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DOING BUSINESS IN ARGENTINA THE HANDBOOK A publication by the Argentine-Danish Chamber of Commerce & Industry Disclaimer: This publication is designed to provide accurate information in regard to the subject matter covered. It is distributed at no charge with the understanding that neither the publisher nor the institutions that have contributed to this handbook are engaged in rendering legal, accounting or other professional services. The articles presented by the companies and the text in this report may be reproduced in whole or in part whenever the source is mentioned. Doing Business in Argentina The Handbook Acknowledgements Executive Committee members and management of the Argentine-Danish The Argentine-Danish Chamber of Commerce Chamber of Commerce & Industry & Industry would like to thank the following people, organisations and companies without President whom the first edition of this handbook wouldn’t Bjarne Petersen (Mercotuc SRL) have been a reality: Vice President Peter Hald (Viking Life Saving Equipment CMD (Centro Metropolitano de Diseño), Estudio -America- Inc.) Rossi, Camilión & Asoc., Fundación Habitat Honorary Secretary & Desarrollo, GL Marketing Global, SMS & José Pascar (Comtradex S.A.) Asoc., Sustentable SRL., Vestas Argentina Honorary Deputy-Secretary S.A., Andrés Albertsen for their hard work and Jorge Albertsen (Estudio Rossi Camilión & intellectual collaboration; Arla Foods Ingredients Asoc.) S.A, Estudio Rossi, Camilión & Asoc., Estudio Honorary Treasurer Willa, Feir’s Park Hotel, Hempel Argentina SRL, Richard Christensen (Christensen SRL) Maersk Argentina S.A., MGI Jebsen & Co, SMS Honorary Deputy-Treasurer & Asociados and Vestas Argentina S.A. for Vagn Pedersen (Maersk Argentina S.A.) their financial contribution; Graciela Luzuriaga, Delegate Carolina Levy and Rune Harritshøj for their Aage Jacobsen (Chr-Hansen Argentina S.A.I.C) continued support and encouragement, and Accounts Committee finally María Valeria Buquiere, Santiago Farrell, Fernando Moretti (Hempel Argentina SRL) Pierre Dumas, María Cecilia Sáenz and Berenice Bjarne Pedersen (Arla Foods Ingredients S.A.) Schmittendorf (Zettel Diseño) for the coordination, Manager edition and talented artwork of this book. Jorgelina Capaccio [email protected] The cover reproduces part of a Danish Argentine Chamber of Commerce & Industry painting by Micaela Nuñez, self- Av. Leandro N. Alem 1074, 12th floor taught painter from Uruguay who C1001AAS, Buenos Aires is the only woman that has been Argentina working in Argentina developing [email protected] marine art and the painting of www.camaradanesa.org.ar the sea and its environments. We would like to thank very specially Doing Business in Argentina - The Handbook Chamber member Graciela Printed in Buenos Aires, Argentina - September 2007 by Rivolin Luzuriaga for kindly donating this Journalist responsible for interviews: Rune V. Harritshøj, art piece that portrays the new [email protected] Chamber logo. Edition: María Valeria Buquiere, Santiago Farrell, Pierre Dumas Design: Berenice Schmittendorf, María Cecillia Sáenz (Zettel Diseño) Useful Websites Danish Presence in Argentina (Websites) • About Argentina • Royal Danish Embassy in Buenos Aires www.argentina.gov.ar www.buenosaires.um.dk • Ministry of Foreign Affairs, • Argentine-Danish Chamber of International Trade and Cult Commerce & Industry www.mrecic.gov.ar www.camaradanesa.org.ar Trade helpdesk: www.argentinatradenet.gov.ar • Danish Church • Fundación Export.Ar www.iglesiadinamarquesa.com.ar (Export Promotion Agency) • Danish Community in Argentina www.exportar.org.ar www.dkargentina.com.ar • Secretariat for SMEs and regional • Danish tourist corridor development http://www.inta.gov.ar/barrow/ins/cambiorural/ www.proargentina.gov.ar corredor_danes.htm • Ministry of Economy www.mecon.gov.ar • Argentine Chamber of Commerce Newspapers (some) www.cac.com.ar • Brand Argentina (Marca País) • La Nación: www.lanacion.com.ar www.marcaargentina.gov.ar • Clarín: www.clarin.com • National Institute for Statistics and Census • Infobae: www.infobae.com www.indec.mecon.ar • Ambito Financiero: www.ambitoweb.com • National Secretariat for Tourism • Buenos Aires Herald: www.turismo.gov.ar www.buenosairesherald.com • Ministry for Education, • Argentinisches Tageblatt: Science & Technology www.tageblatt.com www.me.gov.ar • El Cronista Comercial: www.cronista.com • Argentine Exporters Trade Association • Página/12: www.pagina12.com.ar www.cera.org.ar TABLE OF CONTENTS This publication is presented under the following Books and Records chapter headings and contents Oversight Agencies Corporate alternatives for Investing in the country Chapter I: page 14 Labour system An Overview of Argentina General requirements