One way for nonresidents to operate in Chile is by appointing a representative, which is a Chilean resident individual or entity that acts on behalf of the nonresident principal under a contract. The representative carries out business transactions on behalf of the principal.
If you operate as such for more than 183 days in a row, if decided to distribute dividends, you are going to be liable to pay a tax of 35%, regardless if it is or is not distributed to the mother company.
In Chile, there are several types of companies that can be established, each with their own legal and financial structure. Some of the most common types of companies include:
Corporation (Sociedad Anónima): This is a type of company that is owned by shareholders and is managed by a board of directors. It is a separate legal entity from its shareholders and is liable for its own debts.
Limited Liability Company (Sociedad Limitada): This type of company is owned by one or more individuals and is not publicly traded. It is a separate legal entity from its shareholders and is liable for its own debts.
Individual Limited Liability Enterprise (Empresa Individual de Responsabilidad Limitada): This type of company is owned by a single individual and is not publicly traded. It is a separate legal entity from its owner and is liable for its own debts.
General Partnership (Sociedad en Comandita Simple): This type of company is owned by two or more individuals and is not a separate legal entity from its owners. The partners are jointly and severally liable for the company's debts.
Limited Partnership (Sociedad en Comandita por Acciones): This type of company is owned by one or more general partners and one or more limited partners. The general partners are jointly and severally liable for the company's debts, while the limited partners have limited liability.
Branch Office (Sucursal): This type of company is a foreign company that establishes a presence in Chile. It is not a separate legal entity from its parent company and is not liable for its own debts.
Representative Office (Oficina de Representación): This type of company is a foreign company that establishes a presence in Chile. It is not a separate legal entity from its parent company and is not liable for its own debts.
Overview of most common ways to run a business in Chile
appointing a representative
registering an agency or branch
incorporating a Company Limited by Shares (SpA) - Recommended
forming a partnership or corporation (SRL or SA)
creating an individual limited liability company
or using a general or limited partnership
Company Limited by Shares or Sociedad por Acciones (SpA) is the most popular company type for investors:
No minimum capital requiered
flexibility in management
scalability capabilities
possibility of incorporating with a sole shareholder,
Pre made shelf companies available for sale with a ready bank account
NSS has premium Chilean Shelf Made Companies services, and we can make a reservation for your pre-made company in Chile.
NSS Shelf Company service is safe and fast, allowing for express processing times
Entity Type: Company Limited by Shares (recommended)
Standard Bylaws for any industry operation
Minimum Capital of USD 100
Fully registered at the Commercial Registry
1 year of lease of Tax Address in our office
No activity since the incorporation
We obtain the investor Tax ID of the Client/shareholders
PoA drafting is also included
Bylaws are modified for clients to choose the company name
Tax ID
Electronic Invoicing System
Operational USD/CLP Bank Account
No liabilities
Up-to-date corporate records
NSS shall receive prior to the Share Purchase a KYC form of the client with the information of the Parent company and it's UBOs Passport copies.
Let us know if you have any further questions and if you want to schedule a meeting.
Buy a pre-made company with the NSS® guarantee