---
title: "Argentina EOR vs Entity 2026 | Crossover + When to Switch"
description: "Argentina EOR vs own entity. Employer social security 26.4%. Entity setup typically USD 4,000 to 12,000. Decision guide with crossover maths."
canonical: https://www.teamed.global/country-hiring-guides/argentina/eor-vs-entity
---

Argentina · EOR vs entity child

Served by Teamed vetted partner-entity network in Argentina

# When do you graduate from an *EOR to your own Argentina entity*?

An EOR hire from $599 per employee per month is cheaper than running your own Argentine S.R.L. or S.A. for the first 6 to 9 employees. The employer social security rate of 26.4% on all wages means the fixed overhead of your own entity carries a heavy compliance and salary cost load from day one. Here is the maths, and the decision factors that numbers alone do not capture.

Last reviewed 13 June 2026 · Argentina guide

![A view across Buenos Aires from the Palermo neighbourhood toward the Microcentro business district.](/images/country-guides/argentina-eor-vs-entity.webp)

Illustration · Buenos Aires, Argentina

Answer.cite this

EOR is faster and cheaper at low headcount in Argentina. Registering your own S.R.L. or S.A. takes around 8 to 12 weeks. Formation typically costs USD 4,000 to 12,000 in professional fees. Running it adds around USD 2,500 to 4,000 per month in ongoing compliance.

Those are typical ranges. Entity costs vary by share structure, legal advisor, and whether you use a local corporate services provider. The crossover typically lands around 6 to 9 employees at competitive tech salaries.

Employer social security is 26.4% on all wages. That rate applies on both the EOR side and the entity side. The entity side also carries formation costs, ARCA registration, and monthly compliance overhead. None of those appear in the statutory rate.

![A person reviewing payroll documents at a Buenos Aires office desk.](/images/country-guides/argentina-eor-vs-entity-polaroid-1.webp)

Run the numbers

## The crossover maths

EOR cost scales with headcount. One fee per employee per month. Entity cost has a fixed overhead. That fixed line and the EOR line cross at around 6 to 9 employees for competitive Argentine tech salaries.

Teamed charges from $599 per employee per month. Your own Argentine entity carries a typical fixed monthly overhead of around USD 2,500 to 4,000 for outsourced payroll, bookkeeping, ARCA filings, and HR admin.

The calculation below uses from $599 USD as the Teamed fee. This is the actual USD price with zero FX mark-up. Your own entity costs are expressed in USD at illustrative ranges because Argentine entity overheads are typically quoted by professional services providers in USD, even though salaries are paid in ARS.

All entity cost figures in this table are typical ranges. They cover outsourced payroll bureau, bookkeeping, ARCA regulatory filings, pension/social security administration, and basic HR advisory for a small Argentine legal entity. They are illustrative, not law figures. Actual costs vary with the complexity of your structure and benefits programme.

The crossover compresses faster at higher salaries. Employer social security at 26.4% applies on all wages with no upper ceiling. At USD 4,000 monthly salaries the social security line grows quickly. The crossover shifts toward 5 to 6 employees at that level. At lower salaries the crossover may land at 8 to 10.

Argentina does not have a separate employer pension contribution scheme. Pension is bundled inside the employer social security rate at 26.4%. This means the ongoing employer cost per head is predictable, but it also means there is no way to reduce pension cost below the statutory rate. [Run the Crossover Calculator with your own headcount and salary band.](/tools/crossover-calculator/argentina)

1. Calculate the EOR cost Multiply the Teamed fee (from $599 USD) by your planned Argentine headcount. This is the variable cost. It grows linearly as you hire.
2. Estimate the entity fixed overhead Typically USD 2,500 to 4,000 per month for a small Argentine S.R.L. This covers payroll bureau, bookkeeping, ARCA filings, ART premiums, and HR advisory. This cost does not grow much until headcount exceeds 15.
3. Find the crossover headcount The crossover is where EOR monthly cost equals entity monthly overhead. For most Argentine competitive salary bands, this is around 6 to 9 employees. Use the Crossover Calculator for your own numbers.
4. Factor in non-financial triggers The maths gives you a headcount threshold. Local contracting requirements, ARS revenue banking, and FX management comfort are separate questions that may override the cost crossover in either direction.
5. Plan the graduation date Allow 8 to 12 weeks for Argentine entity formation before the first payroll on your own entity. Start the GEMO process while EOR continues running to avoid any gap in employee cover.

## Argentina entity setup: what it actually costs

Forming an Argentine S.R.L. or S.A. typically costs USD 4,000 to 12,000 all-in. The Inspeccion General de Justicia (IGJ) registration fee is modest. The bulk is professional fees for notarial deed preparation, share structure work, ARCA registration, and AFIP fiscal code setup.

