Internet business venture in Argentina?

[janrick]

Hi Forum

Quite new in town and I have been thinking of a small business venture. I noticed you guys offer some good advice here..

Earlier in the week I was reading some of you providing advice to entrepreneurs, bringing up problems related to constantly changing legislations, import restrictions etc etc... So, I am aware, and I understand the difficulties and bureaucracy involved in starting up a business and even worse, hiring people in Argentina today.

However, my potential venture is simpler. Basically I would like to setup an classic e-commerce site where sellers meet buyers. A concept very similar to mercado libre (but with a small niche product category) where the seller pay a small fee to the site in case his product is sold. So, the site has no involvment in the contract, transaction between seller and buyer. As a seller you need to register on the site.

I was thinking to place the company that will handle the site outside the country and handle all payment transactions electronically.

What kind of legislation is applied here in Argentina. I spent some years in China recently and over there, this kind of thing was not that easy. Is there some business license needed for this in Argentina?

I would very much appreciate advice, comments, problems that you see, or where I can find more information


Thanks a lot

// Jan

 

[2GuysInPM]

IMHO, if your biz and web site are registered and located outside AR, then you have very little if anything to worry about. There are tons of foreign e-commerce sites that sell to AR customers. But one issue might be payment. Argentines don't rely on plastic as much as people in other countries do. So alternative forms of payment (e.g., Rapipago, Pago Facil, cash, etc.) are common, and while offering those options may help your sales, it may also require you to register a business here in AR and be subject to all the craziness that it involves.

 

[TrevorCito]

Tax issues will apply depending on where you are a citizen, resident and whether that country has a double taxation agreement with Argentina.

If you earn an income as a resident of Argentina, even if your income source is from your website then afip, if they knew, would want you to pay tax.

If you are not a resident for tax purposes in Argentina then your income would be tax free but most likely payable in your country of residence.

Generally speaking and as a rule, tax is residency based but not all countries adhere to this rule. E.g. If you're a US citizen you pay tax even if your not a resident. US tax experts will I'm sure correct me if I'm wrong on this point.