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How to start a business in Chile: Requirements and steps
Do you want to start a business in Chile as an expat? We tell you the requirements, costs and the complete step-by-step to do it.
Chile has spent years becoming one of Latin America’s most attractive destinations for entrepreneurship. It offers a stable economy, a clear legal framework, more than 30 free trade agreements worldwide, and a legal system that allows any foreigner to own 100% of a company without needing residency or a prior visa. Yes, exactly like that.
We won’t lie to you either: There are procedures, paperwork, and things you must understand. However, with the right information, the process feels far easier than it seems. In this article, we explain everything, from costs to step-by-step guidance, so you arrive fully prepared and without surprises.
How Much Does It Cost To Start a Business in Chile?
The good news is that Chile ranks among the most affordable countries in the region for company formation costs.
Chile offers a platform called “Empresa en un Día”, a government portal for registering companies online. If you use it, costs can be almost symbolic. A SpA (the most popular structure among foreigners) can be set up for free, and you only pay for publication in the Official Gazette, which costs around $8,000 CLP (less than $10 US / €9). In total, a basic digital setup starts from around $128,000 CLP (~$130 US / €112).
If you prefer the traditional notary route, costs increase. It includes:
- Notary fees (incorporation deed): Between $50,000 and $200,000 CLP ($53–210 US / €46–180).
- Commercial Registry registration (Real Estate Registrar): Equals 0.2% of declared capital, plus $300 CLP per page of extract ($0.30 US / €0.26 per page, variable by capital).
- Official Gazette publication: Between $50,000 and $120,000 CLP ($53–126 US / €46–108).
- Municipal licence: 5 per thousand over capital declared to the SII, annual payment (~varies depending on capital declared).
- Legal or accounting advisory: Between $50,000 and $500,000 CLP ($53–526 US / €46–452).
- Investor tax ID (RUT): No official cost, although representative fees vary by professional.
In summary, total estimated costs range from $128,000 to $778,000 CLP (~$135–819 US / €116–704) using the traditional route, excluding optional services such as virtual address or external monthly accounting.
Chile doesn’t require minimum share capital for most corporate structures such as the SpA. You don’t need to lock funds in a bank account. Capital is declared, but no upfront deposit is required like in other countries. This makes it highly accessible for entrepreneurs on a limited budget.
What Types Of Companies Can You Open in Chile?
Not all companies work the same way, so choosing the right structure from the start saves you many problems later. These are the most relevant options for foreigners:
- SpA (Simplified Joint Stock Company): You can open a SpA alone, without minimum capital. It offers flexible management and full online incorporation. If you feel unsure, start here. It suits consultancies, agencies, startups, service businesses, and almost any modern venture.
- Limited Liability Company (SRL): Ideal if you plan to run a business with trusted partners. Each partner only responds for their contribution, which works well. It requires at least two people, and it feels more rigid than a SpA, but it remains widely used and reliable.
- Limited Liability Individual Company (EIRL): This option works if you operate alone and want to separate personal and business assets. However, you face a key limitation: A single business purpose, so you cannot diversify easily. It works well for small and clearly defined businesses.
- Corporation (S.A.): You need at least two shareholders, a formal board, and more bureaucracy. However, if you plan to scale strongly, attract investors, or go public later, this structure fits best.
- Branch or agency: If you already own a company abroad and want to operate in Chile under the same structure, you can. You don’t need a new company. You keep your foreign headquarters and operate locally. Depending on the country of origin and tax treaties in force, this may be the most tax-efficient option.
Requirements To Open a Company in Chile
First, you must know this: You don’t need residency or a visa to own a company in Chile. Law 20.848 explicitly guarantees this. However, you must meet several specific requirements:
RUT
The most important step. The RUT is Chile’s tax identification number. Without it, you cannot operate at all. You cannot open a bank account, sign contracts, or start activities. It’s the mandatory starting point.
As a foreigner without residency, you must appoint someone with a Chilean address to request the RUT on your behalf at the SII (Internal Revenue Service). This can be a lawyer, accountant, or a trusted local representative.
Legal representative based in Chile
Even if you own 100% of the company, you need someone physically based in Chile as legal representative. This person can sign documents, represent you before the SII, and manage banking processes. They don’t need to be Chilean, but they can be a foreign resident.
Tax address in Chile
Your company needs a legal address in Chile. If you don’t have a physical office, do not worry. You can hire a virtual tax address, which is fully valid and widely used by international companies. Providers offer this service for an affordable monthly fee.
If you operate from abroad, you will need:
- A notarised and apostilled power of attorney for your Chilean representative.
- If you operate as a company: Certificate of incorporation, shareholder list, and ownership percentages, duly apostilled and translated into Spanish if required.
Visa or residency
No. Law 20.848 clearly states it: Any foreigner can incorporate a company in Chile without visa or residency. The visa may be useful if you want to operate yourself in the country on a day-to-day basis, but it’s not a requirement for setting up a company.
How long does everything take? A digital SpA: 24 to 48 hours. The full process, including RUT, tax start, and banking, takes around 3 to 5 weeks if documents are ready.
