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  • Form of entity

    Corporation (Sociedad Anónima or SA)

    Separate and distinct legal entity. Admits a minimum of two shareholders. Managed by a board of directors who are elected by the stockholders of the corporation.

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    Separate and distinct legal entity. Admits exclusively one shareholder. SAUs are not allowed to be incorporated or wholly owned by SAUs. Managed by a board of directors who are elected by the only stockholder of the corporation.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    Separate and distinct legal entity. Admits one or more shareholders. Managed by a board of directors who are elected by the stockholders. There is an established form of bylaws and public notice that, if used, shall enable the registration of the SAS within 24 hours in the City of Buenos Aires. This new corporate type aims to be more agile and economic alternative, both in its incorporation and in the administration and management. Its incorporation and development are entirely digital.

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    Separate and distinct legal entity. Admits a minimum of 2 members and a maximum of 50. Managed by a single manager or several managers with full powers who may act individually, or by a Board of Managers acting by majority, appointed by the members.

  • Entity set up

    Corporation (Sociedad Anónima or SA)

    • Two or more shareholders
    • The local management is in charge of a board of directors, which may have at least one member, no maximum number (at least three directors and one alternative director in case the company's capital stock exceeds ARS$50 million). Directors shall last between one and three years in office, as provided in the bylaws. They may be reelected. The majority of the board of directors must be composed of Argentine residents
    • The president of the board is the legal representative of the company
    • Statutory auditor is optional. Mandatory if capital stock exceeds ARS$50 million
    • Typical charter document: bylaws
    • Corporate Books: stock ledger, shareholders' meeting minutes, board of directors' meeting minutes and attendance records book
    • Should cash be paid out as consideration for the stock; only 25% needs to be paid up upfront, and the balance is paid within two years after that. When considerations for the stock are contributions in kind, the stock must be fully paid off at the time of subscription of the shares

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    • Only one shareholder
    • The local management is in charge of a board of directors, which may have at least one member, no maximum number (at least three directors and one alternative director in case the company's capital stock exceeds ARS$50 million). Directors shall last between one and three years in office, as provided in the bylaws. They may be reelected. The majority of the board of directors must be composed of Argentine residents
    • The president of the board is the legal representative of the company
    • Permanent control by government
    • Statutory auditor is mandatory (at least one regular and one alternate statutory auditor)
    • Typical charter document: bylaws
    • Corporate books: stock ledger, shareholders' meeting minutes, board of directors' meeting minutes and attendance records book
    • Capital stock shall be fully paid up upon execution of bylaws
    • SAUs are not allowed to be incorporated or wholly owned by another SAU

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    • One or more shareholders
    • The managers must be individuals, who may be appointed for an indefinite period. At least one director needs to be an Argentinean resident (provided that the Argentinian resident director is the legal representative of the company)
    • Statutory auditor is optional
    • Corporate books: carried by electronic means (stock ledger, minutes and attendance records book)
    • Should cash be paid out as consideration for the stock; only 25% needs to be paid up upfront, and the balance is paid within two years after that. When considerations for the stock are contributions in kind, the stock must be fully paid off at the time of subscription of the shares

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    • Two or more members
    • The local management is in charge of single or several managers with full powers who may act individually, or a board of managers acting by majority. Managers may be appointed for an indefinite term. The majority of the board of managers must be composed of Argentine residents
    • The legal representative of the company can be a single manager. All managers or a president of the board of managers are entitled with full powers
    • Statutory auditor is optional. Mandatory if capital stock exceeds ARS$10 million (at least one regular and one alternate member)
    • Typical charter document: bylaws
    • Corporate books: minutes
    • Should cash be paid out as consideration for the stock; only 25% needs to be paid up upfront, and the balance is paid within two years after that. When considerations for the stock are contributions in kind, the stock must be fully paid off at the time of subscription of the shares.
  • Minimum capital requirement

    Corporation (Sociedad Anónima or SA)

    Minimum capital of SA is ARS$100,000.

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    Minimum capital of SAU is ARS$100,000.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    Minimum capital of SAS shall be twice the national minimum vital and mobile wage established at the time of its incorporation (as of March 2019: ARS$23,800).

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    No minimum capital requirement.

