General Inspectorate of Justice: News for foundations and associations
During last month, the General Inspectorate of Justice (hereinafter “IGJ”, as its acronym in Spanish) has issued certain Resolutions addressed to foundations and associations incorporated in the territory of Buenos Aires City. The following are the most relevant aspects to be considered by such entities:
- General Resolution IGJ 3/2021
As from April 14th of this year, the minimum initial equity to incorporate a foundation is increased from $80,000 to $500,000.
Also, it is provided that the failure to submit the three-year action plan of a foundation, or two or more of its financial statements, will enable IGJ to request the withdrawal of its legal status. Those foundations that are not up to date in the presentation of their three-year plan must do so within 15 working days after the meeting of their Boards of Directors.
- Extension of General Resolution 37/2020
During the past year, the COVID-19 pandemic has made it impossible for a large part of the associations to operate regularly, which substantially reduced their collections and left them in a suffocating economic situation. This in turn had an impact on the level of compliance with the financial statements presentation and the renewal of authorities required by IGJ, resulting in the suspension of their taxpayer identification number (CUIT, after it´s acronym in Spanish) and the impossibility to apply for subsidies and public and private aid.
For this reason, IGJ approved a Plan for the Regularization of Civil Associations for those institutions whose purpose is the promotion and/or attention of economic, social and cultural rights of vulnerable groups, such as retirement centers, social and sports clubs, popular libraries and human rights organizations.
Although the expiration date to join the Plan was April 30, 2021, General Resolution 7/2021 of the Inspectorate extended it for one year. Associations will have time until April 30, 2022 to submit their financial statements corresponding to the last 5 years. They will also be able to update the registration of their authorities and their headquarters. All these procedures will be free of charge for the associations involved.
- General Resolution IGJ 4/2021
Those civil associations that are not included in General Resolutions 37/2020 and 7/2021 of the Inspectorate may access the Civil Associations Regularization Procedure implemented by IGJ. They may submit the same procedures included in the Regularization Plan until April 30, 2022, with the following costs:
Associations with revenues below $100,000: $2,250.
Associations with income over $100,000: $4,500
Corporate Chambers, Federations and Confederations: $6,750.
For questions related to the impact of these resolutions on foundations or civil associations please contact us at [email protected].