Why Do Business in Argentina? 8 Excellent Reasons?
If you’ve been bitten by the entrepreneurial bug, then you may be wondering what business venture to take on, and even more importantly, where you will flex your entrepreneurial muscles. If you are like many entrepreneurs and small business owners, you have probably thought about South America as a good place to start and grow your business, mainly because of the tax cuts and large population, coupled with a growing market, which is always fertile ground for entrepreneurs .Keeping that in mind, let us take a quick look at why starting a business in Argentina makes sense if you are an entrepreneur or small business owner.
There is a good reason why Argentina attracts many global investors. In fact, Argentina has one of the largest economies in Latin America, with an annual GDP surpassing USD 460 billion. The country is also considered a high–income economy with a large population of around 40 million people, which means it is endowed with a fresh and skilled workforce. But Argentina also has an abundance of resources and has much to offer foreign investors and entrepreneurs that want to start a business in Argentina.
1. Regulative Incentives for New Business Owners
One of the things that makes Argentina an attractive option for new investors, small business owners, and entrepreneurs is that the government is taking positive steps towards reducing bureaucratic procedures for foreign businesses to enter the country and is also reducing the red tape that small business owners have to go through when starting a new business in Argentina.
In fact, new business owners get the advantage of a quicker processing time when it comes to getting their business registered and approved. All entrepreneurs and small business owners need to hire the right legal support to help them get through the process.
2. Duty-Free Areas and Industrial Parks
Argentina has become one of the preferred choices for entrepreneurs and small business owners mainly because the country encourages new businesses. This can be seen in the fact that there are many duty-free areas and industrial parks that have sprawled across the country,which helps attract foreign investors and large corporations who are looking to set up shop in the country.
3. Streamlined Credit Process
One of the main concerns of any entrepreneur or small business owner looking to start a business venture in Argentina (or any place for that matter) is financing their business. The good news for all those who are looking to start a business in Argentina is that the country has a more streamlined credit processing system as compared to many other countries in Latin America. In fact, Argentina was ranked 67th in the world on a list of countries where it was easy to get credit as a small business owner.
4. Strong Investment Sectors
Regardless of which country you want to open a business in, you would want to know if that country has strong investment sectors, as in industries that are doing well that you can be part of and grow your business venture. When it comes to Argentina, the country has always enjoyed multiple strong industries, which have been responsible for the growth of the country through the years. Apart from the obvious tourism and hospitality sectors that have been booming in Argentina, the country also has a strong auto industry. Other options include meat and soy, oil and gas sectors, and renewable energy, along with many others.
5. A Large, Young and Educated Population
Hiring the right people with the right skills for the job is always a concern for entrepreneurs and new business owners. The good news is, Argentina has a large population that’s young and highly educated, and skilled. This is partly because of the country’s drive to ensure a high proportion of individuals receive a secondary education.
Another major advantage is that many Argentines are fluent in English, as compared to the labor force in other countries in Latin America. So, as an employer, you are going to be entering a marketplace that not only has a large number of consumers but you also get access to a pool of young, vibrant, and educated individuals without having to worry about a language barrier.
6. Argentina is a Member of MERCOSUR
This might not mean much to some entrepreneurs, but it will if your business or startup has anything to do with trade. Being a member of MERCOSUR gives Argentinian businesses an array of advantages, which include but aren’t limited to decreased taxes and reduced legal requirements when trading with other member countries. The best part is that Argentina is currently under discussion with other countries in Latin America and is signing trade agreements left and right, which is always good for entrepreneurs and small business ownerslooking to trade with other countries.
7. High Living Standards
Argentina enjoys a rich history and a diverse Europeanand South American culture, which is one of the reasons why many investors, business owners, and even large corporations flock to the country and make it their second home. This is also one of the reasons why the country is considered one of the most attractive options to invest and live in.
Finally, it’s time to talk about a subject you’ve all been waiting for and one that is extremely crucial when it comes to entrepreneurs and new business owners looking to open shop in Argentina. Of course, we are talking about taxes. While the amount of taxes that a business owner is required to pay in Argentina will vary depending on the size of their business, the industry, and other factors, it is important to note that there is a progressive tax regime in Argentina. In other words, business owners are required to pay more taxes as their income rises. To get an idea of how much business tax you can expect to pay in Argentina, as of 2018, the corporate tax rate in Argentina has been 30%.
So, there you have it. These were just some of the reasons why Argentina should be at the top of your list of countries to start a business in, whether you are an entrepreneur, small business owner, or just someone looking to expand their business and reach a broader audience.