Chile Company Registration

Chile Company Registration 

• Chile Company Registration is a rare chance for investors who want to pour into a dynamic and growing economy. Having an extremely strong legal framework, and macroeconomic stability, the country has established itself as a prime destination for Foreign Direct Investment (FDI). In 2022, foreign investment into the Chilean economy even reached the level of US$17.10 billion, which once again confirmed that this country is committed to making the land friendly for business.  

• Specialists of Tetra Consultants have extensive knowledge in services related to business, such as offshore company incorporation registration, in order to bring maximum comfort to any entrepreneur and large company. But with open market principles and very low levels of corruption, Chile is an even more attractive destination for individuals looking to set up shop in such an exciting place. Our services include: 

• • Chile Company Registration 

• • Corporate bank account opening 

• • Legal representative services 

• • Nominee director and shareholder services 

• • Business license and trade permits acquisitions 

• • Registered local address  

• • International trademark registration 

Advantages of Chile Company Registration

Positive tax environment 

• Chile offers a competitive corporate tax environment, featuring one of the lowest rates in Latin America at 20%, significantly lower than Brazil’s 34% and Argentina’s 35%. Additionally, dividends paid between resident companies are exempt from taxation, making Chile an attractive option for corporate structures.  

• The country also provides export incentives, as all exports are free from customs charges and VAT, with opportunities for reimbursement of customs duties and VAT on inputs used in production. This favorable tax landscape supports businesses looking to thrive in the region. 

Economic and political stability 

• Chile boasts a stable macroeconomic and political environment, creating a solid foundation for business operations and attracting foreign investments. The country has a comprehensive legal framework that facilitates business activities, allowing companies to operate with confidence and minimizing concerns about potential legal disputes. This combination of stability and robust legal support makes Chile an appealing destination for businesses. 

Ease of doing business 

• Chile offers an easy company registration process that approximately takes 8 weeks, making it efficient for entrepreneurs. Additionally, overseas entrepreneurs can register their businesses in Chile without needing to travel, as the entire process can be managed through local representatives. This convenience simplifies entry into the Chilean market for international investors. 

Access to markets 

• Chile benefits from an extensive network of free trade agreements, providing preferential access to numerous international markets and streamlining the export process. Additionally, its strategic location as a gateway to South America offers significant logistical advantages for companies looking to establish operations in the region. This combination makes Chile an attractive option for businesses aiming to expand their reach. 

Government support and incentives 

• The Chilean government provides a range of incentives for foreign investors, including tax benefits and support for research and development projects. Additionally, businesses can receive rebates for employee training costs, helping to ensure a well-trained workforce. These incentives create a supportive environment for companies looking to invest and grow in Chile. 

Infrastructure and human capital 

• Chile boasts a well-developed infrastructure in transportation, telecommunications, and energy, facilitating efficient business operations. The country also offers access to a skilled workforce, characterized by high literacy rates and relatively competitive average wages. This combination of infrastructure and talent creates an advantageous environment for businesses to thrive. 

Time required for Chile Company Registration 

• Tetra Consultants will complete the company registration process in Chile within 8 weeks. After receiving the necessary due diligence documents from the directors and shareholders, our team will verify the availability of your chosen company name with the relevant Chilean authorities. We will manage the incorporation process efficiently, requiring no travel on your part. 

• Within 4 weeks of forming your company in Chile, Tetra Consultants will assist you with corporate bank account opening with a reputable local or international bank. Our team will provide all the necessary forms for this process, ensuring you do not need to travel. If the bank requires any additional KYC verifications, Tetra Consultants will arrange an online video conference to facilitate communication among all parties involved. 

• As a result, you can expect to start operations and issue invoices with your Chilean company within 12 weeks of engaging with Tetra Consultants. 

Are foreigners allowed to proceed for Chile Company registration? 

• Yes, foreigners can fully own a business in Chile, as either natural or juridical persons, with no restriction to the shareholders or director’s nationality. In the case a foreign entrepreneur cannot be present in Chile, he will be obligated to appoint a legal representative who must be a citizen of Chile or a foreigner by a valid residency visa. 

• Foreigners investing a minimum of US$500,000 in Chile can qualify to apply for an investor visa. This visa grants them the ability to obtain residency in the country. For Chile company registration, we leverage our extensive experience to assist foreign clients in successfully registering their new businesses. Our team ensures that all local regulations are met, providing you with a smooth and efficient operational start in Chile. 

Type of business entities allowed for Chile Company Registration 

Limited liability company (Sociedad de Responsabilidad Limitada) 

• A Limited liability company is the most popular form of Chilean business structure, with flexibility and the added advantage of limited liability protection for its owners. Shareholders are personally liable only to the extent of their capital contributions to the company; personal assets are thus protected from the liabilities of a business.  

