Chile company registration

Chile company registration

DOING BUSINESS IN CHILE

Since 2003, Healy Consultants has assisted our Clients with starting their business in Chile. Our Chile company registration services include i) Business registration in Chile ii) company license registration iii) corporate banking solutions iv) visa approval strategies v) staff recruitment options and vi) Chile office rental solutions.

SummaryLLCFast business setup solutionFree zone LLCPublic limited companyLimited liability partnershipRepresentative officeBranch office
Also known asSRLSRLSRLSASRLAgenciaSucursal
Best use of company?All products and servicesClose a customer deal nowManufacturing and export tradingTo secure public fundingProfessional servicesMarketing & researchSpecific projects
How soon can you invoice Clients/sign sales contracts?2 months2 weeks2 months2 months2 monthsCannot2 months
How soon can you hire staff?2 months5 weeks2 months2 months2 months2 months2 months
How soon can you sign a lease agreement?2 months3 weeks2 months2 months2 months2 months2 months
How long to supply corporate bank account numbers?3 months6 weeks3 months3 months3 months3 months3 months
How long to supply company registration/tax numbers?2 months2 weeks2 months2 months2 months2 months2 months
Corporate tax rate on annual net profits?25%25%25%25%0%0%25%
Limited liability entity?YesYesYesYesYesNoNo
Government grants available?YesYesYesYesYesNoYes
Government approval required for foreign owners?NoNoNoNoNoNoNo
Resident director/partner/manager/legal representative required?YesYesYesYesYesYesYes
Minimum paid up share capital?US$1US$1US$1US$1US$1NoneNone
Can bid for Government contracts?YesYesYesYesYesNoYes
Corporate bank account location?HSBCSantanderStandard CharteredBanco De ChileScotia BankABN AMROBBVA Chile
Can secure trade finance?YesYesYesYesYesNoYes
VAT payable on sales to local customers?19%19%0%19%19%None19%
Average total business set up engagement costs?US$17,385US$54,585US$17,235US$17,385US$17,385US$17,480US$19135
Average total engagement period?3 months6 weeks3 months3 months3 months3 months3 months


See full table

Accounting and tax considerationsLLCFast business setup solutionFree zone LLCPublic limited companyLimited liability partnershipRepresentative officeBranch office
Statutory corporate tax payable?25%25%0%25%0%0%25%
Legally tax exempt if properly structured?NoNoYesNoNoNoNo
Must file an annual tax return?YesYesYesYesYesNoYes
Must file annual financial statements?NoNoNoYesNoNoNo
Must appoint an auditor?NoNoNoYesNoNoNo
Access to double taxation treaties?YesYesYesYesYesNoYes
Withholding tax on payments to foreign shareholders?35%35%0%35%35%None35%
Company RegistrationLLCFast business setup solutionFree zone LLCPublic limited companyLimited liability partnershipRepresentative officeBranch office
Resident director/partner/manager/legal representative required?YesYesYesYesYesYesYes
Minimum number of shareholders/partners?21122Parent companyParent company
Maximum shareholding for foreigners?100%100%100%100%100%100%100%
Minimum statutory paid up share capital?US$1US$1US$1US$1US$1NoneNone
Shelf companies available?YesYesYesYesYesNoNo
Time to incorporate a new entity?2 months2 weeks2 months2 months2 months2 months2 months
Can easily convert to a PLC?YesYesYesYesYesNoNo
Can have preference shareholders?YesYesYesYesYesNoNo
Business ConsiderationsLLCFast business setup solutionFree zone LLCPublic limited companyLimited liability partnershipRepresentative officeBranch office
Good entity for trademark registration?YesYesYesYesYesNoYes
Can secure an import and export license?YesYesYesYesNoNoYes

Public register of shareholders and directors?Yes
Sponsorship by a local citizen required?No
Our Client needs to travel to Chile for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
The entity will likely be regulated by?Ministry of Economy
Minimum number of directors/managers?1
Monthly VAT reporting to the Government?Yes
Must sign an office lease agreement during incorporation?No
Shareholders & directors documents to be attested/translated?Yes
Each foreign director needs a personal income tax number?Yes
Foreign director needs a residence visa?No
Maximum number of staff allowed?No maximum number for any entity
Expatriate to local staff ratio?None
Can secure residence visa for business owner?Yes
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?Yes
Average custom duties suffered?6%
Government foreign investment approval required?No
Average monthly office rental? (US$ per sq m)US$28
Minimum statutory monthly salary?US$400
Average monthly US$ salary for local skilled employees?US$1,021
US$ deposit interest rate? (1 year average)3.602
Overseas remittance currency controls?None
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Good
Crowd funding available in this country?Yes
Security deposit to be kept with Government?No
Group HQ tax incentives?No

