Why register a company in Chile?
Chile's sustained economic growth and openness to invest which have set it apart internationally as a free and dynamic market, Chile is one of the best-evaluated emerging economies globally and Latin America’s most competitive economy.
Chile is a pioneer in South America in the development of polices to attract foreign company registration, relying on clear and stable legal mechanisms. In general, the policy framework offers equal treatment of domestic and foreign agents, free access to almost every economic sector and a State with transparent regulation policies towards the activity of investors.
With its economic and political stability and high GDP, there are great reasons to invest in Chile, most investors register a company directly in Chile, since there's no restriction to foreign investment.
How to register a company in Chile?
First and foremost for the company registration process, a foreigner investor should enter Chile with a visa allowing his stay in the country, usually with a tourist visa. Then every company requires following the laid out proceedings before the Internal Revenue Service (SII, in Spanish):
- Registration of investor RUT (taxpayer number) to perform commercial and company operations.
- Register company by signing bylaws with a notary.
- Business Start-up('Iniciación de Actividades') at the Unit of the Internal Revenue Service with jurisdiction over the place in which the company is registered.
- Accreditation of company legal residence. Once authorized by the Business Start-up Declaration, you may request the stamping of documents, which entitles you to tax credit of VAT (IVA, in Spanish), and others, e.g. invoices, waybills, etc.
How much capital is needed to register a company in Chile?
The company's capital is set out in the bylaws and there is no requirement for a minimum amount in order to register a company. Capital contributions may consist of cash, property (including technology) or services to be provided to the company. Capital may be increased or reduced by agreement of all shareholders and amendment of the company deed. Approval by the SII is required in the event of a reduction in the company’s capital.
Consecutively, it is needed to apply for the investor's visa, so that the company management can be done properly. Even though the company is already registered, we would recommend you to have a visa to control the taxes and the company bank account in a proper way.
You would need a minimum of 10.000 $ usd to submit the requirements for investor's visa before the Chile's immigration department, which are usually used for the capital of a new company registered in Chile. Once approved, a one-year temporary resident status will be granted. In that case after nine (9) months, you can apply for permanent resident status which will grant you the rights similar to that of the citizen, including the right to vote among others.
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