An innovative new initiative has been launched in Chile that aims to encourage more entrepreneurs to create small businesses in the country.
Using a website launched earlier this month, people can now start a business in Chile in one day, in one step, and with zero cost.
With the new system, entrepreneurs with at least Temporary Residancy in Chile can enter the Ministry of Economy’s website portal www.tuempresaenundia.cl (which translates to “your business in one day”), select the type of legal entity they want to create, and complete a form that specifies the company’s business partners, legal name, and lines of capital and income. Members of the company represent themselves using electronic signatures.
The website’s software then converts the information into a document that is electronically sent to Chile’s Internal Revenue Service, which assigns a tax ID number and allows the new company to begin operating immediately.
Prior to the new website, an entrepreneur needed to hire a lawyer to draft an official document about the creation of the business, which needed to be notarized and submitted in person for formal approval – a process that usually took around eight days.
This new system, which has already been implemented in countries such as New Zealand, Australia, Canada and Singapore, among others, aims to “facilitate entrepreneurship, making Chile more competitive,” according to Economy, Development and Tourism Minister Tomás Flores.
About 30 companies have been formed each day since the launching of the site and about 4,000 applications were started within the site’s first six days, according to Ministry of Economics Small Business Manager Ariztía Manuel.
“Thanks to this new system, ordinary people are spared tedious bureaucracy and can create their own company on a Sunday, at five o’clock, in less than 30 minutes,” Ariztía said during a recent seminar about the initiative.
At the website’s launch ceremony, President Piñera said that the new development represents the “strengthening and legitimization of our democracy, and promotes a free, open, and competitive economy, and the creative and entrepreneurial spirit of Chileans. We have a state that is far from being a burden; instead it is a partner and an ally in this development effort.”