If you are interested in starting commercial activities in Chile , it is important that you know the requirements for the creation of a new company, independently of the nature of the business. Then, you have to choose the corporate structure that fits your business, it is essential to define who are the owners of the company and what percentage corresponds to each one.
Types of Companies in Chile
We will mention the most common corporate structures in Chile:
Individual Limited Liability Company (E.I.R.L.),
The ‘EIRL’ is the most used by small entrepreneurs seeking to start a business in Chile without partners. In this case, any natural person is allowed to acquire legal personality and the company’s assets are independent of those of the owner.
Joint Stock Company (SpA – Company by Shares)
One of the most suggested structures for company formation in Chile is a flexible figure that protects the partners, it can be incorporated by a single shareholder, and it can also be created by one or more persons through an act of incorporation whose participation in the capital is represented by shares.
Limited Company (S.A. – Sociedad Anónima)
A ‘Sociedad Anónima’ allows the contribution of capital to a company regardless of who the partners are, such capital is divided into shares, and its incorporation and modification must follow certain legal formalities.
Limited Liability Company (Ltda. – Sociedad de Responsabilidad Limitada)
An LLC or Ltda. in Chile is constituted through a public deed where the amount that each partner contributes must be specified, and each partner is responsible for such amount. It cannot have more than 50 partners and its corporate purpose must not have as its purpose the performance of the banking business.
In a general partnership, all partners participate in equal conditions with a minimum of two partners without imposing any maximum number. No minimum capital stock is required.
A limited partnership has two types of partners. The limited partner makes a certain contribution to the corporate fund and is only liable for the amount contributed, and the managing partner manages the company by himself or by delegates, being liable for the corporate debts and jointly and severally liable for the corporate obligations.
How to incorporate a company in Chile?
It is worth mentioning that foreigners, whether natural or legal persons, also have the option of creating a company in Chile. It is not necessary to have a specific visa; you can have a temporary or permanent visa.
If the interested person is not in Chile, he or she must grant a power of attorney by public deed to a person residing in the country. In this way, this person will be able to represent him or her in the different entities where the process must be followed.
1. Choose the type of company
Before establishing a company in Chile, this first stage is the most important, where you must consider the type of company of your business and verify the requested requirements.
2. Having legal representation in Chile
As mentioned above, if you are not in the country, you must appoint a legal representative in Chile. He or she does not necessarily have to be a Chilean national. However, it is mandatory to provide a valid visa that proves residency.
3. Incorporating your company in Chile
After having chosen the type of company that suits the nature of the business you are undertaking, you must legalize the company.
A deed of incorporation is generated with the help of a notary, which must contain:
Name, RUT, nationality, marital status, address, profession, and percentage of participation of the partners.
Specify if it is a legal entity or if there are partners.
Address of the company.
Capital of the company, form, and term in which each partner has made its contribution.
Name of the company and corporate purpose.
The number of directors, shares, and members of the board of directors, if necessary.
4. Registration in the Commercial Registry
There is a term of 60 days to go to the Commercial Registry to register the company, from the date on which the deed is notarized.
This procedure can be done personally at the Real Estate Registry or through its web page.
To carry out the procedure, the following documents must be presented:
Two original documents or authorized copies of the Notary’s deed.
Deed of incorporation of the company and the form N°2 that is requested at the Real Estate Registry.
5. Publishing in the Official Gazette
When your new company is registered at the Chilean Registry, you must publish the official notice of the company in the Official Gazette. Within the first 60 days after the company was registered.
6. Obtaining the RUT – Rol Único Tributario (Taxpayer Identification Number)
Every company must be incorporated according to Chile’s legal framework and after that, it is granted its RUT.
First, you must manage the RUT of the company in the Internal Revenue Service (SII). This RUT identifies you as a taxpayer.
If you are applying for your RUT as a legal entity, you should consider the following:
You must choose one or more codes of economic activity at the time of announcing the start of activities of your company.
There is a range of 2 months from the moment you start activities to obtain the RUT.
The procedure can be done at the SII office that corresponds to the address of your company or online. You must also choose whether you will be a First Category Taxpayer (capital income and commercial, industrial, mining, and other companies) or Second Category Taxpayer (labor income).
7. Open a corporate bank account
Once the company is officially registered, you need to open a bank account at your desired bank in Chile. Corporate bank accounts can be opened in Chilean Pesos or American Dollars, depending on the company’s needs.
Get Assistance from Easyco Experts!
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 compliance, which include: