Chile, a long, narrow strip of land in South America, has been identified as one of the best countries to start a business. The country is known for its stable economy, low corruption rate, and business-friendly policies, making it a desirable location for entrepreneurs.
If you’re interested in starting a business in Chile, you’ll need to follow the legal process for business registration. In this article, we’ll go over the necessary steps to register a business in Chile.
Table of Contents
Choose a business entity
The first step in starting a business in Chile is to choose the type of entity you want to register. There are several business structures in Chile, including a sole proprietorship, partnership, limited liability company, and corporation. The most common form of business entity for entrepreneurs is the Limited Liability Company (LLC), known as a Sociedad de Responsabilidad Limitada (SRL) in Chile. It is the easiest and most flexible type of company to establish.
Obtain a RUT number
Before registering your business in Chile, you must obtain a RUT number (Rol Único Tributario). This is a unique tax identification number issued by the Chilean Internal Revenue Service (Servicio de Impuestos Internos). You can obtain this number by completing an online application on the SII website or in-person at a local SII office. The process is straightforward, and the RUT number is issued immediately.
Register your business name
Once you’ve chosen your business structure and obtained a RUT number, you’ll need to register your business name with the Chilean Civil Registry. The process involves completing a form and paying a fee. You can check the availability of your business name on the Civil Registry website.
Draft your company’s bylaws
The next step is to draft your company’s bylaws. This document outlines the company’s operating procedures, ownership structure, and management. The bylaws must be drafted in Spanish and comply with Chilean law.
Notarize your company’s bylaws
Once you’ve drafted your company’s bylaws, you’ll need to notarize them. This involves having the document reviewed and stamped by a public notary. Notarization is required for all LLCs in Chile.
File your company’s documents
Once your company’s bylaws have been notarized, you’ll need to file them with the Chilean Civil Registry. You’ll also need to file a certificate of incorporation, which is issued by the Chilean Internal Revenue Service. This certificate verifies that your company is registered for tax purposes.
Register with the Labor Department
If you plan on hiring employees, you’ll need to register with the Chilean Labor Department. You’ll need to provide information about your company, including the number of employees you plan to hire.
Register with the Tax Authority
Finally, you’ll need to register with the Chilean Tax Authority (Servicio de Impuestos Internos). You’ll need to provide information about your company, including your RUT number and the date your company was incorporated.
In conclusion, registering a business in Chile can be a complex process. However, by following the steps outlined in this article, you can ensure that your business is registered correctly and legally. Generis Global can help you with your business in Chile. We can help with all aspects of the legal part of your business journey in this country. Contact us today to learn more.