Moreover, one reason why Chile can be a suitable launching pad for a startup is its strong connectivity with global markets. The state has signed more international free trade agreements than any other country. Currently, Chile has ratified 26 international agreements and double taxation treaties with 64 markets.
However, in order to get your project recognized and approved, you need lawyers who will not only help you determine the optimal company structure and organize the legal obligations of entrepreneurship with partners and investors, but will also provide support in negotiating transactions with clients. In other words, you should contact licensed lawyers who will support investment projects in Chile.
Chile's business environment
The Chilean economy is one of the most stable, open and competitive in Latin America. The country ranks first in the region in the Ease of Doing Business Index, which means that Chile's business regulation, international trade and tax administration are among the most efficient in Latin America.
The local government provides incentives for foreign companies if they choose to invest in one of the following three areas:
- Research and Development. A foreign company is eligible for a first category tax credit of up to 35% of the amount allocated to research and development.
- Pre-investment and technology startups. There are many incentives for foreign companies if they participate in pre-investment research aimed at accelerating the decision-making process of investors. Co-financing is also available for foreign enterprises if they are involved in the expansion or implementation of technology investment projects.
- Remote areas. Chile's exceptional geographical location is one of the reasons for the economic differences between regions. Thus, the government provides tax incentives, labor subsidies or investment subsidies for companies that decide to invest in regions in the far north or far south.
According to the Global Entrepreneur Monitor (GEM), Chile is the most entrepreneurial country in the world, ahead of the United States. Many factors, such as startup funding, the innovation system and the entrepreneurial environment, contributed to this jurisdiction's top ranking. Thus, thanks to its skilled labor force, strong macroeconomic indicators and government support, Chile is the preferred destination for innovative businesses seeking to incorporate in Latin America.
Different types of companies in Chile
The first type is the corporation or Sociedad Anónima (SA), which is a commercial legal entity. The capital is divided into shares, which can be privately held or freely tradable. To register an SA in Chile, there must be at least two shareholders (natural or legal persons) and the company is subject to external regulation by Comisión para el Mercado Financiero (CMF). In addition, financial statements must be published every year.
The second type is the simplified corporation, or SpA. This legal structure was introduced in 2007 as a way to attract more investors through a less complex business structure. Unlike a corporation, an SpA does not need to publish its financial statements each year. An SpA requires at least one shareholder and three directors.
The third type is a limited liability company or SRL, analogous to an LLC in the United States. This is one of the most popular options for launching an investment project in Chile. Between 2 and 50 partners can form a company and its name must include the name of the shareholders and/or the purpose of the firm and end with the word "limitada". This type of business is not supervised by the CMF, and financial statements do not have to be published. Shares can only be transferred if all partners unanimously approve the transfer.
Why is "legal support of investment projects" important?
In order for investment activities to be successful, it is important to understand and strictly comply with all legal formalities prescribed in the legislation of the country where the investment project is being implemented. Licensed lawyers have a clear understanding of the requirements and regulations for launching a startup.
Consulting support in Chile by lawyers includes (but is not limited to):
- Working out a strategy for launching your project.
- Direct support in registering a legal entity.
- Working out the internal structure and policies so that they comply with the regulatory framework of the country.
- Legal audit of the business, the legal status of the assets to be acquired and the parties to the transaction.
- Representation of the client's interests in negotiations with partners, counterparties, representatives of local regulatory agencies.
- Environmental support of investment projects.
- Assistance in drafting corporate documents, negotiating contractual terms and conditions, support in negotiating contracts and agreements with regulatory authorities.
- Advising on early stage investments in existing projects.
- Structuring transactions within the framework of an investment project.
- Support in dispute settlement.
The key objective of support is to ensure that an investment project in Chile is legally safe and compliant with the local regulatory framework. In addition, some projects may have a direct global impact on the country's infrastructure, environment and regions, so it is important to have a competent professional assisting with these types of issues. This will also help minimize the risks of failure and other potential risks.
