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

Current features
News on the Doing Business project
http://www.doingbusiness.org

Rankings
How economies rank-from 1 to 183
http://www.doingbusiness.org/rankings/
Contents
Business reformers
Short summaries of DB2011 business reforms, lists of reformers Introduction
since DB2004 and a ranking simulation tool and Aggregate Rankings
http://www.doingbusiness.org/reforms/
5 - Year Measure of
Historical data Cumulative Change
Customized data sets since DB2004
http://www.doingbusiness.org/custom-query/ Starting a Business

Methodology and research Dealing with
The methodologies and research papers underlying Doing Business Construction Permits
http://www.doingbusiness.org/Methodology/
Registering Property
Download reports
Access to Doing Business reports as well as subnational and regional Getting Credit
reports, reform case studies and customized country and regional
profiles Protecting Investors
http://www.doingbusiness.org/reports/

Paying Taxes
Subnational and regional projects
Differences in business regulations at the subnational and regional
Trading Across Borders
level
http://www.doingbusiness.org/subnational-reports/
Enforcing Contracts

Law library Closing a Business
Online collection of business laws and regulations relating to
business and gender issues
Doing Business 2011
http://www.doingbusiness.org/law-library/
Business Reforms
http://wbl.worldbank.org/

Contributors
More than 8,200 specialists in 183 economies who participate in
Doing Business
http://www.doingbusiness.org/contributors/Doing-Business/

Business Planet
Interactive map on the ease of doing business
http://rru.worldbank.org/businessplanet

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.

1

Economy Rankings - Ease of Doing Business

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

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

Argentina's ranking in Doing Business 2011

Rank 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

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) 1810
3

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 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.

This figure shows the distribution of cumulative change across the 9 indicators and time between Doing Business 2006 and Doing
Business 2011.

DB change score

0.16

Doing 0.12
business has
become
easier
0.08

0.04

Doing
business has
0.00
become
more difficult
or more
costly
-0.04
Peru Mexico Brazil Ecuador Bolivia Argentina

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

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

Good Practice Procedures Time (days) Cost (% of Paid-in Min.
(number) income per Capital (% of
Economies
capita) income per
capita)

Denmark 0.0

New Zealand 1 1 0.0

Selected Economy

Argentina 14 26 14.2 2.7

Comparator Economies

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

8

2. Historical data: Starting a Business in Argentina

Starting a Business data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 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

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.

Time to complete
No: Procedure Cost to complete
(days)

1 The name of the company is verified by the Office of 1 ARS 75
Corporations (Inspección General de Justicia) (IGJ)

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

3 Deposit initial capital in National Bank (Banco de la Nación 1 ARS 30
Argentina) and obtain proof of payment

4 Publish the new company’s notice in the official paper 2 ARS 2,035
(Boletín Oficial) (expedited
publication fee)+
ARS 100
(legalization of
signature)

5 Payment of the incorporation fee 1 ARS 30

6 Registration with the IGJ, entity operating the Public 5 ARS 250
Registry of Commerce in the City of Buenos Aires.

7 Buy special books 1 fees included in
procedure 8

10

8 Get a form from the Public Notaries College and have a 5 ARS 610
notary public submit the company books for rubrication by
IGJ

9 Corporate manager needs to obtain a Fiscal Code (Clave 1 no charge
Fiscal)

10 Obtain a tax identification number (CUIT) from the National 4 no charge
Tax Office (Administración Federal de Ingresos Públicos,
AFIP) and register for social security

11 Register turnover tax at local level at the Dirección General 1 ARS 50
de Rentas (DGR) in the City of Buenos Aires

12 Register with the Unified System for Labor Registration 1 no charge
(USLR)

13 Contract an insurance for employees with a risk labor 1 no charge
company (ART, Aseguradora de Riesgos del Trabajo)

14 Rubricate books of wages in the Ministerio de Trabajo 1 ARS 75
(Ministry of Labor)

11

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 (% of income per capita)
City: Buenos Aires (Ciudad autonoma de)

Procedure 1 The name of the company is verified by the Office of Corporations (Inspección General
de Justicia) (IGJ)

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 2 Certify signatures of partners by a notary public


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



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


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 5 Payment of the incorporation fee



Comment:

Procedure 6 Registration with the IGJ, entity operating the Public Registry of Commerce in the City
of Buenos Aires.



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 7 Buy special books


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 8 Get a form from the Public Notaries College and have a notary public submit the
company books for rubrication by IGJ



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


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 10 Obtain a tax identification number (CUIT) from the National Tax Office
(Administración Federal de Ingresos Públicos, AFIP) and register for social security



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 11 Register turnover tax at local level at the Dirección General de Rentas (DGR) in the City
of Buenos Aires



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



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 13 Contract an insurance for employees with a risk labor company (ART, Aseguradora de
Riesgos del Trabajo)



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

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



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).

