Set up a company in Chile.
South America’s most stable economy and the only OECD member in the region with Mexico and Colombia. First Category Tax 27% general rate; 12.5% for Pro-PYME SMEs through 2027. The world’s #1 copper and #2 lithium producer. Around 30 free trade agreements covering 65+ countries — one of the broadest networks anywhere. Same-day digital incorporation via Empresa en un Día.
The standard structure for foreign investors is a Sociedad por Acciones (SpA) — the flexible share-based vehicle introduced in 2007 that has become the dominant form for new investment. Single shareholder permitted, flexible governance, lighter formalities than an S.A. Larger operations or businesses targeting capital markets use a Sociedad Anónima (S.A.) in Abierta (open/listed) or Cerrada (closed) form. The traditional Sociedad de Responsabilidad Limitada (Ltda.) still exists but has lost ground to the SpA.
You draft the bylaws (estatutos), execute them before a Chilean notary, register with the Conservador de Bienes Raíces Commercial Registry, publish a notice in the Diario Oficial, obtain the RUT (corporate tax ID) from the Servicio de Impuestos Internos (SII) and file the Inicio de Actividades declaration. For most SpA and EIRL setups the entire process runs through the Empresa en un Día digital platform in 1 working day, with bank account opening and full operational readiness in 3 to 6 weeks.
Grant & Graham coordinates Chilean formations through our São Paulo office (our LatAm regional hub, opened 2026) working with senior Santiago counsel — structure selection, Empresa en un Día filing or full notarial route, RUT and SII registration, banking, foreign capital registration with the Banco Central, and ongoing tax and statutory work.
27% FCT general · 12.5% SME. Reform package proposing further reductions to 23% by 2029.
Chilean corporate taxation operates a semi-integrated system. The First Category Tax (FCT) — Impuesto de Primera Categoría or IDPC — sits at 27% for the general regime and 12.5% for Pro-PYME SMEs (Law 21.735 transitory reduction for FY 2025–2027, rising to 15% from 2028). FCT paid at the company level is partially creditable against shareholder-level taxes (Global Complementario for residents, 35% Adicional for non-residents). The Kast government’s Reforma Tributaria para la Reconstrucción Nacional, submitted to Congress on 22 April 2026, proposes a gradual reduction of the FCT general rate from 27% to 23% by 2029, plus full reintegration of the tax system by 2031, a 2% creditable Development Tax, and a 15% employment tax credit. The reform is in legislative debate, not yet law. IVA (VAT) sits at 19%.
Other notable items: Personal income tax (Global Complementario) progressive 0–40%. Branch tax: 27% FCT + 35% Adicional on remittances (FCT credit applies). Mining royalty (in force from 2024 under Law 21.591): ad valorem component (1% on copper sales above 50k MTFM annual) + margin component (8–26% based on operating margin). Stamp tax on financial transactions. Annual business licence fee (patente municipal) calculated on company capital. Real estate tax + surtax on properties valued above USD 500,000. 35+ double taxation treaties.
Nine reasons businesses choose Chile.
South America’s OECD member, highest GDP per capita in the region, lowest corruption ranking, and one of the most extensive free trade agreement networks of any country. World leader in copper (#1) and lithium (#2). Stable currency, free capital flows, IFRS reporting. The most credible regional headquarters in South America for groups serving the Pacific Alliance or wider hemisphere.
OECD member, regional anchor
One of only three OECD members in Latin America (with Mexico and Colombia). The most credible institutional environment in South America. Highest GDP per capita on the continent. Lowest corruption perception ranking in the region (Transparency International). Independent central bank, strong rule of law, IFRS reporting. The premium for institutional stability is real.
#1 global copper producer
Chile produces around 25% of global copper output, the largest single source globally. Codelco (state) is the world’s largest copper producer; BHP’s Escondida is the largest single mine. Antofagasta plc, Anglo American, Glencore all major operators. Central to the global energy transition — copper demand is set to double by 2050 driven by electrification and renewables.
#2 global lithium producer
Chile sits on the Salar de Atacama, one of the world’s richest lithium brine deposits. SQM and Albemarle are the dominant producers. Under the 2024 Codelco-SQM lithium partnership, future expansion is structured as a public-private framework. Critical for the EV supply chain and the EU/US critical minerals strategies. A genuine 21st-century strategic resource position.