Best sectors to enter the Chilean investment market
Business enrollment in Chile in the scrutiny and excavation sector
Excavation is a intricate sector in Chile that utilizes recent technologies, employs an exceedingly adept workforce, and applies worldwide safety and conformity criteria. These elements, coupled with a sophisticated energy infrastructure, transportation lattice, and robust juridical framework, have rendered Chile one of the pivotal excavation nations globally.
The Chilean regime hath been benevolent of the trade and hath made incessant endeavors to foster it and formulate apt guidelines. In reference to extraneous investment, the regime hath sole proprietorship and dominion over all mineral repositories. Nevertheless, any innate or juridical individual (whether dweller or alien) can procure scrutiny or mining prerogatives if the fitting protocols are adhered to. The entitlement to scrutinize for ores in Chile can be procured in the guise of scrutiny concessions with a circumscribed duration.
The evolution and execution of a excavation enterprise in Chile demands numerous authorizations from diverse overseers. The duration for acquiring these authorizations can fluctuate considerably contingent on the particulars of each enterprise. It is hence judicious to recruit the assistance of experts and solicit aid for your excavation investment enterprise.
Our company's services in this area include:
- Full legal support of mining companies in Chile implementing complex infrastructure projects.
- Business audits that include coverage of a wide range of energy and natural resource interests.
- Support in obtaining licenses and other special permits for the use of natural resources.
- Structuring foreign investments in Chile's energy and natural resources sector.
- Advising on the optimal forms of doing business in this sector.
- Advising on obtaining financing for enterprises.
- Legal support of joint ventures, concessions and other legal organizations of businesses in the field of subsoil use.
- Development of agreements (sale and purchase, use, exploration, concessions, service agreements, etc.).
- Participation in the approval of agreements (contracts) in the sphere of natural resources.
- Dispute resolution in the field of energy and natural resources.
- Representation of the client's interests in state authorities.
- Legal due diligence of legal entities engaged in geological exploration and mining, as well as major investment projects and facilities in this area, identifying potential risks in the acquisition of such legal entities.
- Legal support of investment projects in the field of construction and operation of energy facilities.
Initiation of an investment undertaking in Chile within the erudition automatons realm
By virtue of the lofty burgeon potency of erudition mechanisms amenities, Chile has designated this sphere as its paramount concern. Consequently, the nation presently stands as one of the supremely enthralling localities globally for investments in the erudition automatons sector. Chile's erudition automatons marketplace stands as one of the most sophisticated within Latin America. The influx of alien enterprises, exemplified by Microsoft, Oracle, Google, and Amazon, into Chile has imbued momentum into the indigenous technological sector, metamorphosing the nation into a nexus for the provisioning and exportation of ubiquitous amenities from Latin America to the Asia-Pacific quadrant.
You can count on the fact that setting up an IT company in Chile will allow you to receive government support, as today such projects create more than half of the jobs. The lawyers provide a full range of legal and consulting services in the field of IT law and information technology, including:
- Drafting of statutory documentation and registration of a legal entity under Chilean law, taking into account the clients' business models.
- Registration of trademarks and other intellectual property rights.
- Preparation of business documentation (license agreements, service agreements, contracts for website development, software and cloud technologies, non-disclosure agreements, Terms of Use).
- Legal support of current activities (launch of IT infrastructure, contracts with customers and contractors, labor contracts and agreements, contracts with banks and payment systems).
- Legal consulting on the use of cryptocurrencies.
- Protection from undue pressure from regulatory authorities, lawyers represent clients' interests in courts and state authorities.
Backing pecuniary technology undertakings in Chile
Harmonizing to the Orb Bank's Conducting Commerce 2020 dossier, Chile is the paramount pecuniary system in Latin America to conduct transactions with. This acknowledgement buttresses Chile's potential to spearhead the evolution of the fiscal technology domain in Latin America. Harmonizing to Harris Gomez Group, the Chilean Pecuniary Technology marketplace burgeoned by 27% in 2019, notwithstanding the formidable political terrain confronting the nation.
