Steps to Establish a Company in Chile

Setting up a company in Chile requires completing a series of legal and administrative procedures. Below is a step-by-step guide to successfully incorporating your business.

1. Choose the Type of Company

The first step is to determine which business structure best suits your needs. The most common types in Chile are:

• Sociedad por Acciones (SpA): Ideal for startups and businesses with a single shareholder or the potential to add investors.
• Sociedad de Responsabilidad Limitada (SRL or LTDA): Suitable for small and medium-sized enterprises (SMEs) with up to 50 partners.
• Sociedad Anónima (SA): Recommended for large companies seeking to raise capital through the issuance of shares.
• Empresa Individual de Responsabilidad Limitada (EIRL): Designed for sole proprietors who want to operate a business with limited liability.

2. Draft and Sign the Articles of Incorporation

The company’s incorporation document must include key details such as:
✔ Company name.
✔ Business purpose.
✔ Information on partners or shareholders.
✔ Amount and distribution of capital contributions.
✔ Administration and legal representation.
✔ Internal operational rules.

✅ This can be done via Public Deed before a Notary or through the Empresa en un Día online system (a faster and simpler option).

3. Register the Company with the Business Registry (RES)

📌 The company must be registered with the Registro de Empresas y Sociedades (RES) under the Ministry of Economy.

• Using Empresa en un Día: The process is completed online, automatically generating a provisional tax ID (RUT) for the company.
• Using a public deed: The document must be registered with the Conservador de Bienes Raíces before submission to the RES.

4. Obtain the Tax ID (RUT) and Declare Business Start with the SII

✔ Register the company with the Servicio de Impuestos Internos (SII) to obtain a Rol Único Tributario (RUT) (tax ID).
✔ Declare the Start of Business Activities within two months of incorporation.

5. Obtain a Municipal Business License and Specific Permits

To legally operate, the company must obtain a Municipal Business License (Patente Municipal) in the district where it will operate. Additional permits may be required depending on the industry (e.g., health, environmental, financial).

6. Register for Electronic Invoicing

The company must register with the SII’s Electronic Invoicing System to issue legal invoices and receipts.

7. Comply with Labor and Social Security Obligations

If the company plans to hire employees, it must:
✔ Register with the Labor Directorate (Dirección del Trabajo).
✔ Enroll workers in social security, pension funds (AFP), and health insurance.
✔ Comply with labor law regulations.

Need Legal Assistance for Business Formation?

At MTH Abogados, we provide expert guidance throughout the incorporation, registration, and launch process to ensure your business starts successfully and complies with legal requirements.

📩 Contact us today for a personalized consultation!