  • Legal liability

    Corporation (Sociedad Anónima or SA)

    Directors must act honestly and in good faith in best interests of the company. Directors can be held personally liable to the company, shareholders and third parties if they fail to comply with their general legal duties or specific duties contained in Argentine Law 19,550.

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    Directors must act honestly and in good faith in best interests of the company. Directors can be held personally liable to the company, shareholders and third parties if they fail to comply with their general legal duties or specific duties contained in Argentine Law 19,550.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    Liability of directors of a corporation under Law 19,550 is applicable to SAS managers. In addition, individuals who are not managers or legal representatives of an SAS, or legal persons acting as managers, are liable in the same way as managers, and their liability will be extended to the acts in which they did not intervene but which they habitually performed.

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    In case of SRLs, when articles allow distribution of management powers among individual members of the board of managers, board's liability depends on the individual performance of each manager.

  • Tax presence

    Sociedad Anónima (Corporation) and SRL (LLC)

    An S.A., same as an SRL (LLC), is considered an Argentine resident for tax purposes and is obligated to pay taxes on income obtained worldwide, whether earned within Argentina or abroad. An S.A. may take the sums effectively paid abroad for analogous taxes, for activities carried out abroad as a payment for taxes (within certain limits).

  • Incorporation process

    Corporation (Sociedad Anónima or SA)

    File bylaws for registration with the Public Registry. Starting from April 4, 2018, an "urgent" registration process may be followed to obtain the company's registration and its tax ID within 24 hours, in case no observations are made by the Public Registry in the City of Buenos Aires.

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    File bylaws for registration with the Public Registry. Starting from April 4, 2018, an "urgent" registration process may be followed to obtain the company's registration and its tax ID within 24 hours, in case no observations are made by the Public Registry in the City of Buenos Aires.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    File bylaws for registration with the Public Registry. There is an established form of bylaws and public notice that, if used, shall enable the registration of the SAS within 24 hours through digital means in the City of Buenos Aires.

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    File bylaws for registration with the Public Registry. An "urgent" registration process may be followed to obtain the company's registration, its tax ID and corporate books within 24 hours, in case no observations are made by the Public Registry in the City of Buenos Aires.

  • Business recognition

    Corporation (Sociedad Anónima or SA)

    Well regarded and widely used.

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    This new corporate type was introduced in Argentina in August 2016 pursuant the Argentine Civil and Commercial Code modification and is beginning to be used.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    This new corporate type aims to be more agile and economic alternative, both in its incorporation and in administration and management. Its incorporation and development will entirely be in digital form.

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    Well regarded and widely used. This is the type of company usually preferred by foreign shareholders due to tax purposes.

  • Shareholder meeting requirements

    Corporation (Sociedad Anónima or SA)

    Required to hold annual meeting of shareholders to approve the financial statements of the company.

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    Required to hold annual meeting of shareholders to approve financial statements of the company.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    Required to hold annual meeting of shareholders to approve financial statements of the company.

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    Required to hold annual meeting of members to approve financial statements of the company.

  • Board of director meeting requirements

    Corporation (Sociedad Anónima or SA)

    The board shall meet at least once every three months.

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    Periodical meetings of the board are not required.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    Periodical meetings of the board are not required.

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    Periodical meetings of managers are not required.

  • Annual company tax returns

    All corporations must annually file tax returns with federal and state tax authorities.

  • Business registration filing requirements

    Corporation (Sociedad Anónima or SA)

    Initial registration is required, as well as annual filings (financial statements of the company before the Public Registry and the Tax Authority). Every appointment or resignation of directors, change of domicile or bylaws' amendments must be filed with the Public Registry for registration.

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    Initial registration is required, as well as annual filings (financial statements of the company before the Public Registry and the Tax Authority). Every appointment or resignation of directors, change of domicile or bylaws' amendments must be filed with the Public Registry for registration.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    Initial registration is required. SAS doesn't file its financial statements with the Public Registry, but these documents must be filed with the Tax Authority. Every appointment or resignation of directors, change of domicile or bylaws' amendments must be filed with the Public Registry for registration.

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    Initial registration is required. Only SRLs which capital stock exceeds ARS$50 million shall file their annual financial statements with the Public Registry. However, all SRLs must file their fincancial statements with the tax authorities.

  • Business expansion

    Corporation (Sociedad Anónima or SA)

    No need to change as business expands.

