Argentina

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Additional copies of Doing Business 2011: Making a Difference for Entrepreneurs, Doing Business 2010:

Reforming through Difficult Times, Doing Business 2009, Doing Business 2008, Doing Business 2007: How to

Reform, Doing Business in 2006: Creating Jobs, Doing Business in 2005: Removing Obstacles to Growth and

Doing Business in 2004:Understanding Regulations may be purchased at www.doingbusiness.org.

ISBN: 978-0-8213-7960-8

E-ISBN: 978-0-8213-8630-9

DOI: 10.1596/978-0-8213-7960-8

ISSN: 1729-2638

Library of Congress Cataloging-in-Publication data has been applied for.

Printed in the United States

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Rankings How economies rank-from 1 to 183

http://www.doingbusiness.org/rankings/

Business reformers Short summaries of DB2011 business reforms, lists of reformers

since DB2004 and a ranking simulation tool

http://www.doingbusiness.org/reforms/

Historical dataCustomized data sets since DB2004

http://www.doingbusiness.org/custom-query/

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Doing Business

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Business Planet Interactive map on the ease of doing business

http://rru.worldbank.org/businessplanet

Contents

Introduction

and Aggregate Rankings

5 - Year Measure of

Cumulative Change

Starting a Business

Dealing with

Construction Permits

Registering Property

Getting Credit

Protecting Investors

Paying Taxes

Trading Across Borders

Enforcing Contracts

Closing a Business

Doing Business 2011

Business Reforms

1

Doing Business 2011: Making a Difference for Entrepreneurs is the eighth in a series of annual reports investigating regulations

that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations

and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time.

A set of regulations affecting 9 stages of a business’s life are measured: starting a business, dealing with construction permits,

registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a

business. Data in Doing Business 2011 are current as of June 1, 2010*. The indicators are used to analyze economic outcomes and

identify what reforms have worked, where, and why.

The Doing Business methodology has limitations. Other areas important to business such as an economy ’s proximity to large

markets, the quality of its infrastructure services (other than those related to trading across borders), the security of property from

theft and looting, the transparency of government procurement, macroeconomic conditions or the underlying strength of

institutions, are not studied directly by Doing Business. To make the data comparable across economies, the indicators refer to a

specific type of business, generally a local limited liability company operating in the largest business city. Because standard

assumptions are used in the data collection, comparisons and benchmarks are valid across economies. The data not only highlight

the extent of obstacles to doing business; they also help identify the source of those obstacles, supporting policymakers in

designing reform.

The data set covers 183 economies: 46 in Sub-Saharan Africa, 32 in Latin America and the Caribbean, 25 in Eastern Europe and

Central Asia, 24 in East Asia and Pacific, 18 in the Middle East and North Africa and 8 in South Asia, as well as 30 OECD

high-income economies.

The following pages present the summary Doing Business indicators for Argentina. The data used for this economy profile come

from the Doing Business database and are summarized in graphs. These graphs allow a comparison of the economies in each

region not only with one another but also with the “good practice” economy for each indicator.

The good-practice economies are identified by their position in each indicator as well as their overall ranking and by their capacity

to provide good examples of business regulation to other countries. These good-practice economies do not necessarily rank

number 1 in the topic or indicator, but they are in the top 10.

More information is available in the full report. Doing Business 2011: Making a Difference for Entrepreneurs presents the

indicators, analyzes their relationship with economic outcomes and recommends reforms. The data, along with information on

ordering the report, are available on the Doing Business website (www.doingbusiness.org).

* Except for the Paying Taxes indicator, which covers the period January to December of 2009.

Note: Doing Business 2010 data and rankings have been recalculated to reflect changes to the methodology.

Economy Rankings - Ease of Doing Business

Argentina's ranking in Doing Business 2011

Argentina - Compared to global good practice economy as well as selected economies:

Argentina is ranked 115 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business.

Doing Business 2011

Ease of Doing Business 115

Starting a Business 142

Dealing with Construction Permits 168

Registering Property 118

Getting Credit 65

Protecting Investors 109

Paying Taxes 143

Trading Across Borders 115

Enforcing Contracts 45

Closing a Business 77

Rank

2

Summary of Indicators - Argentina

Starting a Business Procedures (number) 14

Time (days) 26

Cost (% of income per capita) 14.2

Paid-in Min. Capital (% of income per capita) 2.7

Dealing with Construction Permits Procedures (number) 28

Time (days) 338

Cost (% of income per capita) 133.9

Registering Property Procedures (number) 6

Time (days) 52

Cost (% of property value) 7.0

Getting Credit Strength of legal rights index (0-10) 4

Depth of credit information index (0-6) 6

Public registry coverage (% of adults) 30.8

Private bureau coverage (% of adults) 100.0

Protecting Investors Extent of disclosure index (0-10) 6

Extent of director liability index (0-10) 2

Ease of shareholder suits index (0-10) 6

Strength of investor protection index (0-10) 4.7

Paying Taxes Payments (number per year) 9

Time (hours per year) 453

Profit tax (%) 2.8

Labor tax and contributions (%) 29.4

Other taxes (%) 76.0

Total tax rate (% profit) 108.2

Trading Across Borders Documents to export (number) 9

Time to export (days) 13

Cost to export (US$ per container) 1480

Documents to import (number) 7

Time to import (days) 16

Cost to import (US$ per container) 18103

Enforcing Contracts Procedures (number) 36

Time (days) 590

Cost (% of claim) 16.5

Closing a Business Recovery rate (cents on the dollar) 32.8

Time (years) 2.8

Cost (% of estate) 12

The 5-year measure of cumulative change illustrates how the business regulatory environment has changed in 174 economies* from

Doing Business 2006 to Doing Business 2011. Instead of highlighting which economies currently have the most business friendly

environment, this new approach shows the extent to which an economy’s regulatory environment for business has changed compared

with 5 years ago.

This figure shows the distribution of cumulative change across the 9 indicators and time between Doing Business 2006 and Doing

Business 2011.

This snapshot reflects all cumulative changes in an economy’s business regulation as measured by the Doing Business indicators --

such as a reduction in the time to start a business thanks to a one-stop shop or an increase in the strength of investor protection index

thanks to new stock exchange rules that tighten disclosure requirements for related-party transactions.

-0.04

0.00

0.04

0.08

0.12

0.16

Peru Mexico Brazil Ecuador Bolivia Argentina

Doing

business has

become

easier

Doing

business has

become

more difficult

or more

costly

DB change score

Note: This year's DB change score ranges from -0.1 to 0.54. More details on how the DB change score is constructed can be found

in the methodology section of the website.

* Bahrain, The Bahamas, Brunei, Cyprus, Kosovo, Liberia, Luxembourg, Montenegro and Qatar do not feature in the new metric

because they were included in the Doing Business report in years subsequent to the Doing Business 2005 report and hence, 5 years

of data are not yet available.

1. Benchmarking Starting a Business Regulations

Argentina is ranked 142 overall for Starting a Business.

Ranking of Argentina in Starting a Business - Compared to good practice and selected economies:

7

Procedures

(number)

Time (days) Cost (% of

income per

capita)

Paid-in Min.

Capital (% of

income per

capita)

Denmark 0.0

New Zealand 1 1 0.0

Good Practice

Economies

Argentina 14 26 14.2 2.7

Selected Economy

Bolivia 15 50 100.8 2.5

Brazil 15 120 7.3 0.0

Ecuador 13 56 32.6 4.9

Mexico 6 9 12.3 9.2

Peru 6 27 13.6 0.0

Comparator Economies

The following table shows Starting a Business data for Argentina compared to good practice and comparator economies:

8

Starting a Business data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 137 142

Procedures (number) 13 14 14 14

Time (days) 30 31 26 26

Cost (% of income per capita) 9.7 9.0 11.0 14.2

Paid-in Min. Capital (% of income per capita) 4.8 3.7 2.9 2.7

2. Historical data: Starting a Business in Argentina

3. Starting a Business sub indicators in Argentina over the past 4 years

9

4. Overview of the steps to Starting a Business in Argentina

It requires 14 procedures, takes 26 days, and costs 14.15 % GNI per capita to start a business in Argentina.

