Strategic Guide to Company Registration in Chile

Bourgg International Law Firm | Corporate & Tax Affairs Division

Chile stands out as a premier gateway for business expansion in Latin America. With its legal transparency, open economy, and strong bilateral ties with many countries, it offers a fertile ground for foreign investment. This guide outlines the full process of company formation in Chile, including legal structures, registration requirements, tax planning, and post-incorporation compliance—tailored for Bourgg’s multidisciplinary vision.

🌐 Chile’s Investment Landscape

Chile is a member of the OECD and offers:

• Transparent and predictable legal system

• 65 free trade agreements (covering 88% of global GDP)

• Free movement of capital and remittances

• Sector-specific tax incentives

• Strategic Pacific location bridging Asia and Latin America

China-Chile Relations: Since the 2006 Free Trade Agreement, bilateral trade has quintupled. Over 100 Chinese companies operate in Chile, with investments exceeding USD 15 billion.

Legal Entity Types in Chile

Entity Type	Shareholders	Min. Capital	Timeframe	Governance	Capital Transfer	Best For
SpA (Stock Corporation)	1	None	7–10 days	Flexible	Easy, no statute change	Foreign investors
Ltda (Limited Liability Co.)	2–50	None	10–15 days	Direct by partners	Requires unanimous approval	Joint ventures
SA (Corporation)	2	None	15–20 days	Board of Directors	Free	Large listed companies

Bourgg’s Recommendation: The SpA structure offers optimal flexibility for foreign investors, especially regarding governance and share transfers.

Registration Requirements

Key elements:

• Shareholder identity (no nationality restrictions)

• Legal representative residing in Chile

• Physical address within Chile

• Permitted business activity (most sectors are open)

Required documents:

• Shareholder ID (passport or business license)

• Power of attorney (if using an agent)

• Articles of incorporation

• Capital declaration

• Appointment letter for legal representative

📌 Foreign documents must be legalized and apostilled per Chilean law.

Incorporation Process

1. Initial planning (2–3 days): Define company name, activity, capital, and structure

2. Drafting bylaws (1 day): Customized to client needs

3. Notarial signing (1 day): Formalization before a public notary

4. Commercial registry (1–2 days): Obtain company certificate

5. Official publication (1 day): Notice in the Official Gazette

6. Tax ID (RUT) application (1 day): Activate fiscal status with the SII

Timelines & Costs

Estimated duration:

• SpA: 7–10 business days

• Ltda: 10–15 business days

• SA: 15–20 business days

Approximate costs:

• Government fees: USD 500–1,000

• Notarization: USD 200–500

• Publication: USD 100–200

• Legal fees: based on scope

Bourgg offers fixed-rate packages with full legal support and no hidden fees.

Post-Incorporation Obligations

1. Bank account opening: Requires company documents + RUT. In-person or video verification. ⏳ Estimated time: 3–7 business days

2. Licenses and permits:

   • Municipal business license

   • Sector-specific authorizations

   • Environmental assessments (if applicable)

   • Labor registration (if hiring)

3. Accounting & tax compliance:

   • Bookkeeping

   • Monthly tax filings

   • Annual financial statements

   • Audits (if required)

Tax Overview

Tax Type	Rate
Corporate income tax	27%
VAT	19%
Dividend withholding	35%
Interest withholding	35%
Royalty withholding	30%
Municipal tax	0.25%–0.5%

Tax incentives:

• R&D: 35% tax credit

• Remote zones: exemptions

• Renewable energy: duty-free imports

• Chile-China treaty: avoids double taxation

📊 Bourgg recommends early-stage tax planning to optimize fiscal efficiency.

Bourgg Services

From our Providencia office, Bourgg International Law Firm provides:

• Incorporation of SpA and Ltda entities

• Comprehensive legal advisory

• Strategic tax planning

• Document management and regulatory compliance

Ready to expand your business into Chile? Our team is equipped to guide you every step of the way.