Importance of Relationships with Trustworthy Local Contacts

Another key to the success of starting your business will be creating relationships with locals whom you can trust. That is more difficult that you would think. A good attitude to have in Argentina is trust NO ONE until they prove they can be trusted. There are only a handful of people I trust here in Argentina. Still, it is impossible to create a business with out the help and assistance of local contacts. It is simply impossible to start a business in Argentina without good advisors, accountants, lawyers, banks or financial firms and local business owners.

As previously mentioned in the "Business Environment in Argentina" section, it's a jungle here and you will fail if you don't take the time to set up relationships with good local contacts.

There are various ways to structure your corporation but most corporations require that you have at least another partner. You can't form a corporation with just one person so naming only yourself is not an option. There are ways to form a company with just one person but they are not the best option because there are limits to the amount of money the company can earn in each calendar year. It won't make sense for most entrepreneurs starting a company here.

One common corporation here in Argentina is the equivalent of our LLC (limited liability corporation) in the United States. It is called a SRL here. It stands for Sociedad de Responsabilidad Limitada. You must have at least one other partner in your corporation so it is essential that you have someone that you can trust 100% because at least on paper that person will own 10% of your company.

There are ways to limit your liability and our company can assist you in setting up your structure properly.