How to Open a Business in Chile as a Foreigner

Chile's recognized for its solid legal framework, favorable tax treaties, and open-market policies make the country an ideal gateway for doing business in the region. However, setting up a company as a foreigner requires careful planning, compliance with local regulations, and the support of a legal representative in Chile.

In this guide, we outline the key steps and considerations for foreign entrepreneurs and corporations seeking to establish a business presence in Chile.

Where to start

1. The first step for any foreign investor is to obtain a Rol Único Tributario (RUT), Chile's tax identification number. If you are not a resident, this process must be completed through a legal representative in Chile. The representative will handle filings before the Servicio de Impuestos Internos (SII) and act on your behalf for all tax matters.

2. Foreign individuals and companies are required to appoint a legal representative domiciled in Chile. This representative ensures compliance with tax, corporate, and administrative obligations. Without this appointment, it is not possible to open bank accounts or register the company.

Choosing the Right Legal Structure

Chile offers different legal structures depending on the business model and investment strategy:

• Sociedad por Acciones (SpA): One or more shareholders are required, or they plan to incorporate new partners later. Free management.

• Sociedad de Responsabilidad Limitada (LTDA/SRL): Suitable for small and medium-sized businesses. Between 2 and 50 members are needed, with a bond of friendship or family between the members.

• Empresa Individual de Responsabilidad Limitada (EIRL): A structure designed for individual entrepreneurs.

• Sociedad anónima (S.A.): Two or more shareholders (or those who plan to incorporate new partners in the future),  and have strict regulations.

• Sociedad en Comandita Simple (SCS):  One or more managing partners administer the company. They jointly and severally bind all of its assets. Hence, one or more limited partners who contribute capital cannot administer the company.

Company Incorporation and Registration

Once the legal structure is chosen, the company must be incorporated through a public deed of incorporation, which includes the bylaws, business purpose, domicile, and capital contributions.
This deed must be:

• Registered with the Commercial Registry.

• Published in the Official Gazette (Diario Oficial) within 60 days.

These steps give the company legal existence in Chile.

Starting Business Activities with the SII

Before beginning operations, the company must file the Form 4415 with the SII to declare the start of activities. A tax address in Chile is also required, which may be a physical office or a virtual office recognized by the authorities.

Once completed, the company is authorized to issue invoices and comply with monthly and annual tax filings.

Next step: draft your bylaws

Another essential step is preparing your company's bylaws. Bylaws are the rules that determine how your company will be governed and/or managed.

Company bylaws essentially cover things like:

• The number of shares into which the company's capital will be divided.

• How many directors should be appointed?

• Procedures and records of shareholder meetings or board meetings.

Although it's not necessary to register all of your company's bylaws with the Registrar of Real Estate, registering their summary ("extract") is a key step in the incorporation process. Whether you decide to form your company through the traditional method or through a registrar, it's difficult to do so without the legal support of an attorney.

On the other hand, if you decide to use the Registry of Companies and Societies (also known as RES or Your Company in a Day), its platform will offer you standard bylaws to use for your new company. It may be a good idea to seek legal assistance when preparing them to ensure nothing is overlooked or left out.

Registration of the extract in the Registrar and the Diario Oficial

The next step is to register the abstract of the incorporation in the Commercial Registry of the Registrar of Real Estate and publish it in the Official Gazette. By doing so, you will comply with all the legal requirements for incorporation and formally register it in the country.

The articles of incorporation typically include:

• Name and address of the company

• Purpose of the company

• Names of its founding partners/shareholders

• Type and number of shares into which the capital is divided.

If your company was incorporated through "Tu empresa en un Día," this step is not necessary, as the law does not require you to complete your company's incorporation.

Opening a Business Bank Account

A crucial step when starting your business is opening a corporate bank account. This account will be separate from your partners' bank accounts, helping to protect your personal funds from any business liabilities. Be sure to check with your bank to see what documents you'll need to open one.

Main Requirements

Most Chilean banks will request:

• Company formation and bylaws

• Registration with the Real Estate Registry (if not an electronic company)

• Publication in the Official Gazette (if not an electronic company)

• Unique Taxpayer Identification Number (RUT).

If you're unsure of your company's RUT, you can check it or obtain it from the SII (Internal Revenue Service in Spanish). For e-businesses, the RUT will be generated automatically during the incorporation process.

Tax and Strategic Considerations

Chile applies a corporate income tax on profits and an additional withholding tax on dividends distributed abroad, typically 35%. However, Chile has signed double taxation treaties with several countries, which may reduce the withholding rate.

Foreign investors should also consider special tax regimes for small businesses and evaluate opportunities for tax optimization when structuring their operations.

Business Opportunities and Support Programs

Beyond its favorable legal and tax environment, Chile offers innovation-driven incentives such as Start-Up Chile, a government-backed accelerator that provides funding, visas, mentorship, and workspace to entrepreneurs from around the world.

This ecosystem strengthens Chile's position as a hub for technology, services, and international expansion in Latin America.

How H&CO Can Assist You in Incorporating in Chile

Expanding into a new market is a strategic decision that requires more than just completing legal formalities. We provide comprehensive support to ensure your business in Chile is established efficiently, compliant with local regulations, and positioned for long-term success.

With over 30 years of experience helping businesses expand across Latin America, we combine local expertise with a global perspective. Whether you are launching a new venture or expanding an existing operation, we are your trusted partner for doing business in Chile.