Simplified Share Companies SAS:

What Does a Simplified Joint Stock Company (SAS) Mean?

A Simplified Joint Stock Company (SAS) is a business organization form created to facilitate the establishment and operation of new businesses in Argentina. This structure was introduced by the Entrepreneurs' Law (Law 27.349) and is designed to offer a flexible and accessible alternative to both individual entrepreneurs and small groups of partners.

What is an SAS and Its Benefits?

An SAS is a commercial entity that allows entrepreneurs to limit their liability to the capital they have contributed. This means that in case of debts or legal liabilities, the partners do not risk their personal assets beyond their investment in the company. Some of its main benefits include:

• Flexibility in Formation: It can be established with a single partner, who can also be the administrator.
• Limited Liability: Protects the personal assets of the partners.
• Administrative Simplicity: Requires fewer procedures and documentation than other corporate forms.
• Virtual Meetings: Shareholder meetings can be held electronically.
• Access to Financing: SAS can issue and sell shares to raise capital.

What Taxes Do SAS Pay in Argentina?

SAS are subject to the same taxes as other commercial entities in Argentina, including:

• VAT (Value Added Tax): For sales of products and services.
• Income Tax: On the company's profits.
• Gross Income Tax: Depending on the activity and jurisdiction.
• Employer Contributions: Related to employees.

How Much Does It Cost to Create an SAS in Argentina?

The cost of creating an SAS in Argentina is generally lower than that of establishing other corporate forms such as a Sociedad Anónima (SA) or a Sociedad de Responsabilidad Limitada (SRL). The main costs include:

• Minimum capital of two Minimum Vital and Mobile Salaries.
• Notary fees for certifying signatures.
• Registration fees in the corresponding public registry.

What Are the Benefits of a Simplified Joint Stock Company?

In addition to flexibility and limited liability, SAS offers other significant advantages:

• Speed of Formation: The process is quicker and less bureaucratic.
• Ease of Administration: It is not necessary to present annual financial statements to the General Inspection of Justice (IGJ), although accounting records must be kept.
• Issuance of Shares: Facilitates the entry of new investors.

What Is the Minimum Capital to Establish an SAS?

The minimum capital required to establish an SAS is equivalent to two Minimum Vital and Mobile Salaries. This low threshold makes it easier to create new businesses and reduces entry barriers for entrepreneurs.

Which is Better, an SAS or an SRL?

The choice between an SAS and an SRL depends on the specific needs of the business:

• SAS: Better for individual entrepreneurs or small groups seeking flexibility and speed in formation. Ideal for companies looking for financing through the issuance of shares.
• SRL: More suitable for family businesses or those that do not need to issue shares. It offers a more rigid structure but with advantages in management stability.

Who Is the Legal Representative of an SAS?

The legal representative of an SAS is the principal administrator, who can be a partner or a designated third party. This administrator is responsible for executing the company's decisions and legally representing it.

How Many Shareholders Can an SAS Have?

An SAS can be established with a single shareholder, making it a very attractive option for individual entrepreneurs. There is no maximum limit on the number of shareholders, allowing great flexibility in the structuring of share capital.

What Are the Disadvantages of an SAS?

While SAS offers many advantages, there are also some disadvantages to consider:

• Lack of Formality: The simplicity of its formation may lead to a lower perception of formality compared to other entities like the SA.
• Recent Regulation: As a relatively new structure, there may be uncertainty in some legal and operational aspects.

What is a Simplified Joint Stock Company: Examples?

An example of a simplified joint stock company would be a tech startup founded by a single entrepreneur who seeks to limit their liability and obtain financing through the issuance of shares. This SAS allows the entrepreneur to attract investors without compromising their personal assets.

What Taxes Must an SAS Pay in Argentina?

SAS must comply with the same tax obligations as other companies in Argentina, including the submission of VAT, gross income tax, income tax, and contributions for employees.

How is the Liability of an SAS?

The liability of the partners in an SAS is limited to the capital they have contributed to the company. This means that partners do not risk their personal assets in case of debts or legal obligations of the company.The Simplified Joint Stock Company (SAS) is a modern and flexible business structure designed to facilitate the creation and operation of new businesses in Argentina. It offers numerous advantages, such as limiting the liability of the partners, flexibility in administration, and access to financing through the issuance of shares. While there are disadvantages and restrictions, SAS represents an attractive option for entrepreneurs seeking to establish their business quickly and efficiently.

At Marei, we also provide advice on other corporate forms, such as the Sociedad Anónima (SA) and the Sociedad de Responsabilidad Limitada (SRL). Contact us for more information and to ensure you choose the most suitable legal structure for your business.