The Argentina Senate voted unanimously in May, 2017 to approve the Entrepreneurs’ Law, Ley de Emprendedores, to support entrepreneurial activity growth in Argentina. The new  Law consists of a number of measures aimed at increasing entrepreneurial and investment activities in the country by improving the ease of doing business, providing new channels of financing and, perhaps most importantly, providing attractive new tax breaks and incentives for those interested in investing in Argentine startups and venture capital funds. Here’s an overview of how each of these measures will play a significant role in launching the next wave of startups “Made in Argentina.”

• Fast-track for company registration

The Entrepreneurs’ Law facilitates the establishment of new companies by allowing them to set up their businesses via the internet in 24 hours with a simplified business entity model. This includes the opening of a bank account, digital books and setting up a CUIT (identification number). Currently, the entire process to set up a business in Argentina can take anywhere from six months to one year. This setup time is now significantly reduced.

• New channels of financing

For the first time, Argentina allocates public funds to co-invest with private investors in order to promote the development of entrepreneurial projects. This law introduces a Trust Fund for the Development of New Businesses (FONDCE) for the government to invest together with the private sector for the first time.  The FONDCE will be composed of 10 funds, 40% of which will represent public investment.

Registry of Entities is introduced also serves as a platform for Argentina’s various institutions and investors to register and share information. Fund managers, private investors, as well as funds and trusts, regardless of whether they are public or private, will all be able to register. This will make it much easier to track VC activity in the country.

Argentine startups constantly face a short supply of financing opportunities from the private sector. As a result, they’ve had to rely on a very few angel investors, VC funds and, of course, more traditional FFF sources of capital (friends, family and fools.)With the Entrepreneurs’ Law, investors now have more incentive to invest in qualified startups or venture capital funds. Investors who decide to support start-ups may have a 75-to-85% discount on their Income Tax.

• Greater support for crowdfunding platforms

The start-up enterprises can raise funding by selling equity, or offering convertible notes online via crowdfunding platforms. The Entrepreneurs’ Law enables crowdfunding platforms to help entrepreneurs across the country receive investments for their projects. An interesting component to point out is that the law also grants a secondary crowdfunding market to be implemented, allowing investors to sell their equity and convertible notes in the market.