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    If the number of shareholders exceeds one, the SAU must convert to an SA or SAS.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    No need to change as business expands.

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    If the number of members exceeds 50, the SRL must convert to an SA or SAS.

  • Exit strategy

    Any corporate type shall file dissolution documents with the Public Registry.

  • Annual corporate maintenance requirements

    Corporations and single-shareholders corporations must pay annual fee to the Public Registry.

  • Director / officer requirements

    Not applicable for this jurisdiction.

  • Local corporate secretary requirement

    Not applicable for this jurisdiction.

  • Local legal or admin representative requirement

    Not applicable for this jurisdiction.

  • Local office lease requirement

    In some circumstances, the Tax Authority requires evidence of the declared domicile.

  • Other physical presence requirements

    Not applicable for this jurisdiction.

  • Sufficiency of virtual office

    Not applicable for this jurisdiction.

  • Provision of local registered address by law firm or third-party service provider

    A company must provide its registered address. In certain circumstances, a law firm office can provide the registered address until the local entity hires an office. In this case, the company is requested to move its registered office to its new location.

  • Provision of local director or corporate secretary by law firm or third-party service provider

    A company shall provide a local director. In certain circumstances, a law firm may provide a local director service at a monthly rate.

  • Nationality or residency requirements for shareholders, directors and officers

    Corporation (Sociedad Anónima or SA)

    Majority of members of the board need to be Argentinean residents.

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    Majority of the members of the board need to be Argentinean residents.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    At least one director needs to be Argentinean resident (provided that the Argentinean resident director is the legal representative of the company).

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    Majority of the members of the board need to be Argentinean residents.

  • Restrictions regarding appointment of nominee shareholders or directors

    Not applicable for this jurisdiction.

  • Summary of director's, officer's and shareholder's authority and limitations thereof

    Not applicable for this jurisdiction.

  • Public disclosure of identity of directors, officers and shareholders

    Not applicable for this jurisdiction.

  • Minimum and maximum number of directors and shareholders

    Corporation (Sociedad Anónima or SA)

    • Two or more shareholders
    • Board of directors, which must have at least one member, no maximum number requirement (at least three directors and one alternative director in case the company's capital stock exceeds ARS$50 million)

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    • One shareholder
    • Board of directors, which must have at least one member, no maximum number requirement (at least three directors and one alternative director in case the company's capital stock exceeds ARS$50 million)

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    • One or more shareholders
    • The managers must be individuals, who can be appointed for an indefinite period

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    • Two or more members (within a maximum of 50 members)
    • The local management is maintained by a single manager, several managers with full powers who may act individually, or a board of managers acting by majority. Managers may be appointed for an indefinite term
  • Minimum number of shareholders required

    Corporation (Sociedad Anónima or SA)

    At least two or more shareholders.

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    Only one shareholder is admitted.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    At least one shareholder.

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    At least two or more members.

  • Removal of directors or officers

    Removal of directors or managers shall be approved by the shareholders meeting and then registered in the Public Registry.

  • Required and optional officers

    Not applicable for this jurisdiction.

  • Board meeting requirements

    Not applicable for this jurisdiction.

  • Quorum requirements for shareholder and board meetings

    Corporation (Sociedad Anónima or SA)

    The Board makes decisions by a simple majority of directors present at the relevant meeting, with a quorum of an absolute majority of total number of directors, unless the company's articles provide for a higher quorum and majority.

    In case of annual or regular shareholders' meetings, the required quorum shall be constituted by shareholders representing the majority of the voting shares. If quorum is not reached, the meeting can be held at a second call. In this case, the meeting is duly constituted with any number of shareholders present. On the other hand, special meetings require the presence of shareholders representing 60% of the voting shares, unless the articles provide for a higher quorum. If quorum is not reached, the meeting can be held at a second call. In this case, the meeting is duly constituted with the presence of shareholders representing 30% of the voting shares, unless the articles provide otherwise.

    Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

    The board makes decisions by a simple majority of directors present at the relevant meeting, with a quorum of an absolute majority of total number of directors, unless the company's articles provide for a higher quorum and majority.

    In the case of shareholders' meeting, quorum is reached if at least one shareholder of the company is present.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    Meetings may be held physically or through digital means (video or teleconference). Managers and members may call themselves to hold deliberations, with no need of prior notice. The management body's resolutions are valid as long as all members attend, and the majority as stated in the bylaws approve the agenda. Member's resolutions will be valid, provided that all partners attend and the agenda is passed unanimously.

