New Simplified Regulations for Local Companies in Argentina
November 1, 2024, marked a significant shift for companies in Buenos Aires with the introduction of General Resolution No. 15/2024 (GR 15/24) from the Inspección General de Justicia (IGJ), the public registry of commerce for the Autonomous City of Buenos Aires. GR 15/24, which replaces the previous General Resolution No. 07/2015 (GR 07/15), brings several welcome reforms aimed at reducing administrative burdens and enhancing flexibility for local businesses.
Here’s what you need to know about the key changes and practical steps to align with these new standards.
Greater Ownership Flexibility
Under GR 15/24, companies that don’t qualify as single-member entities are no longer required to allocate a minimum ownership percentage to minority shareholders. This means that businesses can avoid unnecessary allocation of shares and focus on ownership structures that best suit their goals.
Expanded Corporate Purpose
Companies now have the freedom to pursue multiple business purposes without needing those purposes to be interconnected. This change makes it simpler to operate in various sectors under a single entity, offering greater versatility for entrepreneurs looking to diversify their offerings.
Digital Asset Contributions Recognized
For the first time, digital assets like cryptocurrencies can be used as capital contributions. This update is a forward-looking acknowledgment of the growing role of digital currencies in today’s business landscape. If your company plans to incorporate digital assets, the IGJ now provides a framework to facilitate and regulate these contributions.
Virtual Meetings Now Valid
Companies can hold meetings virtually, including by videoconference, even if this isn’t expressly stated in their bylaws. This development enables easier decision-making for directors and shareholders, supporting businesses with directors and stakeholders in multiple locations.
Flexible Terms for Irrevocable Contributions
With GR 15/24, companies can hold irrevocable contributions indefinitely until they’re either converted into equity or repaid. This flexibility allows companies and investors to negotiate terms that best suit their financial and operational goals.
Streamlined Dividend Payments
The new resolution makes advance dividend payments simpler by eliminating prior notification and opinion requirements to the IGJ. Now, companies can distribute dividends more quickly, easing administrative demands and providing shareholders with faster returns.
Simplified Recordkeeping Requirements
Companies are now permitted to keep records digitally using hash-identified files. This change reduces administrative complexity, allowing businesses to maintain their records in a modern, streamlined way.
Foreign Companies Benefit, Too
Alongside the changes for local companies, GR 15/24 introduces amendments to the Foreign Companies Regime in Buenos Aires. These updates align with Argentina’s push to attract foreign investment, ensuring compliance with the Argentine Companies Law while reducing administrative burdens on foreign businesses seeking to establish or operate in Buenos Aires.
Why It Matters?
The latest resolution signifies Argentina’s commitment to a business-friendly regulatory environment, fostering ease of incorporation and encouraging innovation. By simplifying processes, supporting virtual and digital advancements, and acknowledging the role of digital assets, GR 15/24 is poised to make Buenos Aires an even more attractive jurisdiction for both local and international companies.
These reforms showcase the IGJ’s proactive approach to corporate regulation, emphasizing ease of compliance and modernization without sacrificing the rigor of the Argentine Companies Law.
For those looking to ensure compliance and leverage these changes fully, Klea’s expertise across 100+ jurisdictions can help you manage corporate obligations seamlessly, keeping your focus on growth and operational success.
