Starting a business in Argentina

[Davidglen77]

Hey David,
I was interested to read your story, but the page you linked to is a picture of a naked butt, some pictures of feces, and a series of broken links. Is that a metacommentary on your experience here?

Not completely based on my entire experience here, but yes based on my experience here starting and owning a business, I think it speaks loud and clear!

 

[demokritos]

Not completely based on my entire experience here, but yes based on my experience here starting and owning a business, I think it speaks loud and clear!

Gotcha. Well, if you do decide to actually write up your experience, please post a link here.

 

[Hybrid Ambassador]

You can't import anything (certainly not on any kind of significant scale) without being subject to massive restrictions/all-out bans. At best, you can bring in a few items for friends (or to sell on, I guess) but you will have to pay a 50% import tax if you declare these goods/are caught with these goods coming through immigration.

A lot of expats (including myself) complain about not being able to find certain food items. I don't think Argentines are too bothered really, but I don't think you could sell those kinds of things at any significant mark-up. Nutella you can buy here. Your best bet if you're hoping to make a little extra cash is to bring in a couple of iphones, etc. Again, you won't get a massive load of stuff through... Hospitals are lacking certain medical supplies (most businesses are affected by the import bans) but I don't think this is something you can assist with coming in as a tourist...

Hmm, iphones? I own and have a 3gs with 32 GB and a 4gs with 64GB available for sale and will be bringing in when Iam entering Argentina. what sort of pricing will I be expecting to get if I offer to sale on the streets?
How do I go about peddling them? Also a SONYCamCorder HDR-SR1 with full HD 1080I recording. Also another SONY DSC-R1 digital Camera. I have already replced the above mentioned items with the current new models. So I won't be needing them anymore, Any takers out there?

 

[citygirl]

I will again ask if you have done due dilligence or have an idea of what type of company you would like to set up, what your plan is, how you will deal with payments, do you have a local partner, etc?

I will share a quick story.

I started an SRL here (subsidiary) of an int'l company. Start up costs were around 20K USD (5+ years ago, I'm sure it's much more now). Accounting fees were about 12K USD a year. Lawyers fees were probably another 15-20K USD a year. In 4 years, my employment costs went up about 75%. I was sued 2x by employees who quit and then wanted to extort money (neither successful but did cost me a good chunk of change - see lawyers fees). Corp profit tax is 35%. You can't get your profits out of the country or convert to dollars so the little profit you are left with after paying all your taxes/costs loses approximately 25% of its value year over year. Shall I continue?

I did this for a living. If I were advising ANY of my clients who were looking to set up a subsidiary in LATAM, Argentina would be one of the last places I would recommend as a registered seat of business. Look to Brasil, Uruguay or Chile.

Do you really think Argentina is a good place to do business?

 

[alicia30]

Thanks for all the help. I know the difficulties Argentina is facing right now, and how tourisim has decreased. But that doesn't mean the ed of all tourisim. There is crime everywhere and I think for people to say "I'm not going there because it's not safe" is silly. There will always be people wanting to come to your country. Always.
To answer the questions:
1. I am from Canada
2. I understand this is going to take a while. We are not catering to the backpack crowd, but rather the groups that have had a massive increase in travel. When you look at statistics, the market is there, and will continue to increase within the next decade.
3. We are planning on dealing with multiple countries, not just Argentina.
4. And I agree with you that we are either too early or too late. I actually think we are right in the middle as most countries have a cyclical value for popularity.

Lastly,
I have heard there is a great need for foriegn items. I have no desire to import massive quantities (nor do I think it will work) but what are some items that people want here besides the Iphone? I have heard Nutella, and I have also heard that many of the hospitals are lacking medical supplies. I am not sure if this is true or not on either accounts...

How about clothes? shoes? I used to be a shopaholic, but ever since I moved here 3 months ago, I seem to have been cured...

 

[Montauk_Project]

It seems like you need to do more research about the market. Maybe the best way to start is to see if you can link up with a company already established here and see if you can start offering services as part of their company (ie, you offer boutique services for travelers and they offer packages for Argentines).
the other advice I would give is to not hire employees, rather hire workers on contract for specific projects and time frames. They cannot work for you full time for this to work. At our company, it is just us (the co-owners, and my partner is my husband, so no trust issues there) and then hire out per job. This is also because the film business loans itself to this type of structure, but it is good to be lean and flexible in Argentina.
Citygirl, what business do you run?
Another note, in Argentina you need to pay various taxes and accountant fees whether you turn a profit or not. Not like the US or Canada where you only need to file once you have clients.

 

[Mitch]

Thanks for all the help. I know the difficulties Argentina is facing right now, and how tourisim has decreased. But that doesn't mean the ed of all tourisim. There is crime everywhere and I think for people to say "I'm not going there because it's not safe" is silly. There will always be people wanting to come to your country. Always.
To answer the questions:
1. I am from Canada
2. I understand this is going to take a while. We are not catering to the backpack crowd, but rather the groups that have had a massive increase in travel. When you look at statistics, the market is there, and will continue to increase within the next decade.
3. We are planning on dealing with multiple countries, not just Argentina.
4. And I agree with you that we are either too early or too late. I actually think we are right in the middle as most countries have a cyclical value for popularity.

Lastly,
I have heard there is a great need for foriegn items. I have no desire to import massive quantities (nor do I think it will work) but what are some items that people want here besides the Iphone? I have heard Nutella, and I have also heard that many of the hospitals are lacking medical supplies. I am not sure if this is true or not on either accounts...

Let me do you a favor. I don`t mean to be harsh, but you will pay with your soul like every foriegner that opens a business here. Try Chile, Uruguay or Brazil. Why would you even ask about importing items? It`s not going to happen for you without exporting an equal amount and entangling yourself in a gaggle of people well trained in stymying you. Don`t argue with anyone on here, they are not jealous or trying to be negative, they are relaying the experience of almost everyone in an effort to help you. Coming for a visit is one thing, warm, friendly and cosmopolton people for the most part.

 

[MB Beagle]

Are you serious?
Starting a tour company in Argentina as a foreigner would be difficult unless you align yourself with a local operator and work on commission. Speaking fluently would improve your sustainability. If you do not ’habla’, hiring a translator, who would shadow you, might suffice. And make you look important.
Although Argentina is an interesting destination, full of history, beautiful countryside’s and attractive people – things are not all that great here. When I see old men peddling scissors or Africans hawking junk jewelry on street corners I tend to think desperation. You say ‘People will always want to come here’ but you have to ask yourself why and, I guess, cater to that need.
Safety is instinctual, not silly. No one wants to be a victim. Some countries are safer than others. Most first world countries are safe. And the police do their jobs. Countries that depend on tourism make it a priority to ensure safety for their visitors and do all possible to avoid ugly incidents that bring bad press. Not here. This is South America.
Bringing items that people want, beside US dollars, is another hopeless money making dream. Unless you can import a shipping container of goods without paying brides to customs, setting up a clandestine distribution network to avoid strong arm thugs who will want a piece of ‘your’ action and then exporting the money out of the country without raising suspicion, you might want to deliver tourists to a hot tango joint and recommend a nice Malbec in hopes of a 10 peso tip. Hospitals are here do have supplies. Mind you the elevator did not work last time I was there, I had an MRI scan done by competent trained staff. Selling medical supplies is always more profitable in a war zone. Or when local criminals decide to shoot up the tour bus for those not willing to give up valuables.
If you are from Canada you would be better off to embrace the first world lifestyle there. Although winter is starting (and without ice hockey), it is most likely safe, people are probably happy and scamming is frowned upon.