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
Information verified against Registrar of companies and corporations, Chile