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Doing business worldwide

Blog about doing business internationally.

Chile has signed free trade agreements with the following countries: Australia, Canada, USA, China, South Korea, Central America, Switzerland, Norway, Liechtenstein, Iceland, Malaysia, Mexico, Panama, Turkey, partially valid agreement with India.

Chile has signed economic association agreements with New Zealand, Singapore, Brunei, European Union, and Japan.

Chile also signed agreements on economic cooperation with Argentina, Colombia, Bolivia, Cuba, Ecuador, Peru, and Venezuela.

Positioning Chile as the safest country in South America, thanks to macroeconomic stability, budget surplus, excellent market functioning, and many years of existing regulations necessary to ensure the efficiency of the Chilean economy.

In Chile, registration of the following types of legal entities is possible:

  • Individual limited liability company (IOOO)
  • Limited Liability Company (LLC)
  • Closed Joint Stock Company (CJSC)
  • Open Joint Stock Company (OJSC)

Taxation of legal entities in Chile

It is extremely important to note that the tax on profits levied on companies in Chile is returned by the state to the partners of the company in full. That is the rate for corporate taxation of corporate profits in Chile is 0%. In practice, it looks like this: The Chilean company pays 17% (for 2013) of the net profit for the previous year, which is returned to the partners of the company during the first half of the year.

Chilean agricultural, mining and transport companies are taxed based on the estimated income only at the minimum rate.

Businesses allowed in ChileTypes of business in Chile

In Chile, there are no bans on the activities of companies, however, the law requires certain types of companies to comply with certain forms of registration with additional authorities. This primarily applies to banks and other financial institutions, insurance companies, mutual funds, securities dealers, and brokers.

The authorized capital of a Chilean company

Chilean law does not require a minimum share capital for the registration of a legal entity, except for financial and related organizations. At the initial stage, we recommend declaring capital equal to 10% of the planned investment amount, while the charter must indicate the possibility of increasing capital by the total investment amount within a certain period. Too little or inappropriate capital can be an obstacle when opening a company bank account in Chile and, in long-term work, will result in problems with the tax service.

Requirements for the legal address of a Chilean company

To activate the tax system and obtain an identification number, a company in Chile must have a registered legal address. The address is offered only a legal one, do not confuse it with the virtual office service in Chile.

Other fees for companies in Chile:

Municipal business patent. The annual cost of a municipal patent, depending on each municipality, can range from 0.25% to 0.5% of the authorized capital.

The cost of all registrations is included in the package, except for the floating cost of the municipal patent.

Chilean resident director’s requirement

Company registration in Chile requires a resident executive director. The company’s charter prescribes prohibitions for the executive director when concluding contracts, transactions, financial transactions, and representation in a bank without the notarization of partners.

The cost of registering a company in Chile on a turnkey basis The cost of registering a company in Chile

Option: with a legal address and a resident executive director.

Services include:

  • drafting a charter for a Chilean company
  • notarial registration of articles of association
  • publication in the official gazette
  • registration in the chamber of commerce
  • Legal address for 6 months
  • Activation with the tax office and obtaining a company identification code
  • Obtaining a municipal patent for 6 months
  • Appointed executive director
  • Cost 1500 USD

What you need to register a company in Chile

A short story about the planned use of the company in Chile by e-mail, indicating the type of activity, the size of the authorized capital, the number of partners, and the percentage of capital.

Required documents for registering a company in Chile: a power of attorney from each of the partners to obtain a tax number and register a company. A power of attorney can be issued directly at the Chilean consulate, then additional legalization is not required, or from a notary + its translation + legalization at the Ministry of Justice, the Ministry of Foreign Affairs, and at the Chilean consulate along with a copy of the passport.

The name of the company. There are no prohibitions on names or duplication of names in Chile, two names are always prescribed in the company’s charter, the first reflects the type of business of the company (for example, Investments Dwayne LTDA), and the second is fancy for general use (for example, Dwayne LTDA). The abbreviations in the name of Chilean companies are as follows: OOO – LTDA, joint-stock companies S.A., individual companies EIRL.