Around 30 FTAs — broadest in the region
Free trade agreements covering ~65 countries representing the vast majority of global GDP. Includes: US, EU, UK, China, India, Japan, South Korea, Mexico, Canada, Brazil, Pacific Alliance, CPTPP. Chilean operations gain preferential market access to almost every major economy — the most extensive FTA network of any LatAm country, and one of the broadest globally.
Empresa en un Día
Same-day digital incorporation platform launched 2013 and continuously expanded. Most SpA and EIRL setups can now be filed online in a single working day, with the SII registration and RUT issuance integrated. Has made Chile one of the fastest places in Latin America to establish a legal entity. Full operational readiness (including banking) typically 3 to 6 weeks.
Pacific Alliance gateway
Founding member of the Pacific Alliance with Mexico, Peru, and Colombia — a deep integration framework covering ~225m people and ~38% of LatAm GDP. Free movement of goods, services, capital, people. Joint trade missions, regulatory harmonisation, shared stock exchange MILA. The most successful regional integration in Latin America, and a natural base for any Pacific-facing LatAm operation.
Agribusiness, salmon & wine
Top-2 global salmon producer (after Norway). Top-5 wine exporter globally. Major fruit exporter (table grapes, blueberries, cherries, apples). Counter-seasonal advantage for Northern Hemisphere markets. Strong forestry (cellulose, pulp). Increasing focus on premium agribusiness exports to Asia under the various Asian FTAs. Highly developed cold-chain logistics and export infrastructure.
Stable currency & free FX
The Chilean Peso (CLP) operates a floating exchange rate with a credible independent Banco Central. Free convertibility, free capital flows, free profit repatriation (subject to standard FX reporting above USD 10k thresholds). Most stable currency regime in Latin America. Repatriation friction is materially lower than in Argentina or Brazil.
Pro-investment reform momentum
The Kast government, in office from 2026, submitted the Reforma Tributaria para la Reconstrucción on 22 April 2026 — targeting gradual FCT reduction to 23%, full tax-system reintegration by 2031, employment tax credits and a creditable Development Tax for innovation investment. Subject to congressional passage, this reset the investment climate toward OECD-comparable competitiveness.
Six legal structures — one usually fits.
For most foreign investors, the SpA (Sociedad por Acciones) is the practical default — flexible, fast, lower-cost, single shareholder permitted. The S.A. is required for larger structures, capital markets access, and regulated activities. The Ltda. still exists but has lost ground to the SpA. Branches and rep offices have specific narrow use cases.
Sociedad por Acciones
The most common structure for foreign-invested operating companies and the modern default since its introduction in 2007 (Law 20.190). Single shareholder permitted. Flexible bylaws including custom share classes, governance, and exit terms. Light formalities — most setups via Empresa en un Día in 1 working day. Hybrid LLC/Corp characteristics. Suited to most commercial, services, manufacturing, and trading operations.
Sociedad Anónima
Traditional corporation under Law 18.046. Required for businesses seeking listing on the Santiago Stock Exchange (Bolsa de Santiago), public securities offerings, and many regulated activities (banking, insurance, pension funds). Mandatory Board of Directors, statutory audit requirements, stricter governance. S.A. Cerrada for private operations; S.A. Abierta for listed entities.
Sociedad de Responsabilidad Limitada
Traditional Chilean LLC structure under Law 3.918. Between 2 and 50 partners. Partner consent required to transfer interests — less flexible than the SpA. Has lost considerable ground to the SpA since 2007, particularly for foreign-invested operations. Still used by family-owned and partnership-style businesses, and where the partner-restriction is structurally desirable.
Empresa Individual de Responsabilidad Limitada
Single-individual limited-liability vehicle under Law 19.857. Owner must be a Chilean resident individual (not a company), which limits its utility for foreign corporate investors. Largely superseded by the single-shareholder SpA for new foreign-invested setups. Still used by Chilean resident entrepreneurs and certain founder vehicles.
Branch (Agencia)
Foreign company conducting business in Chile through a branch. Requires registration with the Conservador de Bienes Raíces and the SII. Taxed at the standard 27% FCT on Chilean-source income, plus 35% Adicional on remittances (with FCT credit). Used where parent-level booking is structurally necessary — for most foreign investors, an SpA subsidiary is preferable.
Representative Office
Foreign company representation only. Limited to liaison, market research, and promotional activities. Cannot generate revenue or sign binding commercial contracts. Lower setup cost. Used by groups exploring the Chilean market before committing to a full subsidiary. Less common than in some other markets — most groups proceed directly to an SpA, which is itself fast and inexpensive to establish.
