How to start a business in Chile

Chile attracts almost as much foreign investment as Mexico, despite its smaller size. This shows business owners and entrepreneurs are drawn to its opportunities. With a growing middle and upper class, Chile is a key trade partner for American businesses. Its open market, lack of tariffs, and ethical business climate appeal to many.

Starting a business in Chile comes with its own set of benefits. There’s a steady GDP growth, lower taxes than many places, and a skilled labor force. We will guide you through starting a venture there, from requirements to costs. This is a must-read for anyone exploring business options in Chile.

Key Takeaways

• Chile attracts almost as much foreign investment as Mexico, despite its size.
• It has a growing affluent class, making it appealing for businesses.
• The country offers a stable economy, low corruption, and open markets.
• Starting a business in Chile brings advantages like steady GDP growth and low taxes.
• Knowing the process and requirements is essential for a successful business launch.

Business Opportunities in Chile

Chile has a strong economy and is great for businesses that want to grow. The country’s GDP was about $79.9 billion in March 2022. Low tax rates make it even more attractive compared to other places in Latin America and Europe.

Chile’s Thriving Economy and Investment Climate

With stability in politics and the economy, Chile is the safest in Latin America. Its financial and political systems are top-notch. This makes it a safe place for companies to do well. Plus, its low crime rates add to its appeal for investments.

Benefits of Starting a Business in Chile

Chile is becoming the tech hub of Latin America, called “Chilecon Valley.” This is due to programs that draw tech experts from the U.S. and elsewhere. Its political and economic stability also makes it a perfect spot for new ventures. Entrepreneurs and investors find great opportunities here.

Requirements for Starting a Business in Chile

Starting a business in Chile involves thinking about many important things. First, you need an investor visa. This special visa lets you live in Chile for a year or two. To get this visa, you must invest at least USD 500,000 in a business project.

Next, you need to pick a company name that no one else is using. You also need a registered office address. Chilean laws say your business can have between 2 to 50 shareholders. Surprisingly, anyone from any country can be a company director.

In terms of taxation, those living or based in Chile might have to pay taxes on their worldwide income. These taxes can range from 0% to 45%. But, businesses pay a flat tax rate of 27% when they become a resident after being set up.

Types of Business Structures in Chile

In Chile, there are several ways to set up a business. This includes the Individual Limited Liability Company (EIRL), Limited Liability Company (LLC), Corporation (SA), and Stock Company (SpA).

Individual Limited Liability Company (EIRL)

The Individual Limited Liability Company (EIRL) is a good option for someone starting alone. This setup means the owner is solely responsible for the company. It gives personal assets protection if the business has debts or legal problems.

Limited Liability Company (LLC)

The Limited Liability Company (LLC) is great for businesses with 2 to 50 owners. It combines the benefits of limited liability with less strict management. Profits and losses pass to owners’ personal taxes, simplifying things.

Corporation (SA)

A Corporation (SA) fits bigger businesses with distinct shareholders and decision-making boards. It’s a more formal structure, offering clear guidelines for running the company.

Stock Company (SpA)

The Stock Company (SpA) suits small businesses with a few shareholders. It has simpler rules and decision-making processes, making it easier to manage.

How to start a business in Chile

Starting a business in Chile is clear and definable. To kick off the process, you’ll need to do a few things:

1. Determine the type of business that fits your needs and ensure you meet all the requirements.
2. Obtain legal counsel in Chile if you aren’t there. You must work with a native or a foreigner with a valid visa showing residency.
3. Establish the company in Chile by legalizing it with a notary and making a deed of incorporation.
4. List with the Commercial Registry within 60 days of the deed being certified.
5. Publish the official statement in an official journal within 60 days after registration.
6. Get the Rol Único Tributario (RUT), the taxpayer ID, after legal registration.
7. Set up a business bank account in a Chilean bank of your choice.

By following these steps, entrepreneurs can start a business in Chile successfully. The country offers a thriving economy, a stable political scene, and welcome business policies.

Company Registration Process

The first step in Chile to start a business is picking the right type. You need to make sure you qualify. If you’re not in Chile, get a Chilean lawyer or a foreigner with a valid Chilean visa to help you.

Once you know your business type, it’s time to get it legalized. This is done through a notary with a deed of incorporation. You must do this within 60 days. Next, you need to be List with the Commercial Registry. Then, publish your business in an official journal within the first 60 days.

Before getting a Rol Único Tributario (RUT), which is the tax ID, your business needs to be fully set up according to Chilean laws. After the registration is complete, you should Establish a Business Bank Account with a local bank.