If you want to launch a fintech project in Chile, contact the lawyers who provide qualified support. Our cryptocurrency and blockchain project support services include, among others:
- structuring cryptocurrency and blockchain businesses;
- analyzing the legal regulation of fintech projects in the jurisdiction and selecting the optimal business structure for project implementation;
- registration of fintech companies;
- assistance in drafting the necessary set of constituent documents;
- preparation of key legal documents of the project (Terms and Conditions, Token Sale Agreement, Privacy Policy, AML Policy, etc.);
- support in obtaining a crypto-license;
- analyzing legal risks in relation to your startup;
- analysis of the legal construction of the token and support for tokenization.
Supporting investment projects in Chile in the international trade industry
In order to promote economic development in recent decades, Chile's international trade policy has focused on creating a favorable environment for the development of free trade. Thus, by reducing trade barriers of all kinds, the Chilean government has effectively increased access to the world's major markets.
Chile has signed 28 trade agreements with 64 markets, giving it access to more than 64.1% of the world's population and trade with countries that account for 85% of the world's GDP. Our company's main services in this industry are:
- Comprehensive support of foreign economic activity.
- Structuring of international trade transactions.
- Development of foreign economic contracts and support of their approval.
- Audit of foreign economic contracts.
- Registration of international companies and account opening abroad.
- Advising on all legal issues related to conducting international trade activities in Chile.
- Representing clients before various regulatory and governmental agencies.
- Advising on dispute resolution in the international trade industry.
Engaging with us
At every stage of the project life cycle, we can help with project structuring and implementation, risk analysis and management, project documentation and contracting, transaction due diligence, planning, title acquisition advice, equity investments, and dispute resolution.
Investors spend a lot of time and money negotiating contract terms for every aspect of their projects. This involves not only the contracting parties, but also a number of key stakeholders, from sponsors to insurers. In this area, our services include:
- assisting in drafting contract terms and conditions;
- conducting project audits;
- developing customized dispute resolution procedures best suited to the project requirements.
Our establishment proffers juridical amenities encompassing every facet of a undertaking, irrespective of its essence. Furthermore, a jurisprudent assumes a consequential function in amalgamating entities, guaranteeing that time constraints are adhered to fulfill their commitments in a transaction. We adopt a comprehensive methodology grounded on our proficiency in interacting with all entities: associates, artisans, authorities, artisans, operators, monetary institutions, etc. With noteworthy proficiency in interconnected amenity domains, we are poised to dispense exhaustive life-span succor and counsel in the execution of a substantial capital venture in Chile.
Business protection
In the present epoch, a commercial entity that consistently yields gain and harbors expectations is susceptible to elevated hazards. A cadre of particularized experts furnishing juridical succor for endeavors will furnish adept juridical succor for the safeguarding of commerce and, if requisite, formulate an assemblage of juridical redresses, like:
- Punctual and exhaustive commerce safeguard.
- Conversations, succor, and endorsement of compacts.
- Elaboration of lawful manuscripts of every intricacy.
- Juridical scrutiny of patrons' or affiliates' exertions.
- Performing requisite scrupulousness.
- Safeguarding the commerce from illicit deeds of regulatory authorities.
- Termination of clandestine compacts with personnel.
- Assistance in drafting a Privacy Policy, etc.
Conclusion
We accompany each client at all stages of business development and provide information on current international destinations for the realization of major investment projects.
Our company's list of services include, but are not limited to:
- Preparation of corporate documentation (charters, agreements, regulations)
- Registration of legal entities.
- Legal expertise.
- Liquidation and reorganization of legal entities.
- Protection of shareholders' rights, including in court.
- Consultations on contract law.
To request project support in Chile and learn more about our related services, please fill out the request form below or contact us directly.
