Starting a business in Chile as a foreigner involves following a series of steps to comply with local regulations. This guide will help you understand the process and requirements to successfully establish your company in Chile.
Why Choose Chile for Your Business?
Chile is an attractive destination for foreign investors, thanks to its stable economy, favorable tax rates, and simplified business registration process. With a corporate tax rate as low as 10%, the country offers a competitive environment for businesses looking to expand into Latin America.
What We Offer:
- Company Registration: Quick and hassle-free registration process.
- Accounting Services: Comprehensive accounting solutions to ensure tax compliance.
- Tax Address: Assistance in securing a tax domicile.
- Personalized Advice: Guidance on financial, legal, and tax matters.
- Recruitment Services: Help in sourcing qualified personnel.
Our team of professionals is ready to assist you with every aspect of company formation, ensuring that your business is set up correctly and efficiently.
Steps to Start a Business in Chile as a Foreigner
1. Obtain a RUT as a Foreign Investor
One of the first requirements for any foreign investor is to obtain a RUT (Rol Único Tributario), which is the tax ID number necessary for conducting business in Chile. To do this, you will need to appoint a Chilean resident to represent you. This representative will handle your legal and financial affairs in the country.
2. Choose Your Business Structure
Chile offers various types of business entities, such as non-profit organizations, limited liability companies (LLCs), and publicly traded corporations. The business structure you choose will depend on your specific needs and objectives.
3. Define a Tax Strategy
After acquiring your RUT and selecting the most appropriate business structure, it’s essential to consult with tax advisors to understand how your future earnings will be taxed. This step also involves determining the tax implications if you decide to sell shares or ownership rights in the company.
4. Obtain a Public Deed
Once the business structure and tax strategy are determined, the next step is to formalize the creation of the company through a public deed. This document outlines the company’s management structure, capital, address, and other essential details. The public deed must be signed by your representatives and notarized.
Additionally, an extract of the public deed must be published in the Official Gazette and registered in the Commercial Registry within 60 days.
5. Register the Company with the Tax Authority
Following the notarization of the public deed and its publication in the Official Gazette, you must present the necessary documents to the Internal Revenue Service (SII) to obtain your company’s RUT. You will also need to submit Form 4415 to officially begin business activities in Chile. This form specifies the economic activities your company will engage in.
6. Verify Business Address
Once all the previous steps are completed, you need to verify the company’s physical address in Chile. This can be done through a lease or sublease agreement. Once the address is verified, your company will be fully authorized to issue invoices and other tax documents in the country. Ensuring timely tax declarations and submissions is crucial, and the assistance of an accountant is highly recommended.
Visa and RUT for Foreign Investors
If you plan to live or work in Chile for more than three months, you will need a residence visa. Our legal team can handle the process of obtaining the necessary documents for your RUT, based on the type of visa you qualify for. The visa allows you to reside in Chile and engage in various business activities.
Who Needs a Visa in Chile?
Anyone planning to live or work in Chile for more than three months needs a residence visa. This applies to those arriving for work, family visits, or other personal reasons. The specific type of visa depends on your particular situation.
How to Obtain a RUT as a Foreign Investor
Foreign individuals or companies wishing to invest in Chile but without a permanent residence must obtain a RUT for Foreign Investors. This process is governed by Article 66 of the Chilean Tax Code. To obtain this RUT, foreign investors must apply through the SII with the help of a local representative, and the necessary documentation will be prepared by our legal team.
Simplified Business Creation in Chile
Setting up a foreign business in Chile has become a straightforward process. Coupled with attractive tax benefits like the 10% corporate tax rate, Chile stands out as a prime destination for investment in Latin America.
With our experienced legal and tax advisors, you can take full advantage of Chile’s business-friendly environment. We will guide you through every step, ensuring that your company complies with all local laws and regulations.