No: ProcedureTime to complete

(days)Cost to complete

The name of the company is verified by the Office of

Corporations (Inspección General de Justicia) (IGJ)

1 1 ARS 75

Certify signatures of partners by a notary public 2 1 ARS 650 (cost of 5

notarized signatures)

Deposit initial capital in National Bank (Banco de la Nación

Argentina) and obtain proof of payment

3 1 ARS 30

Publish the new company’s notice in the official paper

(Boletín Oficial)

4 2 ARS 2,035

(expedited

publication fee)+

ARS 100

(legalization of

signature)

Payment of the incorporation fee 5 1 ARS 30

Registration with the IGJ, entity operating the Public

Registry of Commerce in the City of Buenos Aires.

6 5 ARS 250

Buy special books 7 1 fees included in

procedure 8

10

Get a form from the Public Notaries College and have a

notary public submit the company books for rubrication by

IGJ

8 5 ARS 610

Corporate manager needs to obtain a Fiscal Code (Clave

Fiscal)

9 1 no charge

Obtain a tax identification number (CUIT) from the National

Tax Office (Administración Federal de Ingresos Públicos,

AFIP) and register for social security

10 4 no charge

Register turnover tax at local level at the Dirección General

de Rentas (DGR) in the City of Buenos Aires

11 1 ARS 50

Register with the Unified System for Labor Registration

(USLR)

12 1 no charge

Contract an insurance for employees with a risk labor

company (ART, Aseguradora de Riesgos del Trabajo)

13 1 no charge

Rubricate books of wages in the Ministerio de Trabajo

(Ministry of Labor)

14 1 ARS 75

11

Procedure The name of the company is verified by the Office of Corporations (Inspección General

de Justicia) (IGJ) 1

Time to complete(days): 1

Cost to complete: ARS 75

Comment: The corporate name must be reserved to incorporate any new company or make any change to an

existing name. A request must be submitted using the reservation of name form (reserva de

nombre) for a cost of ARS 75. Such request expires in 30 days. The Inspección General de Justicia

also provides online services for name verification of reservation

http://www.jus.gov.ar/registros/IGJ/

Procedure Certify signatures of partners by a notary public 2


Cost to complete: ARS 650 (cost of 5 notarized signatures)

Comment: The company is not obliged to notarize its bylaws, which can be formally constituted under a

private document. However, the signatures of the founding partners have to be certified by a notary

public. Each signature certification costs about ARS 130. Signature of managers and statutory

5. Details on Starting a Business in Argentina

This table summarizes the procedures and costs associated with setting up a business in Argentina.

STANDARDIZED COMPANY

Legal Form: Sociedad de Responsabilidad Limitada (SRL)

Paid-in Minimum Capital: 2.7

City: Buenos Aires (Ciudad autonoma de)

(% of income per capita)

12

auditors (if applicable) of the company must also be certified by a notary public. At the first

meeting of partners, draft bylaws are approved and capital is fully subscribed and paid in, except in

case of cash contributions were only 25% of the start up capital must be paid in at constitution and

the balance has to be paid in within the next 2 years.

Procedure Deposit initial capital in National Bank (Banco de la Nación Argentina) and obtain proof

of payment 3



Comment: The company must deposit at least 25% of the subscribed capital, which must be no less than ARS

3,000, in the National Bank, and also obtain proof of payment. The deposit must be made at the

central office of the Argentine National Bank (Banco de la Nación Argentina), or at the branch

corresponding to the company's domicile. It can be withdrawn once the company's bylaws are

registered by the Office of Corporations.

Procedure Publish the new company’s notice in the official paper (Boletín Oficial) 4


Cost to complete: ARS 2,035 (expedited publication fee)+ ARS 100 (legalization of signature)

Comment: According to Resolution No. 63/2009 of the SLyT published in the Official Gazette on December

24, 2009, there are 3 kinds of publication services :

Ordinary Procedure (72 hours): For each line of text up to 70 spaces: AR$ 23,20. Total: AR$ 1276

Semi-expeditous procedure (48 hours): For each line of text up to 70 spaces: AR$ 31,50. Total:

AR$ 1732,5.

Expeditous procedure (24 hours) For each line of text up to 70 spaces AR$ 37. Total: AR$ 2035.

If the notice is signed by an attorney, to the cost of publication it should be added the cost of

legalizing by the Attorneys Bar Association his/her signature (ARS 50), while if it is signed by the

manager of the company, the cost for the legalization of his/her signature is ARS 100.

The publication fee ranges from AR$ 1,300 to AR$ 2,100, approximately; depending on the length

of the notice and the kind of publication chosen.

Procedure Payment of the incorporation fee 5



Comment:

Procedure Registration with the IGJ, entity operating the Public Registry of Commerce in the City

of Buenos Aires. 6



Comment: Companies located in the City of Buenos Aires must register their by-laws and other documents

related to their incorporation with the ICG. The Company must file the proposed Articles of

Association and By-laws, the publication in the Official Gazette, evidence of managers' and

syndics' (the latter, if applicable) acceptance of position, evidence of the deposit of the cash

contributions in the Banco de la Nación Argentina (or other applicable documentation if non-cash

contributions are made), evidence of compliance with the managers' guarantee regime (filing of

managers' performance bonds) and evidence of the reservation of the corporate name, for approval

with the Office of Corporations.

Public Registry of Commerce is under the jurisdiction of the local commercial court. During the

13

formation period (that is, after the inaugural meeting and before the final registration at the Public

Registry of Commerce), the corporation may validly operate (with the exception of customs

clearing) under its name by adding the words "en formación." However, its partners and managers

are jointly responsible and are not protected by limitation of liability during this period unless their

actions have been expressly authorized in the inaugural meeting deed.

Filing Time:

- Regular filing: 5 to 20 days ( 10 days, if no objection).

- Special and urgent filing: 1 to 5 days.

According to Resolution 7/2005 (effective as of February 7, 2005), the company directors must

put forth a guarantee. The cost is borne by the directors not the company. The guarantee to be

furnished by Directors should be in an amount not less than AR$10,000. Its objetive is to ensure

the faithful discharge of the duties of Directors, no matter the corporate purpose, capital or duties

assigned to or performed by each them. Such a guarantee may be created by direct funding into the

S.R.L., or through public bonds, securities, sureties or bank bonds or the taking of liability

insurance.

Procedure Buy special books 7


Cost to complete: fees included in procedure 8

Comment: The books are purchased at commercial bookstores. Once purchased, they should be recorded at

the Office of Corporations, as detailed in the following procedure.

Procedure Get a form from the Public Notaries College and have a notary public submit the

company books for rubrication by IGJ 8



Comment: Once the IGJ registers the SRL, the company must obtain the rubric of at least a Book of Minutes

of Partners' and Managers' Meetings and four accounting books (Buyers VAT Book, Sellers VAT

Book, Inventory and Balance Book, and Journal). This procedure can only be started once the

company is registered.

A notary public has to request a form from the Notary Public's College and submit the rubric

request of the company books to the IGJ.

The form includes up to five books for their rubric. If the company needs to obtain the rubric for

more than five books, another form of the same value has to be filed. The cost includes:

(i) cost of 5 books (ARS 200)

(ii) cost of the IGJ form (ARS 130)

(ii) notary fees (about ARS 250)

(iii) book registration fees (ARS 30)

Procedure Corporate manager needs to obtain a Fiscal Code (Clave Fiscal) 9


Cost to complete: no charge

Comment: "Fiscal Codes" are required for individuals and companies to file affidavits and information with

the National Tax Office (AFIP) through the online tax system. Pursuant to National Tax

Regulations (AFIP) No.2239/2007, local companies shall make filings through the referred online

tax system once their Tax Identification Number (Clave Unica de Identificación Tributaria or

CUIT) is linked with the Fiscal Code of the manager appointed as sole legal representative or the

manager appointed as "administrator" (if more than one manager have been appointed legal

representative). The sole legal representative or the "administrator", to obtain his/her Fiscal Code,

must file the AFIP form 3282/A, signed and certified by a notary public, with the corresponding

14

AFIP agency, along with a copy of the company's bylaws certified by a notary public and evidence

that he/she has first obtained his/her CUIT (as manager of local companies). The form includes

information about the fiscal address where the individuals will render services as corporate

managers -the corporate domicile of the company.