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    The board makes decisions by a simple majority of the managers present at the relevant meeting, with a quorum of an absolute majority of total number of directors, unless the company's articles provide for a higher quorum and majority.

    In case of annual or regular members' meetings, required quorum is constituted by the shareholders representing the majority of the voting shares. If quorum is not reached, meeting can be held at a second call. In this case, the meeting is duly constituted with any number of shareholders present. On the other hand, special meetings require the presence of members representing 60% of voting shares, unless articles provide for a higher quorum. If quorum is not reached, a meeting can be held at a second call. In this case, the meeting is duly constituted with the presence of members representing 30% of voting shares, unless the articles provide otherwise.

  • Must a bank account be opened prior to incorporation, and must the bank account be local?

    Not applicable for this jurisdiction.

  • Auditing of local financials. If so, must the auditor be located in local jurisdiction, and must the company's books be kept locally?

    All companies need to have at least annual financial statements audited. The auditor must be located in Argentina and the company's corporate and accounting books must be kept locally.

  • Requirement regarding par value of stock

    Not applicable for this jurisdiction.

  • Increasing of capitalization if needed

    Not applicable for this jurisdiction.

  • Summary of how funds can be repatriated from your jurisdiction (ie dividends or redemption)

    When approving annual financial statements, shareholders' meeting can resolve to distribute dividends, which will be transferred to respective shareholders.

  • Restrictions on transferability of shares

    Corporation (Sociedad Anónima or SA)

    No restrictions, unless otherwise provided in bylaws. Transfers are reported to the company and recorded in Stock Ledger Book.

    Single-Shareholder Corporation (Sociedad por Acciones Unipersonal or SAU)

    No restrictions, unless otherwise provided in bylaws. Transfers are reported to the company and recorded in  Stock Ledger Book.

    Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

    No restrictions, unless otherwise provided in bylaws. Transfers are reported to the company and recorded in Stock Ledger Book.

    Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

    No restrictions, unless otherwise provided in bylaws. Transfers shall be reported and registered with the Public Registry of Commerce.

  • Obtaining a name and naming requirements

    Corporate name must contain the type of company it adopted. Name may be reserved before registering the company by paying and filing a form with the Public Registry, in case chosen name is available.

  • Summary of "know your client" requirements

    Not applicable for this jurisdiction.

  • Approval requirements for amending charter document

    Amendments to bylaws in all companies must be approved by shareholders or members' meeting and then filed for registration by the Public Registry.

  • Licenses required to conduct business in jurisdiction

    Not applicable for this jurisdiction.

  • Process of purchasing and utilizing a shelf company

    Not applicable for this jurisdiction.

  • Key contacts
    Martin Mittelman
    Martin Mittelman
    Partner DLA Piper (Argentina) [email protected] T +5411 41145500 View bio
    Antonio Arias
    Antonio Arias
    Partner DLA Piper (Argentina) [email protected] T +5411 4114 5500 View bio

Business recognition

Argentina

Corporation (Sociedad Anónima or SA)

Well regarded and widely used.

Single-Shareholder Corporation (Sociedad Anónima Unipersonal or SAU)

This new corporate type was introduced in Argentina in August 2016 pursuant the Argentine Civil and Commercial Code modification and is beginning to be used.

Simplified Corporation (Sociedad por Acciones Simplificada or SAS)

This new corporate type aims to be more agile and economic alternative, both in its incorporation and in administration and management. Its incorporation and development will entirely be in digital form.

Limited Liability Company (Sociedad de Responsabilidad Limitada or SRL)

Well regarded and widely used. This is the type of company usually preferred by foreign shareholders due to tax purposes.

Australia

Branch

Less common (and thus less well known to third parties) than a subsidiary.

Proprietary company

Well regarded and widely used.

Public company

Well regarded and widely used. All Australian companies listed on the Australian Securities Exchange (ASX) are public companies.

Austria

OG, KG, GmbH and AG are well regarded and widely used. GmbH is the most used form of a corporate entity in Austria.

Bahrain

With Limited Liability (WLL)

Well-regarded and widely used.

Closed Shareholding Company (BSC(c))

Well-regarded and widely used.

