If you’re looking to start a business in Chile, it’s essential to follow a series of steps to comply with current regulations and ensure a smooth launch. Establishing your company is a fundamental pillar for achieving medium- to long-term success in your venture. Not only will you position your business plan within the legal framework of Chile, but you will also gain access to benefits and financing options that are not available to individuals. Here are the basic steps you should consider when starting your business in 2024.
Before You Begin: Who Can Start a Business?
Individuals must be at least 18 years old and have a RUN (Rol Único Nacional) to create a business. If you are a foreigner without a RUT (Rol Único Tributario), you will need to apply for a foreign investor RUT through the Internal Revenue Service, which can be processed as a simplified or regular procedure.
1. Establish the Company
Creating a legal entity is crucial when starting a business in Chile, as it will have its own assets and act as a new identity for accessing financing and capital gathering options. The most common business structures in Chile include:
- Individual Limited Liability Company: This is the simplest type of business entity. It allows you to separate your personal assets from those of your business, provides tax benefits, and requires no minimum capital. However, it permits only a single line of business, does not allow for partners, and makes private financing more challenging.
- Limited Liability Company (LLC): Comprised of a minimum of two and a maximum of fifty partners, an LLC provides moderate flexibility in management and allows for multiple lines of business. However, the number of partners can be restrictive as the business grows, and transferring shares requires the approval of other partners.
- Joint-Stock Company: This type of company allows you to divide ownership into shares, making it easier to introduce new partners and offering great flexibility in management. However, this entity cannot participate in the stock market, and its management may become complicated as the company expands.
2. Register the Company in the Commercial Registry
Once the legal entity is established, the next step is registration in the Commercial Registry and subsequent publication in the Official Gazette. This must be completed within 60 calendar days from the date specified in the company’s founding deed. It is advisable to obtain several copies of the Official Gazette for future procedures.
3. Start Activities and Obtain RUT
According to Article 66 of the Tax Code, it is necessary to request the registration of the legal entity in the Rol Único Tributario and notify the Internal Revenue Service (SII) of the commencement of activities. The legal representative must present the document verifying the Rol Único Tributario registration or the notification of the start of activities to the SII, along with the notarized founding deed.
4. Obtain Tax Documents
Now that your company is officially established and has begun activities with the SII, you will need to create the relevant tax documents. Depending on the nature of your business, you will need to issue invoices or receipts. You must stamp your tax documents with the SII by completing a sworn declaration using Form 3230. These documents must include your business name, RUT, address(es), and the activities you perform. While electronic signature options are available, it’s advisable to keep physical copies for any eventualities.
5. Process Permit Applications
If you have a physical location, you must operate with a business license. Your operating space must meet minimum health, structural, and environmental conditions that depend on your industry. For example, a food establishment requires health authorization, which must be obtained from the Health Ministry (SEREMI de Salud). This process is done through the local municipality, which will outline the necessary documents and deadlines for obtaining the permit.
Additional Information to Consider
If you are looking for a faster option to establish your business, consider the website Tu Empresa en un Día (Your Company in a Day). This site allows you to set up your business, initiate activities with the SII, and request your business license at participating municipalities, often at lower costs than traditional methods.
However, it may not be the best option for all businesses. The “one-day company” process is intended for traditional businesses and not startups. Furthermore, not all notaries in the country offer this service, and it is not possible to include real estate as an initial capital contribution.