Procedure Obtain a tax identification number (CUIT) from the National Tax Office

(Administración Federal de Ingresos Públicos, AFIP) and register for social security 10



Comment: Tax and social security registration can be done jointly at the National Tax Office (Administración

Federal de Ingresos Públicos, AFIP). For a company to obtain its Tax Identification Number

(Código de Identificación Tributaria, CUIT), all of the individuals that have been appointed as

managers of such company need to have previously obtained their respective CUITs (as managers

of local companies) and the sole legal representative or the "administrator" (if more than one

manager has been appointed legal representative) needs to have obtained his/her Fiscal Code

(Clave Fiscal) (see procedure 9).

Since 2007, pursuant to AFIP's General Resolution 2337/2007, the sole legal representative or the

"administrator" with Fiscal Code must file AFIP form F. 420/J though the online tax system. If the

form is correctly completed, an "approval certificate" will be issued by such online tax system.

Upon that, the sole legal representative or the "administrator" will have to file with the

corresponding agency of the AFIP: (a) the AFIP form F. 420/J ( listing the number of employees

and the date of hire), as filed with the online tax system, signed by this individual before a notary

public; (b) evidence of filing of such form with the online tax system; (c) the "approval

certificate"; (d) a certified copy of the SRL's bylaws, duly registered with the Office of

Corporations; (e) two documents evidencing the SRL's fiscal domicile (i.e. any service invoice,

police's domicile certification, lease or commodatum agreement, etc.). Upon approval of the filed

documentation, the AFIP will issue the SRL's CUIT. Afterwards, the sole legal representative or

the "administrator" should link his/her personal Fiscal Code with the SRL's CUIT (by evidencing

that he/she is the sole legal representative or the "administrator" at the SRL; in the latter case by

filing with the AFIP the form detailed as Annex IV to AFIP's General Resolution 2239/2007,

signed before a notary public).

Once the company is registered with AFIP, registration for pension with the Argentine Retirement

and Pensions' Integrated System is done automatically when. This joint registration is in force

since 24/03/1993 (Official Gazette dated 25/03/1993) as a result of the issuance of Decree 507/93.

Procedure Register turnover tax at local level at the Dirección General de Rentas (DGR) in the City

of Buenos Aires 11



Comment: Each of the 24 jurisdictions -23 Argentine Provinces and the City of Buenos Aires- impose a tax

on turnover (sales) generated within its boundaries, regardless whether the beneficiary of such

sales maintains a domicile or place of business in its jurisdiction. The related rates of tax, rules,

and other assessment procedures are determinable solely by each jurisdiction's government

authority.

Main activities are included in the following items but there are many special rates depending on

the activity.

- Primary production: 1%

- Production of woods: 3% (special activities: 4.9%)

- Industrial production: 1%

- Financial activities: between 5 and 5.50%

The following documentation must be filed with the General Directory of Income (Dirección

General de Rentas, DGR): (a) duly completed form FN 009/0024 (download:

http://www.agip.gov.ar/web/impuestos/archivos/IB_F%20009-0024(frente).pdf ) executed by the

SRL's legal representative or partner, before a notary public or bank; (b) national identity card of

15

the legal representative or partner who signs the above form; (c) documentation evidencing the

registration of the partner or legal representative as SRL's manager with the Office of

Corporations; (d) power of attorney of the individual who carries out the filing, if applicable; (e)

evidence of the SRL's CUIT; (f) SRL's by laws registered with the Office of Corporations; and (g)

document evidencing SRL's commercial domicile (e.g. any public service invoice, police's

commercial domicile certification or lease agreement).

Procedure Register with the Unified System for Labor Registration (USLR) 12



Comment: Once the employer files the registration of its employees before the AFIP, they are automatically

registered in the Unified System for Labor Registration (USLR). To pay its social security

contributions, the company has to fill out and submit electronically with its Fiscal Code the AFIP

form 931 in order to obtain the registration.

Employers must make social security withholdings and pay contributions to the USLR, calculated

on the salaries paid to employees under labor relationship. This entity manages (a) the retirement

pension fund, (b) the family allowances fund, (c) the social security fund, and (d) the

unemployment fund.

Procedure Contract an insurance for employees with a risk labor company (ART, Aseguradora de

Riesgos del Trabajo) 13



Comment: Risk Labor Companies (Aseguradora de Riesgos del Trabajo, ART) are private companies.

Procedure Rubricate books of wages in the Ministerio de Trabajo (Ministry of Labor) 14



Comment: Every jurisdiction has its own rules regarding the cost of rubricating books of wages in the

Argentine Ministry of Labor.

In the City of Buenos Aires, books of wages are registered with the Dirección General de

Protección del Trabajo de la Ciudad de Buenos Aires (Labor Protection Agency of the City of

Buenos Aires).

16

1. Benchmarking Dealing with Construction Permits Regulations

Argentina is ranked 168 overall for Dealing with Construction Permits.

Ranking of Argentina in Dealing with Construction Permits - Compared to good practice and selected economies:

18

Procedures

(number)


income per

capita)

Denmark 6

Qatar 0.8

Singapore 25

Good Practice

Economies

Argentina 28 338 133.9

Selected Economy

Bolivia 17 249 109.1

Brazil 18 411 46.6

Ecuador 19 155 213.2

Mexico 11 105 117.0

Peru 19 188 128.1


The following table shows Dealing with Construction Permits data for Argentina compared to good practice and

comparator economies:

19

Dealing with Construction Permits data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 169 168


Time (days) 338 338 338 338

Cost (% of income per capita) 234.1 183.3 145.1 133.9

2. Historical data: Dealing with Construction Permits in Argentina

3. Dealing with Construction Permits sub indicators in Argentina over the past 4 years

20

4. Overview of the steps to Building a Warehouse in Argentina

It requires 28 procedures, takes 338 days, and costs 133.94 % GNI per capita to build a warehouse in Argentina.



Cadastral consultation with authorities 1 1 day ARS 35

Request and obtain perimetral measurements 2 2 days ARS 30

Request and obtain land title (nomenclatura parcelaria) from

Cadastral System (Sistema Cadastrales Sociedad Anonima)

3 2 days ARS 30

Request and obtain certificate of level (la certificacion de

nivel)

4 2 days ARS 33

Obtain certificate of line and dimensions (Certificado de

Linea y Dimensiones de Manzana)

5 2 days ARS 33

Obtain construction work use form (formulario Uso

Conforme)

6 1 day ARS 33

Request and obtain certificate of project drawings

(Certificado de Encomienda) from College of Professional

Architects

7 1 day ARS 480

Present the designs and layouts to Cadastral System

(Sistema Cadastrales Sociedad Anonima)

8 3 days ARS 3,447

21

Request and obtain a form for construction works 9 * 1 day ARS 15

Request and obtain a “Volante Ochava” form 10 * 1 day ARS 30

Request and obtain sanitary installation plans (Plano de

Instalación Sanitaria)

11 * 45 days ARS 3,902

Request and obtain electricity installation plans (Plano de

Instalación Eléctrica)

12 * 44 days ARS 3,902

Request and obtain delineation and construction rights

(Derechos de delineación y construcción)

13 * 1 day ARS 5,202

Request and obtain a new construction project permit

(Permiso de Obra Nueva)

14 90 days ARS 5,202

Request and obtain environmental impact assessment

certificate

15 * 60 days ARS 124

Receive construction startup inspection 16 1 day ARS 12,486

Notify the GCBA on completion of the construction work

foundation and receive inspection

17 1 day no charge


structure and receive inspection

18 1 day no charge


masonry and receive inspection

19 1 day no charge

Notify the GCBA on completion of construction work and

receive inspection

20 1 day no charge

Notify the ENRE on completion of the construction work

and receive inspection

21 1 day no charge

Request and obtain electricity inspection certificate 22 1 day ARS 19

Notarize the forms required for final authorization 23 7 days ARS 500

Request and obtain final authorization (Habilitacion

Municipal)

24 173 days ARS 335

Register the building 25 1 day no charge

Request and connect to telephone services 26 * 30 days ARS 182

Request and connect to water services 27 * 14 days ARS 662

Request and connect to electricity services 28 * 14 days ARS 275

* Takes place simultaneously with another procedure.

