Post Number: 6
|Posted on Thursday, August 09, 2007 - 6:32 pm: |
Hi everyone - I havenīt posted much on this site, although reading the other posts have proven helpful in the past.
I moved here a month ago from London, and when I quit my job, my firm offered me a couple of months remote work from BA as they didnīt want to lose me. Now they are suggesting instead of a satelitte office in COsta Rica for US cliets, they let me set it up in BA But I have to pitch why first!
Apart from the great exchange rate, good education, time zone etc. does anyone have any ideas how difficult it is to do?
Post Number: 179
|Posted on Thursday, August 09, 2007 - 7:10 pm: |
There are lots of reasons. Tell your company that several respected companies are moving here vs. India. I'm not just talking about small no-name companies but cite examples like Google which recently opened an office here. You named some reasons.
The labor costs are VERY affordable compared to the USA/UK. There is a highly educated workforce here and there is a talented group here to draw from. The well educated speak excellent English. So your labor costs will be very low. I can't compare it to Costa Rica but only speaking compared to London or the USA. The time zone from the USA is only 1 hour from the East Coast time (if your client base is mostly American). Rental spaces here are also very affordable compared to most major cities around the world. The city is also well "wired" with Internet which could be a problem in many parts of Costa Rica.
You will need to set up a local SRL (corporation) or S.A. but any good lawyer can assist you. There are lots of reasons depending on what your field is but I'd rather live in Buenos Aires vs. Costa Rica any day of the week.
Post Number: 1235
|Posted on Friday, August 10, 2007 - 12:03 am: |
What Mike said... and... prepare yourself for a lot of red tape. The word "tenacity" and "persistance" comes to mind. It can be done!
Post Number: 19
|Posted on Friday, August 10, 2007 - 4:27 am: |
Adam, the "joke" has always been that Argentina has a great future...meaning that the "greatness" will never be as it is always in the future. I think, however, that there has been a major shift in the mindset of the Argentine people over the last 15 years. There is a long way to go, but one thing is very clear to me and that is that the argentine mindset "compliments" and creates a synergy that is hard to beat when it works well.
When the argentine benefits from the anglo-saxon organization and admin skills and the anglo benefits from the creative energy and contagious enthusiasm the argentines can have, the result is very good!
Post Number: 7
|Posted on Friday, August 10, 2007 - 10:57 am: |
Yes I am worried about the red tape - I also looked at a World Bank report that rated Argentinaīs capacity for opning new businesses in economic indices. While it was quite confusing (even though i am an economic graduate!) my biggest concern was it seemed to represent a large amount of profits that the government would take as tax, in comparison to other countries.
Now I understand foreign firms have the same rights now as Argentine, so it must be the same for your firms - whatīs the story on this? Are you handing over large amounts of your earnings? And would it be relevant for my company, which is in essence, building a very small call centre (I am a recruiter and headhunter - my firm are an HR Consultancy, and one of the products we rovide is outsourced recuitment - so I will be advertising roles, screening people over the phone, organising the interviews etc. The firm would then charge the client an amount for any placements we make without the use of a (more expensive) agency).
P.S. Thanks for the info so far!
Post Number: 1236
|Posted on Friday, August 10, 2007 - 2:22 pm: |
With Argentina a good rule of thumb would be to forget about books, college papers and essays as nothing really makes sense. One economics professor once told us that there were 2 exceptions to world markets; Japan having nothing and creating riches and Argentina, having everything and... you know what follows.
Red tape will be your main concern as you will find small and annoying obstacles along the way to the point you may consider giving up (sometimes it gets this bad even for argentines), although at other times some other problems may be solved with suprising ease -read either contacts or money-. As for earnings, a good accountant will work with you to minimize the burden. I know call centers have special regulations, so many have been opened in the last couple of years. Some accountants may be very savvy on how to make this work.
My advise, you must explain such good accountant the basis of your work and see what set ups are available taking into account possible earnings and take it from there.
Your second biggest headache will be moving money. Not only Argentina has many restrictions (self-imposed and from other countries that got burned) but also -around the world- moving money has become an issue for reasons we all know. So explore this *thoroughly*.
Finally, take a very good look at internet connections and what may or may not apply to you. Some of your work seems to be relying on internet and although connections are not bad you may encounter heavy headwinds. If you require T1s or T3s you may be for a suprise.
BTW, does anyone here know how to get an economic (and reliable) T1 line in BA or the ongoing rate?
Post Number: 180
|Posted on Friday, August 10, 2007 - 3:54 pm: |
Yes, Roberto (as usual) is spot on target. Although your company can open an office here make sure to note that NOTHING in this country is easy. Many laws don't make sense, tons of red tape, seemingly simple and straightforward things in the USA/UK are not here.
I posted good reasons why your firm might want to open an office here but definitely you need to talk to a good accountant and good law firm and the problem is many of them in town are so busy they aren't taking on new clients. Make sure you get 3-4 different opinions with lawyers and accountants. When I was going to start a corporation here I consulted several and got conflicting information. The laws are complex here.
Taxes are VERY high here in Argentina and also although labor is cheaper here the taxes to properly do business is very high % wise. Also, the laws are heavily in favor of employees and NOT employers. Even when you have cause to fire them, you still must pay them when you terminate them based on how long they worked for you. Case in point, my friend's father owns a large construction company here in Argentina. One of his employees was drunk while driving on the job. He got fired and he sued the company and still ended up walking away with a settlement.
Lots of paperwork. Banks here in Argentina are HORRIBLE. It's like the stone ages here with their banking system. It would horrify some to know that the banks here have a tax on credits and debits of 0.6% for each credit and each debit. So when you write a check you are taxed on it. Or when you deposit money as well. Legally, all expenses over 1,000 pesos MUST be written with a check. There are tons of other examples like that.
I think you should go into it with your eyes wide open. Argentina is a great country but a VERY difficult country to make money in. Also, the scam factor is high so you must stay alert at all times with your vendors.
Post Number: 8
|Posted on Sunday, August 12, 2007 - 11:06 am: |
Thanks guys - indeed, eyes must be kept wide open!
The bottom line is - I think my firm wants to SAVE money, not necessarily MAKE money. By recruiting 4 or 5 recruiters in Argentina, that will save them having them based onsite in the U.S. We will source roles (find the people for openings) from Argentina instead of the USA.
Would you guys say it is easier to SAVE money, rather than MAKE money (as "Saint" or Mike I think, put it) in Argentina. Is there a typical number (ie 30%) that company owners are expected to pay on the profit they make, and does that apply to someone who is setting up an operational centre, such as a call centre?
Sorry Roberto - I am not sure what a T1 is! I assume some sort of Terminal... Sorry I cant help!
Post Number: 1237
|Posted on Sunday, August 12, 2007 - 5:23 pm: |
A T1 is a fiber optic line that moves data 50+ times faster than residential lines. Can't answer in great detail but I think in general, yes, you can save money. The hurdles you must overcome will not make a hole in your bank account or your company's... will just leave you with more gray hair.