In recent years, the Fintech ecosystem in Chile has seen exponential growth, driven by technological advancements and the need for more accessible financial solutions. If you’re looking to establish a Fintech company that operates legally in Chile, you’ll need to obtain a license from the Financial Market Commission (CMF), the entity responsible for regulating the financial market in the country. Below, we explain step by step how to achieve this quickly and easily.
What is the CMF, and why do you need its license?
The Financial Market Commission (CMF) oversees and regulates the operations of financial entities in Chile, including banks, insurance companies, and more recently, Fintech companies. For your Fintech business to operate legally in the country, you must comply with CMF regulations and obtain a license allowing you to provide financial services.
Having a CMF license not only ensures your company complies with local regulations but also builds trust with users and attracts investors who value transparency and security.
Types of licenses for Fintech companies in Chile
There are various types of licenses for Fintech companies in Chile, depending on the services they offer. Some of the most common licenses include:
- Payment and electronic transfer platforms: Companies facilitating online payments or electronic money transfers must comply with payment regulations.
- Crowdfunding platforms: If your business connects investors with projects through crowdfunding, you’ll need a special CMF license.
- Digital credit and lending Fintechs: Fintech companies offering loans through digital platforms are subject to specific regulations.
Each license has its own requirements, so it’s essential to identify the type of license your Fintech needs before applying.
Steps to create a Fintech company with a CMF license in Chile
Before taking the final step to create your Fintech and apply for a CMF license, it’s important to have a clear vision of the challenges and responsibilities involved in operating in the financial sector. The regulations are strict, and continuous compliance is necessary, so being well-prepared from the start will save you future complications.
1. Develop a clear and detailed business model
Before you start the process of creating your Fintech, define clearly what services you will offer. Will your company focus on digital payments, lending, or crowdfunding? Having a well-defined business model will not only help you structure your company but also make it easier to obtain the license.
2. Legally incorporate your company
Once your business model is in place, you’ll need to legally incorporate your company in Chile. This involves creating a business entity, registering it with the Commerce Registry, and obtaining a Unique Tax Number (RUT) from the Internal Revenue Service (SII).
3. Meet CMF requirements
Each type of license issued by the CMF has specific requirements, which may include submitting financial documents, business plans, and growth projections. The CMF also requires Fintech companies to implement anti-money laundering mechanisms and protect user data in accordance with Chilean privacy and cybersecurity laws. You may also need to prove that your company has the necessary security measures and technology in place to operate safely.
4. Apply for the CMF license
Once you have all the necessary documents, you must submit your application to the Financial Market Commission. The evaluation process may take several months, as the CMF will thoroughly review your business model and ensure that you comply with all regulations.
During this process, it’s advisable to seek advice from financial law experts, who can help you submit the necessary documentation correctly and avoid delays.
5. Comply with audits and reporting requirements
After your license is approved, your Fintech will need to undergo periodic audits and submit reports to the CMF, reflecting your company’s financial status, service operations, and implemented security measures. This ongoing oversight is essential for keeping your license active and avoiding penalties.
Benefits of operating under a CMF license
Operating under the supervision of the CMF is not only a legal requirement but also offers significant advantages for your Fintech:
- Trust and security: Being regulated instills greater confidence in customers, who will feel safer using your services.
- Access to funding: Legally operating companies are more likely to attract investors, as they provide greater financial security.
- Market expansion: Having a CMF license allows Chilean Fintech companies to expand into other international markets with similar regulations.
Why choose Becker Abogados?
Having a specialized legal team like Becker Abogados is key to successfully navigating regulatory processes and ensuring your Fintech operates legally in Chile with a CMF license.
Contact Becker Abogados today to receive expert guidance on financial law and CMF regulations, ensuring your business operates in full compliance with Chilean law.
