Administrative formalities that must be met before operations in Chile begin

In Chile, the process of initiation of activities (Inicio de Actividades) refers to the registration of a new business with the Servicio de Impuestos Internos (SII), which is the country's tax authority.

This process is a crucial step for any individual or legal entity planning to conduct business activities in Chile since it enables the business to obtain a tax identification number (RUT), issue invoices, and fulfill other tax obligations.

Here's an overview of the process of initiation of activities in front of the SII in Chile:

1. Obtain a RUT (Rol Único Tributario): Before initiating activities, every individual or legal entity needs to obtain a tax identification number (RUT). For foreign individuals or legal entities, they should first obtain a RUT for non-residents. You can request a RUT by filling out the appropriate form (Formulario 4415) and submitting it to the SII, either in person or online.

2. Register the business: Once you have the RUT, the next step is to register the business with the SII. To do this, you need to fill out the "Inicio de Actividades" form (Formulario 4416) and submit it either in person or through the SII's online portal. This form requires information about the business, such as its name, legal structure, address, and the economic activities it will undertake.

3. Choose a tax regime: As part of the initiation of activities, businesses must choose a tax regime that suits their needs and complies with Chilean tax law. The two primary tax regimes in Chile are the Simplified Regime for Small Businesses (Régimen Pro Pyme) and the General Regime (Régimen General). Each regime has specific requirements and tax rates, so it's essential to carefully analyze which one is more appropriate for your business.

4. Receive confirmation from the SII: After submitting the initiation of activities form and selecting a tax regime, the SII will review the application. If everything is in order, the SII will provide a confirmation indicating that the business has successfully completed the initiation of activities process. This confirmation allows the business to start operating, issue invoices, and fulfill tax obligations.

5. Obtain additional permits and licenses: Depending on the nature of the business and its activities, you may need to obtain additional permits and licenses from other government agencies, such as the municipality, health department, or labor authorities. Make sure to research the specific requirements for your industry and comply with all necessary regulations.

In summary, the process of initiation of activities in Chile involves obtaining a RUT, registering the business with the SII, choosing a tax regime, and receiving confirmation from the SII. Additionally, you may need to obtain other permits and licenses, depending on the business's activities.