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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

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

Good Practice Procedures Time (days) Cost (% of
(number) income per
Economies
capita)

Denmark 6

Qatar 0.8

Singapore 25

Selected Economy

Argentina 28 338 133.9


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

19

2. Historical data: Dealing with Construction Permits in Argentina

Dealing with Construction Permits data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 2011

Rank .. .. 169 168


Time (days) 338 338 338 338

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

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.

Time to complete
(days)

1 Cadastral consultation with authorities 1 day ARS 35

2 Request and obtain perimetral measurements 2 days ARS 30

3 Request and obtain land title (nomenclatura parcelaria) from 2 days ARS 30
Cadastral System (Sistema Cadastrales Sociedad Anonima)

4 Request and obtain certificate of level (la certificacion de 2 days ARS 33
nivel)

5 Obtain certificate of line and dimensions (Certificado de 2 days ARS 33
Linea y Dimensiones de Manzana)

6 Obtain construction work use form (formulario Uso 1 day ARS 33
Conforme)

7 Request and obtain certificate of project drawings 1 day ARS 480
(Certificado de Encomienda) from College of Professional
Architects

8 Present the designs and layouts to Cadastral System 3 days ARS 3,447
(Sistema Cadastrales Sociedad Anonima)

21

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

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

11 * Request and obtain sanitary installation plans (Plano de 45 days ARS 3,902
Instalación Sanitaria)

12 * Request and obtain electricity installation plans (Plano de 44 days ARS 3,902
Instalación Eléctrica)

13 * Request and obtain delineation and construction rights 1 day ARS 5,202
(Derechos de delineación y construcción)

14 Request and obtain a new construction project permit 90 days ARS 5,202
(Permiso de Obra Nueva)

15 * Request and obtain environmental impact assessment 60 days ARS 124
certificate

16 Receive construction startup inspection 1 day ARS 12,486

17 Notify the GCBA on completion of the construction work 1 day no charge
foundation and receive inspection

structure and receive inspection

masonry and receive inspection

20 Notify the GCBA on completion of construction work and 1 day no charge
receive inspection

21 Notify the ENRE on completion of the construction work 1 day no charge
and receive inspection

22 Request and obtain electricity inspection certificate 1 day ARS 19

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

24 Request and obtain final authorization (Habilitacion 173 days ARS 335
Municipal)

25 Register the building 1 day no charge

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

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

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

* Takes place simultaneously with another procedure.

22

5. Details on Building a Warehouse in Argentina

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

BUILDING A WAREHOUSE
Estimated warehouse value:ARS 1,248,576

Procedure 1 Cadastral consultation with authorities

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 2 Request and obtain perimetral measurements

Time to complete: 2 days


Fiscalización de

23

Comment:

Procedure 3 Request and obtain land title (nomenclatura parcelaria) from Cadastral System (Sistema
Cadastrales Sociedad Anonima)


Fiscalización de
Comment:

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



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 5 Obtain certificate of line and dimensions (Certificado de Linea y Dimensiones de
Manzana)


Comment:

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



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

Procedure 7 Request and obtain certificate of project drawings (Certificado de Encomienda) from
College of Professional Architects

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 8 Present the designs and layouts to Cadastral System (Sistema Cadastrales Sociedad
Anonima)

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 9 Request and obtain a form for construction works



Comment:

Procedure 10 Request and obtain a “Volante Ochava” form



Comment:

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



Comment:

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



25

Comment:

Procedure 13 Request and obtain delineation and construction rights (Derechos de delineación y
construcción)


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



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 15 Request and obtain environmental impact assessment certificate



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 16 Receive construction startup inspection



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 17 Notify the GCBA on completion of the construction work foundation and receive
inspection


Agency: GCBA

Comment: In practice, the inspectors visit the location in 7–14 days. Suspension of construction is
not required.

Procedure 18 Notify the GCBA on completion of the construction work structure and receive
inspection


Agency: GCBA

not required.

Procedure 19 Notify the GCBA on completion of the construction work masonry and receive
inspection


Agency: GCBA

not required.

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



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



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 22 Request and obtain electricity inspection certificate



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

Procedure 23 Notarize the forms required for final authorization



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 24 Request and obtain final authorization (Habilitacion Municipal)

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 25 Register the building



Agency: Dirección de Rentas

Comment: The building must be registered at the Revenue Department (Dirección de Rentas) by
submitting final approved plans.