Location and language Labour contract Geography and climate Collective bargaining Landscape Remuneration Demographics Leaves Political system Guiding Principles on Environmental Law Chapter II: page 18 Chapter IV: page 40 Economic structure The Argentine Tax System General Overview – Economic Profile Distribution of taxing power Agriculture and livestock Brief description of the tax system Other primary sectors International tax coordination Industry Federal and local taxes Construction Financial services Chapter V: page 45 Other services Further considerations The 1990’s Transport and Communications Evolution of the Argentine Economy during the Oil & Gas first quarter of 2007 Electricity & Nuclear Power Wind Energy - The market Chapter III: page 26 The Mercosur Legal Framework and setting Creating a brand for Argentina up a company Creative Industries Commercial Legislation Environmental Regulations Corporation - Sociedad Anónima (S.A.) • Civil and Criminal Code Limited Liability Partnerships - (S.R.L.) • International framework General Partnership - (Sociedad Colectiva) Non Commercial General Partnerships Chapter VI: page 61 Limited Partnership - (Sociedad en comandita) Interviews Joint Ventures A MESSAGE FROM THE CHAMBER PRESIDENT During the last few years, Argentina has gone through a series of economic changes that, together with other factors, such as a highly qualified labour and an abundance of natural resources, has made the country an attractive destination for business and investment. Although the trade balance between Denmark and Argentina, historically has been in Argentina’s favour, with Denmark accounting for 0. 62% of total Argentine exports during the last years, Danish investment and presence is quite strong, totaling us$ 1.15 million. In 2003, Argentina was the second largest supplier of honey to Denmark, after Germany, accounting for 23% of total Danish imports. This handbook is aimed at the foreign business-, and investor community, who see Argentina as a potential market. The Chamber of Commerce is a non-profit organisation, whose primary mission is to facilitate trade relations between our two countries, and provide its members with a business forum, and services of value. Having this objective as our top priority, we invited some of our members, experts in their respective fields, to put together this user-friendly handbook, whose main purpose is to offer a wide range of basic information to the foreign businessman. We are also busy revitalising our institutional links with the local export and trade associations, as well as with the other binational Chambers of Commerce, in order to provide our members with the widest possible range of business contacts. During the next few months, there will be various new initiatives taken by the Chamber, to make it more responsive to and representative of its members. Like Argentina, the Chamber is now preparing for a future, in which a stronger bilateral trade relation between our two countries is a reality. Don’t hesitate to contact us for further guidance, and access to our networking base. Bjarne Petersen President 11 This map has been published merely for ilustrativepuposes. THE ARGENTINE-DANISH CHAMBER OF COMMERCE & INDUSTRY The Argentine Danish Chamber of Commerce (European and non European) & Industry was founded in 1992 to promote • Local trade associations relationships between the Argentine and Danish • A wide range of general professional services business communities. The Chamber’s primary including tax, financial, language and market mission is to facilitate bilateral trade and provide research, among others its membership with value services. • Other Danish organisations Whenever necessary, it provides support to the Working groups Danish Embassy in Buenos Aires as well as to Very soon the Chamber will be launching key the Argentine Ministry of Foreign Affairs and working groups in local export promotion agencies. • Environment & CSR • Social and Cultural events The Chamber can also provide tailor-made • International trade services such as agendas and business rounds for businessmen visiting the country as a way Learn more in k@mmer-tjenesten or our website: to support companies who wish to set up in www.camaradanesa.org.ar Argentina. Publications Become a member and make the most of the In February, the Chamber launched its first Chamber! electronic publication: k@mmer-tjenesten which is circulated among its members and Key events subscribed companies. The aim is to keep a Industry sector seminars and working close contact with members offering snapshots breakfasts and luncheons on: member news, legal updates, chamber Debates with specialist speakers developments, business and finance, as well as High level of speakers from business and cultural