Fondo de Inversión Privado
Private investment fund structure under Law 20.712, used for venture capital, private equity, real estate, and structured investment vehicles. Tax-neutral at fund level (look-through to investors). Regulated by the CMF (Comisión para el Mercado Financiero). Common for foreign PE and infrastructure investors deploying capital into Chilean assets and the wider Pacific Alliance.
Talk to us first
SpA for most operating companies (the modern default since 2007). S.A. for listed entities or regulated sectors. Ltda. for partnership-style businesses. EIRL only where the owner is a Chilean resident individual. Branch where parent-level booking is structurally necessary. FIP for investment fund structures.
Book a call →From decision to live entity.
The end-to-end registration sequence for a Chilean SpA in Santiago, coordinated through our São Paulo office and senior local counsel. Standard timeline 3 to 6 weeks end-to-end — Chile is one of the faster LatAm formation jurisdictions thanks to the Empresa en un Día digital platform, with banking and full operational readiness being the long pole.
Structure & route decision
SpA (default), S.A., Ltda., EIRL, branch. Empresa en un Día digital route for standard SpA and EIRL setups (1 working day for the entity), or full notarial route for S.A., complex SpA bylaws, or where customised governance is needed (1–2 weeks). Sector check against Chilean foreign investment restrictions (limited — mostly historic in coastal shipping, broadcasting, and certain mining/security activities).
RUT for foreign shareholders & representative
Every foreign shareholder (corporate or individual) requires a RUT (Rol Único Tributario) issued by the SII. Foreign corporate shareholders require apostilled and translated documents. Where the directors are non-resident, a Chilean-resident legal representative (representante legal) is required with notarised Power of Attorney. Grant & Graham arranges both through senior Santiago counsel.
Bylaws drafting (estatutos)
Draft the bylaws (estatutos) in Spanish defining corporate purpose (giro), share structure, governance, registered office, fiscal year, dividend policy. For SpAs, custom share classes, governance terms and exit provisions can be embedded directly. Foreign shareholder and director documents must be apostilled in country of origin and officially translated.
Empresa en un Día OR notarial route
Empresa en un Día: file standard SpA/EIRL bylaws online via tuempresaenundia.cl — entity created same day, RUT integrated. Notarial route: bylaws executed before a Chilean notary, recorded with the Conservador de Bienes Raíces Commercial Registry, published in the Diario Oficial — 1 to 2 weeks. The notarial route is required for S.A., complex SpA bylaws, and structures with custom share classes.
Empresa en un Día →SII registration & Inicio de Actividades
Register with the Servicio de Impuestos Internos (SII) by filing the Inicio de Actividades declaration. Confirm corporate RUT. Elect the applicable tax regime (general 14 A, Pro-PYME 14 D N°3, transparency 14 D N°8). Register sectoral activity codes. Issue authorisation of electronic invoicing — mandatory for virtually all Chilean taxpayers under SII’s mature e-invoicing system.
SII →Foreign capital registration (Banco Central)
Foreign capital inflows above USD 10,000 must be reported to the Banco Central de Chile. While Chile’s FX regime is one of the most liberal in Latin America — no formal investment approval requirement — the reporting obligation ensures the capital is "registered" for repatriation purposes. Critical for clean dividend remittance and capital return downstream.
Bank account opening
Open the corporate bank account at a Chilean bank (Banco de Chile, Banco Santander Chile, Banco Estado, BCI, Itau Chile, Scotiabank Chile, HSBC Chile). KYC including beneficial ownership disclosure, foreign shareholder documents (apostilled and translated), corporate RUT, bylaws. CLP operating account; USD account commonly opened in parallel. Bank account opening is typically the longest single step (2 to 4 weeks).
Municipal patente & sectoral licences
Apply for the patente municipal (municipal business licence) from the comuna where the company is domiciled. Fee calculated on company capital. Required to operate legally. Sector-specific licensing as applicable (financial services via CMF, mining via SERNAGEOMIN, telecoms via SUBTEL, food/health via SEREMI de Salud).
Social security & labour registrations
Register with the social security system: AFP (pension fund) elections for employees, ISAPRE or FONASA (health), Mutual de Seguridad (workplace accident insurance). Comply with Dirección del Trabajo labour code requirements. Employer social charges total around 26–30% of gross salary. Strict compliance with Chilean labour code; collective bargaining provisions where relevant.