Allow around 8 to 12 weeks from the incorporation decision to your first payroll run. ARCA registration and opening a corporate bank account are usually the gating steps.

These are typical ranges. They are not law figures. There is no law that sets what an Argentine entity costs to form. The range reflects real market rates for Buenos Aires-based corporate services providers. It varies with share structure complexity and how much you outsource.

| Cost item | Typical range | One-off or recurring |
| --- | --- | --- |
| IGJ registration and notarial deed (S.R.L.) | USD 800 to 2,500 | One-off |
| Registered address and domicilio fiscal | USD 100 to 400 per year | Recurring |
| ARCA (ex-AFIP) employer registration (CUIL/CUIT setup) | USD 0 direct (admin time) | One-off |
| Labour registry and employment contract templates | USD 500 to 2,000 | One-off |
| ANSES social security registration for employees | USD 0 direct (admin time) | One-off |
| Corporate bank account (Argentine peso + USD) | USD 0 to 600 | One-off plus monthly fees |
| Employee handbook and HR policies (Argentine law) | USD 600 to 2,000 | One-off |
| Insurance (ART - workplace risk cover, mandatory) | USD 80 to 300 per month per employee | Recurring |
| **Realistic total setup cost** | **USD 4,000 to 12,000** | **Mostly one-off** |

### Why the ART (Aseguradora de Riesgos del Trabajo) is the hidden mandatory cost

Every Argentine employer must contract an ART provider for workplace accident cover under [Ley 24.557](https://servicios.infoleg.gob.ar/infolegInternet/anexos/0-4999/412/texact.htm). This is not optional. It runs from day one of employment and must be in place before a new hire starts. ART costs vary by industry risk classification and typically run USD 80 to 300 per employee per month for office-based tech roles. Missing ART cover exposes directors to personal liability for workplace accidents. An EOR carries this cost and the compliance burden on its own entity.

## Argentina entity ongoing cost: typically USD 2,500 to 4,000 per month

Running a small Argentine S.R.L. typically costs USD 2,500 to 4,000 per month. That covers outsourced payroll, bookkeeping, ARCA regulatory filings, social security administration, ART premiums, and HR advisory.

Below 5 employees, this fixed overhead dominates the per-head cost. Above 12 to 15 employees the overhead amortises and the entity starts to look cheaper.

These figures are typical market ranges for a small Argentine entity with 1 to 15 employees. They are illustrative. They are not law figures. Actual costs depend on whether you outsource or hire in-house, and the complexity of your payroll, benefits, and collective bargaining situation.

| Monthly cost item | Typical range (USD) | What it covers |
| --- | --- | --- |
| Outsourced bookkeeping and monthly accounts | USD 600 to 1,200 | Peso reconciliation, accruals, monthly P&L |
| Payroll bureau (1 to 15 employees) | USD 300 to 700 | ARS salary payments, social security filings, payslips |
| ARCA (tax authority) compliance filings (amortised) | USD 200 to 400 | Monthly VAT, income tax withholding returns |
| Annual accounts and corporate filings (amortised) | USD 150 to 350 | IGJ annual filings, balance sheet |
| Social security and ANSES administration | USD 100 to 200 | Monthly social security contribution lodgements |
| HR and labour law advisory | USD 200 to 600 | Contract reviews, LCT compliance, dismissal advice |
| ART workplace insurance (per employee, amortised) | USD 80 to 300 per employee | Mandatory workplace risk cover per Ley 24.557 |
| HRIS and payroll software subscriptions | USD 100 to 300 | Per-user SaaS |
| **Total ongoing monthly (5 employees)** | **USD 2,500 to 4,000** | **1 to 15 employee entity** |

Above 15 employees, dedicated local HR headcount and a finance function typically become necessary. ART premiums also scale with headcount and salary base. The cost band widens at that point.

Note: the aguinaldo (SAC), a mandatory 13th-month salary split across June and December, is an additional employer cost that applies on both sides of the comparison. It does not change the crossover because it affects EOR and entity sides equally. But it is part of the total cost of employment that the comparison table above does not include.

## The cost nobody quotes: director liability

Argentine directors and legal representatives (representantes legales) carry personal liability under the Ley General de Sociedades (LGS). This duty cannot be delegated to advisors or outsourced to a compliance provider.

EOR clients do not carry these duties in Argentina. Teamed holds them as the legal employer and registered entity.

Most cost comparisons skip the director-liability dimension because it is hard to put a number on. It is worth naming clearly before you decide.

### Personal director duties under Argentine law

Under the [Ley General de Sociedades (Ley 19.550)](https://servicios.infoleg.gob.ar/infolegInternet/anexos/25000-29999/25552/texact.htm), every Argentine company director must act with loyalty, diligence, and in the best interests of the company. A director who approves accounts they have not reviewed is personally liable for any misstatement. These duties are personal. They cannot be outsourced.

