When looking to register a company in Chile, you will be faced with a very important question: What type of company should I form? There are several options to choose from, but the final decision is always a combination of company activities, security, future plans, number of shareholders, flexibility, and time.
In this article, you will learn about a popular company type in Chile, one that brings great benefits due to its simple, flexible structure. This company type is the Company by Shares (SpA) in Chile.
1. What is a SpA company?
A Company by Shares (‘Sociedad por Acciones’ in Spanish), commonly known as a SpA, is one of the most popular types of companies for new founders in Chile. It can be registered with one or more persons or companies, where the participation of the company’s capital is represented in shares.
2. Why choose a SpA as a company?
Administration: The Administration of a SpA can be carried out however the shareholders consider convenient. If there is only 1 shareholder, he or she will be the manager of the company and will be the one who makes the decisions of the company.
Entry and Exit of Members: The SpA can add or remove partners easily by an agreement of a transfer of shares. A modification of the company bylaws is not required reducing the expense and time involved.
Broad Corporate Purpose: The SpA can have a broad purpose where they can develop several activities with no maximum limit. Whereas an EIRL, for example, can only be dedicated to 1 activity or business.
One or more Partners: The SpA can be created or constituted with just one partner. You can also add or reduce the number of partners in the future.
Company Name: The SpA can have any name you want, as long as it is available for selection and is accompanied by the final word “SpA”.
Liability: Liability is limited to the share capital subscribed/contributed.
3. What must be included in the bylaws of a SpA?
According to Law No. 20,190, the bylaws of the company must contain, as a minimum, the following mentions:
Name of the company that must finish with the expression «SpA».
Name and address of the shareholders.
The object, purpose, or business of the company must always be commercial in nature.
Domicile of the company.
The capital of the company and the number of shares.
How the company will be administrated and which representatives will be appointed, indicating who will exercise it provisionally (if applicable).
The lifespan of the company, can be indefinite.
4. Completion time for company formation
The expected time to incorporate a SpA in Chile, with local shareholders is around 10 to 15 business days.
5. Want to register a company in Chile?
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