Hiring without an entity in Argentina
EOR vs PEO in Argentina: Hiring Without Your Own Entity
An employer of record supplies the local employer for your Argentina hire. Payroll outsourcing supports staff already employed by your own entity. “PEO” and “GEO” are used inconsistently in provider marketing, so check the contract rather than relying on the label. Under LCT article 29, the company registering the employment is the employer, while the company receiving the work has joint liability for labour and social-security obligations arising during that service.
Five ways to employ or engage someone in Argentina
| Model | Legal employer | Need an Argentine entity? | Usually suits |
|---|---|---|---|
| Your own company or registered branch | Your Argentine entity | Yes | A growing team, local sales and invoicing, a long-term base |
| Employer of record (EOR) | The EOR’s Argentine entity | No | First hires and small teams under your direction, without your own entity |
| Payroll outsourcing | Your Argentine entity | Yes | Companies that already employ staff and need payroll calculations and related payroll tasks |
| Temporary staffing agency (empresa de servicios eventuales) | The licensed agency | No | Extraordinary or temporary needs only, such as peaks or replacements |
| Independent contractor | No employer in a genuinely independent commercial engagement | No | Defined projects by professionals who run their own business and invoice you |
Why “EOR”, “PEO” and “GEO” get mixed up
These are industry labels, not legal categories in Argentina. Providers use them loosely, and buyers search for all three. What decides your rights and obligations is the contract chain: which company signs the employment contract and registers it with ARCA, and which company receives the work.
| Label | What it usually means in Argentina |
|---|---|
| Employer of record (EOR) | A local company employs the person and runs payroll for you; you direct the work |
| Global employment organization (GEO) | A broad provider label that may include EOR and other services; confirm the scope |
| Professional employer organization (PEO) | A marketing label that may refer to employment or administrative services. Confirm the actual employer, registrations and contractual responsibilities; do not assume a US-style co-employment arrangement. |
| Employment outsourcing, staff leasing | Loose terms; check whether it is an EOR, a temporary agency or a service contract |
| Temporary staffing agency | A licensed empresa de servicios eventuales, limited by law to temporary needs |
When an EOR fits, and when it does not
EOR usually fits when
- You need to employ a local employee in Argentina
- You will direct the work day to day, like any employee
- You need one to a few people, quickly, without an entity
- The role is ongoing, not a one-off project
- You want payroll, the aguinaldo and contributions handled locally
Look at another route when
- The person needs residence and work authorisation (see Hire Foreigner in Argentina)
- You already have an Argentine company (see payroll outsourcing)
- The work is a defined project by an independent professional (see on-demand talent)
- The employee will negotiate and sign contracts for you, which can create a tax presence
- You plan a large local team or local invoicing (see starting a business in Argentina)
Hiring without an entity: the six risks to manage
| Risk | What it means | How to manage it |
|---|---|---|
| Contractor reclassification | If a “contractor” works under your direction, on fixed hours and only for you, a labour court can treat the relationship as employment, with back contributions, severance and interest | Use contractors only for independent, project-based work. Law 27,802 limits the presumption when services are invoiced, but it does not replace the facts |
| Joint liability | The company that receives the work shares liability for unpaid wages and contributions from that period | Choose an employer that registers everyone and pays contributions on time; ask for proof |
| Wrong collective agreement | Paying below the CCT scale or missing its extra items creates claims | Map the role to the right agreement and category before the offer |
| Inflation and pay | Wage scales and the minimum wage move during the year | Agree a review policy and track scale updates |
| Tax presence | An employee who habitually concludes contracts for you can create a permanent establishment | Obtain tax advice on the actual activities, authority and applicable treaty; retaining signature authority offshore is not by itself a safeguard |
| Intellectual property and data | The legal employer and the client are different entities; IP rights depend on the work, law and contract chain | Make sure the contract chain assigns IP and confidentiality to your company |
What setting up your own Argentine company involves
Common vehicles are the S.R.L. (limited liability company), the S.A. (corporation) and the S.A.S., or a branch of your foreign company. A foreign parent must first register with the companies registry (the IGJ in the City of Buenos Aires); IGJ Resolution 4/2026 simplified those requirements in May 2026. After registration come the CUIT tax ID, VAT and provincial turnover tax registrations, a bank account and employer registration with ARCA before the first hire.
If you only want to sell into Argentina or test the market, you may not need a company at all. See doing business in Argentina without a company and starting a business in Argentina.
Questions about EOR and PEO in Argentina
Is a PEO the same as an EOR in Argentina?
Do not assume they are the same. Providers use “PEO” for different services. An EOR supplies the local employer; administrative or payroll support may leave your own company as employer. Confirm who signs and registers the employment and how responsibilities are allocated. The commercial label does not override Argentine law.
What is a global employment organization (GEO)?
GEO is a broad commercial term for a provider of international employment services. Its Argentina offering may include EOR, payroll or other services. Check the legal employer and the contracted scope rather than treating the label as a separate legal model.
Can a foreign company hire employees in Argentina without a local entity?
Not as a direct employer: employing someone requires an employer registered with ARCA. Without your own entity, an EOR can employ the person for you. See how NNRoad’s Argentina EOR works.
Is using an EOR legal in Argentina?
Yes. The company that registers the employment is the employer under article 29 of the LCT, and the company that receives the work is jointly liable for that period. A reputable EOR registers every employee and pays contributions on time.
Can I use a temporary staffing agency instead?
Only for genuinely temporary needs. Licensed temporary agencies are limited to extraordinary or seasonal work and replacements, so they are not a long-term way to build a team.
Is hiring contractors cheaper?
A genuinely independent contractor has a different commercial and tax structure from an employee. Compare the full costs for the work you need. Law 27,802 changes the employment presumption for qualifying invoiced or bank-paid services, but invoicing alone does not validate disguised employment. Assess the actual relationship, including direction and dependence, before choosing this route.