22

Procedure Cadastral consultation with authorities 1

Time to complete: 1 day


Agency: General Directorate of Fiscalization, Works and Cadaster (Dirección General de

Fiscalización de

Obras y Catastro DGFOC)

Comment: Consultation is a prerequisite for clarifying subsequent procedures. The land ownership

certificate, the plot surface area, and the terrain and cadastral measurements are

confirmed. Proof is issued.

Procedure Request and obtain perimetral measurements 2

Time to complete: 2 days



Fiscalización de


BUILDING A WAREHOUSE

Estimated warehouse value:ARS 1,248,576


The table below summarizes the procedures, time, and costs to build a warehouse in Argentina.

5. Details on Building a Warehouse in Argentina

23

Comment:

Procedure Request and obtain land title (nomenclatura parcelaria) from Cadastral System (Sistema

Cadastrales Sociedad Anonima)

3




Fiscalización de


Comment:

Procedure Request and obtain certificate of level (la certificacion de nivel) 4



Comment: According to the Decree on Fiscal Fees and Tariffs for 2007, the fee for the certificate of

level is ARS 27 plus VAT (21%). The certificate is required for areas that do not have

definite leveling maps. Nonelevated industrial zones have updated, precise level outlines.

Along with the land specifications (parcel nomenclature), the authority will require this

certificate and will make a note in the “certificate of line and dimensions of district”

(Certificate de Línea y Dimensions de Manzana).

Procedure Obtain certificate of line and dimensions (Certificado de Linea y Dimensiones de

Manzana)

5



Comment:

Procedure Obtain construction work use form (formulario Uso Conforme) 6




Fiscalización de


Comment: Similar to a zoning certificate, the form is issued according to the Urban Planning Code.

Procedure Request and obtain certificate of project drawings (Certificado de Encomienda) from

College of Professional Architects

7


24


Agency: College of Architects

Comment: Effective February 1, 2008, the fee for the certificate of project drawings is ARS 480 for

areas between 1,000 sq. m and 2,500 sq. m.

Procedure Present the designs and layouts to Cadastral System (Sistema Cadastrales Sociedad

Anonima)

8


Cost to complete: ARS 3,447


Fiscalización de


Comment: The fee is ARS 2.65 per sq. m. On average, the time required is 48–72 hours.

Procedure Request and obtain a form for construction works 9



Comment:

Procedure Request and obtain a “Volante Ochava” form 10



Comment:

Procedure Request and obtain sanitary installation plans (Plano de Instalación Sanitaria) 11



Comment:

Procedure Request and obtain electricity installation plans (Plano de Instalación Eléctrica) 12



25

Comment:

Procedure Request and obtain delineation and construction rights (Derechos de delineación y

construcción)

13



Comment: The fee for this procedure is ARS 3.31 per square meter plus VAT, which amounts to

ARS 4.00 per sq. m. This fee base is provided for by the Classification of Tariff Law.

After completing the form and paying the fee, the company representative receives an

attestation.

Procedure Request and obtain a new construction project permit (Permiso de Obra Nueva) 14



Agency: GCBA - Dirección de Fiscalización de Obras y Catas

Comment: The permit fee is ARS 4 per sq. m. In this case, the total fee would be about ARS

5,202.40.

To request and obtain a new construction project permit, BuildCo must submit the

following plans and documentation:

- Affidavit for the construction project.

- Particulars on the signatory.

- Building company details.

- Certificate of use pursuant to the provisions contained in the Urban Planning Code.

- Property titles and purchase agreement (boleto de compra de venta), which is proof of

ownership of land for warehouse construction.

- Project plans.

-- Cadastral plan, delimiting the plot for warehouse construction.

-- Fire station installation map.

-- Sanitary installation plan.

-- Electromechanical plans (elevators, pumps).

-- Structure plan.

-- Land survey.

-- Excavation record, if applicable.

-- Land titles (certificados parcelarios) of construction work layout.

After the application, the city of Buenos Aires (Gobierno de la Ciudad de Buenos Aires,

GCBA) approves the company's project drawings (which determine the cost) and issues

the project record number.

If construction work has not yet started during a 3-year period (from the plan registration

date to the granting of the respective permit), the permit and the respective record will

expire. The construction fees and approved delineation will be forfeited. After the

Accounting Department (Dirección de Fiscalización de Obras y Catastro) issues the

relevant resolution (disposición), the expired record is sent to the general files for

permanent and final storage.

The developer must notify the Instituto de Estadistica y Registro de la Industria de la

Constrccion (IERIC) once during its "existence," but it is compelled to notify each

construction startup through the completion of an enclosed form. Before starting

construction, the company posts the announcement of machinery works.

26

Procedure Request and obtain environmental impact assessment certificate 15



Agency: Ministries of the Environment and Regional Development, Urban Planning, and Industry,

Commerce and Labor (Secretarías de Medio Ambiente y Desarrollo Regional, de

Planeamiento Urbano y de Industria, Comercio y Trabajo), acting on a joint basis.

Comment:

Other documents needed include the following:

- Environmental Assessment Impact form (Formulario Categorización Impacto Ambiental

Tipo Ie).

- DDJJ through Form Annex II Dcto 1352/02.

- Formula Polinómica s/ Annex VIII de Resol. 873–SSMAMB/ 04.

- Aide memoire (memoria descriptiva) with the signature of the main representative

(firma del titular) s/ Annex Vd Decree 1352/02 that includes:

-- Description of the activity, including materials and inputs, supply and storage

processes, operation and location of the machinery used, logistics to deliver products and

services, and the like.

-- Further details or clarifications on emissions, solid waste, noise vibrations from

machinery, and so forth (including results from the formula polinómica).

-- Detailed information on cargo-handling logistics.

-- Detailed information of construction projects designed to mitigate negative impacts.

-- Detailed information on land usage.

-- Fire prevention plan.

-- Waste management plan.

- Environmental impact map.

- Registration number in the Registry for Consultants and Professionals (Reg. No. 344

Evaluac. Ambtal. 4/10/00).

- Encomienda to the Professional Council.

- Notarized copy of the property title.

According to O.F. and T. 2007, the environmental assessment fee for a warehouse larger

than 500 sq. m. is stipulated in the modifications to Law No. 123 through Resolution No.

873–SSMAMB/ 04.

If the report is complete, the certificate should be issued in 30 days.

Procedure Receive construction startup inspection 16



Agency: GCBA

Comment: A record of inspection agents may be found at the city of Buenos Aires Web site

(www.buenosaires.gov.ar).

1.2.1.3. Inspection Schedule (Building Code)

All inspections must be completed within 24 hours of such request, no matter where the

building is located, and according to construction industry schedules and working days,

except for municipal schedules and holidays.

After the application is submitted at the public works office counter, the inspection

schedule will be fixed for the following day, depending on the radius within which the

construction work is located. In practice, inspectors visit the location in 7–14 days.

Suspension of construction is not required. There are four inspections for each type of

27

work, but each one is processed through professional supervisors (Profesionales

Verificadores de Obra, PVO). The inspection fee is paid, before registration, together

with that for construction rights.

The construction inspection fee is 1% of project value. The inspection fee is paid while

applying for construction rights. The average wait time is 7–10 days.

