Business: Why And How To Set Up A Company In Chile

• Published date: 27 September 2023
• Subject Matter: Corporate/Commercial Law, Wealth Management, Government, Public Sector, Inward/ Foreign Investment, Corporate and Company Law, Offshore Company Formation, Shareholders
• Law Firm: Biz Latin Hub Group
• Author: Biz Latin Hub Group

Company Formation in Chile: Despite its considerably smaller size, Chile is now attracting roughly as much Foreign Direct Investment (FDI) as one strongest economic Latin America countries, Mexico.

The graphic above highlights why company formation in Chile is a great option for investors looking to business in the region.

Company formation in Chile is widely recognized as one of the most stable and prosperous options in South America, attracting investors seeking both political and financial transparency in the region. Its impressive year-on-year GDP growth of 11.7% in 2021 is a testament to its stable legal and macroeconomic system, rich natural resources, and high-quality infrastructure. The total GDP of Chile is $317 billion (USD), and its GDP per capita is above the regional average, at over $16,000, making it a highly attractive destination for foreign investors who contributed about US$12.72 billion to the economy in 2021. The country boasts an very appealing business package for those looking to start company formation in Chile.

With an expanding middle and upper class and a renewed push from the government to diversify investment sources, Chile is a highly attractive investment destination for multinationals, company incorporations, start-ups, and investors. Now is the perfect time to begin the visa process and begin the process for company formation in Chile.

Chile has made it extremely convenient to start a business since May 2013, with new laws allowing for online company formation within a day. However, investing and navigating corporate laws in Chile may differ from other countries. Therefore, it's recommended to seek guidance from a local legal expert before commencing company formation in Chile.

What are the steps for Company Formation in Chile? This graphic lays out the 7 steps.

The World Bank's Doing Business Guide outlines the steps to for company formation in Chile, which can typically be completed within 1-2 days. These steps are as follows:

1. Register the company online and obtain authentication number
2. Notarize company statutes and have them signed digitally by the notary
3. Obtain a RUT number by registering with the Internal Revenue Service (SII in Spanish)
4. Print receipts/invoices at an authorized printing company
5. Seal accounting books and other documents with the IRS
6. Acquire a "patente municipal" working license from the municipality
7. Register for labor-related accident insurance

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