CreditHub: Argentina
Business Structure
| Type | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Corporation (S.A.) |
|
The corporation (sociedad anónima) is the typical structure for large businesses, with a minimum paid-in capital of ARS 30 million. Capital is divided into shares, and shareholder liability is limited to their contributions. It requires at least two shareholders and is managed by a board, where a majority of directors must be residents. The structure is under strict oversight from the Public Registry of Commerce. [1] | The go-to structure for large, formal operations needing to raise capital, offering strong liability protection for shareholders. |
| Limited Liability Co. (S.R.L.) |
|
The S.R.L. is a popular choice for SMEs, with a guideline capital of ≈ARS 300,000 for filings in Buenos Aires. Capital is divided into 'quotas,' and partners' liability is limited to their subscribed quotas. It's less formal than an S.A., with more restricted transfers of ownership. [2] | A flexible and less complex option for small to medium-sized businesses that still want limited liability. |
| Simplified Shares Co. (S.A.S.) |
|
Introduced to foster entrepreneurship, the S.A.S. can be incorporated by a single person with a minimum capital of ARS 635,600. It can be managed digitally and offers significant organizational flexibility, making it ideal for modern startups. [3] | The best choice for entrepreneurs and startups due to its simplicity, low cost, and fast digital incorporation. |
Data Sources
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Corporate Information |
|
Basic corporate data (name, tax ID) is available from the Boletín Oficial (in the ‘Sociedades’ section) and the Public Registry of Commerce in each jurisdiction (e.g., IGJ in Buenos Aires [4]). Financials may require a formal request or private data service subscription. | Verify a company’s legal existence through public registries, but expect to pay for deep financial data. |
| Credit Checks |
|
The Central Bank (BCRA) offers a free public database of financial system debtors [5]. For comprehensive credit reports, private bureaus like Veraz [6] or Nosis [7] must be used. | Use the free Central Bank tool for a quick check, but use paid services like Veraz for serious credit risk assessment. |
| Judgment Search |
|
Insolvency resolutions and enforcement judgments are published in the Boletín Oficial [8]. The federal judiciary's portal allows online docket searches [9]. For broader jurisprudence, the Ministry of Justice's free SAIJ database is an additional resource [10] (backup link: saij.gob.ar). | Use a combination of the Boletín Oficial, court portals, and commercial bureaux to get a complete picture of judgments against a company. |
Contracting
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Required Documents |
|
To support a commercial claim, a complete paper trail is essential. This includes original invoices (as clerks often insist on them), contracts, and delivery notes. For foreign entities, a Hague-apostilled Power of Attorney is required, and any exhibits must be bilingual. [11] | Documentation is everything. Without a clear paper trail, pursuing a claim is extremely difficult. |
| Retention of Title |
|
A Retention of Title (ROT) clause is generally not recognized in Argentina once goods are delivered; the seller becomes an unsecured creditor. While there is no general PPSA-style registry, security can be registered for specific assets (e.g., vehicles) and new digital platforms exist for pledges over other movables. [12] | Do not rely on ROT clauses for security. Once you deliver the goods, you are an unsecured creditor. Secure payment upfront. |
Pre-Litigation
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Letter Before Action |
|
Before suing, a formal demand letter (Carta Documento) must be sent. This is a certified letter that provides legal proof of the demand. It must clearly state the debt, the amount due, and a payment deadline, warning of legal action. [13] | The Carta Documento is a non-negotiable first step. It formalizes the dispute and is required to proceed with mediation or a lawsuit. |
| Interest & Costs |
|
If a contract specifies an interest rate, it is generally upheld. If not, courts apply a high statutory rate set by the Central Bank. Collection costs can be recovered if the contract explicitly makes the debtor liable for them. [14] | Always include clear interest and cost clauses in your contracts to ensure you can recover them. |
Litigation
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Limitation Period |
|
The general time limit for contractual claims is 5 years. This can be suspended by filing for mediation or interrupted by sending a formal, certified demand for payment (interpelación fehaciente). [15] | The 5-year limit is strict. Use mediation or a formal demand to stop the clock if a negotiated solution is taking time. |
| Court System |
|
Most commercial claims must first go through mandatory mediation, with a 3% court filing fee. Afterwards, a case proceeds on either a summary (ejecutivo) or ordinary (ordinario) track. Legal representation is mandatory, and most courts use electronic dockets for filings and case management. [16] | The system is formal, digitized, and requires a lawyer. Be prepared for a 3% court filing fee. |
| Time Frame & Costs |
|
A summary suit is relatively fast, typically taking 1-2 years, while an ordinary trial is much longer, often lasting 3.5 years or more. Argentina uses the "loser pays" system, where the losing party must reimburse the winner's court and regulated attorney fees. [17] | Litigation is slow and you must fund it upfront, but you can recover costs if you win. |
ADR (Alternative Dispute Resolution)
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Mediation |
|
Before most commercial lawsuits can be filed, parties must go through mandatory mediation (Law 26.589). It suspends the statute of limitations, and any agreement reached is enforceable in court once approved. [18] | Mediation is a mandatory, low-cost step. Use it to seek a quick resolution before committing to a full lawsuit. |
| Arbitration |
|