Procedure Notify the GCBA on completion of the construction work foundation and receive

inspection

17



Agency: GCBA

Comment: In practice, the inspectors visit the location in 7–14 days. Suspension of construction is

not required.

Procedure Notify the GCBA on completion of the construction work structure and receive

inspection

18



Agency: GCBA


not required.

Procedure Notify the GCBA on completion of the construction work masonry and receive

inspection

19



Agency: GCBA


not required.

Procedure Notify the GCBA on completion of construction work and receive inspection 20



Agency: GCBA

Comment: To receive a work completion notice, BuildCo must submit the following documents to

the city of Buenos Aires:

- A document from Directorate of Real Estate and Registry, proving the sworn declaration

of completed work. That form is obtained in that directorate and displays the proprietor’s

signature, in addition to a simple heliographic copy of the building plan.

- Original plan of the work in fabric or film transparent polyester, which can be unified

(architecture and structures) or displayed in two separated originals.

28

- Architecture plans (six heliographic copies) and structure plans (six heliographic

copies).

- Plans on fire protection (two copies).

- Descriptive record with detail of materials and elements used in the completed work

(original and copy).

- Form of statistics.

- Request of sworn declaration of completion (triplicate).

- Plan showing medical facility.

BuildCo must submit an affidavit on completion of the construction work. After that, the

administrative authority has 60 working days to verify the affidavit’s accuracy and

truthfulness. According to the Building Code, this action releases contractors involved in

the construction from liability, leaving the owner as the sole liable party. Even so, neither

the final approval nor the affidavit nor the final construction plans are required for

municipal approval of the warehouse.

In practice, the inspectors visit the location in 7–14 days. Suspension of construction is

not required. The city of Bueno Aires verifies compliance of construction work with the

approved plans and grants a fire inspection certificate (previously a fire department

responsibility).

Procedure Notify the ENRE on completion of the construction work and receive inspection 21



Agency: National Electricity Regulatory Agency (Ente Nacional Regulador de la Electricidad –

ENRE )

Comment: In general, the National Regulatory Agency for Electricity (Ente Nacional Regulador de

la Electricidad, ENRE) completes the inspection within 7 days of notification.

Procedure Request and obtain electricity inspection certificate 22



Agency: National Electricity Regulatory Agency (Ente Nacional Regulador de la Electricidad –

ENRE )

Comment:

Procedure Notarize the forms required for final authorization 23



Agency: Notary Public (Escribano Público)

Comment: A notary public draws up the authorization deed (escritura de habilitación). Although the

average fee is ARS 500, the fee depends on the size of the work.

Procedure Request and obtain final authorization (Habilitacion Municipal) 24

29



Agency: General Building Authorization and Permit Department (Dirección General de

Habilitaciones y Permisos – DGHP)

Comment: According to applicable regulations, authorization may be granted provisionally (pending

final authorization) for the construction of either (a) a new facility or any of its parts or

(b) any extension or modification to an existing one. However, the use must coincide with

that stated on the documents for the project approved for execution, provided that the

relevant part has been completed pursuant to applicable regulations.

Final authorization must be requested within 30 days of work completion. In practice, this

takes 6 months after the authorization file is submitted.

As required by the type of authorization procedure, the construction professional

(architect, engineer, construction foreman, land surveyor) must prepare the documents.

The following forms must be purchased from the corresponding professional board

(consejo profesional):

- Request for authorization.

- Usage certificate (certificado de uso conforme).

- Building design affidavit (declaración jurada de conformación del local).

- Overload certificate (certificado de sobrecarga), if applicable.

- Site layout, if applicable.

- Plans or final certificate of fire, ventilation, and mechanical installation, if applicable.

- Certificate or supporting document attesting to the submittal of the environmental

aptitude application (solicitud de aptitud ambiental) (Law 123, Law 452, and regulatory

decrees).

For this purpose, if requested, the construction professional must verify whether the site’s

building conditions conforms to the pertinent zoning. If necessary, the professional must

also consult with the Urban Planning Institute (Consultora Planificacion Urbana, CPU)

before starting the procedure. The cost is ARS 1,635.60

(ARS 335 plus an honorarium for the participating independent professional of 1 ARS/

sq. m.). In this case, the professional can be part BuildCo.

Procedure Register the building 25



Agency: Dirección de Rentas

Comment: The building must be registered at the Revenue Department (Dirección de Rentas) by

submitting final approved plans.

Procedure Request and connect to telephone services 26



Agency: Telecom S.A. or Telefónica S.A.

Comment: No additional requirements exist for obtaining telephone service. Within 10 working days

of the phone request, an installation invoice is issued. The connection is made within 17

30

working days.

Procedure Request and connect to water services 27



Agency: Aguas y Saneamientos Argentinos S.A.

Comment: To obtain a connection to potable water service, the final construction work layout (with

the relevant certificate issued by the municipal authorities) must be submitted at the

commercial office in the zone where the construction site is located. On submittal, a

provisional invoice will be issued according to the size of the construction site. Once the

application for connection is filed, an inspector visits the construction site to verify the

type of connection required. The connection is made within 72–92 hours of that

determination.

Procedure Request and connect to electricity services 28



Agency: Edenor S.A. or Edesur S.A.

Comment: A copy of the building permit, issued by the city of Buenos Aires, must be submitted to

obtain an electric power connection (servicio de conexión). Once the application is filed,

the work verification is issued within 5 working days. The connection order is sent soon

after. Within 5 working days, an electrical connection is established. The connection fee

is ARS 275.30 for the single-phase energy and ARS 420.89 for three-phase energy.

31

1. Benchmarking Registering Property Regulations

Argentina is ranked 118 overall for Registering Property.

Ranking of Argentina in Registering Property - Compared to good practice and selected economies:

33

Procedures

(number)


property

value)

New Zealand 2

Norway 1

Saudi Arabia 0.0

Good Practice

Economies

Argentina 6 52 7.0

Selected Economy

Bolivia 7 92 4.8

Brazil 14 42 2.7

Ecuador 9 16 2.2

Mexico 5 74 5.2

Peru 4 7 3.3


The following table shows Registering Property data for Argentina compared to good practice and comparator economies:

34

Registering Property data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 114 118


Time (days) 51 51 52 52

Cost (% of property value) 7.0 7.0 7.0 7.0

2. Historical data: Registering Property in Argentina

3. Registering Property sub indicators in Argentina over the past 4 years

35

4. Overview of the steps to Registering Property in Argentina

It requires 6 procedures, takes 52 days, and costs 6.99 % of property value to register the property in Argentina.



Seller must obtain a certificate of ownership ("dominio")

and a certificate of good standing ("inhibiciones") from the

Real Property Registry

1 * 7 days (regular

procedure for domain

certificate and personal

annotation certificate), 1

day (urgent procedure)

(simultaneous with

procedures 2 and 3)

Domain Certificate:

ARS 143 (urgent) or

ARS 75

(regular)Personal

Annotation

Certificate: ARS 131

(urgent) or ARS 68

(regular)

Obtain a catastral certificate ("certificado catastral") 2 * 1 day (simultaneous

with procedures 1 and 3)

ARS 39

Obtain a certificate stating that no local taxes related to the

property are due (ABL)

3 * 1 day (simultaneous

with procedures 1 and 2)

ARS 50

Obtain "Code of Offer of Transfer of a Property" (COTI) at

tax agency AFIP

4 1 day no cost

36

The public deed is executed by the parties with the

intervention of a notary public

5 14-28 days Notary public fees:

1-1.5% of the

purchase price

(usually paid by

buyer)Stamp Tax:

2.5 % of the

purchase price

(usually paid

jointly)Transfer Tax:

3% of the purchase

price (paid by seller)

The notary public files the property transfer for registration

with the Real Property Register

6 28 days ARS 113.5 (regular)

or ARS 251.5

(urgent) + 0.2%

property price

additional stamp tax

* Takes place simultaneously with another procedure.

