The Government of Javier Mileiannounced that it will send a bill to Congress this Friday to reform the General Companies Law, with the aim of modernizing the legal framework and adapting it to the new dynamics of the global economy.
The announcement was made by the Chief of Staff, Manuel Adorni, and the Minister of Deregulation and State Transformation, Federico Sturzenegger, detailed that this is a structural transformation of the current regime, originally established during the de facto presidency of Alejandro Lanusse.
“This adds to the set of very deep reforms we are implementing that will consolidate the growth trajectory we are already on,” expressed the official.
Javier Milei and Federico Sturzenegger.
A paradigm shift in the role of the State
As Sturzenegger explained, the initiative aims to replace a restrictive scheme with one based on contractual freedom and deregulation.
“The project moves us from a rigid and anachronistic regime, built on distrust of the private sector, to a modern framework based on autonomy, freedom, and deregulation,” he stated.
In this sense, one of the central axes will be limiting state intervention in the organization of companies. “The state's oversight over how partners organize their businesses ends. The law's norms become supplementary: the statute prevails,” he indicated.
Additionally, he clarified that public registries cannot impose additional restrictions: “Public registries cannot issue resolutions that limit what the law allows.”
Federico Sturzenegger.
Less bureaucracy and more freedom
The project also eliminates various bureaucratic hurdles. Among the most relevant changes, a broader and more flexible corporate purpose is enabled.
“The corporate purpose can be broad, plural, and without obligation of connection between activities. And if no purpose is stated in the statute, it is understood that the company can carry out any lawful activity,” he explained.
Furthermore, it seeks to reduce time and costs for operations: “This means fewer bureaucratic hurdles and more freedom to work.”
Another key point is the possibility for companies to define how to resolve their disputes. “Companies will be able to submit their internal conflicts to foreign law or international commercial law,” Sturzenegger noted.
Alternative mechanisms will also be enabled: “They can agree on arbitration clauses in the statute to resolve disputes without depending on the slowness of the justice system.”
The minister compared this model to global business centers: “This type of contractual freedom has been the cornerstone of other global business centers like Dubai.”
President Javier Milei.
Total digitization of the corporate system
The reform incorporates a comprehensive technological transformation of the system. “We allow full digitization of the company: electronic domicile, digital books and records, remote assemblies, and incorporation by digital signature,” he detailed, adding: “With this project, paper files become a thing of the past.”
One of the most innovative aspects of the project is the incorporation of new business structures related to technology. “The ‘Automated Company’, which operates through algorithms or artificial intelligence, and the ‘DAOs’, which are fully or partially autonomous, are regulated,” he explained.
Both figures will have legal personality and limited liability, aiming to position Argentina as an attractive hub for technology companies.
Incentives for investment and business simplification
The project also introduces modern tools for financing and corporate organization.
Among them: convertible investment instruments, automatic renewal of company terms, director mandates without fixed terms by default, and simplification of mergers within business groups. “Zero bureaucracy for corporate groups,” the minister summarized.
Objective: attract investments and compete globally
Sturzenegger stated that the reform aims to replicate successful models internationally. “We seek that same global attraction for Argentina regarding artificial intelligence companies,” he affirmed, comparing the case to the development of Ireland as an investment hub.
Finally, he concluded: “With this reform, Argentina adapts its corporate law to the economy of the 21st century and tells the world: come invest here.”
