DOING BUSINESS IN CHILE

“As per recent news report foreign investment ends 2023 with an increase of 19.2%”, “Foreign investment in Chile initiates 2024 with positive figures”, “Foreign investment in Chile reached the second highest accumulated figure since 2015”. It is necessary to remind briefly that besides the pandemic situation, during the last years Chile was involved in a local political-social conflict which ended during 2023 after the ratification of the current Constitution Mandatory Law, so we started this 2024 with a positive scenery of legal certainty and economy increasing.

The expectation for doing business in Chile is high in comparison with other latinamerican markets, due to the settled situation. We are here not only for legal and economic matters, but even incentives, low risk for investors, local security, among others attributes which are not pretty common in this region of the world. Infact, Chile has been considerated the leader country for establishing foreign companies of any kind of industries, who prefers to begin their business ideas here as the first headquarters in South America.

Regarding the legal requirements, for establishing a foreign company, subsidaries, units, sales offices or any commerce in Chile, in addition of the due diligence process for studying the tax, legal and accounting best structure – which could vary depending on the industry and business core-, it is necessary to have a Power of Attorney, duly apostilled, for representing the client in this first step, in cordination with his lawyers and/or advisors so that the Chilean subsidiary complies with the requirements and  specifications that the group organization requires.

Before making any investment by a foreign natural or legal person, it is mandatory to register in the Tax Roll and obtain the ID with its unique number from the Internal Revenue Service, for which we can also represent and assist them. Once the foreign parent company has a tax role, the Chilean company can be established with the formalities of the so-called “traditional system”, that is, by public deed granted before a Notary Public, registration of extract in the Conservator’s Commerce Registry of Real Estate of Santiago, and publication in the Official Gazette.

In order for the Chilean subsidiary, unit or sales office to begin operations, it will be required to have a tax domicile and a tax representative residing in Chile, both services we render usually for our clients. Also, consider that once the company is in operation, it must have monthly and annual accounting services.

The possibilities for structuring a tailored-solution are wide. The investors can operate by: 1) LLC (Limited Liability Company), 2) Joint-Stock Company (allows a sole shareholder), 3) Corporation (legal entity that is owned by shareholders and managed by directors and officers), among others.

Finally, if we consider India as an almost unlimited possibilities of trading, you must know that we are the partner you need for initiating any commerce idea not only in Chile, but South America, so please do not hesitate to contact us for any requirment or assitance you need.