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages and Disadvantages

    Advantages of Chile company registration

    1. Entrepreneurs starting a Chilean company enjoy generous government support, including:
      • Chile has Latin America’s 2nd lowest corporate tax rate (20%), which makes the country more attractive than other developing countries like Brazil (34%) and Argentina (35%);
      • Dividends from one Chilean resident company to another are 100% tax exempt;
      • All exports from Chile are completely exempt of i) customs duties and ii) VAT. Even, customs duties and VAT paid on inputs used in the production of exports will be re-imbursed;
      • Regional tax incentives are available to resident businesses including i) a 17% tax rebate is available on income from investments in Region I, XI and XII and ii) 25 year corporate tax exemption and import duty exemption for companies producing mining supplies;
      • A Chilean holding company is 100% tax exempt if i) it is listed on the Chile stock exchange ii) it is not domiciled in Chile iii) shareholders and directors are not Chile residents and iv) the company’s purpose is making investments in other countries;
      • Chile has signed double tax treaties with 28 countries including Australia, Canada, South Africa, UK and USA to reduce withholding tax on dividends, interests and royalties to foreign companies.

    Disadvantages of Chile company registration

    1. Foreign entrepreneurs will face problems in Chile, including:
      • Chile has an inefficient bureaucracy. Consequently, entrepreneurs will face delays when seeking business license approval from the Government;
      • Obtaining finance can be difficult for foreign entrepreneurs because i) interests are freely negotiable so bankers tend to increase them ii) time delays are common during the loan approval process and iii) high commissions are demanded by the officials;
      • Chile has high electricity costs, with average tariffs ranging 20 cents per KWh. Furthermore, power outages are common in the country;
      • Only up to 15% of a Chilean company’s employees can be foreigners . This can be a major impediment for multinational companies because only 10% of the local people speak English.

    2. A Chilean company must have either i) 1 resident director or ii) 1 resident company representative. Healy Consultants can provide nominee director services to support our Client for US$12,000 per annum;
    3. Renting an office space can be expensive in Chile as the average annual rental is US$25 per sq. ft.;
    4. The Chilean economy is heavily dependent on exports, which makes it vulnerable to external shocks. For example, in 2013, the Chilean peso depreciated 10% against the US$ due to decrease in demand for its exports;
    5. Chile is prone to earthquakes due to its location in the ‘ring of fire’. This may disrupt daily business and trade.
  • Best uses for a Chilean company

    1. Chile is a great place for subsidiary registration for our Clients willing to expand to Latin America because:
        Chile business registration advantage
      • Registering a company in Chile can be done within 9 weeks, with only i) US$1 for the company’s share capital ii) 2 shareholders and iii) a single director. Our Clients will furthermore not be requested to travel to Chile to complete administrative procedures, which will all be taken care of by our firm’s Chile business registration agent;
      • Foreign entrepreneurs can register in all sectors of the economy except hydrocarbons. Consequently, Chile is the 7th freest economy in the world according to 2015 Index of Economic Freedom;
      • Chile is the 2nd least corrupt country is the Latin America, according to the 2015 Corruption Index by Transparency International. Consequently, foreign companies can utilize the Chilean legal system to resolve business disputes.
      • A Chile resident company is not required to submit annual audited financial statements to the government.
      • Entrepreneurs can easily convert foreign currency into Chilean peso as there are no exchange controls imposed in the country. Hence Clients registering a new firm in Chile find it easy to exchange their home currency into peso and vice versa.

    2. Our Clients willing to register a a new manufacturing and distribution business in South America often choose Chile because:
      • Chilean free zones offer resident businesses: i) 100% corporate tax exemption for all company operations and ii) import duty exemption;
      • Chile is the top choice for product distribution centre because it has the best infrastructure in Latin America. The country’s high quality roads, bridges, railways, air and sea-ports ease transfer of goods/services;
      • Government incentives are available for all resident businesses including i) a refund of expenses for employee training up to a maximum of 1% of that employee’s annual payroll and ii) tax credit up to 15% of annual profits for approved R & D projects;
      • Chile has the most skilled labour force in South America with 99% literacy rate. Furthermore, the average wage rate is also low at US $764;
      • Average monthly warehouse rental costs are low at US$ 0.5 per sq. ft.;
      • Average monthly industrial space rental is US$ 0.5 per sq. ft.;
      • A Chile resident company can either carry back or carry forward their business losses.

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Company registration

  • Time to incorporate: Nine weeks
  • Cost to set up: US$16,385
  • Minimum capital: US$1
  • Physical office required: No

Required appointments

  • Shareholders: 2
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 20%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: S.R.L.

Frequently asked questions

Contact us

For additional information on our company registration services in Chile, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi