In 2020, 158,586 new companies were electronically created in Chile, 14.4% more than in 2019 and the greatest number since the system was set up. In this article you will learn how to invest in Chile simply and in just a few steps.
If you want to invest in Chile, there are two ways of forming a business. The first, under the framework of the “Your company in a day” initiative, is designed for small companies and can be done electronically.
Alternatively, there are several possible business structures, so your choice will depend on your business strategy and the size of the capital contributions, among other factors.
The most commonly used organizational structures for foreign investment in Chile are:
- Individual limited liability company (EIRL)
- Limited liability company (Ltd)
- Privately or publicly held corporation (SA)
- Simplified corporation (SpA).
What are the procedures for setting up a company in Chile?
Companies generally need to be formed through a public deed and the signatures of the parties involved must be authorized before a notary public. The articles of incorporation establish, among other things, the type of company, its line of business, its initial partners or shareholders and their respective capital contributions, how they will share in the profits, how they will respond in case of losses.
Internal Revenue Service (SII)
The Internal Revenue Service (SII), is the public organism that ensures that each taxpayer fully complies with their tax obligations in Chile. This is the place where the investor must carry out all of the key procedures in order to operate in the country.
These include the establishing of a domicile or residence for tax purposes; obtaining a Tax ID number (Rol Único Tributario, RUT), which must be obtained before making the investment, and where the legal representative is named; filling out the SII request to start activities (iniciación de actividades) form, which is a sworn affidavit through which the tax payer informs SII about the business activities that they will carry out that may be subject to taxes; and document stamping for proof of business activities in the country.
After that, the company must obtain the corresponding permits for its activities: building, health, environment, etc. Once all of the permits to operate are granted, the company must pay for a municipal business license.
To learn more in detail about this and other material relevant to starting your business in Chile, download the chapter of our step-by-step guide for Foreign Investors. Other chapters of the guide also contain useful information about Labor Laws, Taxes and Environmental Assessment.