about fulfilling your duty as the leader of a commercial company. However, there are recommendations set by the notary once the SRL formalization has been completed. You can find out more by clicking here.
Requirements to Form an LLC: Benefits
We have discussed the requirements, the corresponding documentation and the regulations. It is time to comment the benefits that are obtained when working as an officer of a trading company. These advantages and facilities are:
Limited liability protection
Taking calculated risks is an integral part of doing business, whether you’re a sole trader or a limited company, but only the latter insulates you from a calculated risk gone wrong. The first will leave you outside in the cold.
Fiscal and national insurance efficiency
As a director of a limited company, if you receive a small salary and most of your income is in the form of dividends, you will still be entitled to State Benefits without paying any National Insurance Contribution (NIC) of the employer or employee. Dividends attract less tax than salary and are not subject to IAS.
Better reputation and credibility
Trust is critical in business and a limited company has an appearance of professionalism, which can instill confidence in your business.
Easier access to finances
The separate legal entity of a limited company can make it a bit easier to secure finances than sole traders. Additionally, companies can raise capital by issuing new shares to shareholders and new investors.
How much does it cost to form an LLC?
To formalize the process and complete the form to establish a capital, you will need to pay the amount to create a commercial association. The cost is between $ 1,000 and $ 3,000. The payment to carry out the creation of the limited capital will depend on your actions within it. That is why the price varies from one point to another.
However, it is recommended that before making the deposit be informed about it on the advantages of one amount to another. Higher prices usually offer more advantages and options than a lower cost one. However, for this you must complete the requirements to form an LLC.
However, if you still have doubts about any of the sections that we have written for you. Then we will place a video where you will have a summary tutorial of what was spoken.
What is an SRL?
A limited partnership it is a form of business that it is legally separated from its owners (usually shareholders) and managers (formally called directors). In Argentina, this confers the status of being a separate «legal person» from the people who run it, with a unique company registration number.
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