Are you thinking of starting a business in Chile? One of the first and most essential steps in the company formation process is to choose the right type of legal structure. It´s important to remember that in every country there are different types of companies, and some are similar. However, there can be some differences regarding the nationality and number of shareholders or partners, the minimum capital required, and more.
In this article, you can find information about the most popular types of companies or legal structures in Chile, their differences, and which one is better for your company!
‘Sociedad Anónima’ or Corporation (S.A.)
Corporations are popular for businesses of all sizes. Additionally, they can be public, closed, or operating under special conditions that must be noted in the Articles of Incorporation.
It requires 2 shareholders for the incorporation (they can be natural or legal entities)
The capital is divided into ‘Shares’
The Shares can be freely transferred or inherited
Foreigners can register this type of company as long as they have a RUT
‘Sociedad de Responsabilidad Limitada’ or Limited Liability Company (S.R.L.)
This is one of the easiest and fastest to incorporate, which is why it’s the most popular for small businesses and entrepreneurs. However, it is advised that the partners have a strong close relationship and trust each other.
It has more flexibility that a Corporation because it allows one to freely add more partners
The partners can contribute with assets or money
It requires having at least 2 partners at the moment of formation and a maximum of 50
Partners are only liable for their contributions to the company
There is no minimum initial capital required
‘Empresa Individual de Responsabilidad Limitada’ (E.I.R.L.)
Similar to an LLC, but it is incorporated by only one person, who is liable for all aspects of the business.
One person can be the owner of the company
There is no minimum capital required at the moment of incorporation
The owner has limited liability over its contribution to the capital
A ‘Sociedad por Acciones’ or (SpA) can be defined as a combination between a Corporation (S.A.) and a Limited Liability Company (S.R.L.). It is one of the most common types of legal structures because it offers flexibility and a fast registration process.
This type of company can be formed by only one partner, but more can be added later
The name must have the abbreviation ‘SpA’ at the end
The partners have limited liability over their contribution
The SpA can have a broad purpose where they can develop several activities with no maximum limit
The capital is divided into ‘Shares’
How to register a company in Chile?
In recent years Chile has been working on simplifying and digitalizing its processes so they’re more accessible. However, depending on the type of company, you can need the help of a lawyer located in the country. These are some of the steps you need to follow to register your company in Chile:
Choose the type of company
Appoint a Legal Representative with valid residency in Chile
Easyco is here to help you along with the company formation processes and makes business registration in Chile easy by providing a hassle-free online company registration experience. At Easyco, we make company formation in Chile easy.
We have a team of corporate experts who have vast experience helping companies and individuals register their businesses in Chile. Easyco is here to help you along with the company formation processes and makes business registration in Chile easy by providing a hassle-free online company registration experience.
Easyco also provides additional services to guarantee your company’s compliance, which include: