Peter Thiel and Argentina's New Company Law
Details of the proposed changes for the Corporations Law and Thiel settling in Argentina
Welcome Avatar! The Milei government presented a new bill to Congress that will allow the creation of companies without humans centering on AI, right at the time that Peter Thiel decides to move his family to Buenos Aires.
Anyone who has ever had the pleasure of starting and running a company in Argentina, whether an SRL, S.A. or SaS — I have personally had the honor of running all three at certain stages, before deciding that none of them beats the good old monotributo for what I was trying to achieve — will be familiar with the endless frustrations that go along with it. Besides potential law suits from employees just for the sake of it (since according to the Argentine justice system, the employee is always right), to filing requirements that eat up a decent chunk of the revenue in accountant fees alone, the headaches in Argentina tend to be much larger than in most other jurisdictions.
One element is the objetivo of the company: what will the company service / produce? Up until this day, this company description has to be defined very narrowly in the operating agreement and founding documents, and is legally binding. This often results in company activity descriptions that range from space travel to selling candy in a kiosko, just to be safe that all potential use cases of the company are covered without having to amend the company documents at a later stage.
With the new proposed changes to the company law, that will be a thing of the past, together with a range of other modifications. Find an overview of the most important changes below, together with a closer look on Peter Thiel’s decision to settle in Argentina.