### The ARCA compliance treadmill

- **Monthly VAT and withholding returns**: due monthly to ARCA (ex-AFIP). Late filings attract automatic penalties and interest at high rates in an inflationary environment.
- **Monthly social security lodgements**: due to ANSES/ARCA for every employee. Late payment draws penalty interest on the ARS amounts, which compound quickly.
- **Annual IGJ corporate filing**: balance sheet and director renewal. Late filings attract IGJ penalties and can result in the entity being flagged as inactive.
- **AFIP/ARCA Libro de Registro de Personal**: the employment register must be kept current for every hire, change, and termination. Gaps expose the company and its directors to ANSES audit fines.
- **ART workplace risk compliance**: directors are personally exposed to claims from employees for workplace accidents if ART cover is not in place or lapses.

Argentina's regulatory environment is active and enforcement is real. Each filing is individually manageable but stacked across a year they consume significant management attention and professional services spend. An EOR carries all of this on its own entity.

## When you should stay on EOR

Below 6 employees, with project-based hires, or while you are still testing the Argentine market, the EOR is the right answer. The crossover is a maths threshold. It is not a strategic verdict.

Reversibility matters in Argentina more than in most markets. Entity setup is sticky. An Argentine S.R.L. or S.A. takes 8 to 12 weeks to open and significantly longer to close down. EOR does not.

- **Under 6 Argentine employees at competitive salaries**: EOR is cheaper and faster every month. The entity overhead has nothing to amortise against.
- **Market validation phase**: you are hiring 1 or 2 people to test commercial fit. Entity setup commits capital and management attention before you know whether the Argentine market will deliver.
- **Project-based hires**: 6 to 12 month engagements where the formation cost will not amortise before the project ends.
- **FX volatility exposure**: you are not yet comfortable managing Argentine peso payroll, the official and parallel exchange rate environment, and ARS-denominated salary adjustment cycles. An EOR absorbs that complexity.
- **Wind-down risk is real**: closing an Argentine S.R.L. typically takes 6 to 18 months of legal process and professional fees. If the business case is uncertain, staying on EOR keeps exit simple.

## When you should switch to your own entity

Above 8 employees consistently, with a multi-year Argentina plan, or with local contracting and banking requirements, your own entity beats EOR on cost. It also unlocks commercial capabilities the EOR structure cannot provide.

The single biggest structural pull is local contract and bidding requirements. Enterprise Argentine clients and government procurement typically require a locally registered entity as the contracting party.

- **Sustained headcount above 8 Argentine employees** at competitive salaries: the entity overhead amortises across enough people that per-head cost falls below the EOR fee.
- **Local contracting and bidding requirements**: Argentine enterprise clients and public sector tenders require a locally incorporated counterparty. This is the most common non-financial push to incorporate.
- **Argentine peso revenue**: if you collect ARS revenue locally, you need a registered entity with a tax ID (CUIT) and a local bank account. EOR does not provide this.
- **ARS salary management at scale**: once you have a larger Argentine team, in-house payroll management and salary adjustment cycles become more cost-effective than paying per-seat EOR fees.
- **Collective bargaining obligations**: some Argentine industry sectors require entities to engage with union agreements (convenios colectivos de trabajo) directly. EOR can manage CCT compliance on your behalf, but direct entity representation may be expected at larger headcount.

## How Teamed's Graduation Model handles the transition

Teamed graduates customers from EOR to their own Argentine entity on the same platform. Same specialist. Same employment contracts, novated to the new entity. No break in employee tenure or benefits.

Argentina's LCT (Ley de Contrato de Trabajo) protects continuous service. A novation that preserves the employee's start date and seniority avoids the severance liability that would arise from a termination and re-hire.

The technical mechanic is **contract novation**: the employment contract transfers from Teamed's partner entity to your new Argentine entity on a specified date. All terms carry across. Salary, seniority, ART cover, social security history, and continuous service date remain unchanged. The employee sees a different employer name on their payslip. Nothing else changes.

What we do operationally:

- Stand up your Argentine entity through [GEMO](/entity-management), typically 8 to 12 weeks, while EOR continues running in parallel.
- Register the entity with ARCA (CUIT), ANSES, AFIP employer registry, and IGJ.
- Contract the mandatory ART workplace insurance for the new entity.
- Novate every active employment contract on a single effective date, preserving LCT seniority under [LCT Arts. 225 to 230](https://servicios.infoleg.gob.ar/infolegInternet/anexos/25000-29999/25552/texact.htm).
- Migrate payroll to the new entity's ARCA registration, open ARS and USD bank accounts.
- Provide the same People Ops specialist as the post-graduation primary contact.