Single Person Company (SPC)

Well-regarded and widely used.

Foreign Branch (Branch)

Well-regarded and widely used.

Belgium

Public limited company (société anonyme/naamloze vennootschap)

Well regarded and widely used.

Limited company (société à responsabilité limitée/besloten vennootschap)

Company of reference. Used by US companies for tax reasons since it qualifies for check-the-box election in the US.

Belgian branch office of a foreign company

Regularly used.

Brazil

Limited liability company (Sociedade Limitada)

Well regarded and widely used for a simpler and less expensive corporate structure.

Corporation (Sociedade Anônima)

Well regarded and widely used, especially for medium and large businesses.

Canada

Corporate subsidiary (Corporation form rather than flow-through form) 

Well regarded and widely used.

Chile

Branch of a foreign corporation (Agencia de Sociedad Anónima Extranjera)

Not frequently used by foreign corporations since it is not an autonomous legal entity.

Corporation (Sociedad Anónima)

Well regarded and widely used for big businesses and companies seeking financing options in the equity market.

Limited liability company (Sociedad de Responsabilidad Limitada)

Well regarded and used regularly by small and medium-size family enterprises and businesses.

Limited liability partnership (Sociedad en Comandita)

Not used regularly.

Partnership limited by shares (Sociedades por Acciones)

Well regarded and used regularly by small and medium-size enterprises and businesses, especially venture capital.

China

Well regarded and widely used.

Colombia

General partnership (Sociedad Colectiva)

Rarely used.

Limited partnership (Sociedad en Comandita Simple y por Acciones)

Rarely used.

Limited liability company (Sociedad de Responsabilidad Limitada)

Not frequently used.

Corporation (Sociedad Anónima)

Widely used.

Simplified stock company (Sociedad por Acciones Simplificada)

Widely used.

Czech Republic

Well regarded and widely used. Joint stock company and limited liability company are the most used forms of a corporate entity in Czech Republic.

Denmark

Limited liability company (Kapitalselskab)

Public and private limited companies are both well-regarded and widely used. 

The entrepreneur company (IVS) – which could be formed until April 15, 2019 – and the limited partnership company are in the newer alley of corporate forms, thus not as commonly known. However, both company forms provide certain benefits in regard of share capital requirements and tax considerations.

For instance, many partner-based companies, such as liberal professions, law firms and auditing firms, have reorganized to a limited partnership company in recent years.

Egypt

JSC

Well regarded and widely used.

LLC

Well regarded and widely used.

OPC

New entity form based on an attractive single founder structure.

Branch

Regularly used where there is a foreign company which requires a specific contract to be carried out in Egypt.

RO

Regularly used where the goal is to carry out market exploration and analysis as opposed to carrying out commercial activities.

Finland

Osakeyhtiö (Oy)

Well regarded and widely used. Most commonly used is private company, and mainly only listed companies are public companies.

France

Société par actions simplifiée (SAS)

Highly regarded and widely used.

Société à responsabilité limitée (SARL)

Highly regarded and widely used.

Société anonyme (SA)

Highly regarded for large companies but considered as a very complex form. Not appropriate for a first incorporation in France.

Germany

GmbH – limited liability company

Most popular legal form in Germany. However, some people might feel more secure contracting with bigger companies, especially stock companies (AG) or smaller companies where the partners are subject to personal liability.

Greece

Societe anonyme (S.A.)

Well regarded and extensively used especially for companies that wish to have a significant share capital, different shareholders and more sophisticated decision making.

Limited liability company (L.T.D.)

Well regarded and used regularly in various industries. Used frequently by Foreign entities with a small scale of activity in Greece.

Private company (P.C.)

Relatively new type of capital company with lots of similarities to L.T.D. During recent years, this type of entity has been more frequently used by foreign entities who wish to incorporate a subsidiary in Greece due to its flexibility, simple incorporation (thorough a private agreement) and its partners' contributions system.

Hong Kong

Limited private companies

Well regarded and widely used.

Hungary

Private company limited by shares (Zrt.)

Well regarded and widely used.

Limited liability company (Kft.)

Most widely used corporate form in Hungary.

India

Private limited company

Highly regarded.

Indonesia

Limited liability company

Well regarded and widely used.

