Cámara de Comercio Argentino Árabe

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Argentine legislation regarding foreign investment


Foreign Investment Act (Executive Order 1853/1993)

ARTICLE 1 The codified text of the Foreign Investment Act enclosed with this executive order is hereby approved.

ARTICLE 2 Foreign investors may invest in Argentina without prior approval, under the same conditions as investors domiciled within the country.

ARTICLE 3 The legal definition of foreign investor also includes Argentine physical or judicial persons domiciled outside the national territory.

ARTICLE 4 According to this law economic or productive activities means all industrial, mining, agricultural, comme rcial, financial, service, and other activities related to the production or exchange of goods and services.

ARTICLE 5 Foreign investors may perform at any time their rights to repatriate their capital and remit their liquid earnings and realized profits abroad.

ARTICLE 6 Except for the reserve mandated by law, the proportion of voluntary or statutorily constituted reserves owned by foreign investors in a dome stic company, or those resulting from reappraisals or accounting updates of any type, will not be considered as reinvestment of foreign capital.

ARTICLE 7 The prior approval required by the Technology Transfer Act is hereby repealed.

ARTICLE 8 For purposes of the Technology Transfer Act, all legal deeds entered into between independent companies, plus any made between a domestic company with foreign capital and the company (or a subsidiary therefore) that directly or indirectly controls it, must be registered with the National Institute for Industrial Technology for
informational purposes.

ARTICLE 9 The Secretariat of Industry, Commerce and Small and Medium Companies within the Ministry of Economy and Production* will be the Enforcement Authority of this law. *The former Secretariat of Commerce and Investment within the former Ministry of Economy and Public Works and Services.

ARTICLE 10 The Enforcement Authority will have the following duties: (a) to elaborate statistical information of foreign investment, and (b) to issue general interpretive rules and take other action necessary to enforce the Foreign Investment Act and the rules approves in this Executive Order.

Foreign Investment Act 21382

ARTICLE 1 Foreign investors who invest capital in the country using any form established in Article 3 of this Law, in order to promote economic activities, or expanding or enhancing of existing ones, will have the same rights and obligations that the Constitution and Laws accord to domestic investors, subject to the terms of this law and the terms contemplated in special or promotional regimes.

ARTICLE 2 The following definition are used in this law:

1. Foreign capital investment: a) All capital contributions belonging to foreign investors and used in economic activities in Argentina; and b) Acquisition of all or part of an existing domestic company’s capital by foreign investors.

2. Foreign investor: all physical or juridical persons domiciled outside the national territory; holder of a foreign capital investment; and domestic companies of foreign capital (defined in the next clause of this article) that invest in some others domestic companies.

3. Domestic company of foreign capital: All companies domiciled in Argentina in which physical or juridical persons domiciled outside the republic directly or indirectly own more than 49 percent of the capital, or directly or indirectly control the number of votes necessary to prevail in stockholders partner’s meetings or partner’s reunions.

4. Domestic company of domestic capital: All companies domiciled within Argentina, in which physical or juridical persons also domiciled within Argentina directly or indirectly own not less than 51 percent of the capital and directly or indirectly control the number of votes necessary to prevail in stockholders partner’s meetings or partner’s reunions. 5. Domicile: As defined in Civil Code, Articles 89 and 90.

ARTICLE 3 Foreign investment can be made in: (1) freely convertible foreign currency, (2) capital goods, their parts, and accessories, (3) earnings or capital in domestic currency belonging to foreign investors, whenever this earnings are lawfully subject to be transferable abroad; (4) capitalization of foreign credits in freely convertible foreign currency; (5) intangible assets, in accordance with specific laws; and (6) Any other types of contributions contemplated in special or promotional re dispogimes.

ARTICLE 4 Regulations pursuant to this law will be issued by an administrative agency within the Ministry of Economy and Production* with a rank not inferior to Undersecretariat which, acting as the Enforcement Authority, will also establish its structure, functions, and faculties. * The former Ministry of Economy and Public Works and Services.

ARTICLE 5 The foreign investors may remit abroad any liquid earnings and realized profits as a result of their investments and may also repatriate their capital.

ARTICLE 6 The foreign investors are entitled to utilize any of the corporate structures recognized by Argentine laws.

ARTICLE 7 Domestic companies of foreign capital may access the domestic credit market with the same rights and conditions as domestic companies of domestic capital.

ARTICLE 8 Temporary contributions of foreign capital made pursuant to contracts for the provision of goods, works, services, or other activities are not subject to this law. They are instead governed by the terms of the respective contracts in accordance with applicable laws, notwithstanding which the owners of such contributions may choose to
have their investment governed by this law.

ARTICLE 9 Legal deeds entered into between a domestic company of foreign capital and the company (or a subsidiary thereof) that directly or indirectly controls it are considered, for all purposes, to have been created between independent parties when the terms and conditions conform to usual market practices among independent entities.

ARTICLE 10 Prior laws relating to foreign investment and general rules issued pursuant to them are repealed (Laws 20.557, 20.575 and 21.037; Decrees 413/74 and 414/74).
This law will apply to all proceedings pending under the named repealed laws.



                     Cámara de Comercio Argentino Árabe  ▪  Montevideo 513 6°  ▪  Buenos Aires  ▪  Argentina  ▪  11-4371-2561 / 11-4372-8167  ▪  camarabe@ccaa.com.ar

minimumdg