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Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Chile

Why Register a Company in Chile?

Chile is a country that is located in the continent of South America, bordering Bolivia, Argentina, and Peru. Home to a population of nearly 20 million people, Chile currently is the fifth largest economy in South America and its economy has undergone significant growth since 2004. The Chilean economy has gained its traction as one of the fast-growing economies in the region due to its well-developed financial market and economic structure.

On top of that, taxes in Chile are the lowest in Latin America and they are well below many European countries. In fact, corporate income tax rate in Chile is one of the lowest worldwide at 17%. Furthermore, its bilateral agreements [that aim to avoid double taxation] with 22 countries including Spain, the United Kingdom, France, Poland and Brazil are among the reasons that attract foreign investments into the country.

 

How to Register a Company in Chile?

Ranked seventh in the Index of Economic Freedom, Chile is the top-ranked Latin America country in World Bank’s ease of doing business ranking. The ease of doing business in Chile is proven with its hassle-free and fast incorporation procedures – a business can be set up in a single day in Chile. In other words, your company will be ready for business and trading activities in 24 hours.

Here is the comprehensive guide on how to register a company in Chile:

1. Decide the business types:There are several types of business entities available in Chile.
   • Corporation (sociedad anónima) – There are several different types of corporations in Chile. The corporations require more than one shareholder and the Chilean law states that the shareholders are only liable for the payment of their shares.Basic requirements:
     • Directors and shareholders could be of any nationality
     • No minimum share capital required
     • At least one representative must be a foreign national resident in Chile or Chilean.

     a) Publicly traded corporations

     This type of corporation is subject to the supervision of the Superintendence of Securities and Insurances. They are either voluntarily or by legal obligation listed in the Register of Securities.

     b) Special corporations

     This type of corporations is insurance and reinsurance companies, mutual funds administrators, stock exchange, and other companies, which require the authorization from the Superintendence of Securities and Insurances to obtain its legal existence.

     c) Closely held corporations

     As the name goes, this type of corporations are those neither publicly
     traded neither corporations nor special corporations. Corporations are incorporated by
     means of a notarized deed for both publicly traded or closely held corporations.

   • General partnership (sociedad colectiva) – In this type of business entity, the company is managed either individually or through an appointed representative. Every partner is responsible for all legal liabilities.
   • Limited liability partnership (sociedad de responsabilidad limitada) – Unlike the general partnership, each partner in a limited liability partnership has the liability that is limited either to his (or her) amount of contributed capital (or to a greater amount specified in the partnership deed).Basic requirements:
     • Two or more individuals required for registration
     • The shareholders could of any nationality
     • No minimum share capital required
     • At least one representative must be a foreign national resident in Chile or Chilean.
   • Limited partnership (sociedad limitada) – Though some of the partners of limited partnership are not entitled to manage its affairs, they provide all (or part) of the partnership’s capital. In addition, these partners are limited in their liability. Furthermore, this kind of partnership requires one or more other partners to be nominated as managing or general partners and they have unlimited liability for the partnership’s debt and losses.
2. The One-day-procedure of Company Incorporation
   • Register the company online
   • Obtain authentication number after the online registration
   • Notarize the company statutes (and have them signed digitally by the notary)
   • Register with the Internal Revenue Service (SII in Spanish) to get a RUT number
   • Print receipts (proof of payment) at an authorized printing company
   • Get accounting books and other documents sealed with the IRS
   • Get a “patente municipal” working license from the municipality
   • Register for [labour related] accident insurance

On a final note, Chile is the hidden gem of Latin America with its fast-growing economy, vibrant investment climate, and ease of doing business in the country. Many view Chile as one of the ideal revenues to enter the vast Latin America’s market. If you are thinking of setting up a business overseas or you are exploring investment opportunities in Latin America, Chile has lots to offer.

 

For request of quotation and more information about Register Company in Chile, please email us at [email protected] and we will promptly reply within 24 hours.