• The S.R.L. can be wholly owned by foreigners, providing for full foreign ownership in unrestricted portions. Partners must implement a public deed and register the company in the Registry. There is a requirement that the partnership, through the publication of the public deed in the Official Gazette, should inform the public. 

• Key considerations for S.R.L are as follows: 
  • A minimum of two partners can establish a limited liability company. 

• • The number of partners cannot exceed 50. 

• • There is no residency requirement for partners. 

• • A legal representative who must be a citizen of Chile or a foreigner with a valid residency visa. 

• • There is no minimum capital requirement to establish a Limited Liability Company in Chile. 

• • A registered physical address in Chile.  

Corporation (Sociedad Anónima (SA)) 

• A corporation is a legal entity where the capital is divided into shares that can either be publicly traded or closely held. Publicly traded corporations must meet any of the following:  

• a) the shares are publicly traded;  

• b) have at least 500 shareholders or;  

• c) 100% of the shares belong to at least 100 shareholders.  

• Also, the corporation must be registered with the Company Registry Office, which can be done easily by engaging with Tetra Consultants. 

• Key characteristics of corporations are as follows: 
  • At least 2 shareholders without residency requirements. 

• • Minimum 3 directors with a minimum of 1 director with residency requirements. To comply with residency requirements, we provide our clients with nominee director and shareholder services. 

• • For listed companies, at least one independent director is required. 

• • Must appoint a legal representative who must be a resident of Chile. 

• • There is no minimum capital requirement. 

• • A registered physical address in Chile. 

Simplified corporation  

• In 2007, Chilean authorities introduced a new legal structure known as the simplified corporation. This form of company was designed to encourage private entrepreneurship and attract new investments by streamlining the process for establishing businesses in Chile. Similar to a traditional corporation, the capital of a simplified corporation is divided into shares. However, the key difference is that it can be founded by a single shareholder, either an individual or a company without any residency requirements. This flexibility makes it easier for new companies to enter the Chilean market.  

Branch office 

• This kind of business is not independent but a part of a larger, existing undertaking. A parent company must have a local agent for it to open up a branch of a foreign entity. The agent should present all the required documents to the local notary and represent the company. The local agent will also be charged with publishing the financial statement annually. Similarly, like any form of legal entity, there is no minimum requirement pertaining to the capital amount. 

Sole Trader (Empresario Individual) 

• Sole Trader is the simplest form of business in this country and features a single owner for a firm of this type. Liability is unlimited, so in case of insolvency in paying for any debts or obligations of the business, assets from the owner himself will have to be used to pay. Registration as a sole trader, one has the obligation to obtain a RUT (tax identification number) and complete the required forms with the Chilean Internal Revenue Service (SII).  

Steps to proceed for Chile Company Registration 

Step 1: Choose the type of business entity 

• Initially, Tetra Consultants’ team will help to choose the legal structure that best suits your type of business. Different company structures can serve with some differing advantages and considerations, and we can help guide you through the selection process in order to ensure you choose the best fit for your objectives. 

Step 2: Register the company name 

• Furthermore, the company name will be registered with uniqueness, and for this, it will be available for registration in the Chilean Trademark Office. We would advise the preferred name with two alternatives for ease of use and flexibility.  

• Additionally, we offer international trademark registration services to our clients, helping to globally protect their brand and intellectual property. 

Step 3: Comply with company pre-requisites 

There are several requirements for your company to be lawfully operational. Those pre-required requirements for LLC include: 

• A minimum of two partners can establish a limited liability company. 

• The number of partners cannot exceed 50. 

• There is no residency requirement for partners. 

• A legal representative who must be a citizen of Chile or a foreigner with a valid residency visa. 

• There is no minimum capital requirement to establish a Limited Liability Company in Chile. 

• A registered physical address in Chile. 

Step 4: Draft the company bylaws 

• After complying with company requirements, we will draft company bylaws that will outline its governance structure, business activities, and operational guidelines. It needs to be notarized by a public notary.  

Step 5: Registration of the company 

• After all the bylaws are prepared and correctly signed before a notary, we will commence with the company’s registration in the Commercial Registry. This is concerned with presenting this duly signed and stamped copy of the bylaws, as well as all the other documents required, which have to comply with all the regulations in the locality of the establishment of the said business.  

• Our team will efficiently undertake the whole process of submission, guiding you through additional requirements that may arise in the process of registration to ease your business establishment. 

Step 6: Publication in official gazette 

• Following the successful registration of your company, we will proceed with publishing an official announcement in the Official Gazette. This step is crucial to fulfill transparency requirements and formally notify the public of your company’s existence.  

• Our team will ensure that the announcement meets all legal specifications and is published in a timely manner, allowing you to comply with local regulations while enhancing your company’s visibility in the market. 

Step 7: Obtain RUT (Tax ID Number) 

• Further, the experts from Tetra Consultants would successfully process the RUT application which is significant for tax-related matters through the Internal Revenue Service. We complete all registration formalities with the SII and follow through in all tax compliance requirements.   