Procedure 26 Request and connect to telephone services



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 27 Request and connect to water services



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 28 Request and connect to electricity services



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

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

Good Practice Procedures Time (days) Cost (% of
(number) property
Economies
value)

New Zealand 2

Norway 1

Saudi Arabia 0.0

Selected Economy

Argentina 6 52 7.0


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

34

2. Historical data: Registering Property in Argentina

Registering Property data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 2011

Rank .. .. 114 118


Time (days) 51 51 52 52

Cost (% of property value) 7.0 7.0 7.0 7.0

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.

Time to complete
(days)

1 * Seller must obtain a certificate of ownership ("dominio") 7 days (regular Domain Certificate:
and a certificate of good standing ("inhibiciones") from the procedure for domain ARS 143 (urgent) or
Real Property Registry certificate and personal ARS 75
(regular)Personal
annotation certificate), 1
Annotation
day (urgent procedure)
Certificate: ARS 131
(simultaneous with (urgent) or ARS 68
procedures 2 and 3) (regular)

2 * Obtain a catastral certificate ("certificado catastral") 1 day (simultaneous ARS 39
with procedures 1 and 3)

3 * Obtain a certificate stating that no local taxes related to the 1 day (simultaneous ARS 50
property are due (ABL) with procedures 1 and 2)

4 Obtain "Code of Offer of Transfer of a Property" (COTI) at 1 day no cost
tax agency AFIP

36

5 The public deed is executed by the parties with the 14-28 days Notary public fees:
intervention of a notary public 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)

6 The notary public files the property transfer for registration 28 days ARS 113.5 (regular)
with the Real Property Register or ARS 251.5
(urgent) + 0.2%
property price
additional stamp tax

* Takes place simultaneously with another procedure.

37

5. Details on Registering Property in Argentina

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

STANDARDIZED PROPERTY
Property Value: ARS 1,379,566.91

Procedure 1 Seller must obtain a certificate of ownership ("dominio") and a certificate of good
standing ("inhibiciones") from the Real Property Registry

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,...).

38

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

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

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


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

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


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

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

Good Practice Strength of Depth of Public Private
legal rights credit registry bureau
Economies
index (0-10) information coverage (% coverage (%
index (0-6) of adults) of adults)

New Zealand 100.0

Portugal 67.1

Singapore 10

United Kingdom 6

Selected Economy

Argentina 4 6 30.8 100.0


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

43

2. Historical data: Getting Credit in Argentina

Getting Credit data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 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

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 Public credit
Private bureau coverage (% of adults) 6
bureau registry

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

Are both positive and negative data distributed? Yes Yes 1

Does the registry distribute credit information from retailers, trade Yes No 1
creditors or utility companies as well as financial institutions?

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

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

Is it guaranteed by law that borrowers can inspect their data in the Yes Yes 1
largest credit registry?

Coverage 100.0 30.8

Number of individuals .. 9,123,380

Number of firms .. 133,772

45

Strength of legal rights index (0-10) 4

Can any business use movable assets as collateral while keeping possession of the assets; and any financial Yes
institution accept such assets as collateral ?

Does the law allow businesses to grant a non possessory security right in a single category of movable assets, No
without requiring a specific description of collateral?

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without No
requiring a specific description of collateral?

May a security right extend to future or after-acquired assets, and may it extend automatically to the products, No
proceeds or replacements of the original assets ?

Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligations Yes
and debts can be secured by stating a maximum amount rather than a specific amount between the parties ?

Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by the No
grantor's name of a security right ?

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

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

Good Practice Strength of
investor
Economies
protection
index (0-10)

New Zealand 9.7

Selected Economy

Argentina 4.7


Bolivia 4.0

Brazil 5.3

Ecuador 4.0

Mexico 6.0

Peru 6.7

49

2. Historical data: Protecting Investors in Argentina

Protecting Investors data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 2011

Rank .. .. 108 109

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

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
o

il
ru

ic
nd

a

r

ia
az
ex

do
tin
Pe

liv
Br
a

M

ua
al

en

Bo
Ze

Ec
rg
A
ew
N

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

50

4. Details on Protecting Investors in Argentina

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

Protecting Investors Data (2010) Indicator

Extent of disclosure index (0-10) 6

2
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?
0
Whether disclosure of the transaction in published periodic filings (annual reports) is
required?
2
Whether disclosure of the conflict of interest by Mr. James to the board of directors is
required?
0
Whether an external body must review the terms of the transaction before it takes place?
Extent of director liability index (0-10) 2

0
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?
1
Whether Mr. James pays damages for the harm caused to the company upon a successful
claim by the shareholder plaintiff?

51

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