Chile has established itself as one of the most attractive destinations for entrepreneurs and companies looking to expand their operations in Latin America. Its modern regulatory environment, the possibility of carrying out digital procedures, and institutional stability make it an ideal country for starting new businesses. Below are the key steps and documents for setting up a business in Chile.
Define the legal structure of the company
The legal structure of a company determines its operation, responsibilities, tax obligations, and the relationship between partners. Choosing the proper structure is essential for the success and legal security of the business in Chile.
The most common options are:
- Individual Limited Liability Company (EIRL): Ideal for those who wish to operate as a natural person with limited liability.
- Joint Stock Company (SpA): The most flexible and popular option, especially for startups and companies with rapid growth projections.
- Limited Liability Company (Ltda.): Recommended for small groups with personal or family ties.
- Corporation (SA): Can be public (listed on the stock exchange) or private (not listed). Requires a board of directors and greater reporting obligations. Limits liability to the capital contribution. Suitable for large companies.
The incorporation can be completed through the digital system “Empresa en un Día” (Company in a Day), which enables quick formalization without the need for a notary in most cases.
Essential Documents for Formalization
To operate legally in Chile, the company must obtain and submit the following documents:
- Deed or contract of incorporation: Legal document that formalizes the creation of the company.
- Registration in the Register of Companies and Societies: An essential step to obtain legal personality and operate formally.
- Unique Tax ID Number (RUT): Tax identification number issued by the Internal Revenue Service (SII), essential for invoicing, paying taxes, and hiring employees.
- Declaration of commencement of activities before the SII: Enables the company to operate for tax purposes and must be done online.
- Company tax code: Allows access to the SII’s digital services for tax returns and procedures.
- e-RUT: Digital certificate of the RUT, necessary for opening bank accounts and signing commercial contracts.
- Municipal license: Permit granted by the corresponding municipality authorizing operation at a physical address. Requires documents such as a lease agreement or title deed and, depending on the business, health authorizations.
Procedures and Administrative Considerations
- Registration and obtaining tax documents: The entire process can be done online, facilitating formalization even for foreigners, who must have a valid RUT.
- Legal administration and representation: It is essential to define who the legal representatives will be and how the company will be managed. One of the requirements to be a legal representative is to be a resident of the country. Foreigners can serve as legal representatives, but they must have permanent residence in the country.
- Additional permits: Depending on the line of business, permits may be required for health, environmental, or other sectoral requirements.
Practical aspects and recommendations
- Business or tax address: It is mandatory to have a valid address in Chile.
- Company name: It must comply with regulations; for example, a SpA must end with that acronym.
- Updating documents: Maintain accurate company records and ensure compliance with tax and labor obligations.
Establishing a company in Chile in 2025 is a streamlined and primarily digital process. However, it is essential to comply with all legal and administrative requirements to operate successfully and with legal certainty. Choosing the proper corporate structure and obtaining the key documents are the foundation for a solid venture in the Chilean market, and the advice of a company with experience in this area, such as Englobally, is essential.