Ongoing tax, statutory & compliance
Monthly IVA returns by 12th of the following month. Monthly PPMs (provisional payments on account of FCT). Mandatory electronic invoicing for all transactions. Annual FCT return (Form 22) by end of April. Foreign capital and FX reporting to Banco Central as applicable. Transfer pricing for cross-border related-party transactions. Pillar 2 monitoring for in-scope multinationals.
What it costs to incorporate & run.
All figures are indicative for a standard SpA in Santiago with one foreign corporate shareholder, using the Empresa en un Día digital route. Chile is one of the more cost-efficient LatAm formation jurisdictions — materially cheaper than Brazil, faster than Argentina, simpler than Colombia. S.A. structures cost more due to additional governance and audit requirements. Notarial-route SpAs add notary and Conservador fees.
One-time setup
EIRL comparable to SpA (single owner only). S.A. typically €6,500–11,000 (higher governance and statutory audit). Notarial-route SpA (custom bylaws): add €800–1,500 for notary and Conservador fees. FIP fund structures: separate scoping required.
Ongoing monthly / annual
Statutory audit mandatory for S.A. Abierta (listed), large companies above asset/revenue thresholds, regulated entities. Transfer pricing documentation mandatory for cross-border related-party transactions above thresholds. Mining royalty compliance for mining operators. Pillar 2 QDMTT monitoring for in-scope multinationals.
Get an estimate in 30 seconds.
Three quick questions. We will give you a realistic cost range and timeline for your situation, and route the answers straight into a fixed-price quote request from our São Paulo office.
Which company structure are you considering?
How is the shareholding structured?
What do you need from us?
The legal framework to know.
A summary of the core legislation governing companies in Chile. Substantive work delivered through Grant & Graham’s São Paulo office and senior Santiago legal, tax and accounting counsel.
Corporate Law
- Código de Comercio (Commercial Code)
- SpA Law Ley 20.190 (2007)
- S.A. Law Ley 18.046
- Ltda. Law Ley 3.918; EIRL Ley 19.857
Tax Law
- Ley sobre Impuesto a la Renta (LIR) DL 824
- Ley del IVA DL 825
- SME transitory reduction Ley 21.735 (2024)
- Mining royalty Ley 21.591 (2024)
Labour Law
- Código del Trabajo (Labour Code)
- Labour Reform Ley 21.561 (40-hour week)
- Dirección del Trabajo (labour inspectorate)
- AFP & ISAPRE / FONASA social security
Data Protection
- Personal Data Protection Law Ley 19.628
- Comprehensive 2024 reform Ley 21.719
- New Data Protection Agency (transition)
- GDPR-aligned framework post-reform
Foreign Investment & FX
- Foreign Investment Framework Ley 20.848 (2015)
- InvestChile (FDI promotion agency)
- Banco Central FX framework
- Pacific Alliance, CPTPP, 30+ FTAs
Intellectual Property
- Industrial Property Law Ley 19.039
- Copyright Law Ley 17.336
- INAPI (Instituto Nacional de Propiedad Industrial)
- WIPO Madrid Protocol member
Chile, answered.
Four steps from enquiry to live entity.
Discovery call
30-minute conversation to understand your business, sector, region preference (Santiago default, Valparaíso for shipping/logistics, Antofagasta for mining/lithium), SpA vs S.A. vs Ltda., Pacific Alliance / FTA positioning. Honest assessment of fit.
Recommendation
Senior advisory on the right structure, route (Empresa en un Día vs notarial), registered capital, resident representative arrangements, banking partner, tax regime election (general 14 A / Pro-PYME 14 D N°3 / transparency 14 D N°8). Fixed quote in EUR or USD.
End-to-end formation
Bylaws, Empresa en un Día or notarial filing, SII Inicio de Actividades, Banco Central FX registration, banking, municipal patente, sector licensing. São Paulo-coordinated, executed through senior Santiago counsel.
Ongoing support
Retained accounting, monthly IVA returns, PPMs, electronic invoicing, payroll/AFP/ISAPRE, annual FCT Form 22, statutory audit if applicable, transfer pricing, Pillar 2 monitoring, mining-royalty compliance if applicable.
Ready to incorporate in Chile?
Tell us in 25 minutes what you need. We will tell you honestly whether Chile is the right fit, which structure makes sense (SpA, S.A., Ltda., EIRL, branch), whether Empresa en un Día or the notarial route is right, and how the Kast tax reform package affects your situation — then handle the setup end-to-end through our São Paulo office and senior Santiago counsel.