Company Formation in Chile
OECD member, open market · 3–5 weeks · RUT · No local director required
3-5 weeks
RUT
Not Required
Formation Process
Chile offers one of the most transparent and investor-friendly business registration environments in Latin America. The SpA (Sociedad por Acciones) is the preferred structure for foreign investors — it can be incorporated with a single shareholder, requires no minimum capital, and has streamlined governance. The process involves notarization, Official Gazette publication, and RUT registration with SII.
Formation Steps
- 1
Notarization of articles of incorporation (escritura pública) before a Chilean notary
- 2
Publication of a brief extract in the Diario Oficial (Official Gazette)
- 3
Registration with the Registro de Comercio (Commercial Registry) at the Conservador de Bienes Raíces
- 4
RUT/RUT registration with the SII (Servicio de Impuestos Internos)
- 5
Municipal business license (Patente Municipal) in the operating municipality
Foreign Ownership
Chile allows 100% foreign ownership with virtually no sector restrictions — one of the most open foreign investment frameworks in Latin America. No local director or Chilean shareholder is required. The Foreign Investment Promotion Agency (InvestChile) actively supports international investors. The DL 600 Foreign Investment Statute has been replaced by the Foreign Investment Promotion Agency framework, providing legal stability guarantees.
Local Director: Not Required
Legal Entity Types
SpA (Sociedad por Acciones)
Stock corporation by shares, highly flexible and popular among foreign businesses for its simplicity and operational freedom
SRL (Sociedad de Responsabilidad Limitada)
Limited liability company, suitable for smaller businesses with a defined group of shareholders
SA (Sociedad Anónima)
Public stock corporation, typically used for larger enterprises or companies planning to raise public capital
Accounting & Tax
All entities operating in Chile must register with the SII and obtain a RUT before commencing business. Chile's tax framework is known for being relatively straightforward and business-friendly, with a clear annual settlement cycle.
RUT
The RUT (Rol Único Tributario) is Chile's unique tax identification number, issued by the Servicio de Impuestos Internos (SII). It is required for all tax filings, invoicing, and business operations.
VAT / IVA
Chile's VAT (IVA) is levied at a flat rate of 19% on most goods and services. The rate applies uniformly — there are no multiple rates as in Brazil. Electronic invoicing (DTE — Documento Tributario Electrónico) is mandatory for all commercial transactions and filed through the SII portal.
Corporate Tax
Chile's first-category corporate income tax (Impuesto de Primera Categoría) is levied at 27% for entities under the attributed income regime, or 25% under the semi-integrated regime. A top-up applies when profits are distributed to shareholders. Monthly provisional payments (PPM) are required throughout the year.
Compliance Requirements
Annual Obligations
Annual corporate income tax return (Formulario 22) filed with SII — deadline April 30
Annual shareholders meeting and statutory financial statements
Annual Patente Municipal renewal with the operating municipality
Monthly Obligations
Monthly IVA (VAT) declaration (Formulario 29) filed electronically with SII
Monthly PPM (provisional monthly payment) income tax advance
Monthly DTE (electronic invoicing) for all transactions via SII-authorized systems
Monthly AFP (pension), Fonasa/Isapre (health), and AFC (unemployment) payroll contributions if employing staff
Payroll & Employment
Chile's labor framework is governed by the Código del Trabajo. Chile has a well-developed social security system with mandatory pension (AFP), health (Isapre/Fonasa), and unemployment (AFC) contributions.
Mandatory benefits include minimum 15 days paid vacation (increasing with seniority), Christmas and national holiday bonuses, and legal severance (indemnización por años de servicio)
Monthly AFP (pension fund) contribution: employee ~10%, employer ~0% + SIS (disability/survivor insurance ~1.53%); Fonasa/Isapre health: employee 7%; AFC unemployment: employer 2.4%, employee 0.6%
Previred or similar platform handles monthly AFP/Fonasa/AFC payments; all salary and contribution records must be maintained electronically
NavviPal coordinates payroll processing and Código del Trabajo compliance through vetted Chilean in-country partners. Contact our team before your first hire.
Talk To An ExpertWhy Chile
Chile is Latin America's most stable and transparent economy, consistently ranked first or second in the region for ease of doing business, rule of law, and economic freedom. It is the gateway market for companies seeking a low-risk Latin American entry with a predictable regulatory environment.
19M
Population
~B USD
GDP (2024 est.)
~,000
GDP per Capita
~4.5%
Inflation (2024)
Managing Your Entity with NavviPal
NavviPal's platform tracks your Chilean entity's RUT status, SII filing calendar (Formulario 29), DTE compliance, and annual tax return deadlines in a single dashboard.
Key Authorities
Servicio de Impuestos Internos (SII)
Chile's internal revenue service responsible for tax administration, RUT issuance, and compliance oversight
Local Director Requirement
Chile does not require a local director or legal representative for most corporate structures. Foreign directors and shareholders can manage the entity remotely, though a Chilean registered address is mandatory.
Frequently Asked Questions
How long does company formation take in Chile?
Company formation in Chile typically takes 3-5 weeks. The process includes drafting and notarizing the articles of incorporation (escritura pública), publication in the Diario Oficial (Official Gazette), registration with the Commercial Registry, and RUT registration with the SII (Servicio de Impuestos Internos). Chile has one of the most transparent business registration environments in Latin America.
Do I need a local director or legal representative in Chile?
Chile does not require a local director or legal representative for most corporate structures. Foreign individuals and entities can fully own and manage a Chilean company. A registered local address is mandatory, and appointing a local tax representative is recommended for SII and registry interactions.
Can foreigners own 100% of a company in Chile?
Yes. Chile allows 100% foreign ownership with virtually no restrictions across most sectors—one of the most open investment frameworks in Latin America. No local director or Chilean shareholder is required. InvestChile actively supports international investors. Restrictions are limited to specific areas such as fishing and maritime cabotage.
What does it cost to form a company in Chile?
Company formation in Chile typically ranges from ,000 to ,500 USD for the core process, including notarization, Official Gazette publication, and Commercial Registry registration. Ongoing costs include monthly accounting, VAT filings, and annual tax returns. NavviPal provides transparent, itemized quotes—contact us for your specific scenario.
What is the RUT and why is it needed?
The RUT (Rol Único Tributario) is Chile's unique tax identification number, issued by the SII. It is required for all tax filings, electronic invoicing (DTE), banking, contracts, and commercial transactions in Chile. The RUT is also the company's legal registration number and is assigned upon incorporation.
What are the ongoing compliance obligations in Chile?
Chilean entities must file monthly VAT declarations (Formulario 29) with SII, submit annual corporate income tax returns, maintain accounting records compliant with Chilean GAAP, issue electronic invoices (DTE) for all transactions, and hold annual shareholder meetings with appropriate corporate record-keeping.
What documents are needed to incorporate in Chile?
Core requirements include: notarized articles of incorporation (escritura pública) executed before a Chilean notary, an extract published in the Diario Oficial, registration with the Registro de Comercio, RUT registration with SII, and apostilled copies of foreign shareholder identification documents. A local registered address is required.
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