Costs of Incorporating a Company in Chile

For those thinking of starting a business in Chile, knowing about the Costs of Incorporating a Company in Chile is key. In the first year, starting a company there costs about US$7,200. But, when you add in the fees for a bank account, tax registration, and project help, the total can reach an estimated US$18,385.

These costs change based on the type of business you pick. For example, starting a Limited Liability Company (LLC) usually costs more, around US$18,385. A Public Limited Company (PLC) is a bit cheaper at about US$16,385. Limited Liability Partnerships (LLPs) fall in the middle, costing an average of US$17,385. And, setting up a branch office in Chile is also quite pricey, at US$18,135.

Entrepreneurs and investors benefit a lot from learning about the Costs of Incorporating a Company in Chile. It helps them plan their budget right and make smart choices for their business in this growing market.

Foreigners and Business Visas in Chile

If you’re going to work in Chile, make sure you get a work visa. This is necessary after you’ve got a job offer or signed a contract. Since 2020, Chile has been updating its visa laws to help make the process better for foreigners.

The new law offers special visas like the investor visa. This visa lets people live in Chile for up to two years if they invest at least USD 500,000 in a project. For entrepreneurs, there is the start-up visa. It helps those with new business ideas to set up in Chile.

These visa changes show how Chile wants to welcome foreign talent and money. This makes Chile a great choice for people looking to start or grow their business in South America. By knowing about these changes, it’s easier for international businesspeople to understand what they need.

Chile is improving how it welcomes foreign professionals and business owners. It’s making it easier for them to work or grow a business there. This makes Chile even more inviting for people looking to do business in South America.

Exporting to Chile

If you’re thinking about exporting to Chile, you have several first steps. Start by checking out Chile’s export.gov page for a look at its economy and business chances. Also, reach out to your local U.S. Export Assistance Center and Small Business Development Center (SBDC) for advice. Local business groups in Chile can also provide help.

Getting Started

To get started with exports to Chile, do the following:

1. Study Chile’s export.gov page to understand its economy and potential business spots.
2. Get in touch with your U.S. Export Assistance Center, SBDC, and local Chilean business help groups for guidance.
3. Use business matchmaking to find good business deals and make important connections in Chile.

Following these steps will help you start exporting to Chile. You’ll be able to grab many of the great opportunities in this lively South American market.

Investing in Chile

To begin investing in Chile, potential investors need to take certain steps. They should first register with the U.S. Embassy. Then, they ought to check out investment climate reports. After that, it’s important to find out about active and likely projects. Next, visiting local resources and contacting U.S. business organizations is key. This helps potential investors get the info and connections they need. It makes their investment journey in Chile smoother and more successful.

Potential Investors: Getting Started

Begin by signing up with the U.S. Embassy in Chile for key resources and support. Also, look over detailed investment reports to grasp the economic scene. Finding projects that meet your investment goals is vital. You can use business matchmaking services for this. Plus, visiting local resources, like investment agencies and support groups, offers great advice. It helps in understanding the investing in Chile process better.

Current Investors: Staying Connected

To stay in the loop, current investors in Chile should stay connected with the U.S. Embassy. This means regularly updating their business info. Adding key embassy contacts to your mailing list and following embassy social media can be very useful. So is arranging meetings with the economic or commercial team. This way, current investors are better informed about Chile’s market changes and can address challenges and find new opportunities smoothly.

Working in Chile

To work in Chile successfully, one must know about business visas and keep up with travel advisories. Also, understanding the Foreign Corrupt Practices Act (FCPA) is critical. By staying on top of these regulations and guidelines, professionals working in Chile can have a great experience.

Understanding Company Formation in Chile

To do well in the Chilean market, foreign investors need to understand company formation. Chile makes starting a business easy. New laws allow you to form a company online in just a day. The key company types in Chile include:

Types of Chilean Companies

1. Individual Limited Liability Company (EIRL)
2. Limited Liability Company (LLC)
3. Corporation (SA)
4. Stock Company (SpA)

Each company type has its specific features and setup requirements. Before you begin, it’s smart to get advice from a local law expert.

Conclusion

Chile is growing fast economically with a stable society. It welcomes foreigners who want to start a business here. The journey to beginning a business in Chile is smooth with local help and government backing. There are many chances for success in this country.

Chile’s business scene is friendly with no tariffs and a clean government. It also has less tax than other places in its area. Skilled workers and a stable political system add to its appeal. This combination makes Chile a great place to invest and grow a business.

If you’re thinking of investing or expanding your business, Chile is a good choice. Getting started here is made easier with expert advice and clear steps. This country wants to see your business do well and offers many advantages to help you succeed.

Source Links

• https://www.bizlatinhub.com/setting-company-chile/
• https://www.usemultiplier.com/chile/company-registration
• https://cl.usembassy.gov/business/getting-started-chile/