Corporate bank account
To operate, receive payments, and manage finances in Chile, you must open a corporate bank account. This is often the slowest step. Chilean banks apply strict compliance rules, especially for foreign owners, and they may request additional documentation about shareholders and fund origins.
Fintechs and digital banks can simplify this process, so it is worth exploring options early.
Sector-specific permits
Some industries require extra authorisations. For example, pharmacies need approval from the Public Health Institute. Health, food, education, and regulated sectors require additional permits before the municipality issues the final licence.
Trademark registration
If your business involves innovation, brands, or unique designs, consider registering them with the National Institute of Industrial Property (INAPI). It’s not mandatory, but it protects your brand strategically.
Taxes When Opening a Company in Chile
I know the word “taxes” rarely excites anyone, but Chile offers some good news. The system stays clear, well structured, and if your company qualifies as an SME, you can access a highly attractive tax benefit.
First Category Tax (CIT): This works as corporate income tax. The general rate is 27% for large companies and 25% for SMEs under the general regime. However, there is an important update: Since July 2025, Law No. 21.755 temporarily reduced the SME Pro-Pyme regime rate to 12.5% for fiscal years 2025, 2026, and 2027. If your company qualifies as an SME with average income below 75,000 UF (around $3 million US / €2.58 million per year) over the last three years, you gain a strong fiscal advantage.
Additional Tax: When companies distribute profits abroad as dividends, the Additional Tax applies with a general rate of 35%. However, you can offset it with credits from the First Category Tax already paid, so you don’t pay twice in full. Chile also holds double taxation treaties with over 30 countries, including Spain, Colombia, Argentina, Mexico, Brazil, Peru, France, and Germany. Depending on your country of residence, the effective rate may be considerably reduced.
VAT: Chile applies a Value Added Tax of 19% on goods and services, both for local and foreign companies operating in the country.
Accounting obligations: All companies must keep accounting records, file monthly VAT returns, and submit annual income tax declarations. The system stays manageable, but it requires constant attention. Most companies hire a local accountant.
Municipal licence: In addition to national taxes, companies pay an annual municipal licence based on their declared capital to the SII.
7 Steps To Open a Company in Chile
Most of this process works remotely. The key lies in preparing the correct documents from the start and following the right order.
Step 1: Get your foreign investor RUT
Your representative in Chile takes your notarised power of attorney to the SII and requests your RUT. Without it, nothing else moves forward. It forms the foundation of the entire process.
Step 2: Define your company type
With the RUT in process, it’s time to make one of the most important decisions: What legal structure suits your business. This step also includes drafting the bylaws, which define how your company operates. If you have doubts at this point, a good advisor is worth every penny they charge – a bad decision now can be costly later.
Step 3: Incorporate the company
With the digital route, you complete the online form and sign electronically. With the notary route, your representative signs the deed before a notary and then publishes it in the Official Gazette and registers it within 60 days.
Step 4: Register activity with the SII
This step tells the SII that your company is now operating and defines its business activity. Without it, your company legally exists but cannot issue invoices or receipts. You can complete it online.
Step 5: Apply for the municipal licence
This licence allows you to operate legally within a municipality. You must renew it annually, and its cost depends on your activity and declared capital. Some sectors, such as health, food, or education, require extra permits before receiving the final licence.
Step 6: Open a corporate bank account
Prepare all documents before starting this process, because banks will request them and missing paperwork causes delays. Fintechs and digital banks often work faster as a first step while you complete traditional banking in parallel.
Step 7: Keep everything up to date
Once your company operates, you must manage ongoing obligations: Monthly VAT filings, provisional payments, and annual income tax returns. A local accountant with foreign investment experience is not an expense, it is a strategic partner who can save you money through proper tax planning.
Internet For Business Trips to Chile
If you travel to Chile to handle company procedures, meet partners, or explore the market, you do not want to lose connection at a critical moment.
Holafly monthly plans are designed for business travellers like you. With an eSIM activated before departure, you arrive in Chile with data from the first minute, without physical SIM cards or local contracts. If you travel frequently across countries, which often happens with international businesses, the Always On plan becomes especially useful. It keeps you connected in over 70 countries with 1 GB free each month, so you stay online wherever you operate.
For entrepreneurs and executives managing operations across borders, reliable connectivity is not a luxury. It is an operational necessity.
Frequently Asked Questions About Starting a Business in Chile
Yes, completely. You don’t need residency or a visa. You only need a legal representative with a Chilean address and a notarised apostilled power of attorney to handle the process. Many foreigners own companies in Chile without ever visiting more than once or twice.
No. You can own 100% of your company. You only need a legal representative with a Chilean address, which is not the same as a partner. This person acts before authorities but does not need ownership in the company.
Digital incorporation can be ready in 24 to 48 hours. However, the full process including RUT, tax start, municipal licence, and bank account takes around 3 to 5 weeks if all documents are ready.
Yes. With a notarised apostilled power of attorney, your representative can handle incorporation, tax registration, and all procedures without you entering the country.
For most foreign entrepreneurs starting out, a SpA is the best option. It’s flexible, requires no minimum capital, can be owned by one person, and is fully online. You can always restructure it later as your business grows.
