On March 27, 2024, the General Resolution of the Inspección General de Justicia No. 10/2024 (RG IGJ 10/24) was published, marking a significant change in the regulations applicable to foreign companies operating in the country.
Key Modifications
This resolution modifies various aspects of the regulations, especially regarding vehicle companies, offshore companies, and the annual reporting regime. In this article, we'll discuss the main changes:
- Flexibility for Vehicle Companies What does this mean? Well, basically, the strict restrictions that previously limited the registration of vehicle companies have been removed. Now, these entities can be registered without quantity limitations, as long as they meet the requirements established by the previous regulations (RG IGJ 7/15).
- Prohibition of Offshore Companies Registration The prohibition of registering offshore companies is maintained, with exceptions for those registered before the entry into force of RG IGJ 7/15 (11/2/2015), which must comply with an annual reporting regime under restrictive guidelines.
- Criteria for Non-Cooperative Countries Foreign companies from non-cooperative countries in fiscal transparency or in the fight against money laundering and terrorism financing may be registered under restrictive criteria. They must demonstrate significant business activity in their country of origin and provide detailed information about their partners.
- Facilities for Jurisdiction Transfer The possibility of transferring the jurisdiction of companies from the Autonomous City of Buenos Aires is reintroduced, which may facilitate the operation of businesses.
- Elimination of Investment Plan Requirements Less paperwork! RG IGJ 10/24 eliminates the requirement to submit an investment plan for the registration of foreign companies, simplifying the registration process and removing a possible barrier to investment.
- Extension of the Annual Reporting Regime The period for complying with the annual reporting regime in an abbreviated form is extended to five consecutive fiscal years, facilitating compliance with administrative obligations.
- Registration of Registerable Acts of Participated Companies The resolution allows for the registration of registerable acts of local participated companies even if the foreign company has not complied with annual submissions of the reporting regime, as long as its votes have not been decisive for the social decision.
Boosting Foreign Investment
These modifications represent an effort to eliminate unnecessary barriers and promote a more receptive environment for foreign investment in Argentina. By simplifying procedures and adapting regulations to current needs, the aim is to foster economic growth and strengthen international trade relations.
What are vehicle companies?
Vehicle companies refer to entities controlled by foreign companies, whose exclusive purpose is to invest in the country. They emerged to facilitate the entry of legitimate and genuine investments from transnational economic groups, allowing for business sectorization or fiscal planning. Although their regulation by the Inspección General de Justicia dates back to 2004, their main function is to serve as a specific instrument for channeling investments in Argentina.
