If you are reading this, maybe is because you have heard that Chile is a thriving market for startups and in general for entrepreneurs to launch their projects. This is mainly because of the focus putted by the formers and actual administration in fomenting the creation of a entrepreneurial ecosystem. Also is due to a steady country economy, which could be explained by a number of factors that are not the issue of this post.

So, starting from the general aspects, what you need to know is the following:

In 2013 the new system for incorporation in Chile was approved, making all the process faster and cheaper. Companies can opt to incorporate through the new system or the old one. This is something that you will need to see personally with your Lawyer, especially if you are thinking to inject capital in a later moment as third parties investment.

Also in 2014, the congress pass a reform for the Tax System in Chile, several changes occurred, but the main aspect to have in mind at an early stage is the amount of the Corporate Tax (Impuesto de Primera Categoría). For 2015 it goes up to 22,5% over the total profit of the Company, growing to 24% in 2016 and to 25% in 2017. The tax for the personal incomes for foreigners who take revenues out from a Chilean Company (for example, the payment of dividends) goes up to 35% with a tax credit of a part of the Corporate Tax.

Now going down to the specific requisites for incorporating in Chile (even as a foreigner), you will need:

• A tax domicile located in Chile, and a lease contract or other authorization to use that address as the domicile for the company.
• An appointed representative that must be Chilean, or if foreigner, it must be a Temporary or Permanent Resident.

Also is recommendable to hire the services of a Lawyer and an Accountant to advise you and walk you to the process of incorporating.

Santiago Henriquez C., Lawyer.

Picture: Ales Krivec (CC0)