Step 8: Acquire necessary trade permits  

• Depending on your business operations, you will require certain permits or licenses issued by municipal or governmental authorities. These can include health permits, environmental licenses, or municipal operating licenses (patente municipal).  

• Besides, Tetra Consultants can also facilitate the acquisition of offshore financial licenses if necessary for our clients, thereby ensuring that you are in full compliance with all the preconditions of the regulations for business operations. 

Step 9: Corporate bank account opening 

• Once the company is registered, it is necessary to open a corporate account in a bank in Chile to make all transactions easy and meet the banking requirements of inside the country. Our corporate bank account opening service ensures securing an account for you in about 4 weeks upon incorporation. 

Documents required for Chile Company Registration 

• Deed of Incorporation 

• Internal rules governing the operation of the company. 

• Proof of the company’s registered address in Chile. 

• Valid identification copies (passport or national ID) for directors, shareholders, and UBOs. 

• RUT (Tax identification number) of foreign directors  

• Shareholder’s agreement 

• Declaration of UBO Status 

For Corporate shareholders

• Certificate of Incorporation 

• Corporate Bylaws 

Accounting and tax obligations 

Accounting obligations 

Accounting:  

• Companies should keep accurate and adequate accounts showing all their financial transactions. This includes: 

• Purchase and sales books. 

• General ledger. 

• Financial statements. 

Annual Financial Statements: 

• A Chilean company must prepare annual financial statements in accordance with Chilean Generally Accepted Accounting Principles. Annual financial statements shall be filed with the tax authorities. 

Tax Year: 

• The tax year shall be the calendar year. It starts in the first day of January and ends on December 31. Tax filings shall be done annually by the end of April of the following year. 

Tax obligations 

Corporate Income Tax: 

• The standard corporate rate is 27% on net income, applicable to most businesses. Small Medium Enterprises (SMEs) would qualify for a lower rate of 25% if certain conditions are met. Residents are taxed on revenues from all operations worldwide, while non-residents are taxed only on Chilean-source income. 

Value Added Tax: 

• A value-added tax of 19% is levied over goods and services sales. Companies are required to issue bills, as well as preserve documents on VAT operations. 

Municipal Tax: 

• Taxing at the municipal level is computed on the basis of transactions performed within the municipal borders, paid once a year. 

Withholding Taxes: 

• Companies may be required to withhold taxes in respect of certain remittances to employees and service providers, such as contributions to social security. 

Why to proceed for Chile Company Registration? 

Political:  

• Chile is known for its political stability, creating a favorable environment for international investment. The government actively promotes foreign businesses by offering attractive incentives and free trade agreements. This supportive atmosphere helps facilitate your business establishment in the country. 

Economic: 

• Chile has a strong and resilient economy in Latin America, with a solid GDP growth rate that persists even during global recessions. This economic stability creates an environment conducive to the growth of new businesses. Additionally, the country’s extensive free trade agreements provide access to regional markets, enhancing trade opportunities for firms registered in Chile. 

Social: 

• This business culture in Chile is welcoming to foreign firms and is characterized by a growing consumer market that values quality and innovation. Knowing the orientation of local consumers may pose certain strategic advantages. In addition, the relatively skilled workforce mainly in cities like Santiago allows companies to locally source talent familiar with market dynamics. 

Technological: 

• Chile invested heavily in technological infrastructures, especially in telecommunications and internet access, that support business operations and connectivity. The government also encourages an environment friendly for innovation through its many initiatives and thus forms the basis for providing a supportive platform for startups and technology-driven companies. 

Environmental: 

• Chile is increasingly adopting a sustainability-focused approach, with growing responsibility toward environmental issues. Businesses that align their operations with this trend may find strong support from consumers and various government programs. However, companies must navigate a complex landscape of environmental regulations, particularly concerning resource use and waste management. Embracing sustainability not only meets regulatory requirements but also resonates with a conscientious consumer base. 

Legal: 

• The registration process of a company in Chile is mainly very smooth, though it does require adherence to regulation-specific requirements, such as the appointment of a legal representative who must be a resident of the country. However, knowledge of local tax obligations is vital, for the corporate tax rates are applied and the company is also expected to observe the accounting standards of the local authority, which are usually more favorable than their equivalents in the region. 

Looking for Chile Company Registration 

• Tetra Consultants ensures hassle-free Chile company registration for you. We guide you through the whole incorporation process to comply with taxes and banking needs. We ensure that your company is standing on a sure footing. Partner with us and ride over the complexities of forming your company in Chile. 

• Contact us to know more about Chile Company Registration and our team will revert back in 24 hours. 

FAQs

Can a foreigner own a business in Chile?

What is the Chile Company Tax ID (RUT)?

Is there a residency requirement for the legal representative?

What is needed for company incorporation?

Do I need to obtain permits before starting my business?