Registering a company in Chile, as well as opening a corporate account with a Chilean bank will open up promising opportunities for conducting international business.
Chile is an independent state located in the southwestern part of South America. The Republic of Chile belongs to the group of latest industrial countries (LIC), which are characterized by a dynamically developing economy.
The main sectors are: a mining, a food processing, a woodworking, a clothing, an agriculture. Chile is the world's largest exporter of copper, chemicals, fruits and wine.
The capital and largest city is Santiago. The state currency is Chilean peso (CL). The official language is Spanish.
Chile is a member of the UN, the World Trade Organization and the Organization for Economic Development and Cooperation, has a number of free trade agreements with the European Union.
Business advantages of jurisdiction:
In 2019, the Republic of Chile took 56th place in the ranking for ease of doing business, as well as 1st place among the most prosperous countries in Latin America.
If you want to register a commercial firm in Chile, then the following business advantages await you:
- a rapidly growing economy;
- a stable political environment;
- a favorable investment climate;
- broad prospects for the development of medium and large businesses;
- a flexible tax system;
- a low level of corruption;
- 31st place according to the index of prosperity;
- 6th place in terms of GDP in Latin America.
Those, who intend to set up a company in Chile should consider the following priority business niches: a mining, a metallurgy, a tourism, a textile, fisheries and livestock.
Key legal forms of companies
If you intend to open a commercial company in Chile, then pay attention to the following legal forms:
- Limited Liability Company (LTD);
- a Joint-stock company;
- an Individual LLC (EIRL);
- a Branch;
- a Representation.
The most attractive from the point of view of investing and doing business for foreigners in Chile are LTD, as well as an Individual Limited Liability Company.
To register a company in Chile requires a minimum of time and effort. Read in detail the following list of requirements of the state authorities:
- The unique name of the enterprise with the end in the form of a full form or abbreviation of the selected legal form;
- The allowed number of participants is unlimited for a Joint-stock company, 2-50 for LTD;
- A number of directors in a Joint-stock company is from 3 people;
- The owner of EIRL is only legal entity (it is a company of a commercial type);
- LTD is managed by individuals/legal entities, both a local and a foreign;
- Conducting financial accounting, annual reporting and open access to it.
In addition, for those, who want to establish a company in Chile remotely, they will also need to provide reports on salaries (monthly), as well as a VAT return (monthly).
Taxes in Chile
If you intend to set up a commercial firm in Chile or open an account with a Chilean bank, we first recommend you carefully studying the tax system of this jurisdiction:
- a value added tax is 19%;
- a dividend tax is 35%;
- an income tax for individuals is 0-40%;
- a real estate tax (at the municipal level) is 1,5%;
- an income tax is 25-27%.
How to open a business in Chile?
YB Case team is ready to provide you with professional legal services, in particular: to provide detailed legal advice on the business climate in Chile, legal support services in registering a company in Chile, legal advice on how to open a corporate account with a bank in Chile, to obtain a gambling license in Chile and much more.
Registration term is from 21 days.