{"id":2598,"date":"2022-09-20T07:51:02","date_gmt":"2022-09-20T07:51:02","guid":{"rendered":"https:\/\/mylocalpartner.cl\/?p=2598"},"modified":"2022-09-20T07:55:23","modified_gmt":"2022-09-20T07:55:23","slug":"how-to-set-up-a-company-in-chile-as-a-foreigner","status":"publish","type":"post","link":"https:\/\/mylocalpartner.cl\/en\/2022\/09\/20\/how-to-set-up-a-company-in-chile-as-a-foreigner\/","title":{"rendered":"How to set up a company in Chile as a foreigner"},"content":{"rendered":"

Starting a new business is always a challenge. And it can be even more uphill when doing it in a country as a foreigner. But don’t be discouraged. In this article, we will tell you how to set up a company in Chile as a foreigner, even if you are not physically in Chile.<\/p>\n\n\n\n

You will see that although there are several steps to follow, it is not as complex as you may have imagined.In Chile, anyone can set up a company. Whether natural persons or legal entities, nationals or foreigners. Regardless of nationality, and visa or residency status. Here we’ll tell you how.<\/p>\n\n\n\n

Types of business incorporation in Chile<\/h2>\n\n\n\n

First, it is essential to understand that in Chile there are different types of companies. You must define which one best suits your needs and interests. You should always do this before starting the process of setting up your company. For this, we recommend that you consult an expert business law attorney who can recommend the appropriate legal structure for your business. <\/p>\n\n\n\n

It is important to keep in mind that the legal structure of the business will determine which regulations the company will observe. In addition, it will define other aspects such as what its form of administration will be, who will make the decisions and how it will be taxed.<\/p>\n\n\n\n

Initially, we can distinguish two ways of undertaking any commercial endeavor: <\/p>\n\n\n\n

As a Natural Person, (a normal physical person, \u201cyou\u201d or \u201cme\u201d):<\/strong><\/strong> the natural person develops commercial activities in his or her own name, assuming the rights and obligations of the activity carried out. The responsibility of the individual entrepreneur is unlimited, being able to respond with his or her personal assets for the obligations or debts contracted as a result of his activity.<\/p>\n\n\n\n

As a Legal person, a legal entity<\/strong>:<\/strong> it is an independent legal entity, with its own assets and distinct from the individual members that form it. It has its own RUT (Chilean Tax ID Number) and is subject to rights and obligations that are recognized by the State.<\/p>\n\n\n\n

In this article, we will develop the process for when you undertake a commercial business as a legal person.<\/p>\n\n\n\n

Note: <\/em><\/strong>You may be interested in our article detailing everything you need to know about how to set up a company in Chile.<\/a><\/p>\n\n\n\n

Types of companies in Chile<\/h2>\n\n\n\n

Chilean law offers different types of companies. These different alternatives developed over time; therefore, some may be more adequate for current business practices than others. Each one may be more adequate to each particular business purposes. Next we will mention its main characteristics:<\/p>\n\n\n\n

Commercial Companies:<\/h3>\n\n\n\n

Joint Stock Company (\u201cSociedad por Acciones\u201d or \u201cSpA\u201d)<\/strong><\/strong><\/p>\n\n\n\n

It is a type of commercial company formed by one or more persons, which is constituted in the form established by law and in which participation in the capital is represented by shares. Each shareholder makes a contribution and is liable up to that amount.<\/p>\n\n\n\n

The main thing in this type of company is the capital it has and not the number of persons that compose it. Both the number and the value of the shares that represent the capital is determined by the shareholders and can belong to one or several persons and represent the degree of participation that they have in the SpA.<\/p>\n\n\n\n

This type of corporation is relatively modern, was created in year 2005. It is highly recommended for entrepreneurs since it is very simple in terms of creation, administration and reform. It can be incorporated with just one person.The partners can leave the company rapidly, and there is great freedom to define the bylaws, establishing the rights and obligations of the shareholders, the administration modality and all the agreements that are defined among the partners, except for what is established by law.<\/p>\n\n\n\n

Limited Liability Company (\u201cSociedad de Responsabilidad Limitada\u201d or \u201cLtda.\u201d):<\/strong><\/strong><\/h4>\n\n\n\n

It is a company of at least two persons in which the system of administration and representation can be freely established. It must be a minimum of two people and up to fifty, and they can be nationals or foreigners, natural or legal persons. The partners are liable only up to the amount of the contribution they made. Their participation and rights are represented in the membership fee. Unless a special administration method is decided by the partners, all decisions must be agreed by all partners. It has been the traditional entity type used by professional service companies. Lately, its popularity has decreased in favor of the Joint Stock Company (\u201cSociedad por Acciones\u201d).<\/p>\n\n\n\n

Commercial Collective Company (\u201cSociedad Colectiva Comercial\u201d):<\/strong><\/strong><\/h4>\n\n\n\n

They are formed for businesses classified as acts of commerce according to the Commercial Code. The administration of this company corresponds by right to each and every one of the managing partners, who can exercise it by themselves or through delegates. The partners can designate an administrator in the social deed or in a later act. Those who are general partners present in the social deed will be jointly and severally liable for all the obligations legally contracted by the company. The partners may not derogate from joint and several liability in partnerships.<\/p>\n\n\n\n

Commercial limited partnerships (\u201cSociedad Encomandita Mercantil\u201d):<\/strong><\/strong><\/h4>\n\n\n\n

There are two types of partners: managing partners and limited partners. The former are those who have the faculty of administration and are jointly and severally liable for social obligations. Their names appear in the company name. The second, meanwhile, is the capitalist partner in terms of the social contribution and liabilities in relation to the administration of the company. The latter limit their liability to the amount of their contributions. There are two types of limited partnerships: the simple limited partnership and the limited by shares. <\/p>\n\n\n\n

Corporation (\u201cSociedad An\u00f3nima\u201d or \u201cSA\u201d):<\/strong><\/strong><\/h4>\n\n\n\n

The corporation is a legal entity, always of a commercial nature. It is made up of a common fund contributed by the shareholders, who are only liable for the amount of their contribution. There is the figure of the Shareholders’ Meeting, who make the decisions of an organic nature, and on the other hand there is the Board of Directors, whose members are essentially revocable, that makes the management decisions of the company. There are Open Stock Companies, that is, their shares are traded on the Stock Exchange, and Closed Stock Companies that have shares that are not traded on the Stock Exchange.<\/p>\n\n\n\n

Banks, insurance companies, and other regulated businesses can only be performed by this type of legal entity.<\/p>\n\n\n\n

Sole Proprietorship (\u201cEmpresa Individual de Responsabilidad Limitada\u201d or \u201cEIRL\u201d):<\/h3>\n\n\n\n