How to Set Up a Company in Chile

English · Español · 简体中文

Chile is known for its institutional stability, open economy and extensive network of trade agreements, including with China and other Asian economies. Foreign investors generally enjoy the same treatment as local investors, and incorporation can be fast.

1. Choose the vehicle

• Sociedad por Acciones (SpA): the most popular option for foreign investors. It can have a single shareholder and very flexible bylaws.
• Limited liability company (Ltda.) and corporation (S.A.): used in specific cases, such as businesses that plan to list or certain regulated activities.
• Branch (agencia) of a foreign company.

2. Main steps

1. Tax ID (RUT) for foreign shareholders, obtained through a legal representative domiciled in Chile.
2. Incorporation: either online through the simplified Company Registry («Tu Empresa en un Día»), or by public deed before a notary, with registration in the Commercial Registry and publication of an extract in the Official Gazette.
3. Company RUT and start of activities with the Internal Revenue Service (SII), enabling electronic invoicing.
4. Municipal licence for the business premises, and bank account.

3. Points to watch

• Documents: foreign corporate documents must be apostilled and translated into Spanish.
• Representative: a resident legal representative with sufficient powers is needed for tax and banking matters.
• Central Bank rules: some foreign investments and cross-border payments must be reported to the Central Bank of Chile.
• Tax: the general corporate tax rate is 27%, with a lower rate for qualifying SMEs; dividends to foreign shareholders are subject to additional withholding tax, with credit for corporate tax paid depending on treaties.

4. After incorporation

The company must keep accounts, issue electronic invoices, file monthly VAT returns and an annual income tax return, report its beneficial owners, and register employees with the social security and pension systems.

The views expressed are personal and do not necessarily represent the position of NET CRAMAN. This article is for general information only and does not constitute legal or tax advice. Rules change over time; seek specific advice before acting.