New law for Entrepreneurs
Argentina’s National Congress passed the Entrepreneurs Law that enables businesses to be set up within 24 hours, provides tax benefits to those investing in new business ventures, grants loans to support projects in getting off the ground and sets out mechanisms used today throughout the world to ensure that Argentines can get behind Argentine initiatives.
The Law signals a strong commitment to support entrepreneurs right across the country and aims to encourage more and better jobs to be created by promoting Argentine ideas. It seeks to remove obstacles to pave the way for the state to become the driver and supporter of Argentine talent
Benefits of the Law
Setting up companies in a day
The ability to set up a company within 24 hours is one of the central facets of this law. The new legal entity will be known as a Simplified Joint-Stock Company (SAS, in Spanish) and can be set up and run online from anywhere in the country. It will also enable the opening of a company bank account and the digitisation of signatures, records and representation via attorney; assimilating one or more shareholders and issuing shares of equal rights at different prices.
Currently, setting up a company in Argentina takes from 45 to 60 days on average, which implies a significant increase in costs and, consequently, pushes businesses into the informal economy.
To develop the entrepreneur capital sector, the law provides for tax incentives to investors backing Argentine ideas. In addition, with the aim of making the process of financing entrepreneurs easier and smoother, the National Entrepreneur Capital Fund (FONDCE) has been set up. Through this trust, public-private entrepreneur capital funds have been created to provide incentives for investors in high-impact projects. There will be 10 funds, with 40% covered by public investments. They will be required to have a minimum capital of 30 million dollars per fund and they will be run by private managers responsible for selecting the projects.
Additionally, 13 incubators will be selected (3 of which are to be science-based), with 4-year licences. Those chosen will receive funding to cover running costs and provide joint investment in Argentine ventures.
The law also provides for the regulation of collective finance mechanisms to democratise and federalise the possibility for Argentines to invest in local talent.
Loans for the early stages of a project
The FONDCE will also provide zero interest loans to help get young businesses off the ground.
For further info www.produccion.gob.ar/quieroemprender/ (Spanish content)