Arbitration is voluntary and based on an agreement. Argentina's international arbitration law is based on the UNCITRAL Model Law, and awards are enforced under the New York Convention, making them globally recognized. [19] | A powerful, internationally recognized option for resolving disputes outside of the court system, but both parties must agree to it. |
| Expert Determination |
|
Parties can agree to appoint an expert to rule on a specific technical issue (e.g., quality of goods). The expert's decision is contractually binding and can be enforced like an arbitral award. | A useful tool for resolving specific technical disagreements without needing a full arbitration or court case. |
Enforcement
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Domestic Judgments |
|
Once a judgment is final, the creditor petitions for execution. The court issues an embargo (attachment) on assets. If the debtor doesn't pay, the embargo becomes a seizure, leading to a public auction to pay off the debt. [20] | The process is systematic and court-led. Once you have a judgment, there is a clear path to seizing assets. |
| Foreign Judgments |
|
A foreign judgment must be recognized by an Argentine federal court through a process called "exequatur." The court verifies the judgment is final, the original court was competent, due process was followed, and it doesn't violate Argentine public policy. Once granted, it's enforced like a domestic judgment. [21] | Enforcing a foreign judgment is possible but requires a formal court recognition process first. Ensure your original judgment meets the requirements. |
Insolvency
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Reorganization (Concurso Preventivo) |
|
This is a court-supervised process allowing a viable but struggling debtor to restructure. An automatic stay freezes collection efforts while the debtor proposes a repayment plan. To be confirmed, the plan must obtain a double majority of unsecured creditors: more than 50% of creditors in number AND at least two-thirds of the unsecured debt value (art. 45, Law 24 522). While a small case could finish in three years, large concursos routinely run eight to ten years. [22] | A chance for a company to survive. As a creditor, you get a vote on the proposed plan, but individual legal actions are halted. |
| Liquidation (Quiebra) |
|
If reorganization fails or is not possible, the company is declared bankrupt (quiebra). A trustee is appointed to take control of all assets, liquidate them, and distribute the proceeds to creditors according to legal priorities. | This is the end of the road for the company. Creditor recovery depends entirely on the value of remaining assets and your rank in the priority list. |
| Creditor Priority |
|
The Insolvency Law (No. 24,522) establishes a strict payment order. Secured creditors are paid first from the proceeds of their collateral. Labor-related debts and certain taxes also rank high. Unsecured trade creditors have a low priority. [23] | If you are an unsecured creditor, expect a very low recovery rate in a liquidation scenario. |
The information on this website is accurate to our knowledge as of July 2025.
The know-how stated is not intended to constitute a definitive or complete statement of the law, nor is it intended to constitute legal advice for any specific situation. We do not accept any responsibility for action taken as a result of information provided by on this website. It is your responsibility to take specific advice when dealing with specific situations. This website is intended as educational in nature and may not reflect all recent legal developments and may not apply to the facts and circumstances of individual transactions and cases.
Nothing on this website shall be construed or relied on as providing any legal representation, advice or opinion whatsoever on behalf of us or our staff.
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Source: alphavantage.co
Using the Chart
Candlestick Series
Represents the daily opening, highest, lowest, and closing prices of a currency pair. This visual tool is pivotal for identifying price patterns and potential market directions, providing insights into market sentiment and possible price movements.
SMA (Simple Moving Average)
Calculates the average price over a selected number of periods, smoothing out price volatility. Commonly set at 14 days for short-term trend analysis, it helps identify the direction of the market momentum.
EMA (Exponential Moving Average)
This average places a greater emphasis on recent prices, thus responding more quickly to price changes than the SMA. A 14-day EMA is often used for reactive trend analysis, making it invaluable for dynamic trading strategies.
Bollinger Bands
Features a central SMA line with upper and lower bands that adapt based on price volatility. These bands widen during periods of high volatility and contract when the market is stable. This indicator is key for spotting the turning points in price movements by identifying overbought and oversold conditions.
RSI (Relative Strength Index)
A momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100. It is particularly useful for identifying the conditions where an asset is potentially overbought (>70) or oversold (<30), often preceding reversals.
MACD (Moving Average Convergence Divergence)
Demonstrates the relationship between two moving averages, offering signals about the strength, direction, and momentum of the market. Its line crossings can signal potential buy or sell opportunities, aiding in decision-making on entry and exit points.
Stochastic Oscillator
Measures the current price relative to its price range over a specific period. Readings above 80 indicate a potential overbought situation (suggesting a sell), and readings below 20 indicate a potential oversold situation (suggesting a buy).
General Guidance
Utilise these indicators in conjunction with each other to gain a comprehensive understanding of market conditions, potential price movements, and to inform your trading decisions. Always consider the broader market context and other fundamental economic indicators to enhance the accuracy of your trading strategy.
Source: worldbank.org