Creating a company in Chile
Looking to create a company in Chile, or open a South American branch of your business? Chile offers groundbreaking incentives for businesses and entrepreneurs.
Tuesday, August 11, 2009
Business owners will find Chile a hospitable host for a new economic venture. If you’re looking to set up shop in the “Silicon Valley of South America,” Chile is the most stable and promising economy in the region.
Investing from abroad:
If you do not have a legal address in Chile, you can invest from abroad through an individual or company established in Chilean territory. You must sign a contract with a representative stating clearly that you will assume the risk of the representative’s actions. The investor and representative can freely agree upon terms of remuneration.
Creating a local branch:
Another alternative for those without legal residency in the country, creating a local branch allows you to bring your company to the most attractive place to invest in Latin America. A Chilean notary must authenticate all of the foreign-based company’s legal information. You can establish a legal address for your company’s branch in Chile.
Creating a limited liability company or individual enterprise:
A limited liability company (LLC) allows two or more parties to collaborate on a business venture in Chile, with each party’s liability limited by the amount of capital invested. There is no minimum capital requirement for parties in an LLC. The partners may be Chilean and/or foreign individuals or legal entities, but cannot number fewer than two or more than 50.
A limited liability individual enterprise (EIRL) is a legal entity with its own assets and liabilities, separate from those of the individual holder. The holder may be Chilean or foreign. To incorporate an EIRL, you must sign a public deed that states all legal terms of the entity.
Starting a publicly-traded company, or stock corporation:
A stock corporation is a legal entity created by a common fund provided by shareholders, in which liabilities are limited to the amount of each shareholder’s capital contribution. A publicly-traded corporation is subject to the control of the Securities and Insurance Superintendency (SVS) and must be listed in the Register of Securities. More information can be found at the SVS website, which provides information in English on the Chilean securities and insurance market.