37

Procedure Seller must obtain a certificate of ownership ("dominio") and a certificate of good

standing ("inhibiciones") from the Real Property Registry

1

Time to complete: 7 days (regular procedure for domain certificate and personal annotation certificate), 1

day (urgent procedure) (simultaneous with procedures 2 and 3)

Cost to complete: Domain Certificate: ARS 143 (urgent) or ARS 75 (regular)Personal Annotation

Certificate: ARS 131 (urgent) or ARS 68 (regular)

Agency: Real Property Registry (Registro de la propiedad inmueble de la Capital Federal)

Comment: The certificate of ownership ("Certificado de dominio") proves that the property is free and

clear of liens and or encumbrances. The certificate of good standing ("Certificado de

inhibiciones") proves that there is no judicial order restraining the seller from encumbering or

disposing of his assets. The domain certificate and a personal annotation are valid for 15

days, and they are both requested with a unified form. According to Executive Order No.

2080/80, article 8, it is mandatory to obatin the non-encumbrance certificate.

When a notary from the Capital Federal requests a domain certificate, the property is

“reserved” for 60 days. If a new Domain certificate is requested during this period, it will state

that a transaction is in process.

Pursuant to Technical Resolution N°5/2008 of the Registry of Property dated September 5,

2008, the certificate of good standing can be obtained online at the Registry website

www.dnrpi.jus.gov.ar, with a cost of AR$ 46. Only interested parties pursuant to sections 6,7

and 22, Law No. 17,801 can obtain the certificate online, and they also need to be registered

in the website (notaries, accountants, lawyers,...).

STANDARDIZED PROPERTY Property Value: ARS 1,379,566.91


This topic examines the steps, time, and cost involved in registering property in Argentina.

5. Details on Registering Property in Argentina

38

Procedure Obtain a catastral certificate ("certificado catastral") 2

Time to complete: 1 day (simultaneous with procedures 1 and 3)


Agency: City of Buenos Aires government (“Oficina catastral”)

Comment: The notary requests the cadastral certificate (with measures, boundaries and fiscal valuation)

at the Cadastral office (“Oficina catastral”). The certificate is valid for one year. In the Capital

Federal, there is no need of a surveyor measuring the property.

Note: for some type of properties, it is possible to obtain the certificate on-line in the Province

of Buenos Aires.

Procedure Obtain a certificate stating that no local taxes related to the property are due (ABL) 3

Time to complete: 1 day (simultaneous with procedures 1 and 2)


Agency: Notaries’ association ("Colegio de Escribanos")

Comment: This certificate ("Certificado de libre deuda de impuestos municipales-ABL") is obtained at

the Notaries’ association ("Colegio de Escribanos"). Local taxes related to the property being

sold are known as ABL (“alumbrado, barrido y limpieza”, street light and cleaning). The

certificate is valid for 30 days (or the current month), according to the 2009 “Código Fiscal”

of the city of Buenos Aires, which shortened the original 1 year validity.

Procedure Obtain "Code of Offer of Transfer of a Property" (COTI) at tax agency AFIP 4


Cost to complete: no cost

Agency: Tax Agency (AFIP)

Comment: For every transfer of a property made for properties over AR$ 300.000, the seller shall declare

it before the tax authorities in the City (AFIP). In order to declare such transaction the Seller

shall get the "Code of Offer of Transfer of a Property" (COTI) from AFIP, by informing the

names of buyer and seller, the property and the value of the transaction. The procedure can be

done though AFIP’s website, by phone or text message.

The COTI has a validity of 24 months (extendable 12 months if a construction will be made),

and started to be implemented since March 1st 2008 through the Resolución General N° 2371

Año 2007 from 14/12/2007 in order to fight tax evasion.

The "Code of Offer of Transfer of a Property" (COTI) may be obtained:

- online: through www.afip.gov.ar, acessing to the system with a tax code; or

-via phone (0800-999-2347), in which case it will be necessary to print a certificate afterwards

from www.afip.gov.ar, acessing to the system with a tax code; or

- via sms, texting 2347. The user will receive a reply with the number of procedure and will be

contacted later by the Information Call Center to continue with the procedure.

Procedure The public deed is executed by the parties with the intervention of a notary public 5

39

Time to complete: 14-28 days

Cost to complete: Notary public fees: 1-1.5% of the purchase price (usually paid by buyer)Stamp Tax: 2.5

% of the purchase price (usually paid jointly)Transfer Tax: 3% of the purchase price (paid

by seller)

Comment: The public deed is the only document which is mandatory by law to transfer a property's

ownership.

Transactions subject to Capital Gains Tax are not subject to Transfer Tax (this is the case

when companies are parties to the transaction). Capital Gains Tax is paid by the seller.

However, this tax is not applicable if the money collected by seller for the transfer of property

is used to buy another property within a year of the sale or for the construction of a new

property. In this last case, for the tax waiver to apply, the construction has to start a year after

or a year before the transaction and it has to be completed 4 years after the date of the

transaction.

The notary will retain the 3% for the transfer tax, but if the transaction is subject to Capital

Gains Tax (CGT), he will use this amount to pay the CGT. If the transaction has been

arranged through a broker, his fees will be about 3% of the purchase price

Procedure The notary public files the property transfer for registration with the Real Property

Register

6


Cost to complete: ARS 113.5 (regular) or ARS 251.5 (urgent) + 0.2% property price additional stamp tax

Agency: Real Property Registry (Registro de la propiedad inmueble de la Capital Federal)

Comment: Upon registration, the buyer will have perfect and complete title to the property, opposable to

third parties. The registration fees are usually paid by the buyer. The notary has 45 days to

register the property transfer. At this stage, the property title can be used as a collateral for a

loan, or the property can be resold.

The majority of operations are made through the regular procedure.

40

1. Benchmarking Getting Credit Regulations

Argentina is ranked 65 overall for Getting Credit.

Ranking of Argentina in Getting Credit - Compared to good practice and selected economies:

42

Strength of

legal rights

index (0-10)

Depth of

credit

information

index (0-6)

Public

registry

coverage (%

of adults)

Private

bureau

coverage (%

of adults)

New Zealand 100.0

Portugal 67.1

Singapore 10

United Kingdom 6

Good Practice

Economies

Argentina 4 6 30.8 100.0

Selected Economy

Bolivia 1 6 11.3 31.4

Brazil 3 5 26.9 53.5

Ecuador 3 5 36.5 45.0

Mexico 5 6 0.0 71.6

Peru 7 6 25.5 33.3


The following table shows Getting Credit data for Argentina compared to good practice and comparator economies:

43

Getting Credit data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 61 65

Strength of legal rights index (0-10) 4 4 4 4

Depth of credit information index (0-6) 6 6 6 6

Private bureau coverage (% of adults) 100.0 100.0 100.0 100.0

Public registry coverage (% of adults) 25.5 31.2 34.3 30.8

2. Historical data: Getting Credit in Argentina

3. Getting Credit sub indicators in Argentina over the past 4 years

44

4. Details on Getting Credit in Argentina

The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit

registries in Argentina.

Getting Credit Indicators (2010) Indicator

Private credit

bureau

Public credit

registry 6 Private bureau coverage (% of adults)

Are data on both firms and individuals distributed? 1Yes Yes

Are both positive and negative data distributed? 1Yes Yes

Does the registry distribute credit information from retailers, trade

creditors or utility companies as well as financial institutions?

1Yes No

Are more than 2 years of historical credit information distributed? 1Yes No

Is data on all loans below 1% of income per capita distributed? 1Yes Yes

Is it guaranteed by law that borrowers can inspect their data in the

largest credit registry?

1Yes Yes

Coverage 30.8100.0

Number of individuals .. 9,123,380

Number of firms .. 133,772

Number of individuals .. 9,123,380

Number of firms .. 133,772

45

4 Strength of legal rights index (0-10)

Can any business use movable assets as collateral while keeping possession of the assets; and any financial

institution accept such assets as collateral ?

