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