Do I Need a Local Entity to Hire in Argentina?

In Argentina, a "local entity" typically refers to a legally recognized presence that can act as an employer, such as a subsidiary or branch office. This setup allows you to fulfill local payroll and employment obligations, ensuring compliance with Argentine labor laws.

Without establishing a local entity, you may struggle to manage payroll, register as an employer, and comply with mandatory employment protections. An alternative is using an Employer of Record (EOR), which can hire on your behalf while you remain compliant with local regulations.

What is Required to Employ Someone in Argentina?

• Local employing entity required to directly employ? Yes (you need a local entity to register as an employer)
• Payroll registration required? Yes (you must register with the AFIP for payroll compliance)
• Withholding/tax remittance required? Yes (mandatory withholding for income tax applies)
• Social contributions required? Yes (employers must contribute to social security and health insurance)
• Local employment agreement required? Yes (written contracts are mandatory under Argentine law)
• Mandatory benefits to budget? Yes (includes paid leave, health insurance, and retirement contributions)
• Works council/collective agreements considerations? Often (many sectors have collective agreements influencing employment terms)

Best Options If You're Hiring in Argentina

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you need to be cautious about misclassification risks.

While hiring contractors can bypass the need for a local entity, Argentine labor laws are strict about worker classification. If the contractor's work resembles that of an employee, you could face legal challenges. It's crucial to ensure that contractors operate independently and are not integrated into your business operations.

• Ensure the contractor has multiple clients.
• Limit control over their working hours and methods.
• Clearly define the scope of work in the contract.

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 4–8 weeks to establish an entity in Argentina, depending on the type of entity and required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated ARS 50,000–100,000 per month ($130–$260)
• Payroll provider: Estimated ARS 5,000–15,000 per employee per month ($13–$39)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated ARS 100,000–300,000 per year ($260–$780)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 per month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions, mandatory benefits)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Argentina

Hiring in Argentina can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in Argentina quickly without establishing a local entity, eliminating incorporation costs, ongoing administration, and exit complexity.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business, while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.