Yes

Does the law allow businesses to grant a non possessory security right in a single category of movable assets,

without requiring a specific description of collateral?

No

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without

requiring a specific description of collateral?

No

May a security right extend to future or after-acquired assets, and may it extend automatically to the products,

proceeds or replacements of the original assets ?

No

Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligations

and debts can be secured by stating a maximum amount rather than a specific amount between the parties ?

Yes

Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by the

grantor's name of a security right ?

No

Do secured creditors have absolute priority to their collateral outside bankruptcy procedures? Yes

Do secured creditors have absolute priority to their collateral in bankruptcy procedures? No

During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? Yes

Does the law authorize parties to agree on out of court enforcement? No

46

1. Benchmarking Protecting Investors Regulations

Argentina is ranked 109 overall for Protecting Investors.

Ranking of Argentina in Protecting Investors - Compared to good practice and selected economies:

48

Strength of

investor

protection

index (0-10)

New Zealand 9.7

Good Practice

Economies

Argentina 4.7

Selected Economy

Bolivia 4.0

Brazil 5.3

Ecuador 4.0

Mexico 6.0

Peru 6.7


The following table shows Protecting Investors data for Argentina compared to good practice and comparator economies:

49

Protecting Investors data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 108 109

Strength of investor protection index (0-10) 4.7 4.7 4.7 4.7

2. Historical data: Protecting Investors in Argentina

3. The following graph illustrates the Protecting Investors index in Argentina compared to best

practice and selected Economies:

9.7

6.7

6.0

5.3

4.7

4.0

4.0

New

Zea

land

Peru

Mex

ico

Brazi

l

Arg

entin

a

Ecuad

or

Boliv

ia

Note: The higher the score, the greater the investor protection.

50

The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are

calculated in Argentina.

4. Details on Protecting Investors in Argentina

Protecting Investors Data (2010) Indicator

Extent of disclosure index (0-10) 6

What corporate body provides legally sufficient approval for the transaction?2

Whether immediate disclosure of the transaction to the public and/or shareholders is

required?

2

Whether disclosure of the transaction in published periodic filings (annual reports) is

required?

0

Whether disclosure of the conflict of interest by Mr. James to the board of directors is

required?

2

Whether an external body must review the terms of the transaction before it takes place?0

Extent of director liability index (0-10) 2

Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller

transaction causes to the company?

0

Whether shareholders can hold the approving body (the CEO or board of directors) liable for

the damage that the Buyer-Seller transaction causes to the company?

0

Whether a court can void the transaction upon a successful claim by a shareholder plaintiff?0

Whether Mr. James pays damages for the harm caused to the company upon a successful

claim by the shareholder plaintiff?

1

51

Whether Mr. James repays profits made from the transaction upon a successful claim by the

shareholder plaintiff?

0

Whether fines and imprisonment can be applied against Mr. James?0

Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller

transaction causes to the company?

1

Ease of shareholder suits index (0-10) 6

Whether the plaintiff can obtain any documents from the defendant and witnesses during

trial?

4

Whether the plaintiff can directly question the defendant and witnesses during trial?0

Whether the plaintiff can request categories of documents from the defendant without

identifying specific ones?

1

Whether shareholders owning 10% or less of Buyer's shares can request an inspector to

investigate the transaction?

1

Whether the level of proof required for civil suits is lower than that of criminal cases?0

Whether shareholders owning 10% or less of Buyer's shares can inspect transaction

documents before filing suit?

0

Strength of investor protection index (0-10) 4.7

52

1. Benchmarking Paying Taxes Regulations

Argentina is ranked 143 overall for Paying Taxes.

Ranking of Argentina in Paying Taxes - Compared to good practice and selected economies:

54

Payments

(number per

year)

Time (hours

per year)

Total tax rate

(% profit)

Maldives 3 0

Timor-Leste 0.2

Good Practice

Economies


Selected Economy

Bolivia 42 1080 80.0

Brazil 10 2600 69.0

Ecuador 8 654 35.3

Mexico 6 404 50.5

Peru 9 380 40.2


The following table shows Paying Taxes data for Argentina compared to good practice and comparator economies:

55

Paying Taxes data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 137 143

Total tax rate (% profit) 108.1 108.1 108.1 108.2

Payments (number per year) 19 9 9 9

Time (hours per year) 453 453 453 453

2. Historical data: Paying Taxes in Argentina

3. Paying Taxes sub indicators in Argentina over the past 4 years

56

The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in

a given year in Argentina, as well as measures of administrative burden in paying taxes.

4. Details on Paying Taxes in Argentina

Tax or mandatory

contribution

Payments

(number)

Notes on

Payments

Time

(hours)

Statutory tax

rate

Tax

base

Totaltax rate

(% profit)

Notes on

TTR

value added21.0% 240 online

filing

1 Value added tax (VAT)

0.00vehicle tax

paid

10.0%paid jointly 0 Subway tax

0.30fiscal value of

vehicle

2.3% 1 Vehicle tax

0.80liter

consumption

ARS

0.44/liter

1 Fuel tax

0.80sale price50% of 2.5% 1 Stamp tax on sale of a

real estate

2.80taxable profit35.0% 105 online

filing

1 Corporate income tax

3.40gross salaries3% (+ ARS

0.6 per

employee per

month)

paid jointly 0 Labor Risk Insurance

57

3.50fiscal value of

building and

land

varies

(0,562% plus

ARS 14,364

)

online

filing

1 Property tax

17.60any amount

debited or

credited to

bank accounts

0.6% 1 Tax on financial (check)

transactions

25.90gross salaries23.0% 108 online

filing

1 Social security

contributions

53.00turnover3.0%online

filing

1 Turnover tax by City of

Buenos Aires

Totals 9 453 108.2

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1. Benchmarking Trading Across Borders Regulations

Argentina is ranked 115 overall for Trading Across Borders.

Ranking of Argentina in Trading Across Borders - Compared to good practice and selected economies:

60

Documents to

export

(number)

Time to

export (days)

Cost to

export (US$

per

container)

Documents to

import

(number)

Time to

import (days)

Cost to

import (US$

per

container)

Denmark 5

France 2 2

Malaysia 450

Singapore 4 439

Good Practice

Economies

Argentina 9 13 1480 7 16 1810

Selected Economy

Bolivia 8 19 1425 7 23 1747

Brazil 8 13 1790 7 17 1730

Ecuador 9 20 1345 7 29 1332

Mexico 5 12 1420 4 12 1880

Peru 6 12 860 8 17 880


The following table shows Trading Across Borders data for Argentina compared to good practice and comparator

economies:

61

Trading Across Borders data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 113 115

Cost to export (US$ per container) 1325 1480 1480 1480

Cost to import (US$ per container) 1825 1810 1810 1810

Documents to export (number) 9 9 9 9

Documents to import (number) 7 7 7 7

Time to export (days) 16 13 13 13

Time to import (days) 20 18 16 16

2. Historical data: Trading Across Borders in Argentina

3. Trading Across Borders sub indicators in Argentina over the past 4 years

62

These tables list the procedures necessary to import and export a standardized cargo of goods in Argentina. The

documents required to export and import the goods are also shown.

4. Details on Trading Across Borders in Argentina

Nature of Export Procedures (2010) Duration (days) US$ Cost

Documents preparation 6 510

Customs clearance and technical control 2 120

Ports and terminal handling 2 500

Inland transportation and handling 3 350

Totals 13 1480

Nature of Import Procedures (2010) Duration (days) US$ Cost

Documents preparation 8 610

Customs clearance and technical control 3 150

Ports and terminal handling 3 700

Inland transportation and handling 2 350

Totals 16 1810

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Export

Bill of lading

Cargo release order

Certificate of origin

Commercial invoice

Customs export declaration

Foreign exchange authorization

Packing list

Tax certificate

Terminal handling receipts

Import

Bill of lading

Certificate of origin

Commercial invoice

Customs import declaration

Packing list

Technical standard/health certificate

Terminal handling receipts

Documents for Export and Import

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1. Benchmarking Enforcing Contracts Regulations

Argentina is ranked 45 overall for Enforcing Contracts.

