Starting a business in a new country can be an exciting venture, and Chile offers a robust environment for entrepreneurs and investors alike. Known for its stable economy and strong regulatory framework, Chile is considered one of the most business-friendly countries in Latin America. If you’re considering opening a business in Chile, here’s a comprehensive guide to help you navigate the process.
Step 1: define your business structure
The first step in starting a business in Chile is to decide on the type of business structure. Chile offers several types of business entities, each with its own set of implications for taxation, liability, and business operations. The most common forms include:
Sociedad por Acciones (SpA): a flexible structure suitable for small to medium-sized enterprises.
Sociedad de Responsabilidad Limitada (Ltda.): similar to a limited liability company, protecting owners from personal liability beyond their investment.
Sociedad Anónima (SA): public or private stock companies, suitable for larger ventures.
Consulting with a legal expert can help you choose the structure that best suits your business goals and needs.
Step 2: obtain a RUT (Tax ID)
All businesses in Chile requires a RUT (Rol Único Tributario), which is the tax identification number. To obtain a RUT, foreign business owners must first apply for an investor visa through the Chilean consulate. Once in Chile, you can apply for the RUT at the Servicio de Impuestos Internos (SII), the tax authority. The process involves submitting various documents, including proof of your visa and your business address in Chile.
Step 3: legalize company documents
Once you have your RUT, the next step is to legalize your company’s formation documents. This involves drafting and signing the articles of incorporation and bylaws, tailored to the specifics of Chilean corporate law. These documents must then be notarized and registered at the local commercial registry. It’s essential to ensure that all documentation is compliant with Chilean law to avoid any legal issues down the line.
Step 4: open a corporate bank account
To conduct business in Chile, you’ll need to open a corporate bank account. This requires presenting your RUT, the legalized company documents, and sometimes proof of economic activity. Different banks may have varying requirements, so it’s advisable to research and compare options to find one that suits your business needs.
Step 5: comply with licensing and regulatory requirements
Depending on the nature of your business, you may need specific licenses and permits to operate legally in Chile. This can include health and safety inspections, environmental licenses, and municipal permits. Make sure to identify all the regulatory requirements relevant to your industry.
Step 6: hire employees
If your business requires hiring staff, you’ll need to familiarize yourself with Chilean labor laws, which include regulations on working hours, minimum wage, and employee benefits. It’s often beneficial to consult with a local HR or legal professional to ensure compliance with employment laws.
Step 7: start operations
With all legal and administrative requirements addressed, you are now set to commence business operations in Chile. Continuous compliance with Chilean tax and corporate laws is essential for smooth business operations and long-term success.
Becker abogados, your reliable legal advisor for a business in Chile
At Becker Abogados, we pride ourselves on our deep understanding of the Chilean legal landscape and our commitment to providing tailored, comprehensive legal services to both local and international clients.
Starting and operating a business in a foreign country comes with its unique set of challenges and requirements. With our expertise in Chilean business law, we are well-equipped to guide you through every step of the process, from initial business setup and registration to ongoing compliance and corporate governance.
Our team of experienced attorneys specializes in a range of areas critical to business success, including corporate law, tax law, labor law, and intellectual property, ensuring a holistic approach to legal support. Whether you are starting a new venture or looking to expand your existing operations in Chile, Becker Abogados is here to provide the strategic advice and legal solutions you need to thrive.
