Types of Companies: SAS, SRL and SA

For the foreign investor or entrepreneur planning to establish operations in Argentina, choosing the right corporate structure is one of the first and most consequential decisions. Argentine law — primarily the General Companies Law No. 19,550 and its amendments — provides several corporate vehicle options, each with distinct characteristics regarding capital requirements, liability, governance, and operational flexibility. The choice depends on factors such as the nature of the business, the number of participants, the planned investment volume, regulatory requirements, and the investor's long-term strategy. This article provides a comparative overview of the three most commonly used structures: SAS, SRL, and SA.

Sociedad por Acciones Simplificada (SAS)

Created by Law 27,349 in 2017, the SAS was designed as an agile and simplified vehicle, aimed at facilitating the formalization of ventures and the incorporation of new companies with lower barriers to entry.

• Can be incorporated by one or more persons, allowing for a single-member company
• Capital is divided into shares. The minimum capital requirement is very low, equivalent to two (2) minimum wages
• Incorporated through a private instrument with certified signatures (by a notary public or IGJ official), or digitally through the Tramites a Distancia (TAD) platform using an AFIP tax key (CUIT/CUIL/CDI)
• Simplified governance: one or more administrators instead of a formal board of directors
• No mandatory sindicatura (internal audit/comptroller body)
• Registered before the Inspeccion General de Justicia (IGJ) in Buenos Aires City, or the equivalent provincial authority
• Requires declaration of ultimate beneficial owners (shareholders with 10% or more) and politically exposed persons

Sociedad de Responsabilidad Limitada (SRL)

A traditional structure governed by Law 19,550, the SRL is widely used for medium-scale businesses and family or small-group ventures.

• Requires a minimum of 2 partners and allows a maximum of 50
• Capital is divided into quotas (cuotas), not shares — they cannot be freely transferred without the consent of other partners
• Partners' liability is limited to the integration of their quotas, but there is joint liability for the integration of other partners' contributions
• Can be incorporated by public instrument (instrumento publico) or by private instrument with certified signatures
• The management body consists of one or more managers (gerentes), not a board of directors
• Optional sindicatura, unless certain capital thresholds are exceeded or other legal triggers apply
• Requires publication in the Official Gazette
• Capital contributions must be deposited at the Banco de la Nacion Argentina
• 25% minimum integration at the time of incorporation

Sociedad Anonima (SA)

The SA is the most formal and structured corporate vehicle under Law 19,550. It is the preferred option for large-scale institutional investments, regulated industries, and operations requiring credibility with financial institutions and government agencies.

• Allows an unlimited number of shareholders
• Capital is divided into shares, which are freely transferable
• Minimum capital: $100,000 (subject to updates), with 25% integration at the time of incorporation
• Requires a board of directors (directorio) as the management body. For companies under the Article 299 regime (large companies): mandatory sindicatura and audit committee
• Must be incorporated by public instrument (instrumento publico)
• Directors must provide a surety bond (seguro de caucion)
• Requires publication in the Official Gazette
• More complex governance but greater institutional credibility for investors, banking relationships, and regulated industries

Comparative overview

The foreign investor: specific considerations

This is a central point for the audience this article addresses. A foreigner can be a partner, shareholder, and legal representative (administrator, manager, or director) of an Argentine company. A definitive DNI (national identity document) is not required to exercise these functions.

With the precarious residence already obtained — issued when the residency application is filed before the National Directorate of Migration — the foreigner can act as the company's legal representative. The precarious residence, together with the CUIT or CDI (Tax Identification Key) issued by ARCA (formerly AFIP), enables the person to sign documents, appear before the IGJ, and exercise corporate functions.

Foreign companies can also participate as partners or shareholders of Argentine companies, subject to registration requirements before the IGJ: Articles 118 to 123 of Law 19,550 for branches, and Article 123 for participation in local companies.

A foreigner without a DNI can obtain a CDI (Identification Key) from ARCA, which is sufficient to participate as a shareholder and obtain a CUIT for the company. Professional assessment of the specific case is indispensable to properly coordinate the corporate, tax, and immigration strategy.

Compliance and corporate governance

Regulatory compliance is a dimension that cuts across all company types and is of particular importance for foreign investors, both due to regulatory exposure and the expectations of oversight bodies.

• Ultimate Beneficial Owner (UBO) declarations: mandatory for all company types. Shareholders or partners with 10% or more ownership and politically exposed persons linked to the company must be identified
• Anti-money laundering (AML): companies are subject to reporting obligations before the Financial Information Unit (UIF) depending on their industry
• Annual financial statements and corporate filings: must be submitted annually to the IGJ
• Tax compliance: registration with ARCA, monthly and annual tax filings
• Companies with foreign shareholders: transfer pricing rules may apply, and if the Argentine company holds interests in foreign entities, CFC (controlled foreign company) rules may also be relevant
• Corporate governance standards are increasingly important for banking relationships, government contracts, and overall institutional credibility

Which one is right for your case

There is no single answer. The choice of company type depends on a set of variables that must be analyzed in the specific context of each investor:

• Small startup, single founder, digital business → SAS: simplicity, low cost, streamlined process
• Family business, small group of partners, controlled transfer → SRL: balance between simplicity and control over ownership interests
• Institutional investor, large investment, regulated industry, banking needs → SA: credibility, corporate governance, share transferability
• Foreign company establishing a branch in Argentina → branch registration under Article 118 of Law 19,550
• Holding structure for investment management → depends on tax and corporate strategy, requires individualized analysis

In all cases, the choice must consider tax implications, immigration strategy, and long-term objectives. A decision that seems simple at the time of incorporation can generate significant costs if all the dimensions involved are not properly evaluated. Comprehensive professional advice is indispensable.

Last updated: March 2026. Legislation cited: Law 19,550 (General Companies Law), Law 27,349 (SAS), IGJ general resolutions.