Chile company structures: at a glance

Hawksford

Last updated: 12 December 2025 |

Americas | Chile

Options for registering companies in Chile

The establishment of a foreign business in Chile is primarily governed by the Ley General de Sociedades (General Law of Companies) and is attractive due to its economic stability and investor-friendly environment. The most common structures include the flexible SpA and the traditional SRL.

Chile offers international companies the following legal structures for establishing a local presence:

Simplified shares company (Sociedad por Acciones - SpA)

This is the most popular vehicle for foreign investors due to its flexibility and simple governance.
Can be established with a single shareholder (natural person or legal entity), making it ideal for sole ventures.
Capital is divided into shares (acciones), which can be easily transferred without complex modifications to the company's bylaws.
The administration structure is highly adaptable and can be determined freely in the bylaws (e.g. a single administrator or a board).
Must end its name with the abbreviation "SpA".

Limited liability company (Sociedad de Responsabilidad Limitada - SrL)

This is a traditional entity, requiring a minimum of two partners and a maximum of 50.
Partners' liability is limited to the capital amount they agreed to contribute.
Participation is represented by quotas (cuotas) rather than shares and transferring these quotas requires a formal amendment to the company's bylaws and partner consent.
Governance is more rigid and is determined by the company deed.

Branch office of a foreign company (Agencia or Sucursal)

The branch is a permanent establishment (PE) and an extension of the foreign parent company, lacking separate legal personality.
It is fully permitted to carry out commercial activities and generate revenue in Chile.
The foreign parent company retains full and unlimited liability for all the branch's operations and debts in Chile.
Establishing the branch requires registering and publishing the parent company's documents with the Commercial Register.
Requires the appointment of a local resident agent who holds the power of attorney.

Representative office (Non-operating branch)

This is a non-commercial presence used for market research, promotion, liaison or monitoring activities.
Not a separate legal entity. It is an extension of the foreign company registering a RO and provides a low cost and low risk entry point.
Ideal for exploring Chile’s market while observing local regulatory requirements.
The foreign head office is fully liable for the office's debts and actions.
It must appoint a local legal representative and obtain a Tax ID

To help you choose the right structure, we have created an ‘at a glance’ summary table for the common company types that outlines key differences in formation processes, requirements and timelines. It serves as a valuable resource for foreign companies looking to setup or expand a business in Chile.

Comparison of the common types of companies in Chile

Key information	Simplified shares company (SpA)	Branch	Representative office (non-operating branch)	Limited liability company (SrL)
Commonly used for	All purposes	Specific projects	Marketing and research	SMEs
Minimum capitalisation (US$)	$1	Not applicable	Not applicable	$1
Limited liability	Yes	No	No	Yes
Time to incorporate	Three weeks	Three weeks	Three weeks	Three weeks
Tax rate (CIT)	27%	27%	Not applicable (no revenue generating activities)	27%
Resident management	Yes (legal representative)	Yes (resident agent)	Yes (resident agent)	Yes (resident agent)
Cost indication (US$)	$9,500	$9,500	$9,000	$9,000