Ireland

Private company limited by shares (LTD)

Very well recognized. A LTD is the most common form of corporate entity used in Ireland.

 

External company

Well recognized.

Israel

Company

Well regarded and widely used.

Branch / representative office

Well regarded and not uncommon for corporation with limited local presence (eg limited sales or marketing activity).

Italy

Società a responsabilità limitata (S.r.l.)

Well regarded and widely used. The most common corporate entity in Italy for small to medium sized businesses, especially due to the flexibility in management.

Japan

Registered branch

This form is used by foreign companies which wish to gain presence without establishing a subsidiary in Japan.

Kabushiki-Kaisha (KK)

Well regarded and widely used.

Godo-Kaisha (GK)

Some business entities may be hesitant in dealing with third party GKs since the structure is relatively new. A GK structure was introduced with the adoption of revised Japanese Companies Act in 2006, and it took some time to come to be recognized. However, as the number of GKs increased and some major global companies selected GKs as entities in Japan, GKs are getting to be commonly used.

Luxembourg

Private limited liability company (Société à responsabilité limitée or S.à r.l.)

Well regarded and widely used.

Public limited liability company (Société anonyme or S.A.)

Well regarded.

Special limited partnership (Société en commandite spéciale or SCSp)

Well regarded and widely used in the private equity/funds industry.

Malaysia

A private limited company is a well-established and widely recognized business entity.

Mexico

S.A. de C.V.

Well regarded and widely used.

S. de R.L. de C.V.

Well regarded and widely used.

S.A.P.I. de C.V.

Well regarded and widely used.

Netherlands

Branch office

Widely used.

B.V. (private company with limited liability)

Well regarded and widely used.

Co-operative U.A.

Well regarded and widely used.

C.V. (a limited partnership)

Widely used.

New Zealand

Limited liability company

Well regarded and widely used.

Branch

Less common (and thus less well known to third parties) than a subsidiary.

Norway

Private LLCs

Well regarded and widely used.

Public LLCs

Well regarded, but not widely used because private LLCs fits most companies requirements.

Partnerships with liability

Well regarded, but not widely used except for in particular sectors.

Philippines

Subsidiary

Being a separate and distinct legal entity from its parent company, it is an attractive investment option for foreign entities wishing to do business in the Philippines.

Branch office

Appeals to entities that wish to maintain the decision making as being centralized with the foreign company's Board of Directors (or its equivalent) abroad.

Representative office

Caters to entities that do not intend to engage in business or derive income from the Philippines. It is allowed to undertake limited activities, such as, information dissemination, promotion of the home office/foreign company's products and quality control.

Regional or area headquarters

Caters to entities that do not intend to engage in business or derive income from the Philippines. The purpose of a regional or area headquarters is limited to supervising, superintending, inspecting and/or coordination all subsidiaries, affiliates and branches in the Asia-Pacific region of the home office/foreign company. It is an administrative branch and is not allowed to participate in the management of any subsidiary/branch office the foreign company may have; it also cannot solicit or market goods and services.

Regional operating headquarters

Caters to entities that wish to avail of certain tax incentives. Unlike a regional or area headquarters, it may derive income from the Philippines and perform qualifying services such as general administration and planning, business planning and coordination, sourcing/procurement of raw materials/components, marketing control and sales promotion, training and personnel management, logistic services, corporate finance advisory services, etc.

Partnership

Easier to form since it will no longer go through an incorporation process and only articles of partnership would be required. No need to obtain a license to do business in the Philippines if a foreign company intends to be a limited partner (as opposed to a general partner which is required to secure such license).

Instead of having directors and officers elected/appointed to perform certain activities and exercise powers, its partners may perform acts which would bind the partnership.

Poland

Limited liability and joint-stock companies

A limited liability company is the most popular organizational form for business in Poland, whilst joint-stock companies are typically used to serve large, multi-service undertakings.

Partnerships

Partnerships are more popular among freelance professions, in family businesses and in undertakings founded upon mutual trust between the partners.

Branches

Branches are set up by foreign companies that do not wish to have a full-scale presence in the country through a separate Poland-based entity.

Portugal

Sole shareholder private limited liability company (LDA with 1 shareholder)

Corporate vehicles most frequently used and incorporated in Portugal are private limited liability companies. Sole shareholder private limited liability company is a corporate structure associated with small businesses. It is well regarded.