Preserving continuous service under the LCT is important. If an employee's tenure were interrupted by a termination and re-hire, the existing severance accrual would crystallise immediately. Novation avoids that cost entirely and protects the employee. The Graduation Model exists to make this transition straightforward.

## How does Teamed handle Argentina employment for you?

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Argentina for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

Payroll, benefits, and the full Argentine employment law stack run on **one platform**.

**Real HR and legal experts** handle your Argentine hires from the first offer letter through every ARCA filing and social security lodgement. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Every employer cost **passes through at cost, itemised** on every invoice. You see the social security line at 26.4%, the ART premium, the aguinaldo accrual, and the leave accrual for 14 days. Nothing is hidden inside the management fee.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. Start from the Argentina hiring overview. Key sources: [Ley de Contrato de Trabajo (LCT)](https://servicios.infoleg.gob.ar/infolegInternet/anexos/25000-29999/25552/texact.htm) and [Argentina.gob.ar Ministry of Labour](https://www.argentina.gob.ar/trabajo).

## Frequently asked questions

At what headcount does an EOR stop being cheaper than an Argentine entity?

The crossover typically lands at 6 to 9 Argentine employees at competitive tech salaries. Below that, the EOR fee (from $599 per employee per month) is cheaper than the typical entity overhead of USD 2,500 to 4,000 per month. Above it, the entity overhead amortises and per-employee cost falls below the EOR fee. Use the Crossover Calculator to run your own salary band.

How much does it cost to set up an Argentine S.R.L. or S.A.?

Typically USD 4,000 to 12,000 all-in. The IGJ registration fees are modest. The bulk is professional fees: notarial deed preparation, ARCA (CUIT) registration, ANSES employer registration, employment contract templates, ART workplace insurance setup, and a corporate bank account. The range varies with share structure complexity and whether you use a local or international corporate services provider.

How long does it take to set up an Argentine entity and run the first payroll?

Around 8 to 12 weeks from the incorporation decision to first payroll if you use a corporate services firm or Teamed GEMO. ARCA registration and opening a corporate bank account in Argentine pesos are typically the gating steps. Foreign-parented companies should also allow time for ART workplace insurance setup, which must be in place before any employee starts.

What is the employer social security rate in Argentina?

The employer social security rate is 26.4% for services and trade sector companies. This is the general rate under Ley 24.241 SIPA. Some smaller companies may qualify for a reduced rate of 24%. The rate applies on all wages with no ceiling. Argentina does not have a separate employer pension scheme; pension is bundled within the social security rate.

What is Teamed's Graduation Model for Argentina?

Teamed graduates customers from EOR to their own Argentine entity on the same platform. Employment contracts are novated to the new entity on a single date under LCT Arts. 225 to 230. Salary, seniority, ART cover, and continuous service date all carry over unchanged. The employee sees a different employer name on their payslip. Teamed handles the entity formation through GEMO, registers the new entity with ARCA and ANSES, and migrates all payroll and ART obligations without any gap.

Teamed Legal Operations

In Argentina the wind-down risk changes the calculation. Closing an Argentine entity takes 6 to 18 months. The crossover is not just the point where EOR becomes more expensive than your own entity. It is the point past which the reversibility cost of staying on EOR exceeds the risk of being committed to an entity you may later want to exit.

A note from Tom Price-Daniel

EOR wins up to the crossover. Around 6 to 9 employees at Buenos Aires tech salaries.  
Past that, your own S.R.L. costs USD 4,000 to 12,000 to set up. Bank account and ARCA registration add 8 to 12 weeks.  
When the maths flips, we tell you and move you across. That is the only honest version of this.

Tom Price-Daniel · Co-founder, Teamed

## Related Argentina guides

- Hiring in Argentina, overviewparent
- [Argentina employer cost breakdown](/country-hiring-guides/argentina/cost-breakdown)sibling
- [Argentina tax and payroll guide](/country-hiring-guides/argentina/tax-and-payroll)sibling
- [Argentina termination and severance](/country-hiring-guides/argentina/termination-and-severance)sibling
- [Employer of Record overview](/lp/employer-of-record)core
- The Graduation Modelcore
- [Entity Management (GEMO)](/entity-management)core
- [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator/argentina)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with ARCA (ex-AFIP), ANSES, IGJ, and the Argentine Ministry of Labour before relying on any specific framework. Entity setup cost ranges and ongoing cost ranges in this guide are typical market figures based on professional services pricing in Argentina. They are illustrative only and not law figures. The employer social security rate (26.4%) and annual leave (14 days) are verified figures from PwC Worldwide Tax Summaries and the Ley de Contrato de Trabajo.