Ranking of Argentina in Enforcing Contracts - Compared to good practice and selected economies:

67

Procedures

(number)


claim)

Bhutan 0.1

Ireland 20

Singapore 150

Good Practice

Economies


Selected Economy

Bolivia 40 591 33.2

Brazil 45 616 16.5

Ecuador 39 588 27.2

Mexico 38 415 32.0

Peru 41 428 35.7


The following table shows Enforcing Contracts data for Argentina compared to good practice and comparator economies:

68

Enforcing Contracts data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 45 45


Time (days) 590 590 590 590

Cost (% of claim) 16.5 16.5 16.5 16.5

2. Historical data: Enforcing Contracts in Argentina

3. Enforcing Contracts sub indicators in Argentina over the past 4 years

69

4. Details on Contract Enforcement in Argentina

This topic looks at the efficiency of contract enforcement in Argentina.

IndicatorNature of Procedure (2010)

("Juzgado Nacional de Primera Instancia en lo Comercial")Buenos Aires First Instance

Court, Commercial Section

Court information:

Procedures (number) 36

Time (days) 590

Filing and service 150.0

Trial and judgment 320.0

Enforcement of judgment 120.0

Cost (% of claim)* 16.50

Attorney cost (% of claim) 11.0

Court cost (% of claim) 4.5

Enforcement Cost (% of claim) 1.0

* Claim assumed to be equivalent to 200% of income per capita.

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1. Benchmarking Closing Business Regulations

Argentina is ranked 77 overall for Closing a Business.

Ranking of Argentina in Closing Business - Compared to good practice and selected economies:

72

Recovery rate

(cents on the

dollar)

Time (years) Cost (% of

estate)

Ireland 0.4

Japan 92.7

Singapore 1

Good Practice

Economies

Argentina 32.8 2.8 12

Selected Economy

Bolivia 39.3 1.8 15

Brazil 17.1 4.0 12

Ecuador 17.0 5.3 18

Mexico 66.7 1.8 18

Peru 27.2 3.1 7


The following table shows Closing Business data for Argentina compared to good practice and comparator economies:

73

Closing a Business data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 87 77

Time (years) 2.8 2.8 2.8 2.8

Cost (% of estate) 12 12 12 12

Recovery rate (cents on the dollar) 34.4 29.8 29.8 32.8

2. Historical data: Closing Business in Argentina

3. Closing Business sub indicators in Argentina over the past 4 years

74

Since 2004 Doing Business has been tracking reforms aimed at simplifying business regulations, strengthening property

rights, opening access to credit and enforcing contracts by measuring their impact on 10 indicator sets . * Nearly 1,000

reforms have had an impact on these indicators. Doing Business 2011, covering June 2009 to June 2010, reports that 117

economies implemented 216 reforms to make it easier to start a business. 64% of economies measured by Doing Business

have reformed this year, focusing on easing business start-up, lightening the tax burden, simplifying import and export

regulations and improving credit information systems.

Negative Change

Positive Change

Economy

Clo

sin

g a

Bu

sin

ess

En

forc

ing

Con

trac

ts

Tra

din

g A

cros

s B

ord

ers

Pay

ing

Tax

es

Pro

tect

ing

Inve

stor

s

Get

tin

g C

red

it

Reg

iste

rin

g P

rop

erty

Dea

lin

g w

ith

Con

stru

ctio

n

Per

mit

s

Sta

rtin

g a

Bu

sin

ess

Kazakhstan

Rwanda

Peru

Vietnam

Cape Verde

Tajikistan

Zambia

Hungary

Grenada

Brunei Darussalam

* For Doing Business 2011 the Employing Workers indicator is not included in the aggregate ease of doing

business ranking.

The top 10 most-improved in Doing Business 2011

75

Summary of changes to business regulation in top 10 most improved economies in Doing

Business 2011 and selected comparator economies.

Brazil Brazil eased business start-up by further enhancing the electronic synchronization between federal and

state tax

authorities.

Brunei Darussalam Brunei Darussalam made starting a business easier by improving efficiency at the company registrar

and implementing an electronic system for name searches. Brunei Darussalam reduced the corporate

income tax rate from 23.5% to 22% while also introducing a lower tax rate for small businesses,

ranging from 5.5% to 11%. The introduction of an electronic customs system in Brunei Darussalam

made trading easier.

Cape Verde Cape Verde made start-up easier by eliminating the need for a municipal inspection before a business

begins operations and computerizing the system for delivering the municipal license. Cape Verde eased

property registration by switching from fees based on a percentage of the property value to lower fixed

rates. Cape Verde abolished the stamp duties on sales and checks.

Ecuador Ecuador made starting a business easier by introducing an online registration system for social security.

Grenada Grenada eased business start-up by transferring responsibility for the commercial registry from the

courts to the civil administration. The appointment of a registrar focusing only on property cut the time

needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading

faster by simplifying procedures, reducing inspections, improving staff training and enhancing

communication with users.

Hungary Hungary implemented a time limit for the issuance of building permits. Hungary reduced the property

registration fee by 6% of the property value. Hungary simplified taxes and tax bases. Amendments to

Hungary’s bankruptcy law encourage insolvent companies to consider reaching agreements with

creditors out of court so as to avoid bankruptcy.

Kazakhstan Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70)

and eliminating the need to have the memorandum of association and company charter notarized.

Kazakhstan made dealing with construction permits easier by implementing a one-stop shop related to

technical conditions for utilities. Kazakhstan strengthened investor protections by requiring greater

corporate disclosure in company annual reports. Kazakhstan speeded up trade through efforts to

modernize customs, including implementation of a risk management system and improvements in

customs automation.

Mexico Mexico launched an online one-stop shop for initiating business registration. Mexico improved

construction permitting by merging and streamlining procedures related to zoning and utilities. Mexico

increased taxes on companies by raising several tax rates, including the corporate income tax and the

rate on cash deposits. At the same time, the administrative burden was reduced slightly with more

options for online payment and increased use of accounting software.

Peru Peru eased business start-up by simplifying the requirements for operating licenses and creating an

online one-stop shop for business registration. Peru streamlined construction permitting by

implementing administrative

reforms. Peru introduced fast-track procedures at the land registry, cutting by half the time needed to

register property. Peru made trading easier by implementing a new web-based electronic data

interchange system, risk-based inspections and payment deferrals.

Rwanda Rwanda made dealing with construction permits easier by passing new building regulations at the end

of April 2010 and implementing new time limits for the issuance of various permits. Rwanda enhanced

access to credit by allowing borrowers the right to inspect their own credit report and mandating that

loans of all sizes be reported to the central bank’s public credit registry. Rwanda reduced the number of

trade documents required and enhanced its joint border management procedures with Uganda and other

neighbors, leading to an improvement in the trade logistics environment.

Tajikistan Tajikistan made starting a business easier by creating a one-stop shop that consolidates registration with

the state and the tax authority. Tajikistan strengthened investor protections by requiring greater

corporate disclosure in the annual report and greater access to corporate information for minority

investors. Tajikistan lowered its corporate income tax rate.

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Vietnam Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining

a business license and tax license and by eliminating the need for a seal for company licensing.

Vietnam made dealing with construction permits easier by reducing the cost to register newly

completed buildings by 50% and transferring the authority to register buildings from local authorities to

the Department of National Resources and Environment. Vietnam improved its credit information

system by allowing borrowers to examine their own credit report and correct errors.

Zambia Zambia eased business start-up by eliminating the minimum capital requirement. Zambia eased trade by

implementing a one-stop border post with Zimbabwe, launching web-based submission of customs

declarations and introducing scanning machines at border posts. Zambia improved contract

enforcement by introducing an electronic case management system in the courts that provides electronic

referencing of cases, a database of laws, real-time court reporting and public access to court records.

77

Argentina

Education

Transcript of Argentina