Private limited liability company (LDA)

Corporate vehicles most frequently used and incorporated in Portugal are private limited liability companies. Usually, in this type of company, the identity and characteristics of the partners prevail over the capital element. It is a convenient form of organisation for small and/or closely held enterprises due to its less complex administrative and supervisory structure.

Private limited liability companies are well regarded.

Joint stock company (SA)

Joint stock companies are traditionally more capital intensive and are associated with larger businesses. Joint stock companies have more complex administrative needs and require a supervisory structure.

Joint stock companies are well regarded and used.

Puerto Rico

Corporations

Well regarded and used.

Limited Liability Companies

Well regarded and used.

Romania

JSCs and LLCs are well regarded and widely used, as opposed to other types of companies.

Russia

Joint-stock company (public and non-public)

Public joint-stock company – mainly used for the large companies.

Non-public joint-stock company – not so widely used in comparison with the limited liability companies, as the procedure for incorporation is more complicated.

Limited liability company

Well regarded and widely used.

Saudi Arabia

Limited liability company

Well regarded and widely used.

Singapore

Limited liability company 

Well regarded and widely used.

South Africa

Private company

Well regarded and most widely used.

Public company

Well regarded and widely used.

External company

Well regarded and widely used. This is the most appropriate structure for foreign companies wishing to expand their business into South Africa.

South Korea

Joint-stock company (Jusik Hoesa)

Generally used by large-sized companies.

Limited company (Yuhan Hoesa)

Generally used by small and medium-sized companies; often used by individuals operating small family-owned business.

Spain

Branch (Sucursal)

Well regarded and widely used.

Limited liability company (Sociedad Limitada)

Well regarded and widely used.

Joint-stock company (Sociedad Anónima)

Well regarded and widely used.

Sweden

Limited company (Sw. aktiebolag, AB)

Well regarded and widely used.

Trading partnership (Sw. handelsbolag, HB)

Well recognized but not as widely used as limited companies (Sw. Aktiebolag, AB).

Limited partnership (Sw. kommanditbolag, KB)

Well recognized but not as widely used as limited companies (Sw. Aktiebolag, AB).

Branch office (Sw. filial, Branch)

Well regarded but not as widely used as a limited company (Sw. Aktiebolag, AB).

Switzerland

Stock corporation

Well regarded and widely used, more than 35% of the companies in Switzerland are organized as stock corporations.

Taiwan

Company limited by shares

Well regarded and widely used.

Closely-held company limited by shares

Well regarded.

Limited company

Typically an individual or family-owned company.

Branch office of a foreign company

Widely used by foreign companies because of certain tax advantages.

Thailand

Private limited company

Well regarded and widely used.

Public limited company

Well regarded and widely used.

Partnerships

Unregistered ordinary partnership

Well regarded and widely used, in particular for local business operators.

Registered ordinary partnership

Well regarded, but not widely used.

Limited partnership

Well regarded and widely used, in particular for local business operators.

Turkey

Well regarded, but not widely used.

United Arab Emirates

LLC

Well-regarded and widely used.

Branch

Well-regarded and widely used.

FZ-LLC

Well-regarded and widely used.

FZ-Branch

Well-regarded and widely used.

Dual Licence Branch

Relatively new development and gaining popularity.

United Kingdom

Private limited company

Well regarded and widely used.

Limited liability partnership (LLP)

Not as widely used as a private limited company.

Registered UK establishment

Not as well regarded and widely used as a private limited company.

United States

C corporation

Well regarded and widely used.

S corporation

Well regarded and widely used. Many institutional investors will require an S corp to convert to a C corp before investing, though conversion is simply with a single tax form.

Limited liability company (LLC)

Well regarded and used regularly in particular industries, but otherwise not as widely used generally.

Vietnam

Joint stock company (JSC)

JSC is not widely used by foreign investors for investment in Vietnam, unless they intend to offer the JSC's shares to the public and trade their shares on a stock market.

Multi-member limited liability company (2M-LLC)

2M-LLC is not widely used by foreign investors, unless they engage in conditional businesses where foreign ownership is restricted. In this case, they have to set up joint ventures with local partners. 2M-LLC may also be chosen if there are more than one foreign investors that intend to do business together.

Single-limited liability company (IM-LLC)

1M-LLC is widely used by foreign investors.